Internationalization of a Danish Concept

Simone Hoffmann Rasmussen & Emma Katrine Grønlund Andersen

Student thesis: Master thesis

Abstract

The internationalization process of the Danish bakery-chain Lagkagehuset involves a variety of strategies. Significant is the creation of the ‘O&S concept’, which facilitates the interplay between global standardization and local responsiveness. By creating an internal network of local market experts, Lagkagehuset circumvents market entry barriers related to lack of market knowledge. Moreover, the company’s Danish heritage can work as an advantage in the American market, and the visual nature of the stores and products can be leveraged via influencer marketing, which can help the company gain a foothold in the competitive NYC market space. In recent years, Danish companies within the fast-casual dining industry have increasingly internationalized into the global market setting, and there seems to be a tendency for this to continue. The Danish bakery-chain Lagkagehuset, is currently in the midst of internationalizing their business. The initial expansion has occurred by entering the London market, and the company is currently in the process of expanding to NYC. We find it interesting how Danish food-companies, in the wake of the ‘Nordic Wave’, are increasingly seeking to internationalize. The purpose of this study is to understand the strategic processes involved in the internationalization of these companies, and how the rise of ‘Nordic cuisine’ affects the competitiveness of these businesses in an international market context. This is accomplished by conducting a case study of Lagkagehuset. By answering a series of research questions regarding: strategic approaches for international expansion, concept changes, Danish country of origin, sustainable competitive advantages, and the advantages of influencer marketing in connection to the case of Lagkagehuset, this study reaches a comprehensive answer to the problem statement. The analysis is based on empirical data collected via semistructured expert interviews, observations, and an online survey conducted amongst 231 Americans. The theoretical framework of the study consists of: Dunning’s OLI Framework, Johanson & Vahlnes’ Uppsala Model, Johanson & Mattsson’s Network Model, Prahalad & Doz’s I/R Framework, Country of Origin theory, Porter’s Competitive Strategies, Peng’s Resource Based View, and Brown & Hayes’ theory on Influencer Marketing. The study predominantly works within the interpretive and social constructivist paradigm while data triangulation and triangulation of qualitative and quantitative method has been applied.

EducationsMA in International Business Communication (Intercultural Marketing), (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2018
Number of pages201