Internationalization and new market entry : case Market research on opportunities to start OLVI’s export to Sweden
Savolainen, Kaisu (2010)
Savolainen, Kaisu
Savonia-ammattikorkeakoulu
2010
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201003062790
https://urn.fi/URN:NBN:fi:amk-201003062790
Tiivistelmä
This thesis will introduce the internationalization process, and place an extra importance on expanding the business activity to new markets and conducting market researches as well as on familiarizing the export process as a market entry model. The executive organization of the thesis is Olvi plc, a Finnish brewery and soft drink company, which is considering starting the export process of beers, ciders and long drinks to the Swedish markets. The purpose of this thesis is to conduct a market research of the Swedish alcohol markets for Olvi. The aim of the research is to introduce the Swedish alcohol markets and Systembolaget, the government-owned alcohol retail monopoly in Sweden, as a sales channel.
The research method is qualitative, and the research is mainly conducted as a desk research. As secondary information sources are used electronic sources concerning the Swedish markets in addition to books related to international business. As primary sources, to back up secondary data, are used communications through electronic mail with the representatives of organizations such as Systembolaget, Skatteverket and Svensk Handel in addition to the executive organization Olvi plc.
The executive organization, Olvi plc, started its internationalization process in 1996 by acquiring a subsidiary in Estonia. Today the company has altogether three subsidiaries in the Baltic States and one in Belarus. The company has the right resources to expand its international business activity further as it has experience of foreign markets, skilled personnel and successful operations. The company has already started an examination process of export possibilities including also Sweden.
The Swedish markets have potential for the company. The location of the markets is ideal. The Swedish legislation and regulations concerning the sale and import of alcohol are unproblematic. The Swedish culture is quite similar compared to the Finnish one, and consumer preferences do not differ largely. Beers and ciders represent potential product groups but long drinks would require some consumer researches and testing in Sweden. Systembolaget would be a suitable sales channel for Olvi’s products as the sales of alcohol containing over 3.5 volume percent have to go through Systembolaget. To sum it up, the intention to expand to Sweden is prospective.
The research method is qualitative, and the research is mainly conducted as a desk research. As secondary information sources are used electronic sources concerning the Swedish markets in addition to books related to international business. As primary sources, to back up secondary data, are used communications through electronic mail with the representatives of organizations such as Systembolaget, Skatteverket and Svensk Handel in addition to the executive organization Olvi plc.
The executive organization, Olvi plc, started its internationalization process in 1996 by acquiring a subsidiary in Estonia. Today the company has altogether three subsidiaries in the Baltic States and one in Belarus. The company has the right resources to expand its international business activity further as it has experience of foreign markets, skilled personnel and successful operations. The company has already started an examination process of export possibilities including also Sweden.
The Swedish markets have potential for the company. The location of the markets is ideal. The Swedish legislation and regulations concerning the sale and import of alcohol are unproblematic. The Swedish culture is quite similar compared to the Finnish one, and consumer preferences do not differ largely. Beers and ciders represent potential product groups but long drinks would require some consumer researches and testing in Sweden. Systembolaget would be a suitable sales channel for Olvi’s products as the sales of alcohol containing over 3.5 volume percent have to go through Systembolaget. To sum it up, the intention to expand to Sweden is prospective.