Internationalization in Polaris Ab and Staffan Preutz

Added on -2020-02-14

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INTERNATIONALIZATIONIN POLARIS ABANDSTAFFAN PREUTZ1
TABLEOF CONTENTSIntroduction......................................................................................................................................3History of Polaris Group..................................................................................................................3Staffan Preutz and Polaris................................................................................................................3Polaris in the early years..................................................................................................................4Internationalisation of Polaris..........................................................................................................4Internationalization in different countries.......................................................................................7The SP collection in different markets............................................................................................9Resource ability and risk taking capacity of SP..............................................................................9Competition from international and domestic market...................................................................11Conclusion.....................................................................................................................................12References......................................................................................................................................132
INTRODUCTIONInternationalization is the process wherein business entities are engaged in globalactivities and processes for the purpose of expanding the existing operations. It is also regardedas the concept of planning and implementing new facets in the business resources. There aremany benefits which can be acquired with the process of internationalization and a few arediscussed in the subsequent research work (Huang, 2015). In this context, the present study hasbeen made on Polaris Group which is a privately owned niche company that manufactures andsells rimless eyewear. Along with this, discussion has been included in the study regarding internationalizationprocess of Polaris AB and how effectively it operates business in different market places.Further, researcher has also stated the resource and risk capability of Polaris in diverse marketplaces. Currently, the level of competition is fewer because Polaris works as a start-up entity inSweden; however in this respect future trends are also defined that may generate competition forPolaris AB (Grünewald, Miroudot and Nordström, 2014). HISTORYOF POLARIS GROUPPolaris is a privately owned niche company that is engaged in manufacturing and sellingrimless eyewear and the business is located in Northern Sweden near the Arctic Circle. Fromhistorical point of view, the company established in the year 1979 by Staffan Preutz (presentowner and president of the group). From early years, the size of the company remains the sameand it has around 60-80 people employed in the group. At present, 20 people are working inSweden and they have contributed huge efforts in enhancing profitability and turnover of thecompany. 95% of the profitability belongs to different markers such as Japan and UK. 3
STAFFAN PREUTZAND POLARISStaffan Preutz was born in Boden in the year 1941 and at that time, his father had a smallwatchmaker and optic store. He was involved in selling reading glasses. It has been a well-known custom for people in which the father transits his skills and business to the sons and thesame happened with Staffan Preutz as well (Rugraff, 2014). Staffan had interest in the particulararea and because of this he started working with machines and tools in the repair shop. At thatthat, people used to like the eye glasses in Stockholm more as compared to Boden; hence lookingthis aspects, Swedish wholesaler started importing a number of glasses which were then sold tothe metropolitan areas.Considering the preferences of customers, Staffan at that time observed so many designsand then he started to draw the designs on papers (Zaby, 2013). At the age of 15, Staffaninvented several innovative designs of glasses and his efforts were greatly recognized by people.Thus, at that time, Staffan realized that he wants to build his career in this domain. In the earlyages, Staffan was involved in a variety of activities which further helped him to develop hiscareer. When Staffan was 21 years old, he wanted to focus on this profession; so he visited hisfriends in Europe and during that time, he also got visit invitation from different manufacturers.Hence, he entered into several businesses and contracts during that time period which enhancedhis learning and professional skills (Elango, 2012). POLARISINTHEEARLYYEARSWhen the company was established, it first got agreement with the Synsam chain whichconsisted of the order of six female designs and two male designs. The main motive ofestablishing Polaris was to manufacture a regular eye wear which can be coloured and shaped in4
various ways. The success of the business facilitated many changes in Polaris and along withthat, it has also strengthened the marketing practices of the business entity. This was the time,Polaris created a whole new concept in fashion industry (Braga, Gonçalves and Braga, 2016).The sales ratio grew extensively in the middle years and that drove Staffan to extend thepremises to larger extent. At that time, he travelled to different manufacturing facilities in Europeand while visiting, he invented several ideas to implement in the production plant. INTERNATIONALISATIONOF POLARISIn order to expand the services, it is crucial for the business entities to focus on theprocess of internationalization so that appropriate changes can be adopted for more success andgrowth. In general terms, The Uppsala model is explained as a theory which describes how afirm gradually intensify their activities in foreign market (Borner, 2012). The present case ofPolaris depicts how business can enhance its global reach in different market places. As per themodel it is essential for the business entities to gain experience from the domestic market priormoving to foreign market. The model also states that firms should start their operations fromgeographically and culturally close countries and after that they should move gradually to moredistant countries. As per the model, it is also crucial for the organizations to use traditionalexports so that they can move intensively to other markets (Moreno-Menéndez and Casillas,2014). This is also useful for the purpose of demanding operation modes from at the companyand target country level. The model also proposes that foreign sales initially starts with occasional export orderswhich are followed by regular exports and firstly it needs to be initiated with physical selling ofthe product (Jiang and Wan, 2015). This is also similar to POM model which assumes that thefirst expansion in the sales object should be concerned with the expansion to new foreign5
markets. In this stage, the firm can commit higher levels of resources to the market till the time itcan increase its levels of experiential knowledge. Therefore, the process of internationalizationevolves systematic stages at relatively slow pace due to local market regulation andorganisational learning. Furthermore, the model also specifies that the level of commitment mayalso decrease or cease if the performance and business prospects are not adequately achieved(Helgert, Nolte and Pertsch, 2015). However, on the other hand even though the model hascontributed greatly to broader understanding of internationalization; but the model itself alsosuffer in some fundamental bases to describe the total internationalization process. After facilitating several innovations in the business operations, Staffan decided to sellthe products to international markets. All he wanted was to design glass and travel abroad so that6

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