This paper addresses the establishment processes of two Swedish companies in the automotive
industry in Mexico by applying an establishment process model. An exploratory case study is
applied as a research method. One of the main findings of the article is that in both bus and truck
segments (sectors), there are well developed and tightly structured networks which function more or
less in the same way as the networks and relationships in developed countries although Mexico is a
developing country. Another finding is that the level of trust with the Scania's customers differs in the
two segments. In the bus segment the relationship with customers is dominated by cooperation and
trust, whereas in the truck segment it does not as the market has more trust in other brands than in
Scania's products and services. A third finding is that Scania's competitive advantages rely on its
complete solution which includes trucks, parts and services and on its cooperation with some competitors
and strong relations with authorities. While Volvo's competitive advantages are based on its
strong dealers network strengthened through complete solution including training, new financing and
selling programs, i.e. offering integrated services and cooperation with some competitors & strong
relations with authorities. A fourth finding is that in the Mexican market, government relationships are
as important as customer relations and should be dealt with adequately if firms are going to succeed
in their establishment attempts.
2008. Vol. 2, no 1, p. 23-48p. 23-48
Keywords - Automotive industry, Networks, Relationships and interaction approach, Strategic alliance, TRM, International market entry, Internationalization