scholarly journals Emerging Market or Neighbourhood Country? A Case Study of Aura Light’s Market Expansion Strategy

Author(s):  
Ria Triwastuti ◽  
Robert J. Poulter

Aura Light, a Swedish lighting company, is currently in a transforming phase from a lighting products company into lighting solution provider. This change requires considerable new investments that resulted in the company’s cash operating cycle longer. However, there are two ambitions to pursue by the management of Aura Light in the next five years. Firstly, expanding market to India and Brazil by selling traditional products that potentially double its revenue in five years. Secondly, focusing on building the transformation and settling up solutions and LED market in Europe. Meanwhile, the long-term goal of Aura Light is to be a leader player of lighting solution and LED in Europe market. With current resources and financial condition, Aura Light can only choose one of those options instead of doing both at the same time. This study is aimed to answer Aura Lights dilemma by providing managerial recommendation based on international business theoretical frameworks.

2021 ◽  
Vol 9 (1) ◽  
pp. 17-22
Author(s):  
Akhmad dan Labandingi Latoki

This study aims to analyze the ability of its own capital owned by Bisi International Tbk to guarantee all of its debts. So the approach used is a case study. Data collection is done by documentation method and the data taken is secondary data. The data comes from the 2017- 2019 financial statements. The analysis technique in this study uses financial ratios, namely comparing total debt with own capital. The results of research and studies reveal that the company's financial condition, especially the guarantee of capital on debt, tends to be in good condition. This can be seen from the amount of each rupiah of own capital that is able to cover every rupiah of costs. This research needs to be expanded by analyzing the relationship and the influence of other components that affect the improvement of the company's financial performance.   Keywords: Current Debt, Long-Term Debt, Own Capital


2020 ◽  
Vol 35 (7) ◽  
pp. 1179-1189 ◽  
Author(s):  
Nikolina Koporcic

Purpose The purpose of this paper is to explore Interactive Network Branding (INB) in an emerging market (EM) context while focusing on the importance of firm representatives for small- and medium-sized enterprises (SMEs). The INB corresponds to the process of interpersonal interaction which results in corporate identity and reputation creation that SMEs ultimately use to influence their network positions. Design/methodology/approach This single case study presents four Croatian SMEs embedded in a business network. A research model of INB serves as an analytical tool for analyzing the phenomenon in its context. The key unit of analysis is an SME represented by its manager(s). Findings Contrary to large multinational firms that have financial capabilities for branding departments and recruitment of brand managers, SMEs in EMs tend to focus more on creating long-term relationships with their fundamental business partners. Through INB and interactions between firm representatives, corporate branding becomes an inherent part of networking. Thus, the study acknowledges the importance of INB, being implemented through firm representatives, as it plays a crucial role in the survival and success of SMEs in the EM context. Research limitations/implications Based on the chosen research approach and the focus on the Croatian EM, the findings might lack generalizability. Hence, further research is necessary to examine the applicability of INB in different empirical contexts. Practical implications This paper provides implications for practitioners coping with networking and branding processes of SMEs that are operating in fast-changing EMs. Originality/value This study provides a deeper understanding of INB while focusing on the importance of firm representatives and their interactions that have an influence on the networking and branding processes of all the parties involved.


2020 ◽  
Vol 10 (2) ◽  
pp. 1-21
Author(s):  
Paula Holanda Cavalcanti Sirimarco ◽  
Luiza Neves Marques da Fonseca

Learning outcomes The case seeks to meet the following educational objectives: provide an understanding of the problems and opportunities faced by a company doing business in a rapidly expanding emerging market. Understand how the foreign environment and industry practices impinge on the company’s strategic conduct. Develop the ability to evaluate strategic internationalization decisions in light of considerations related to uncertainty, risk and commitment. Provide for the application of internationalization theories to a real case involving an emerging country company. Discuss new strategies for international market expansion. Case overview/synopsis This case study is about the strategic change of the Usaflex brand and how it impacted its national and international expansion. Usaflex is a Brazilian footwear company founded in 1998 and acquired in 2016 by a group of partners. The new managers started an accelerated process of national and international expansion. In the domestic market, the company adopted the franchise system and in the international market used licensed stores. In addition, the new management implemented a series of modifications, changing the positioning, design and product variety, as well as the communication strategy. This process took place in a highly negative context, with the domestic market suffering the impact of a strong recession and Brazilian footwear exports losing competitiveness in the international market. Complexity academic level The targeted audience of this case is undergraduate and MBA students of Business Management courses, specifically on International Business courses. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 5: International Business.


2018 ◽  
Vol 26 (3) ◽  
pp. 207-224 ◽  
Author(s):  
Louise Curran ◽  
Lee Keng Ng

Purpose The purpose of this paper is to explore the extent to which the firm-specific advantages (FSAs) which underlie international expansion have proved resilient for European multinational enterprises (MNEs) operating in a key emerging market – China. Design/methodology/approach The authors adopt a qualitative, case study approach, using interview data to explore the companies’ FSAs on market entry, how they evolved over time and the strategies adopted to defend them. They undertook 15 in-depth interviews with decision makers in six companies addressing their experience since market entry. To control for sector-level effects, the authors focus on companies in the environmental protection sector. Findings The authors found examples of significant erosion of the FSAs among the case study companies, which undermined their position on the host market and their long-term competitiveness. The key sources of erosion were limitations in market access, exclusion from local networks and the emergence and upgrading of local competitors, often firms with whom the MNEs had collaborated in the past. Research limitations/implications The relatively small number of cases (six) limits the generalisability of the findings by the authors. However, the authors are convinced that, given that the case companies are generally large and have long experience in China, the conclusions made are well grounded. In addition, there was the high level of coherence in the reported experiences of the interviewees, providing further support for the findings. Practical implications The experience of these case study companies highlights that MNEs have difficulty retaining their unique FSAs when faced with rapidly evolving local competition in a key emerging market. Key strategies mobilised included focussing on a sub-sector of the market and localising both the company and their supply chains. The difficulties experiencing by these case study companies in retaining their FSAs underline the need for MNEs in emerging markets to avoid complacency and constantly innovate, but they also raise questions about their capacity to extend their international reach in the long term. Originality/value Very few studies have explored the FSAs of firms and how they evolve over time using a case study-based qualitative approach, especially in emerging markets.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruihua Joy Jiang ◽  
Jie Xiong ◽  
Yuan Ding ◽  
Ravi Parameswaran

Purpose How to enter and expand in a newly emerged foreign market is less understood. Should multinational enterprises move fast or slowly? In this study, the authors take China as the context to investigate what factors will lead to a fast expansion strategy in a foreign market. The purpose of this paper is to understand whether fast expansion benefits firms’ performance in a rapidly emerging market. Design/methodology/approach Based on insights from field interviews, the authors developed a theoretical framework. Then, the authors collected data from surveys of managers of multinational enterprises from Western countries to test their hypothesis. This research context is based on the experience of multinational enterprises in China which opened up to foreign direct investment in 1979. Findings This study shows that internally, strategic long-term investment goals, top management team commitment and externally switching costs and the growth in the demand market which will push firms to expand fast in the newly emerged China market. Faster pace of expansion benefits the performance of multinational enterprises in a newly emerged market. Originality/value Based on the onsite interviews followed by the survey of top managers of multinational enterprises located in China, this study provides a fine-grained analysis of the importance of pace and its key antecedents. Thus, the results provide new insights to decision-makers of multinational enterprises when considering expanding in an emerging market at its early stages of growth.


2019 ◽  
pp. 467-485
Author(s):  
Diego Quer ◽  
Xing Peng

La expansión internacional de las multinacionales de mercados emergentes está adquiriendo una creciente importancia en los últimos años. El sector hotelero no es ajeno a esta tendencia. El objetivo de este trabajo es analizar si los modelos teóricos tradicionales resultan aplicables al caso de las inversiones efectuadas por empresas turísticas chinas o si, por el contrario, se hace necesario utilizar nuevos planteamientos. A partir de un estudio de casos de tres empresas chinas que han invertido en el sector hotelero español, nuestros resultados indican que dichas empresas, más que explotar sus ventajas competitivas, persiguen obtener nuevas fuentes de ventaja. Asimismo, en lugar de seguir un proceso gradual, optan por modos de establecimiento que les permitan acceder de forma rápida a esos activos estratégicos. The international expansion of emerging-market multinationals is becoming increasingly important in recent years. This trend is also present in the hotel industry. The aim of this paper is to analyze whether traditional theoretical frameworks are applicable to cross-border investments by Chinese tourism companies or new approaches become necessary. From a multiple case study of three Chinese companies with investments in the Spanish hotel industry, our results indicate that these companies, rather than exploiting their competitive advantages, seek to obtain new sources of advantage. Moreover, instead of following a gradual process, they choose establishment modes that allow them to quickly access these strategic assets.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susanne Gretzinger ◽  
Anna Marie Dyhr Ulrich ◽  
Svend Hollensen ◽  
Birgit Leick

Purpose This paper aims to discuss business incubation to enter foreign markets in Brazil, Russia, India and China (BRIC) countries through the lens of an “international business incubator” (IBI). International market expansion offers huge opportunities for companies to increase their revenue, but there are also challenging tasks such as the establishment of a business company and the occupation of a strategic position abroad. Practitioners consider this process as the act of incubation, but the theoretical discussion lags behind the practice-led debate. Design/methodology/approach An illustrative, and theory-led, case study is presented that describes market expansion to BRIC countries through a network-based IBI. The empirical case is an illustrative Danish company with international operations in BRIC countries both with and without an IBI. Findings International business incubation represents a process, which can be influenced through an IBI, and business networking during foreign market entry is shaped by IBI brokerage (bridging, bonding and protecting) in different phases. IBI activities that are embedded in business networking support a company’s endeavours in getting a foothold and acquiring a strategic position in BRIC markets and facilitates the market penetration. Research limitations/implications The IBI’s activities to enter foreign markets should be thoroughly managed. Further studies should be conducted with cross-case comparisons and larger samples to reflect on the propositions established. Originality/value By linking the business networking theory with the practice-led understanding of business incubation, the study explores an under-conceptualised topic for international business and entrepreneurship scholars. The paper offers an initial understanding of how brokerage interacts with incubation during the entry of new markets.


2020 ◽  
Vol 29 (4) ◽  
pp. 2049-2067
Author(s):  
Karmen L. Porter ◽  
Janna B. Oetting ◽  
Loretta Pecchioni

Purpose This study examined caregiver perceptions of their child's language and literacy disorder as influenced by communications with their speech-language pathologist. Method The participants were 12 caregivers of 10 school-aged children with language and literacy disorders. Employing qualitative methods, a collective case study approach was utilized in which the caregiver(s) of each child represented one case. The data came from semistructured interviews, codes emerged directly from the caregivers' responses during the interviews, and multiple coding passes using ATLAS.ti software were made until themes were evident. These themes were then further validated by conducting clinical file reviews and follow-up interviews with the caregivers. Results Caregivers' comments focused on the types of information received or not received, as well as the clarity of the information. This included information regarding their child's diagnosis, the long-term consequences of their child's disorder, and the connection between language and reading. Although caregivers were adept at describing their child's difficulties and therapy goals/objectives, their comments indicated that they struggled to understand their child's disorder in a way that was meaningful to them and their child. Conclusions The findings showed the value caregivers place on receiving clear and timely diagnostic information, as well as the complexity associated with caregivers' understanding of language and literacy disorders. The findings are discussed in terms of changes that could be made in clinical practice to better support children with language and literacy disorders and their families.


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