Navigating foreign market entry on a budget : A Strategy for Scale-Up Companies with Limited Financial Resources

Abstract

This master’s thesis investigates strategies for scale-up companies with limited financial resources to enter foreign markets successfully. The research addresses a significant gap in understanding how SMEs aiming to scale up can achieve international growth despite their financial constraints. The primary objective is to answer the main research question: “How can scale-up companies with limited financial resources enter foreign markets successfully?”. This question is explored by combining both theoretical frameworks with the empirical case study of two companies, Almada Label and Måndag, which successfully entered foreign markets with the support of the consulting company Abraca. The study begins by reviewing the characteristics of scale-up companies and the specific challenges they may encounter, including financial constraints. This review includes an analysis of the literature on internationalisation, scaling up, and foreign market entry, highlighting the factors critical for efficient market entry on a budget. The methodology employed includes qualitative case research, data collection through in-depth interviews, and comparative analysis of the case companies. The findings from this research provide valuable insights into effective strategies for overcoming financial constraints. These strategies include leveraging strategic partnerships, optimising resource allocation, and employing cost-effective market entry modes. The case studies illustrate practical applications of these strategies, demonstrating how the companies navigated their financial limitations to achieve successful market entry. The research also emphasises the importance of thorough market research, strategic planning, and adaptability in the foreign market entry process. The thesis concludes with a practical step-by-step guide designed specifically for scale-up companies with limited financial resources. This guide offers actionable recommendations for each stage of the market entry process, from initial market research to the implementation of entry strategies. This comprehensive approach aims to provide scale-up companies with the tools and knowledge needed to expand internationally while managing financial constraints effectively.