8.5 Conclusion

Companies planning to set up business in Poland must conduct a comprehensive analysis of the competitive environment in and the specific characteristics of the Polish market, and pay special attention to timing, location, market segmentation and form of market entry if they are to gain competitive advantage and create value. As shown in this chapter, any comprehensive analysis of international market entry strategies requires an integrated approach that considers all strategic parameters. Dunning s eclectic paradigm serves as a useful tool for this as it considers the relationship between competitive advantages and strategic decision making. The results of our empirical research confirm the basic elements of this paradigm. The motives for and forms of market entry into Poland can be related to Dunning s OLI configurations. Although in practice companies often use various forms of entry over time, some general patterns can be identified. It also is of utmost importance to consider the fact that the dynamics of the Polish market are constantly changing, especially in view of Poland s likely accession to the EU in the near future.

Notes

1. The applicants include Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Malta, Cyprus and Turkey. Most applicants are expected to complete their contractual negotiations by the end of 2002. Turkey, however, will not be able to start membership negotiations until certain reforms have been implemented (Ausw rtiges Amt, 2001).

2. The non-CEE candidates Malta and Cyprus are in a much better position and are the only applicants to meet all the requirements of a functioning market economy (FAZ, 2001b, p. 15).

3. Comparative advantages can easily be obtained by any company. However in order to gain competitive advantage firms must achieve uniqueness through an advantageous combination of activities. (This argument is consistent with Michael Porter s view of successful strategies; see Porter, 1996.)

4. Hymer s (1976) monopoly theory, for example, provides an appropriate basis for analyzing ownership advantages. Partial theories on the problem of location can be found in international trade theory (for example Ricardo, 1911; Ohlin, 1931; Heckscher, 1966) and location theory (as outlined in Tesch, 1980). Internalization advantages can be analyzed on the basis of transaction cost economics. See M ¼schen (1998) and M ¼schen and Meyer (1999) for further explanations .

5. Hungary and the Czech Republic have already agreed to a changeover period of seven years .

6. According to Beiersdorf (2002), ˜This means that the company from Hamburg is once again on ground that forms part of its history. In 1929 the foundation stone was laid here for a factory which was then opened in 1931. After 1945 the entire complex passed into state ownership.

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