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Market Entry Strategy for InternationalFirms in South East Asia: A Case Study of Vietnam
Linnéuniversitetet, Ekonomihögskolan (FEH), Institutionen för marknadsföring (MF).
Linnéuniversitetet, Ekonomihögskolan (FEH), Institutionen för marknadsföring (MF).
Linnéuniversitetet, Ekonomihögskolan (FEH), Institutionen för marknadsföring (MF).
2013 (engelsk)Independent thesis Advanced level (degree of Master (One Year)), 20 poäng / 30 hpOppgave
Abstract [en]

With projected economy growth rates of 5.5 percent over 2013 to 2017 (OECD, 2013),countries in South East Asia (SEA) are predicted a robust and resilient economicperspective. Consequently, this is accompanied by increased interest from internationalfirms of all size aiming at market shares. However, market entry appears to be prone todifficulties as high failure and withdrawing rates of foreign companies demonstrate. Thisstudy, therefore, contributes to the understanding of how emerging country markets canbe entered strategically, by evaluating how internal and external conditions can affectmarket entry strategy and how previous internationalization theory can be applied.Vietnam, as an example for a SEA country, comes with high economic growth rates,which have created vast business and growth opportunities for companies of all size andindustries. The case is examined based on a medium sized subsidiary of a Germancompany group, located in neighboring China, currently aiming at market entry inVietnam. As academic literature determines markets as business networks and entryprocess consequently as establishing an adept position built on relationships, it isassumed that entry strategy into Vietnam first of all depends on detecting the expedientanchor points within the complex environment of Vietnam. As, from a resource basedperspective scholars, furthermore, assume competitive advantage to rest in a firm´sparticular set of resources and capabilities, a successful market entry is considered todepend on establishing relationships into this network based on the firms inherentresources. The research was conducted by investigating the company’s resources,capabilities and its entry motives for Vietnam, the impact of the external environment inVietnam as well as appropriate strategies for gaining legitimacy from it. Empirically,findings are based on a qualitative single case study of the case company supported byinterviews with key company personnel and various Vietnam experts. Thorough analysisshowed that the case company’s market entry strategy is heavily impacted by weaknessesin brand management, which appeared to be necessity on customer side for the sale ofhigh involvement products in Vietnam, as well weaknesses in its sales managementconcerning the non-transferability of its current sales staff. External influences, such ashigh impact of the government, complicated retaining of labor; As a result forweaknesses on side of the company and difficulties in the market, a direct entry modewas recommended to the case company.

sted, utgiver, år, opplag, sider
2013.
Emneord [en]
Emerging market entry strategy, internationalization process, foreign business network, internal and external environment, sustainable competitive advantage
HSV kategori
Identifikatorer
URN: urn:nbn:se:lnu:diva-26453OAI: oai:DiVA.org:lnu-26453DiVA, id: diva2:627875
Fag / kurs
Business Administration - Marketing
Utdanningsprogram
International Business Strategy, Master Programme 60 credits
Veileder
Examiner
Tilgjengelig fra: 2013-07-10 Laget: 2013-06-12 Sist oppdatert: 2013-07-10bibliografisk kontrollert

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