Entering the Argentinian market : as a Finnish industrial sector company

This thesis examines the most important factors to consider when entering the Argentinian market as a Finnish industrial sector company. The thesis introduces foreign market entry modes and the factors affecting the selection of entry modes. The Argentinian market environment is introduced and explored with the Hofstede’s six dimensions model and the PESTL analysis tool. To support the theoretical framework, qualitative data was collected by interviews. The research results showed that the most important factors to consider when entering the Argentinian market as a Finnish industrial sector company are the political and economic instability of the country, and forming strong business relationships with local partners. The data revealed that it is also vital to conduct a thorough market research to learn about Argentina’s corporate taxation policies and existing export/import regulations, permits, and certificates. The results also revealed that it is recommended for a Finnish industrial sector company to have a good market entry strategy and a finance strategy, use export entry modes, and to enter also e.g. Brazil and Uruguay and not have Argentina as the only market in South America. It was also recommended to enter Argentina with a long-term plan, as it may be challenging to reach quick profit in the cyclical economic environment. The reliability and validity of this research may be questioned due to the lack of multiple interviews and the lack of sources in English language about the Argentinian market environment. Nevertheless, the results of the thesis provided useful information regarding the important factors to take into consideration as a Finnish industrial sector company entering the Argentinian market