The internationalization pattern of a Swedish Fashion Company - A case study of Lindex

Abstract

To internationalize has become an increasingly common means for growth as the developed markets in Europe exhibits a highly competitive environment leading to saturation in their domestic markets. With the emerge of the globalization and the rise of emerging markets new opportunities arise, which is positive for smaller countries like Sweden that are dependent on international activities. Furthermore, the Swedish fashion industry is becoming increasingly recognized in the international arena as world-famous companies like Swedish H&M has influenced and inspired the Swedish fashion industry. The purpose of this study was to investigate why and how Swedish retailers within the fashion industry expand to new markets with special emphasis on knowledge gained from previous establishments. The results of the study suggest that Lindex expansion pattern lies both in knowledge and experiences gained from the German market failure during the late 1990s, but also to a large extent in the external factors as regard to the establishment in the Czech Republic, Slovakia and Poland. Moreover, the results indicate that the internal factors, referring to the knowledge and experience of Lindex’s new owners, Stockmann, were the driving force behind entering the Russian Market. Lastly, we have also been able to conclude that a previous establishment regardless of how successful will affect subsequent expansion decisions, since the knowledge gained from every establishment is brought with the organization to the next expansion decision.