International diversification of a small Finnish firm : Case: Company X
Rahikka, Jarkko (2016)
Rahikka, Jarkko
Haaga-Helia ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016100314769
https://urn.fi/URN:NBN:fi:amk-2016100314769
Tiivistelmä
The objective of the study is to give the sponsor company a suggestion for a possible target market to enter with the given new product lines. One intention is to give information of how to use its existing resources as a base for new businesses abroad and another goal is to give information about a possible business model with some generic information about the global markets and the directions of the future of the global economies.
The theoretical framework was based mainly on the resource based view and the work of Wernerfelt, Barney and Clark. The dynamic capabilities were also discussed, mainly based on writings from Teece, Helfat and Peteraf. According to the authors, it can be useful for a company to look for new businesses not only by analyzing the environment, as is the tarditional way, but also by taking a deeper look at the company resources and to use those resources as a base for the business strategy. According to Barney, the VRIO-framework can be used to analyze if the resources managed by a firm can be source of sustained competitive advantage.
The study was executed as a desk study, based on information gathered from databases of World Bank and Transparency International combined with information provided by the case company. The country data from the different sources was combined into one table and analyzed through different attributes which were chosen by the resources available for the sponsor company. The analytical approach was mainly qualitative and a combination of the elements from the resource based view and the traditional SCP-model was used to choose a target market.
As a result, six possible target countries were found, which would suite the goals of the sponsor company in the beginning: Sweden, Germany, Netherlands, Austria, Switzerland and Denmark. The results also suggest, that it is possible to build a new business based on the resources of a company, but it is also important to recognize which resources are lacked and how to get access to those resources. A business model was introduced for further use.
In conclusion I would say that a small Finnish company has many possibilities for doing business abroad by using available resources and the best way to get access to needed resources that it doesn't have is by networking and cooperating with other firms. Also, a company must be able to change its strategy very fast, and one of the most valuable resources in the fast changing world is the ability to look for new possibilities and to make quick decisions as suggested in the discussion about the dynamic capabilities. In a constantly changing environment firms must be able to develop new valuable resources by using their old ones, and they have to be able to change their direction very quickly.
The theoretical framework was based mainly on the resource based view and the work of Wernerfelt, Barney and Clark. The dynamic capabilities were also discussed, mainly based on writings from Teece, Helfat and Peteraf. According to the authors, it can be useful for a company to look for new businesses not only by analyzing the environment, as is the tarditional way, but also by taking a deeper look at the company resources and to use those resources as a base for the business strategy. According to Barney, the VRIO-framework can be used to analyze if the resources managed by a firm can be source of sustained competitive advantage.
The study was executed as a desk study, based on information gathered from databases of World Bank and Transparency International combined with information provided by the case company. The country data from the different sources was combined into one table and analyzed through different attributes which were chosen by the resources available for the sponsor company. The analytical approach was mainly qualitative and a combination of the elements from the resource based view and the traditional SCP-model was used to choose a target market.
As a result, six possible target countries were found, which would suite the goals of the sponsor company in the beginning: Sweden, Germany, Netherlands, Austria, Switzerland and Denmark. The results also suggest, that it is possible to build a new business based on the resources of a company, but it is also important to recognize which resources are lacked and how to get access to those resources. A business model was introduced for further use.
In conclusion I would say that a small Finnish company has many possibilities for doing business abroad by using available resources and the best way to get access to needed resources that it doesn't have is by networking and cooperating with other firms. Also, a company must be able to change its strategy very fast, and one of the most valuable resources in the fast changing world is the ability to look for new possibilities and to make quick decisions as suggested in the discussion about the dynamic capabilities. In a constantly changing environment firms must be able to develop new valuable resources by using their old ones, and they have to be able to change their direction very quickly.