Companies Tend to Follow Customers
A factor that tends to be influent, for some companies, is the companies existing customers strategic establishments abroad. According to Mr. Nilsson at Backer AB, the main reason for the company's presence in the Baltic market is that Backer AB's customers have moved production to this market. In order to provide existing customers with good service Backer AB tend to follow customers to new markets, even if sales to the new customers sometimes is slow. When we found the article "Smalandskt foretag foljer efter kunderna till Kina" published in the newspaper Dagens Industri, 25 November 2004, concerning the company Exirgruppen, our interest for this factor increased. We think that this could be an effective internationalisation strategy, mainly for small and medium sized companies, to follow large existing customers abroad. The reason is primary to supply customers with good service and not to risk losing important customers, but also to reach new customers in the markets where the existing customers established. This fact may be the result of close co-operation in a network.