Establishment Processes and Building Relationships in Latin American Countries : The Case of Swedish Firms in Mexico

• This paper addresses the establishment processes of two Swedish companies in the automotiveindustry in Mexico by applying an establishment process model. An exploratory case study isapplied as a research method. One of the main findings of the article is that in both bus and trucksegments (sectors), there are well developed and tightly structured networks which function more orless in the same way as the networks and relationships in developed countries although Mexico is adeveloping country. Another finding is that the level of trust with the Scania's customers differs in thetwo segments. In the bus segment the relationship with customers is dominated by cooperation andtrust, whereas in the truck segment it does not as the market has more trust in other brands than inScania's products and services. A third finding is that Scania's competitive advantages rely on itscomplete solution which includes trucks, parts and services and on its cooperation with some competitorsand strong relations with authorities. While Volvo's competitive advantages are based on itsstrong dealers network strengthened through complete solution including training, new financing andselling programs, i.e. offering integrated services and cooperation with some competitors & strongrelations with authorities. A fourth finding is that in the Mexican market, government relationships areas important as customer relations and should be dealt with adequately if firms are going to succeedin their establishment attempts.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Nyckelord

Keywords - Automotive industry

Networks

Relationships and interaction approach

Strategic alliance

TRM

International market entry

Internationalization

Ekonomi

Economy

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