Unformatted text preview: he company lack of a
specific strategy when entering a new market the respondent states that Meva is well aware of
the patience needed when entering a new market. The respondent states that the closest thing
to a strategy for Meva when entering a new international market is to maximizing sales in
order to reach profitability. 4.1.2 Case 1 – Data regarding RQ2: How do external factors influence
firm’s choice of international market entry mode?
When Meva initiated their internationalization the geographic distance was of great
importance. Due to that the internationalization started simultaneously with the company, it
was important to be able to reach the international market without spending unreasonable
amounts of resources on travels and transportation of products. Now other factors such as
infrastructure, laws and regulations and market size and growth rate are considered to be of
greater importance when choosing a new international market. The infrastructure is essential
for the company to be able to deliver the products to the end user location. Laws and
regulations are important to be aware of, as a large part of the customer base is
municipals/governments and thereby have special rules regarding trade agreements. Finally,
the respondent emphasizes the importance of market size and growth rate, as it is crucial for
reaching profitability in the market.
Regarding the factors that affect the company choice of market entry mode, the r...
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