Internationalizing to the UK : a resource based perspective

Abstract: A significant problem in the construction industry is the losses sustained as a result of the theft of tools and equipment from construction sites. The case study company, referred to as PSS, have successfully developed and commercialized a technological solution to prevent such theft within Sweden. The next step in the commercialization of PSS is to seek growth and leverage their investment and innovation. Our purpose is to undertake a UK market analysis, in order to investigate if PSS's business model has opportunities in the UK, and recommend how PSS might approach internationalization, using a resource based perspective. PSS’s existing business model has been developed to fit the Swedish market conditions, and has been demonstrated to perform. We find market conditions in the UK are similar, albeit in greater proportions. The nature of the problem, the industry structures, and the competitive environment is similar to the domestic conditions, and the competitive position of PSS is replicable, with a high level of strategic fit. We recommend PSS pursue its desire to internationalize to the UK based on similarity of the fit with the local market (which has been demonstrated to result in acceptable performance). We would recommend entry through a sales subsidiary to facilitate the establishment of customer relationships. In addition a possible license agreement with a partner may help to facilitate speedy access to UK distribution industry networks.