Agent/Distributor versus Foreign Subsidiary: “A study into the possibility of setting up a sales organisation for Hartman in Sweden, Spain, Russia & Dubai”

Aykaz, Kamer (2009) Agent/Distributor versus Foreign Subsidiary: “A study into the possibility of setting up a sales organisation for Hartman in Sweden, Spain, Russia & Dubai”.

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Abstract:Hartman Outdoor Products B.V. is an international company founded in the Netherlands that operates in the outdoor furniture market. Due to the successful business approach on the one hand and the increasing competition in its primary markets on the other hand Hartman had the desire to expand and go abroad to look for new business opportunities. This desire is followed by a feasibility study – executed in June 2008 – in order to find the most promising export markets for outdoor furniture. As a result of this study, Hartman sees structural growth opportunities in the following markets: Russia, Sweden, Spain and Dubai (UAE) (Aykaz and Olthof 2008). However, Hartman experienced that the current market entry strategies, which are being used in those four markets, show insufficient growth opportunities for the future. As a consequence, the main purpose of this thesis is to compare Hartman’s currently used market entry modes against alternative entry modes in terms of feasibility; in order to find the most profitable market entry mode for Hartman in the four target markets and make the final decision concerning whether or not to change the current market entry modes: agent/distributor vs. foreign subsidiary. As a result of this, the following central question is being answered in this thesis: To what extent is it feasible for Hartman to enter the markets of Sweden, Spain, Russia and Dubai (UAE) by setting up a sales organization in combination with a showroom? Based on this study the following recommendations are made for Hartman: From the assessment of the internal conditions it can be concluded that it is not necessary for Hartman to vertically integrate by setting up a foreign sales organization, in order to have success in the foreign markets. Success can also be achieved through a less integrated form of export, by using agents and/or distributors. The external conditions as well as the profit conditions are assessed for each country separately
Item Type:Essay (Master)
Clients:
Hartman
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/59905
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