Strategic Level of Involvement

Abstract

The popularity of Internet banking services has increased significantly over the last couple of years. At the same time computer crime is on the rise and this has created security concerns among the online banking customers. As a result the demand for Internet security solutions has risen dramatically. The United Kingdom is home to some of the largest banks in the world. Many of these banks offer a variety of Internet services although security, in certain areas, has not been up to standard. The purpose of this thesis is to design an appropriate entry strategy for a foreign SME wishing to enter the Internet banking security industry in the UK. Todos Data System AB is a Swedish firm offering authentication solutions to Internet banks, and it has been used as a case company when writing this thesis. With the purpose of gaining an overview of the business environment in the UK we have started by studying the UK macro and micro environments. The outcome of these studies has then provided the foundation for deciding an appropriate entry strategy. The results of our research show that the best entry mode would be to use an export strategy. This should be done either through indirect exporting using an export management strategy or through direct exporting using a manufacturer's representative strategy.