Title: Internationalisation of an Austrian SME with a sales agent to Mexico and the USA in the automotive sector
Authors: Caroline Philippi; Vito Bobek; Tatjana Horvat; Anita Maček; Gorazd Justinek
Addresses: MediaCom, Vordere Zollamtsstraße 13, 1030 Wien, Austria ' University of Applied Sciences FH Joanneum, Institute of International Management, Eggenberger Allee 11, 8020 Graz, Austria ' Faculty of Management, University of Primorska, Cankarjeva 5, 6000 Koper, Slovenia ' University of Applied Sciences FH Joanneum, Institute of International Management, Eggenberger Allee 11, 8020 Graz, Austria ' New University, Faculty of Government and European Studies, Slovenia
Abstract: Many Austrian small and medium-sized enterprise (SMEs) in the manufacturing sector opt for expanding to further markets. Especially for the automotive industry, Mexico and the USA are attractive locations. The purpose of this paper is to identify a strategy for an Austrian SME in the automotive sector for its business expansion to Mexico and the USA. Therefore, factors influencing the expansion strategy, as well as operational measures increasing the success rate of the company are identified. Additionally, it is analysed if a combined market entry and strategy formulation for both countries is recommendable. The aim is to present solid results regarding how the company should tackle the upcoming challenges for its strategic direction of internationalisation. For this purpose, a literature review and an empirical qualitative study were chosen as a main method. Based on the results of the study the company is provided with recommendations on how to design its strategy and which factors are to be considered when opting for the two markets. Based on the research the company is advised to consider both markets as individual and parallel processes.
Keywords: SME internationalisation; business expansion; market entry strategy; market development; USA; Mexico.
International Journal of Globalisation and Small Business, 2020 Vol.11 No.1, pp.39 - 64
Received: 12 Jun 2018
Accepted: 25 Oct 2018
Published online: 28 Feb 2020 *