Riassunto analitico
In the first phase of the thesis project, the study examines the internationalization processes firms undertake to expand their operations since in the last decades an increasing number of companies have decided to expand their activities in the international context. This study employs the internationalization theories and the entry modes literature from 1960s on to give a frame of processes and operations companies may take to break into foreign markets.
The goal of this dissertation is to find answers to internationalization issues by analyzing whether Società Cooperativa Bilanciai should enter the United Kingdom market or not to sell its automatic weighing instruments independently from the subsidiary they already have in the English market specialized on non-automatic weighing systems. The research questions we aim at responding are: a) how product specificity influence and determine the entry mode choice in the case of products which require extensive pre- and after-sales services?, b) why should a company adopt a dual entry mode for different business lines within the same industrial sector?, c) can different value chain activities and entry modes for two distinct business lines effectively integrate with each other within the same foreign market?.
In the second phase of the project, Società Cooperativa Bilanciai history, the description of its core products, and the review of the company’s internationalization process, laid the foundations for the analysis of the United Kingdom industrial weighing market. The market research identifies the most important potential customers, the competitive landscape, and the market potential to determine whether conditions to enter the English market are met, and possibly the best entry strategy.
The findings of the market research led to identify the direct export entry mode as the best entry strategy for Società Cooperativa Bilanciai. Thus, we can say that according to product features and specific knowledge required, it is better for the firm to adopt a dual entry mode to enter the United Kingdom market. In addition, the fact that AWI and NAWI machines meet different needs, although both operate in the industrial weighing sector, also implies the need to implement entry modes that have different characteristics. As for the value chain activities the company performs, they are clearly distinguished between automatic and non-automatic weighing instruments. Indeed, the two businesses are characterized by different primary activities. Yet, there is a partial conjunction of support activities given the development and production of products within the same infrastructure. Only after many years in the market, Società Cooperativa Bilanciai could consider the intersection of value chain activities of the parent company and its subsidiary but limited to logistics operations.
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