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Foreign Market Entry Modes of Running Events -The Internationalization of Göteborgsvarvet Half Marathon

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Foreign Market Entry Modes of Running Events -The Internationalization of Göteborgsvarvet Half Marathon Foreign Market Entry Modes of Running Events -the internationalization of GöteborgsVarvet Half marathon Jenny Cheng and Hanna Sundell Graduate School Master of Science in International Business and Trade Master Degree Project No. 2011:12 Supervisor: Harald Dolles Abstract Foreign Market Entry Modes of Running Events - The Internationalization of GöteborgsVarvet Half Marathon Jenny Cheng and Hanna Sundell Supervisor: Harald Dolles Sports events are becoming increasingly globally important in social and economic terms. The number of people traveling abroad aiming to participate in those events has strongly increased in recent years. However, in the world‘s largest half marathon - the ‗GöteborgsVarvet‘ - held annually in Gothenburg, Sweden, the rate of foreign participants is still relatively low. Although a wide range of studies have been conducted within sports and event management, the attention towards developing an internationalization strategy for such kind of events is relatively low. The aim of the thesis is to fill this gap, by analyzing the case of GöteborgsVarvet and developing possible foreign market entry modes. The modes discussed in the thesis rank from cooperative forms, e.g. joint venture and marketing alliances, to wholly owned modes, like sales outlets and qualification races. The survey is based on qualitative and quantitative data. The results indicate that, in addition to choosing a foreign market entry mode that fits the specific event, there needs to be a close fit between destination and event in order to be able to attract foreign runners. Furthermore, in order for the internationalization of GöteborgsVarvet to succeed, it requires for the organization of GöteborgsVarvet to truly find or develop motives for it. The first step is then for the organization of GöteborgsVarvet to develop their website. If there is a desire to further internationalize, our recommendations are to explore the possibilities of qualification races abroad and establish partnerships with other running events. Jenny Cheng Hanna Sundell I Acknowledgements There are a lot of people we would like to thank that have played a big part throughout the process of this thesis. First, and most importantly, we would like to say an extensive thank you to our supervisor Harald Dolles. Without your guidance and invaluable advices we would probably still be stuck on writing the background. Thank you also to our co-supervisor, Tommy Andersson, who helped us enormously with interpreting the questionnaire data. Big thanks to the organization of GöteborgsVarvet, for introducing us to the subject of this thesis and providing us with the necessary information and data. We would also direct huge thanks to all of our interviewees, who were all kind enough to put aside time in their busy schedules to present their interesting views and stories to us. A special thanks to Siri Terjesen, who made our work so much easier by giving us several recommendations of people to contact. Thank you! Jenny Cheng Hanna Sundell II Table of Contents 1. INTRODUCTION ............................................................................................................................ 1 1.1. Background ............................................................................................................................................... 1 1.2. Problem Discussion ................................................................................................................................... 1 1.3. Purpose ..................................................................................................................................................... 3 1.4. Disposition ................................................................................................................................................ 3 2. CASE DESCRIPTION: GÖTEBORGSVARVET .......................................................................... 5 2.1. The Event and the Participants .................................................................................................................. 5 2.2. The Customers ........................................................................................................................................... 6 2.3. The Vision .................................................................................................................................................. 6 3. CONCEPTUAL FRAMEWORK ..................................................................................................... 7 3.1. Internationalization of Sports .................................................................................................................... 7 3.2. The Internationalization Drivers of Running Events ................................................................................... 7 3.2.1. The Economic Aspect ................................................................................................................................ 8 3.2.2. The Marketing Aspect ............................................................................................................................... 8 3.2.3. The Social Aspect ...................................................................................................................................... 9 3.2.4. The Cultural Aspect ................................................................................................................................... 9 3.3. The Network Linkages ............................................................................................................................... 9 3.3.1. The Organization ..................................................................................................................................... 10 3.3.2. The Core Product: The Event .................................................................................................................. 11 3.3.3. The Stakeholders .................................................................................................................................... 11 3.3.4. The Supporting Products/Services .......................................................................................................... 12 3.3.5 The Brand Image of GöteborgsVarvet ..................................................................................................... 12 3.4. The Customers’ Motives to Take Part in Running Events Abroad ............................................................. 13 3.4.1. Customer Segmentation ......................................................................................................................... 14 3.4.2. Main Motives of Customer Participation in Running Events .................................................................. 14 3.5. Barriers to Internationalization ............................................................................................................... 16 3.6. Foreign Market Entry Modes of Running Events ...................................................................................... 17 3.6.1. Characteristics of Foreign Market Entry Modes ..................................................................................... 18 3.6.2. Contractual Arrangements ..................................................................................................................... 19 3.6.3. Cooperative Arrangements ..................................................................................................................... 20 Jenny Cheng Hanna Sundell III 3.6.4. Wholly Owned Arrangements ................................................................................................................ 21 3.6.5. Matrix of Foreign Market Entry Modes .................................................................................................. 22 4. METHODOLOGY ......................................................................................................................... 23 4.1. Research Approach .................................................................................................................................. 23 4.2. A Single Case Study ................................................................................................................................. 23 4.3. Data Collection ........................................................................................................................................ 24 4.3.1. Primary Data ........................................................................................................................................... 24 4.3.2. Secondary Data ....................................................................................................................................... 26 4.4. Research Credibility and Generalization .................................................................................................. 27 4.4.1. Reliability and Validity ............................................................................................................................ 27 4.4.2. Methodological Problems ....................................................................................................................... 28 4.4.3. Generalization ......................................................................................................................................... 28 5. EMPIRICAL FINDINGS .............................................................................................................
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