Foreign Market Entry Analysis How to Optimally Invest Resources in Existing and Potential New Markets?

Abstract

The Swiss family owned company Lamello AG is one of these companies within the category of small- and medium sized companies, who is active in the niche industry of high quality power-driven hand-tool machinery and wood joining systems. It's a fact that 80% of Lamello AG's sales are produced due to exporting in other countries. This is why Lamello AG has subsidiaries in the main Europe markets like Austria, Belgium, France, Germany and Netherlands. After many years of concentrations with this direct investments in these markets, Lamello AG's managers are questioning, whether to start new direct investments in markets that are in other continents, like for example Australia, USA or China. Does that make sense at all or are the resources better invested at the status-quo? Therefore the research question is:

What is/ are the most attractive(s) market(s) - between the new and existing markets - for Lamello AG to invest its limited resources and what are the most suitable entry modes for these pre-defined markets?