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Uppsala Movel v. Born Global

Global Strategic Analysis
by

cara yakush

on 13 October 2014

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Transcript of Uppsala Movel v. Born Global

Table of Contents:
Key Elements
Importance
Strengths & Weaknesses
Practical Application
Key Elements
Uppsala Model

Characterized by high
specificity and description
of the company actions
Base and inspiration for
creation of many other
internalization theories

Practical Application
Uppsala Model
Importance
Self reinforcing phenomenon
→remains basic standard
model
In depth foreign market and operation research→more comprehensive understanding
of markets
Direct correlation:
better market knowledge→
stronger market commitment

Internationalizaton Theory:
Uppsala Model
V.
Born Global

Born Global
Entry or withdrawal from
foreign markets quickly
and easily
It becomes a standard
model for how companies
do business abroad
Usually specialized goods
with superior quality
Reaching diverse and
large audience
Internationalization
process is much quicker
than to U-model

Born Global
Born Global
Uppsala Model
Born Global
Uppsala Model
Advantages

Disadvantages
Advantages

Disadvantages
References
Inception
:
2002
Internationalization
:
From inception
Performance
:
1033 employees
Operates in 92 countries
Turnover:

€333m (2011)
Inception
:
1975
Internationalization
:
1988
Performance
:
1751 stores
Operates in 74 countries
Group Turnover:
€15.9bn (2013)

Not every company is
domestic oriented from the
beginning
Ignores other forms of
business entries such as
franchising or licensing
It does not discuss the
reason behind foreign
investment
Model is outdated

Born Global concept
ignores the efforts of the
traditional exporter
Born Global companies
might be less stable
Extra Capital required to
go international
Limited tangible
resources

Advanced ICT

service specialized buyer needs

process efficiently with low cost
Different differentiation strategy

niche markets

raise standards competitors

superior quality
Direct international sales rely on external facilitators


easily enter or
withdraw from foreign markets
Cavusgil, S., & Knight, G. (2009). Born global firms: A New
International Enterprise. New York, NY: Business Expert Press.
Childs, ML. and Jin, B. (2014). Is Uppsala model valid to fashion
retailers? An analysis from internationalisation patterns of fast fashion retailers. Emerald Insight. Inditex, Global fashion powerhouse. Marketline Case Study. 2013
Gorynia, M., & Jankowska, B. (2007). Teorie internacjonalizacji.
Gospodarka Narodowa, 10(2007), 21-44.
Hagen, B. and Zucchella, A. (2014). Born Global or Born to run? The
long-term growth of born global firms. Management International Review.
Kudina, A., Yip, G., & Barkema, H. (2008). Born Global. Business
Strategy Review, 19(4), 38-44.
McDougall,P. and Oviatt, B. (1994). Toward a theory of international
new ventures. Journal of international Business Studies, 25(1),
Rennie, M. (1993). Born Global. The McKinsey Quarterly, (4), 45-52.
Tanev, S. 2012. Global from the Start: The Characteristics of Born
Global Firms in the Technology Sector. Technology Innovation Management Review. March 2012: 5-8
Zohari, T. (2012). The Uppsala Internationalization Model and It's
Limitation in The New Era.






Strong base in domestic market
Gradually gain experience and
knowledge
Heterogeneous marketplace →
customized product
Psychic distance important
World is one market place
May (not) strong domestic market
Experience and knowledge gained at
early stage
Homogeneous marketplace →
products are standardized
No psychic distance


Thank you for time and
attention.
Tanja Kruse
Cara Yakush
Balisa Finca
Michal Kusidel
Full transcript