Beat Hans Wafler and Yuosre F. Badir
The purpose of this paper is to analyze how two multinational companies (MNCs) faced the challenge of market uncertainty and political instability in a newly emerging market, and…
Abstract
Purpose
The purpose of this paper is to analyze how two multinational companies (MNCs) faced the challenge of market uncertainty and political instability in a newly emerging market, and how it affected the impact of their product marketing strategy (PMS) and product (brand) performance.
Design/methodology/approach
A comparative longitudinal paired case study of a market entry by two global MNCs. Twelve global brands (products) were studied, which were locally manufactured and launched by the two MNCs during their first ten years of operation in Vietnam.
Findings
The authors approached the investigation from a conventional point of view: standardization versus adaptation. The results showed that in addition to these two traditional processes, a third one was also operating, which the authors labeled semi-adaptation, or the midway PMS. Semi-adaptation refers to a product that has been introduced to Vietnam from a neighboring country.
Research limitations/implications
This research is based on two European MNCs active in the food and consumer-household goods industry in a newly emerging market: Vietnam.
Practical implications
This primary data indicate that the product standardization, semi-adaptation and adaptation process in practice is a technique applied to fit a product to a newly emerging market more by degree of change than by product category.
Originality/value
This paper supports a recent stream of research, which views Standardization or Adaptation as the two ends of the same continuum, where the degree of the firm’s PMS can range between them.
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Beat Hans Wafler and Rian Beise-Zee
The case authentically illustrates a common problem encountered within the business scope of an agent who is representing a European food ingredients manufacturer in an emerging…
Abstract
Subject area
The case authentically illustrates a common problem encountered within the business scope of an agent who is representing a European food ingredients manufacturer in an emerging market. The case describes the kind of legal set-up and contracts that are necessary to safeguard the long-term prospective of the business for both parties, the agent and overseas supplier. It explains what each party has to observe in case of a termination of the agency agreement.
Study level/applicability
This is a longitudinal case study of a market entry by a European food ingredients manufacturer through a foreign-owned third agent. The authors studied how sales developed over the first few years and then concentrated the investigation on the fact that after the sales volume was reached, the overseas manufacturer wants to cancel the agency agreement and do the business directly without getting the agent involved.
Case overview
This case describes and explains a common problem encountered frequently by overseas manufacturers who want to enter an emerging market through a third-party agent representation. The overseas supplier uses the agent’s service and solid reputation to enter an emerging market with limited exposure to costs and risk. The agent works towards guarding the relationship with the overseas supplier for as long as possible. The development of the relationship illustrates what kind of conditions have to be stipulated in advance to provide an acceptable solution to both parties concerned once they part ways.
Expected learning outcomes
This research is based on a European food ingredients manufacturer, who was expanding its business in different Asian emerging markets, namely, Vietnam and Cambodia. The agent was a long-time established trading house who acted frequently as agent for overseas companies that wanted to get a foothold in these promising Asian emerging markets.
Supplementary materials
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Subject code
CSS 5: International Business
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Beat Hans Wafler and Fredric Swierczek
This paper seeks to consider the impact of psychic, cultural and institutional distance, the adaptation of international joint ventures and the performance of international…
Abstract
Purpose
This paper seeks to consider the impact of psychic, cultural and institutional distance, the adaptation of international joint ventures and the performance of international companies entering an emerging economy. It is also a critique of the dominant quantitative approach to analyzing distance in international business.
Design/methodology/approach
This study applies a comparative case study using a grounded theory approach of six companies who entered Vietnam from 1986 until the present. A total of 20 international executives were interviewed representing different phases from start-up, implementation to the current situation.
Findings
In comparison to other empirical studies on entry strategy and distance, this research finds that executives involved in entry do not consider established theories such as transaction costs. The resource-based approach is considered but from a practical view. Despite the considerable cultural and institutional distance between the European cultures and the Vietnamese values, these international ventures have managed to close the distance. This contradicts the findings of many quantitative studies on this issue.
Research limitations/implications
This study is qualitative. It depends on the perceptions of international executives over a 25 year period. Only a few of the Vietnamese counterparts are included in this study.
Practical implications
This study demonstrates the importance of adaptation overtime for the success of international ventures.
Originality/value
A long term qualitative study including executives from six major international companies and executives over such a longtime is rare. Using the grounded theory process in this research context is also unique.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
How to market a new product in a developing country? This question, you would be right in thinking, is straight from the International Marketing 101 course. Any masters or MBA student will look into this at the start of their course and build from there. And they will cover the standard plays from the textbook as well. But are these the right plays for every product, every market, and every time?
Practical implications
The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.