A born Global Firm and Challenges when Establishing on Complex Markets

Abstract

Background and problem: World conditions are constantly changing and companies are forced to adapt in order to maintain competiveness. In order to achieve growth, firms commonly need to internationalize faster and in a greater extent. The phenomenon where small and medium-sized enterprises, with limited resources, conduct international business at or near the founding is called Born Globals (BGs). Niche markets, global networks and specialized products are crucial for BGs, which for instance is the case in the biotechnology industry. An example of an emerging, as well as highly complex, biotechnological subsector is the market of Egg Freezing (EF). Several difficulties and challenges need to be considered when establishing on this market. As a result, effective resource allocation is crucial when trying to survive in today’s business environment. Purpose: The purpose of this thesis is to enhance the understanding of BGs’ precipitated internationalization process and the consequences of advanced biotechnology, in light of cultural and ethical aspects. Furthermore, the aim is to investigate what type of knowledge and capabilities that are needed when establishing on a new, emerging, and sensitive market, like the market of Egg Freezing. Methodology: In order to answer the research question of this thesis, a theoretical framework was conducted and empirical material was collected through eight qualitative interviews. Furthermore, collected data was compared with theory, and an analysis enabled findings of differences, similarities, and empirical patterns. Analysis and Conclusion: This study implies that several factors contribute to the complexity of the market for assisted reproduction, whereby the market of Egg Freezing is an extreme example. The treatment of Egg Freezing is offered due to both medical and non-medical reasons. Since both products and treatments are extremely narrow and specialized, with aim of satisfying extremely specialized needs, the turnover in each country is relatively narrow. Although products within this sector are standardized and provided in an international manner, opposing norms and values forces BGs to adapt messages and statements among countries. Local knowledge is crucial when providing the specific market with appropriate and adequate support. Moreover, BGs need to consider extensive regulatory approvals, which are costly and time-consuming. Assessment of potential market profits need to be compared with required investments and resources. Consequently, resource allocation is crucial and extremely complex.