Analysis of foreign market entry strategy for Íslenska Gámafélagið. Market analysis

One of the main reasons for internationalization process of Íslenska Gámafélagið is the saturated domestic market, small domestic demand and increased competitors’ pressure. In order to respond to this increased competitor pressure, company is considering to expand its operations into foreign markets. Companies that have no international experience are usually looking to expand their business operations in secured countries with stabile legal and economic environment in order to reduce their risk. Most companies would probably avoid investing in countries with high perceived risk. Countries that still have problems with their existing corruptive practices are certainly not safe environment for investments. Therefore, investing in economic environment of the countries of Eastern Europe is quite risky and represents challenge for companies with little or no international experience. On the other hand investing in these undeveloped markets can also represent good possibility for companies with certain experience and expertise where they can use their knowledge in order to achieve growth. Investing in undeveloped waste management industry in Balkan countries represents good opportunity for companies such as Íslenska Gámafélagið. Íslenska Gámafélagið has certain experience and expertise in the area of waste management, where it can use that expertise as advantage in its entry in these undeveloped countries. One of the objectives of this thesis is to assist Íslenska Gámafélagið in its foreign market entry and recommend the best possible entry strategy in one of the selected Balkan countries. After conducting the detailed analysis of the waste management industry and analysis of all factors that can have influence on the company’s market entry it is recommended that Íslenska Gámafélagið enters the market by establishing partnership with one of the local companies in selected country. Considering the fact that Íslenska Gámafélagið have no international experience it is possible to conclude that partnership with domestic companies from selected foreign market would reduce the company’s risk in its foreign market entry. The main reason for selecting the Croatia as good country to enter, compared to other selected Balkan countries, is the fact that Croatia represents secure environment for Íslenska Gámafélagið. Croatia undeveloped waste management practices, outdated technology and unskilled labour force represent good possibilities for Íslenska Gámafélagið to use its expertise as advantage in its market entry in Croatia