Presentation of internationalization cases to bachelor students studyin at Laurea UAS. Cases: Genelec, Zara and Marinetek

1. 9/30/2013
Internationalization cases
26.9.2013
Tuija Marstio

2. - Export of goods and services, % of GNP ?
- The most important target countries ?
Importance of foreign trade
for Finland

3. Export of goods and services, % of GNP, 2012

4. The most important trading partners of Finland

5. Why do the companies
become international?
Reflection:

6. Czinkota, Ronkainen, Moffet:
• Proactive and reactive reasons
Luostarinen, Korhonen, Jokinen:
• Macro factors – push from the home, pull from outside
• Micro factors – related to the company
• Millimicro factors- the decision making process of the
company and the decision makers
Pope:
• Small companies: a unique product and technological
advantage in comparison with the competitors
Classification of the reasons for
internationalization

7. The internationalization award of the
President of the Republic of Finland 2011
(www.finpro.fi)
The Finnish game cluster
- Habbo Hotel, Max Payne ja Angry Birds are
examples of international success stories
- Target markets: USA ja Western Europe

8. The internationalization award 2012
(www.finpro.fi)
Rovio
Has succeeded in continuously
expanding its activties to new fields of
business. Effective marketing and a
branded ecosystem for the games and
supplementary products.

9. The internationalization award 2012
(www.finpro.fi)
L-Fashion Group
- Vaatemerkkejä ovat muun muassa
Luhta, Rukka, Icepeak, Ril’s, O.i.s,
STORY, J.A.P. ja Your FACE.

10. The internationalization award 2012
(www.finpro.fi)
Information destruction: Blancco
- - In 15 years has grown up as a global
market leader for information destruction.

11. Case Genelec
Products: Active loudspeakers and monitors for professional and
for household use (e.g. home theatres)
+ technical support
Clients: YLE, TV-channels, music studios, radio stations,
sound system amateurs
Mission: To bring joy to customers’ lives with the best sound
reproduction possible
Exports:
- 80% of turnover
- 60 target countries

12. •Spurred by enthusiasm for sound and
electronics the company was established in 1978
”The company was established
because YLE ordered
an active monitor speaker
from us”

13. • Unknown company – special products
• Brand construction started towards
the end of 80´s
• Marketing communications: How to stand out
→ cooperation with Herbie Kastemaa
”Perhaps we should have some
kind of product image..”

15. Case Genelec
• 1989 Launching of a studio loudspeaker installed
in the three most appreciated studios
→ international broadcasts
• 1992: Product family – smaller loudspeakers
• Strong focus on R&D
• Delivery channels built gradually
• Design is an important part of planning
and branding the loudspeaker

16. Case Genelec
”The importer likes to do business with someone who
- is nice,
- whose products sell well
- gives me a good margin for the sales of his products”
(Ilpo Martikainen, Managing Director, Genelec, 24.1.2008)
CONSULTATIVE SELLING

17. www.laurea.fi
Case Zara
Based on an article ”A case study on the
internationalization process of a ’born global’ fashion
retailer by Verica Bhardwaj, Megan Eickman & Rodney C.
Ruyan (2011). The International Review of Retail,
Distribution and Consumer Researchm 21:3, 293-307
Tuija Marstio Lohja Unit 26/9/2013

18. 18
Definitions
Born global: quick expansion to international
markets
Fast fasion: the design, delivery purchase cycle
goes around faster to satisfy the consumer demand
at its peak
Psychic distance: degree to which one culture is
comfortable dealing with another culture
Physhic distance paradox: Companies tend to be
more successful in markets with greater psychic
distance

19. 19
Integration of design and
manufacturing
New items every week
Low-price strategy with a limited stock
Backward and forward knowledge
sharing
Focus on location strategies and store
atmospherics
Advertising is based on WOM and
repeat business

20. 20
Stages of internationalization
Established in 1975, first international
store in 1988
First France and Mexico, then quickly to
psychically distant markets
After a gradual start, accelerated
internationalization to psychically
distant markets
First Now 2700 stores in more than
60countries

21. Case Marinetek
•http://www.youtube.com/watch?feature=
player_embedded&v=QYHQgUj0EXg
• World’s leading manufacturer
of docks, marinas, pontoons
• More than 1000 executed
projects in 40 countries
• Turnover 21 MEUR
• 30 – 40% of salesprice to the
shipping company
→ Establishment of factories
near the markets
Marina in Porto Carras, Greece
Kelluva taloponttooni →

22. Case Marinetek
”Marinetek conquered the marina of Monacon
(Kauppalehti 29.10.2010)

23. Case Marinetek
”Marinetek sold a marina to China”
(Kauppalehti 22.9.2011)

24. • Contribution to employment in EU countries 60
– 80% (Finland 69%)
• Value of the exports has multiplied within two
decades
• Exports of services: travel services (2 MRD €),
transport srvices (2 MRD €) and other services
(10 MRD €)
• KIBS – fastest growth
(KNOWLEDG INTENSIVE BUSINESS SERVICES)
Internationalization of services

25. (Bradley, 2005)
Difference from docmestic services:
• Elements that cross the borders
• Interaction with a different culture
Direct export: services that form part of the
products (e.g. video, software)
Internationalization of services

26. Forms of internationalization of services
1. Exports of services
2. Foreign investment
3. Internationalization via third partner
- the company is serving its clients via a local
representative or partner
(TEKES 265/2009)

27. Exports of services
• In material or electronic format (letter,
report, CD-rom)
• The seller travels to the target country
• The buyer travels to the service provider
(TEKES 265/2009)

28. (Bradley, 2005, s. 185)
Categorization of services:
need for contact/ concretenessNeedforcontact
H
L
Concreteness
L H
Services free of
the location
Standardized
services
Supplementary
services
Services tied to
the location

29. Reflection:
The importance of cultural aspects depends
on the type of service to be exported. What
kind of services are sensitive to cultural
factors? Think also of examples of services
that are not sensitive to cultural factors.