Positioning on Export Markets : A paradigm of Bounded Rationality applied in the context of positioning for Swedish Exporting firms

Abstract: It is not easy to predict what will happen tomorrow. It is perhaps even more difficult knowing what will occur next year or even two years from today. To put it short we are uncertain about the future. Swedish firms attempting to capture new export markets are also facing uncertainty. If a firm succeeds with predicting customer’s preferences they might be able to create a position for the firm´s products before any competition. It is however almost amusing to study successful marketing cases for export markets in a rear window. It is striking how firms have found winning positions which captured market after market with such apparent ease.  In this thesis the author attempts to present theoretical frameworks including internationalization theory and traditional marketing theory which can support exporting firms attempts to find new positions on export markets.  Previously in traditional marketing theory the solution has been to put trust in the marketing concept. Success in the marketplace was then a result of a careful segmentation process ending up in a positioning-decision supported by the marketing mix. The Nordic school of marketing among others introduced a new track in marketing with the relationship marketing concept focusing on the development of existing customer relationships. Internationalization theory (the process theory of internationalization) suggested that that firms increase commitment on export markets after a gradual learning process. Effectuation on the other hand has offered new perspectives. With its roots in the paradigm of bounded rationality a differing stance is offered for predicting the unpredictable. By following a model of bounded rationality the presented firms manage to craft positions for new and as a matter of fact as presented in the empirical part, also for existing markets. The paper highlights the importance of positioning for Swedish firms success on export markets.  It is a case study of how Swedish firms craft positions on new markets by taking action instead of making formal positioning decisions.  A model of bounded rationality is tested during interviews with five Swedish top-exporting firms. The paper finally presents a revised developed model for how successful firms act on export markets in order to craft positions. The model includes traditional marketing theory based upon a paradigm of bounded rationality. The paper contains however some question marks for the application of the marketing concept and traditional marketing theory. Rather a stance towards bounded rationality is emphasized.The final point of the thesis is the urge for emergence of alternatives in marketing to the marketing concept founded upon bounded rationality. These new models need to capture the actual actions taken by successful exporting firms in a more proficient and graspable way than existing traditional marketing models.