The Steps of Internationalisation in the Studied Companies



   The companies in our study that have a high degree of internationalisation have a long and gradual internationalisation process. For Alfa Laval and Perstorp AB the internationalisation process goes 60 years back in time. It has been difficult for us, during one-hour interviews, to grasp exactly what steps the companies have made during the internationalisation processes. It may not even be certain that the interviewed persons had the accurate knowledge about the earlier steps in their internationalisation process since they, of natural reasons, were not present at that time.

   Alfa Laval started the internationalisation process with traditional export. Mr. Hermansson, stated that Germany and the U.S. were early important export markets. He claimed that the Nordic market also was an early entrance. During the 1970s and 80s foreign acquisitions constituted a major important part of the company's intemationalisation process. The process started with Alfa Laval's acquisition of a Danish company in the early 1970s. Thereafter, Alfa Laval acquired companies in France, Germany, Great Britain, the U.S. and Brazil. In the third intemationalisation step Alfa Laval established in Russia, China and India with production facilities, apart from acquisitions and own facilities Alfa Laval has sales offices in about 50 countries and sales representatives in 45 countries.

   Perstorp also started its' intemationalisation process through export. Early important export markets were Great Britain, Germany and Italy. Perstorp made a typical leap-frog, in 1955, when the company sent out agents to four different distant markets countries, Marocko, Egypt, Singapore and Brazil. One of the agents succeeded and a facility was build. The next faze of intemationalisation was made in the mid 1970s through acquisitions in Great Britain, Germany and the U.S. Further intemationalisation was made in the 1980s when the company expanded heavily through niching of product areas and concentrated their investments to countries within the E.U. Since the interviewed person Mr. Johansson represents the business unit Penta we limit our study of existing intemationalisation process to this area. The company supplies the global market from production facilities in Sweden, Germany, India and the U.S. If a market has enough potential Perstorp AB acquires an existing facility rather than setting up their own, since it is cheaper. Perstorp AB may today according to Mr. Johansson set up production anywhere in the world.

   Backer AB started the intemationalisation process in 1969 through establishing a subsidiary in Norway, to supply the Scandinavian market. At the same time Backer established operations in France. In the early 1990s the company was established in the German market. Backer AB was at the same time contacted by a Polish company that wanted to co-operate. This led to the acquisition of the Polish company. Further, Backer has established production in the Czech Republic, Italy, Great Britain and China during 2000-2004. New potential markets are Russia, the U.S. and Canada. It seems as if Backer AB to a high extent internationalised their operations through starting production at the potential markets. Often the company has started up own facilities, except from the Polish market where facilities were acquired.