An analysis of internationalization strategies of French companies in Eastern Europe: the case of Ineo Polska

Résumé du document

Since the collapse of the Soviet Union in 1991 rapid changes have occurred in Central and Eastern European countries. Their economic development has literally boomed and they rapidly fulfil the requirements of the Copenhagen Criteria to be a member of the European Union. In 2004, most of them (Czech Republic, Poland, Estonia, Latvia, Slovakia, Hungary, Lithuania, Slovenia) have gained access to the European Union. In 2007, these countries have entered the Schengen area. All this process has completely reshaped the European Union; the new entrants represent about a 100 million more inhabitants and 16% of its new area. 60 years after the division of Europe during the Yalta conference, Europe has been reunified. The fact that Eastern Europe is now included in the Schengen area means that goods can travel without internal border controls throughout Europe. One of the most dramatic changes to affect businesses has been the change from centrally planned economy to free-market economy. The extension of the European Union and the Schengen area has been very positive for the development of business in Europe. Businesses in developed countries which had wanted to internationalize in Eastern Europe before the abolishment of boundaries had encountered a lot of difficult because of tariffs and non tariffs barriers. Since 1st January 2007, there are no more barriers for Western Europe companies who want to internationalize in these countries, and it is now easier to cash in on the incredible opportunities of these fast growing economies.

Extraits

[...] Theoretical contributions on determination of consistent international strategies in Eastern Europe and the case study of Ineo allow us to do five propositions, which are actually more recommendations to firms who want to internationalize in Eastern Europe. Final Propositions: Internationalization must be proactive and not reactive, as it was the case for Ineo Polska. Internationalize step by step starting by countries with lower psychic distance from domestic country. Dominate the domestic market or having a technological advantage before internationalize. Have knowledge about the host country. [...]

[...] The juridical form of the company is Sp. Z.o.o, it's a polish standard for small and medium size companies. Staff was composed by Polish and French expatriates. The official language used in the company was English INEO is the result of the merge in May 2001 of three historical electrical French companies. L'Entreprise Industrielle has been established in 1895, GTmH in 1891 and SEEE in 1927. Those companies were in harsh competition before they decided to merge. By this operation, INEO was created. [...]

[...] An analysis of internationalization strategies of French companies in Eastern Europe: the case of Ineo Polska Abstracts Most of the studies are based on firms entering developed country markets over relatively long period of time. This is in marker contrast to the sequence of entry into the new markets in Central and Eastern Europe, where markets opened up almost overnight, providing unpredicted opportunities for which competitive pressure required rapid market entry through FDI. Although the entry process is normally gradual, one would expect quite rapid entry because of the need to seize advantages under competitive circumstances. [...]

[...] Wilson, Internationalization: process, context and markets (pp. 220-237). Buckley, P., Casson, M., & Gulamhussen, M. (2002). Internationalisation, real options, knowledge management and the Uppsala approach. In V. Havila, M. Forsgren, & H. Hakansson, Critical perspectives on internationalisation (pp. p229-261). Clark, T., & Mallory, G. (1997). The impact of strategic choice on the internationalisation of the firm. (MacMillan, Ed.) Internationalisation strategies , 193-206. [...]

[...] The internationalization of foreign-owned enterprises in Estonia, an extended network perspective. Tartu Edition. Membership criteria require that the candidate country must have achieved: - Stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; - The existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union; - The ability to take on the obligations of membership including adherence to the aims of political, economic & monetary union. [...]