SSAB Global Business Development : A Study of the International Marketing Expansion Model for HWP in China

Abstract: The purpose of the research is to assess if the franchising conceptual model is an applicable model for the HWP international market expansion in China.  The assessment will be carried out through the extensive investigations into SSAB/HWP internal and external forces including transfer of knowledge in the MNC, position building in business networks, products positioning and sales situation on the Chinese market to define the risk and opportunity.  As well as the theories of the internationalization, marketing strategy and models will be referred to evaluate the franchising model, which can be adopted in China. The research questions are how can the franchising concept be adopted as an applicable model for the Hardox Wearparts international market expansion in China?  What are the appropriate suggestions for the improvements to the further implementation of the model? By adopting four research methods of qualitative research strategy, a multidimensional purpose of the research has been conducted in order to gather first-hand data, study a specific case and investigate the multidimensional environments for the implementation of the HWP international market expansion model.  The main research methods include 1) questionnaire & survey, 2) qualitative interviewing, 3) observation, and 4) collection and qualitative analysis of texts, document, e- research materials and data. The conclusion of the research is that there are several internal- and external factors, which have affected the HWP´s market expansion in China negatively during the year.  It is a sensible decision to emphasize China as a single largest market for the HWP business development. The market seeking strategy by the infusion of the franchising concept is an appropriate decision for the HWP market expansion in China.  The conceptual franchising model by SSAB is appropriate to both the theoretical model and Chinese regulation on the franchises.  However, to implement this franchising model in China, it requires several significant improvements on those four key components/success factors which are 1) internationalization entry model, 2) transfer of knowledge within the MNC, 3) learning in the foreign market network, and 4) position-building in the business networks.   Together with the improvements on four key components/success factors, the franchising concept will be an applicable model for the HWP international market expansion in China.