Jerome Couturier

International Market Entry Decisions: The Role of Local Market Factors

This paper examines how external market factors influence the choice of international market entry (direct investment, partnership or acquisition). It is based upon interviews in four industries and upon a longitudinal two-year case study working with a major German Food company entering the British, Italian and Polish markets. The research confirms the importance of external market factors such as market growth, market consolidation and value chain fragmentation. It proposes a practical framework to guide the companys entry strategy.

Are sovereign wealth funds “white knights”?

Purpose - In the continuing credit squeeze, sovereign wealth funds (SWFs) are still active in international lending and are eagerly sought out by large, cash-strapped companies in the West. The purpose of this paper is to examine their nature and strategies before and after the onslaught of the credit crunch and global economic downturn in order to advise corporates on how best to design their strategies and terms in approaching the SWFs for funds. Design/methodology/approach - An analysis is made of SWFs in their dealings with Western corporate borrowers and a case study made of Barclays Bank which, faced with three major options in 2008 to raise a large amount of cash, chose to attract funding from three Gulf SWFs. Findings - SWFs certainly qualify as lenders of last resort (“white knights”), providing ready loans, albeit on premium terms, at a current time of severely restricted credit supply from other sources. Alternative sources of funds – stockholders and government bail-out – also suffer from disadvantages relating to the characteristics of their loans. Practical implications - Corporate borrowers should currently view SWFs as attractive “white knight” sources of loans when other providers are constrained. The analysis in this paper, including the experience of a major borrower, Barclays Bank, suggests that SWFs are demanding tougher terms as a result of their strong bargaining positions and historical losses, and that companies should tailor SWF loan contracts to contain maximum incentives and safeguards to produce successful results. Originality/value - This is the first paper to analyse the new role and strategies of SWFs in the credit crisis context, as well as the required response of cash-strapped companies seeking loans from them.

Market entry decisions in emerging economies: the choice of local intermediaries as key determinant of competitive sustainability. Examining the case of a leading MNC entering the Maghreb region

The purpose of this paper is to examine how local market factors influence the choice of the mode of market entry of MNCs in emerging economies and to propose a framework that will guide companies when making their entry decisions. It is based upon a thorough review of the literature and a longitudinal two year case study observing a leading MNC in its successful establishment in three key markets in the Maghreb region (Tunisia, Morocco and Libya) which followed an unsuccessful previous attempt. The research confirmed the importance of local market factors, in particular the key role of intermediaries for the development of a sustainable business model. The paper complements the more prevalent research approach belonging to the resource-based view, contributing to the body of knowledge on international market entry. Furthermore through its managerial implications can guide international MNCs in their choice of mode of entry in emerging markets.

Resilience of a business: the case of Yellow Pages Directories

This paper aims to study the strength and the resilience of a seemingly out-of-date business - the Yellow Pages Directories (YPD). Its main assertion is that having absolute technological advantage does not always enable a firm to succeed; human factors also play an important role in sustaining a companys competitive advantage. The first contribution of this paper is to provide a deeper understanding of the under-researched YPD business. The second is to examine the factors that enhance the resilience of a declining business facing the threat of new technologies.

European Market Entry Strategies

The purpose of this paper is to examine how external market factors influence the choice of international market entry (direct investment, partnership or acquisition) and to propose a framework to help companies when making their entry decision. It is based upon initial interviews with companies in 4 industry sectors and 6 countries and also upon a longitudinal two year case study working with a major German Food company entering a number of European markets, initially the U.K., Italy and Poland. The research confirmed the importance of external market factors in addition to the more prevalent research approach which focuses more upon internal company factors such as the resource-based view and company attributes and culture. It also allowed a framework to be derived from the research and actually tested in practice to guide the companys entry strategy. Using the derived framework, working within an action research methodology, the company chose 3 different entry strategies for entering the British, Italian and Polish markets based upon market-based criteria such as market growth, market consolidation, end customer and distributor fragmentation, product/service fit and market risk factors. The study therefore contributes to the body of knowledge on international market entry and through its managerial implications and use. It shows that a company, with the same set of internal resources and culture, can act in very different ways depending on local market conditions. It therefore seeks to ‘redress the balance’ from the predominantly internally focused approach by making the market entry decision more ‘marketdriven’.