In today’s globalized world, companies are often faced with a trade off in evaluating and assessing the advantages and risks in engaging in cross-border operations. By leveraging and exploiting a company’s existing resources on foreign markets, the company is better be equipped to fit the local and external environment, which calls for a “strategic fit”. This thesis attempts to explore how Carl Hansen & Søn can benefit from a replication strategy on foreign markets. By taking a strategic approach to replication, the company can rely on its existing resources and capabilities in terms using its previous experiences on foreign markets to ease the process of tapping faster into new markets. Thus, the thesis addresses and examines the internal characteristic of a company and the external environment that together affects an entrance on the foreign market. Yet companies are likely to take incremental and gradual steps towards entering new markets and pursuing a global strategy. Entering new markets requires the companies and business managers to analyse and assess the various options with regard to where and how to enter these new markets. Our findings support that companies can utilize its acquired knowledge and expertise in order to be less exposed to risks on the foreign market, and thus move from low to high commitment and risk over time. Overall, we argue that regardless of the size of the company, a firm can benefit from deploying flexible replication strategy which has been implemented in both its home market and in a new market by undertaking standardization and localization. Finally, the paper supports that even though the company deals with standardized products in which local adaption is not possible, a flexible replication strategy can be deployed. Derived from established literature within replication and from our findings, we found that a company can benefit from the replication strategy to ease the process of entering a new market and minimising its risks and costs.
|Educations||MSc in Business, Language and Culture - Business and Development Studies, (Graduate Programme) Final Thesis|
|Number of pages||140|
|Supervisors||Peter D. Ørberg Jensen|