ENTRY BARRIERS FOR BANGLADESHI SME'S REGARDING GEOGRAPHICAL EXPANSION IN FINLAND
Alam, Md Mahmud (2021)
Alam, Md Mahmud
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021120323493
https://urn.fi/URN:NBN:fi:amk-2021120323493
Tiivistelmä
This thesis was commissioned by Forever Fashion, a medium-sized readymade garment RMG firm in Bangladesh that aims to enter the Finnish market. Entering to a new country is known as geographic expansion, and it is easier for big firms than to SMEs. The objective of the thesis was to identify key barriers that Forever Fashion may have to face in the process of launching new operations; another objective was to discover new approaches for overcoming existing and potential barriers. To be able to make the entry decision, the client organization has to consider both the internal and external factors such as economic and social barriers, cultural differences, managerial capability, financial solvency, and available resources of the firm.
To conduct the thesis, both the primary and secondary research method was adopted, which included the application of qualitative and quantitative data. The use of qualitative and quantitative data aided to determine which would be the most suitable way to enter the Finnish market. The qualitative data was derived from both the primary and secondary sources. The quantitative data, on the other hand, was derived from primary sources only.
The research showed that internal factors play a more crucial role for the geographic expansion of Forever Fashion than the external factors. As the majority of the firms in Bangladesh in the RMG sector export products to international markets, exporting is the primary choice of Forever Fashion too. While entering the Finnish market, Forever Fashion also needs to overcome the challenges associated with the Bangladesh RMG sector such as longer lead time and lack of technology. It was also detected that even though the firm has been performing well in financial terms, exporting appears to be the most feasible entry mode for the company. Moreover, Forever Fashion can export to the Finnish market without increasing the manpower of the company; another important reason to choose export as the most applicable option to expand their business in Finland.
To conduct the thesis, both the primary and secondary research method was adopted, which included the application of qualitative and quantitative data. The use of qualitative and quantitative data aided to determine which would be the most suitable way to enter the Finnish market. The qualitative data was derived from both the primary and secondary sources. The quantitative data, on the other hand, was derived from primary sources only.
The research showed that internal factors play a more crucial role for the geographic expansion of Forever Fashion than the external factors. As the majority of the firms in Bangladesh in the RMG sector export products to international markets, exporting is the primary choice of Forever Fashion too. While entering the Finnish market, Forever Fashion also needs to overcome the challenges associated with the Bangladesh RMG sector such as longer lead time and lack of technology. It was also detected that even though the firm has been performing well in financial terms, exporting appears to be the most feasible entry mode for the company. Moreover, Forever Fashion can export to the Finnish market without increasing the manpower of the company; another important reason to choose export as the most applicable option to expand their business in Finland.