Starting business operations abroad : MBA-thesis in marketing

Abstract: This thesis is conducted for Monitor Industriutveckling AB. The company grows fast and is ready to consider the expansion of its business abroad. The details how to pro-ceed with the expansion are yet to be set. The purpose of this work is to examine dif-ferent options to aid the company management select the most meaningful way to proceed. The analytical framework used consists of three well-known business theories. There are the New Capabilities analysis, the PEST analysis and finally the five forces model. Robert Grant’s New Capabilities analysis shows that especially the strategic alliances capability could be an interesting new capability and a way to grow for Monitor. The PEST-analysis proves that Finland can offer good opportunities for Monitor’s type of company because the country itself is very IT-oriented and political and economical as well as social forces can support Monitor’s business. Finland can also be a gateway to eastern-European countries. Finally we have Michael Porter’s five forces model. Monitor has lots of potential customers in Finland. There is a substantial amount of small and medium-sized companies in the manufacturing industry. Taxes and legisla-tion will not be a problem when entering Finland, as they are similar compared to Sweden. There are no big cultural differences between Finland and Sweden. These countries even share the same language, Swedish, which is a quite unique advantage. I have collected the empirical data of this thesis mostly by personal interviews. Here I show that Monitor’s current customers in Finland would prefer to see their supplier present in the same country. They would also appreciate Finnish-speaking personnel and support. I have also interviewed business specialists. According to them, Monitor would easily adapt to the Finnish business culture and make its product successful. The right attitude in Finnish business environment would just boost Monitor’s suc-cess. The strength of the Monitor product is its user-friendliness. The weakness and at the same time its opportunity is that the company grows very fast. When a company grows it must be ready to make big decisions and choose where to go and at the same time be there to support each and every present customer. The conclusion is that Monitor has good possibilities to become a successful company in Finland. From a marketing point of view, Monitor should invest in marketing ac-tions and make itself known and seen among its target group. The recommended way to enter Finland would be to find a good distributor for Monitor’s product. This entry method would be the one with the smallest risk and it is also probably the quickest way to proceed. I recommend Monitor to choose a distributor that can complete its product-palette with Monitor.