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Going International? : Recommendations for SMEs in early stages of internationalization

<p>Executive summary</p><p>In a world where the Internet and good communications accelerates the globalization, having</p><p>connections across borders becomes a competitive advantage. The easy access to a</p><p>constant stream of information is making the opportunities countless, adding to the equation</p><p>that the Internet and supplementary techniques such as different types of software are</p><p>still very young, the opportunities will keep on emerge. At the moment there are still great</p><p>gaps in terms of technology between countries, which enables fast growing companies such</p><p>as Lintner to fill a niche and gain new market shares due to their technological lead and</p><p>managerial practices. But how should they enter the new markets and reach the new costumers?</p><p>This research has put the emphasis on creating a guiding discussion on how an international</p><p>expansion strategy could be formulated.</p><p>We have found that organizations can lower the risk and increase their profit potential by</p><p>combining several strategies, that they start by expanding with a low-risk strategy and then</p><p>increase the investments on the market to enable higher profitability. The benefits with this</p><p>approach is that a small computer software company can take advantage from the simplicity</p><p>and low needs for capital and then gradually increase the investment as they get market</p><p>knowledge and a solid customer base. They need to work around challenges such as cultural</p><p>differences by allowing the due diligence to take time and the targeted company to</p><p>become familiar with the intentions of the collaboration. It is important that the organization</p><p>prepares itself for the internationalization; this is done by the creation of slack resources.</p><p>The strategy they choose must be formulated and incorporated in the overall business</p><p>strategy.</p><p>To successfully describe the alternatives to expansion currently available to Lintner, an extensive</p><p>literature review has been conducted. But to fully understand the surrounding environment</p><p>and the challenges with international expansion, we have conducted several interviews</p><p>within Lintner, but also with three organizations that have previously found themselves</p><p>where Lintner is today. The findings from these interviews were interpreted and</p><p>placed in context to Lintner’s and to companies in their specific situation. This has been</p><p>done in order for us to create a meaningful contribution to Lintner’s future growth.</p>

Identiferoai:union.ndltd.org:UPSALLA/oai:DiVA.org:hj-1010
Date January 2007
CreatorsGillsberg, Andreas, Wahlberg, Lars_Åke
PublisherJönköping University, JIBS, EMM (Entrepreneurship, Marketing, Management), Jönköping University, JIBS, EMM (Entrepreneurship, Marketing, Management)
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, text

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