The time it takes for a new market entry to reach

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Unformatted text preview: ally. However, the respondent states that Purac has to have at least one to three years’ patience with new establishments to give them time to grow before deciding whether to consider the entry successful or not, and thereafter decide whether to continue their efforts in that market. Market share targets are not a strategic objective for the company as they strive to win contracts regardless of how this will affect their total market shares. So far Purac has, according to the respondent, succeeded very well with their internationalization with one exception, Poland. The reason for failure in Poland is argued to be the loss of control and decision power coming from Sweden. This previous experience has taught the company not to let go of the control from the Swedish headquarters when establishing on a new international market. The time it takes for a new market entry to reach profitability depends on how long time it takes for the company to win their first contract. The respondent states that the company’s main strategy for entering new international markets is to grow through finding strong local partners, which allows them to 33 EMPIRICAL DATA win contracts and at the same time become...
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This document was uploaded on 03/22/2014.

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