ZOOVET: Internationalization Process. Strategies and Entry Modes (2004-2020). Opportunities and Challenges Faced by an Argentinean SME going Abroad.

Abstract

This Master's thesis explores and discusses the strategies and entry modes used for the internationalization process of ZOOVET, an animal health company from Argentina. The main objective of the research is to analyze and understand the firm's internationalization from the perspective and context that involves being a small and medium enterprise (SME) from a developing country. Different theories and stakeholders' perspectives were gathered, and firms' management, employees, academics, public practitioners, and experts in the field were consulted to carry out a pluralist perspective that contributes to understanding the process from an integrated approach and a contextualized explanation. The discussion between stakeholders brings exciting debates about the most used entry strategies, opportunities, and challenges SMEs face in their internationalization adventures. In addition, the importance of challenges that are particular to the region and affect the companies' reasons to start an internationalization process, such as import and currency exchange restrictions, can be a highlight of the debates that fill a gap in the existing traditional literature. The company's different entries across markets in Latin America, the Middle East, Asia, and Eastern Europe are reviewed, identifying continuities and particularities. They show the efforts and achievements but also the pitfalls and failures of the company to increase its presence in current markets and develop new ones. Some findings to be outlined are the importance of the registration process of the products as the main limitation to entering highly demanding markets. It was also why Zoovet continued its expansion process in the Middle East after Latin America and not in North America or Europe, which are closer in terms of distance, cultural similarities, and trade flows. Another remark is the profound implications that context has on SME development, particularly in the case of developing countries, where macro conditions can represent severe obstacles to firms' internationalization. One of the research contributions is based on the notion that a process of internationalization cannot be explained without a deep understanding of the context. Context is understood as the influence of public policies, macroeconomic conditions, and institutional support on SME performance. Even if the world is highly globalized and companies follow international standards, context still matters and adds particularities and complexities for firms willing to expand across borders. Being aware of those differences and planning according becomes crucial for companies' international adventures' success. Valuable suggestions and takeaways for the company, and SMEs in general, are highlighted along with the research. The suggestion to the company to include R&D investment in the field of market research and international business development through partnerships with universities, consulting labs, and internships can represent an opportunity for students and graduates in the field. Developing a clear strategy is the primary consideration firms must focus on. The case study and the discussions can enlighten and provide alternatives that could be revised by SME firms from Argentina that are willing to start an internationalization process. To carry out thorough market research, increase involvement, professionalization, and development of the company registration capacities must be part of a long-term strategy that aims to constantly arrive in more demanding markets and grow in the existent ones.