Any company that starts to do business in foreign markets goes through a process,
which is triggered by proactive and/or reactive factors. This process starts generally by
finding and selecting a target market, decisions which frequently are made on the basis
of marketing research. An important part of the research is to locate the market entry
barriers, when entering in the foreign market. With this information the company has to
develop a strategy to enter the market. Within the strategy formulation the company also
has to choose an appropriate mode of entry. There are several different market entry
modes and no one is the correct one, since they all have advantages as well as
disadvantages. They are, however, more or less suitable depending on the company, its
resources, its products etc. (Czinkota, 1993, p. 329-331, Johansson, 1997, p. 208 ff,
Taylor, C. 2000).
However, a company’s internationalization process does not stop here. As the company
gains experience from its current activities, it may want to make additional investments
in the market, due to factors that could be described as internal or external. These
factors could also motivate a change of entry mode. Extreme views even say that once
the internationalization process has started, it will tend to proceed regardless of whether
strategic decisions are made in that direction or not (Randoy, T. 2002, Wheeler, 1996).
Although a lot of theory has been written on internationalization and on the choice of
entry mode, there is little to be found on the internationalization process and particularly
on the changing of entry mode.
To realize that the company could find itself in such a situation, where they need to
develop in the foreign market, can be difficult. The fact that the strategy and in that also
the entry mode chosen needs to be changed can be hard for a company to grasp, because
change is always connected with a high degree of uncertanity. Research has shown
(Randoy, T. 2002, Wheeler, 1996) that companies have found themselves in situations
where their strategies and entry modes needed to be changed and, more importantly,
research (Randoy, T. 2002, Wheeler, 1996) has shown that companies has managed to change entry modes. However, what the research lack is more indepth analysis of the
process of changing entry mode. For reasons indicated above, a company in the relevant
situation may need some help, some recommendations, which could make the change
process less uncertain. [...]
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 1.1 Background and Problem discussion
- 1.2 Problem formulation
- 1.3 Purpose
- 1.4 Limitations
- 2 Theory Framework
- 2.1 Introduction
- 2.2 Current Phase
- 2.2.1 Internationalization
- 2.2.2 Market Entry Strategy
- 2.2.3 Market Entry Modes
- 2.2.4 Porter's Five Forces - Model
- 2.3 Next Phase
- 2.3.1 Change factors
- 2.3.2 Market entry strategy change
- 2.4 Adjustments
- 3 Methodology
- 3.1 Research Journey
- 3.2 Research Method
- 3.2.1 Qualitative versus Quantitative Methods
- 3.3 Access
- 3.4 Data Collection
- 3.5 Scientific Credibility
- 3.5.1 Validity
- 3.5.2 Reliability
- 4 Empirical Data
- 4.1 The Micropower case
- 4.2 Results from another study
- 5 Analysis
- 5.1 Introduction
- 5.2 Current Phase
- 5.2.1 Internationalization
- 5.2.2 Market Entry Strategy
- 5.2.3 Market Entry Mode - Exporting
- 5.2.4 Porter's Five Forces - Model
- 5.3 Next Phase
- 5.3.1 Change factors
- 5.3.2 Market Entry Strategy Change
- 5.4 Adjustments
- 6 Conclusions
- 7 Recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this case study is to investigate the process of changing market entry modes within a small, technology-based company operating internationally. It aims to identify the internal and external factors that trigger this change process and understand its characteristics.
- Internationalization processes in small technology companies
- Market entry mode selection and change
- Factors influencing entry mode shifts (internal and external)
- The challenges and uncertainties associated with changing entry modes
- Case study analysis of Micropower's internationalization strategy
Zusammenfassung der Kapitel (Chapter Summaries)
1 Introduction: This chapter introduces the complexities of internationalization for businesses, focusing on the selection and subsequent changes of market entry modes. It highlights the lack of research on the process of changing entry modes, specifically emphasizing the uncertainties involved. The chapter uses the case of Micropower, a Swedish company exporting battery chargers, to illustrate the problem. Micropower's successful yet limiting agent/distributor system in 16 countries is presented, with a particular focus on the German market where direct customer demand challenges their current strategy. The problem formulation centers on characterizing the process of changing an entry mode for small technology companies, examining both internal and external trigger factors. The purpose is defined as exploring these characteristics within the Micropower context.
2 Theory Framework: This chapter lays the theoretical groundwork for understanding market entry strategies and their evolution. It likely explores various theoretical frameworks relevant to internationalization, market entry modes, and strategic changes within dynamic environments. The section likely includes a discussion of factors that may influence the company's decisions, such as competitive pressures and market opportunities. This section prepares the reader to understand the analytical lens through which the case study's findings will be interpreted.
3 Methodology: This chapter outlines the research design and methods used in the case study. It describes the qualitative and potentially quantitative approaches used to gather data from and about Micropower. Specific details on the data collection methods and the measures employed to ensure validity and reliability of the research are likely discussed.
4 Empirical Data: This chapter presents the empirical findings from the Micropower case study, focusing on the specific details relevant to the company's experience. Data related to the current and past strategies employed by Micropower, as well as its challenges, are presented. The chapter likely includes an analysis of relevant data from Micropower's operations in the international market, especially focusing on the German market.
5 Analysis: This chapter analyzes the empirical data presented in Chapter 4, relating it to the theoretical framework established in Chapter 2. It likely examines Micropower's market entry strategy, internationalization process and experiences. A detailed analysis of Micropower's decision-making and the contextual factors influencing their choices is expected.
Schlüsselwörter (Keywords)
International marketing strategy, market entry modes, internationalization, small technology-based companies, case study, Micropower, change management, export strategy, agent/distributor networks, competitive advantage, Germany.
Frequently Asked Questions: Comprehensive Language Preview
What is the main topic of this document?
This document is a comprehensive preview of a case study investigating the process of changing market entry modes within a small, technology-based company operating internationally. The study focuses on a Swedish company, Micropower, and its experience with exporting battery chargers, particularly within the German market.
What are the key themes explored in the case study?
The key themes include internationalization processes in small technology companies, market entry mode selection and change, factors influencing entry mode shifts (both internal and external), challenges and uncertainties associated with changing entry modes, and a case study analysis of Micropower's internationalization strategy.
What is the objective of the case study?
The objective is to investigate the process of changing market entry modes within a small, technology-based company operating internationally. It aims to identify the internal and external factors that trigger this change process and understand its characteristics.
What is the structure of the document?
The document provides a table of contents, objectives and key themes, chapter summaries, and keywords. It is structured into chapters covering: Introduction, Theory Framework, Methodology, Empirical Data, Analysis, Conclusions, and Recommendations.
What is the methodology used in the case study?
The methodology section details the research design and methods, describing the qualitative and potentially quantitative approaches used to gather data from and about Micropower. It also covers data collection methods and measures ensuring the validity and reliability of the research.
What is the Micropower case study about?
The Micropower case study examines a Swedish company exporting battery chargers. It focuses on their successful yet limiting agent/distributor system in 16 countries, and the challenges presented by direct customer demand in the German market, prompting a potential shift in their market entry strategy.
What are the key findings or results of the case study (as summarized)?
The chapter summaries outline the introduction of the complexities of internationalization for businesses focusing on the selection and subsequent changes of market entry modes. The theory framework section likely explores relevant frameworks for internationalization, market entry modes, and strategic changes. The empirical data chapter presents findings from the Micropower case study, including data on current and past strategies and challenges. The analysis chapter relates the empirical data to the theoretical framework.
What are the main chapters and what do they cover?
The main chapters cover: * **Introduction:** Background, problem discussion, problem formulation, purpose, and limitations. * **Theory Framework:** Relevant theories on market entry strategies and their evolution. * **Methodology:** Research design, methods, data collection, and validity/reliability. * **Empirical Data:** Findings from the Micropower case study. * **Analysis:** Interpretation of data based on the theoretical framework. * **Conclusions:** Summary of findings and conclusions. * **Recommendations:** Suggestions based on the analysis.
What are the keywords associated with this case study?
Keywords include: international marketing strategy, market entry modes, internationalization, small technology-based companies, case study, Micropower, change management, export strategy, agent/distributor networks, competitive advantage, Germany.
- Quote paper
- Judith Plante (Author), Karl Nordhill (Author), 2002, Beyond the Choice of Entry Mode - A case study of Micropower, Munich, GRIN Verlag, https://www.grin.com/document/8665
