Telemetrix (B) – Telemetrix in Brazil: Indirect Export, Subcontract, or Licence?

Description

Telemetrix (B) – Telemetrix in Brazil: Indirect Export, Subcontract, or Licence?: Abstract

Case B “Telemetrix in Brazil: Indirect Export, Outsourcing, or Licence?” focuses on the choice of an entry mode to penetrate a foreign market, in this case, Brazil, and, based on this choice, on the selection of a local business partner. It also addresses the difficulty of developing international customer-supplier relations. Just like Case A, Case B is a decision-making case. Julie-Anne Cabana must determine the best entry mode and which partners will lead Telemetrix to success in Brazil and, subsequently, elsewhere in South America.

“Telemetrix” is a two-part case study; its parts can be used alone or in sequence. See Part A here.

Teaching objectives

• The role of export management companies in SME internationalization
• The motivations for and barriers to SME internationalization (assessment of opportunities and challenges that are specific to Latin America)
• How to choose an entry mode (between indirect export via a local distributor, subcontracting, or a licencing deal for manufacturing and distribution).

Main themes covered

• Export management
• International strategy and marketing (market selection, choice of entry mode, choice of a local partner for production and distribution)
• Fleet GPS management solution
• Customer-supplier relations

Concepts and theories related to the case

• SME Internationalization (Etemad, 2004; Buckley 1993)
• Entry mode and partners: transaction cost theory (Williamson, 1979)
• Eclectic paradigm and OLI framework (Dunning, 1980)
• Market selection: CAGE distance framework (Ghemawat, 2001) and cultural dimensions (Hofstede 1980) + value chain (Porter, 1998)
• Ansoff matrix (1957)
• Critical success factors (Kim and Mauborgne, 2010)

Additional information

Also available in French.