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Redalyc.GLOBAL MARKETING STRATEGY: the CASE of a BORN GLOBAL SOFTWARE FIRM in COLOMBIA Revista Ciencias Estratégicas ISSN: 1794-8347 [email protected] Universidad Pontificia Bolivariana Colombia Fuerst, Sascha GLOBAL MARKETING STRATEGY: THE CASE OF A BORN GLOBAL SOFTWARE FIRM IN COLOMBIA Revista Ciencias Estratégicas, vol. 18, núm. 24, julio-diciembre, 2010, pp. 271-286 Universidad Pontificia Bolivariana Medellín, Colombia Available in: http://www.redalyc.org/articulo.oa?id=151316944008 How to cite Complete issue Scientific Information System More information about this article Network of Scientific Journals from Latin America, the Caribbean, Spain and Portugal Journal's homepage in redalyc.org Non-profit academic project, developed under the open access initiative ISSN 1794 – 8347 | Vol. 18 | No. 24 | Jul-Dic 2010 | pp. 271-286 Revista Ciencias Estratégicas | Medellín - Colombia GLOBAL MARKETING STRATEGY: THE CASE OF A BORN GLOBAL SOFTWARE FIRM IN COLOMBIA ESTRATEGIA DE MARKETING GLOBAL: EL CASO DE UNA EMPRESA DE SOFTWARE GLOBAL NACIDO EN COLOMBIA SASCHA FUERST ABSTRACT Assistant Professor within the Department of Born globals are a phenomenon that is increasingly being observed and researched around the globe. Yet, International Business at Universidad EAFIT in few studies exist that research born globals’ marketing Medellin (Colombia) and a PhD student at Turku strategies. This paper sheds light on the global School of Economics in Finland. He received a marketing strategy of a small software firm in Colombia master degree in Business and Engineering (MBE) that globalized instantly and that serves global business- to-business markets by using an Internet-based sales from the University of Kaiserslautern in Germany. channel strategy. Due to its holistic nature, Zou and His research interests are in international Cavusgils’ (2002) conceptual GMS (global marketing entrepreneurship and firm internationalization strategy) model is used as the guiding framework for from an evolutionary perspective. E-mail: analysis. It was found that standardization of different elements of the marketing program is highly important, [email protected] with the exception of product standardization. The GMS model seemed to be applicable in its current form only Artículo recibido el 19 de agosto de 2010 y to a certain extend to the analysis of small born global software firms’ marketing strategies. The elements aprobado para su publicación el 2 de noviembre that appeared to be still highly relevant though are de 2010. standardization aspects of the marketing program, external globalizing conditions and global orientation. For a more comprehensive analysis of born global software firms’ marketing strategies, future research should take into consideration findings of the services- and business-to-business marketing literature. Besides, the GMS model’s applicability to born globals should be compared to more case firms operating in different businesses, and the adjusted model tested statistically based on survey data. Key words: Born global, international entrepreneurship, global marketing strategy, Colombia. Revista Ciencias Estratégicas. Vol. 18 - No. 24 (Jul-Dic 2010) • 271 Sascha Fuerst Ciencias Estratégicas RESUMEN Internet-based sales channel strategy. The paper, El fenómeno de los born globals se puede observar y thus, falls in the cross-section between studies se investiga cada vez más alrededor del mundo. No obstante, pocos estudios existen que investiguen las about international entrepreneurship and global estrategias globales de mercadeo de los born globals. marketing strategy, an area which has received Este artículo analiza la estrategia global de mercadeo little attention by researchers so far. de una pequeña empresa colombiana de software que se internacionalizó al instante desde su fundación, y que se enfoca en los mercados globales business-to-business The paper builds on the conceptual model a través de una estrategia de venta basada en Internet. developed by Zou and Cavusgil (2002) about global A raíz de su cualidad holística, el modelo conceptual marketing strategy (GMS model). This model is GMS (global marketing strategy) de Zou y Cavusgil (2002) se toma como referente para el análisis en este considered to provide an adequate framework artículo. Se pudo observar que la estandarización de los due to its holistic nature and empirical validity. diferentes elementos de la mezcla de mercadeo es muy Although this paper does not try to validate relevante, excepto la estandarización del producto. statistically the GMS model with a new sample, El artículo evidencia que el modelo GMS en su forma actual se puede aplicar solamente con limitaciones al it provides a first step to assess qualitatively the análisis de las estrategias globales de mercadeo de relevance of the model for born globals. By taking las pequeñas empresas born globals de software. Los into consideration the results of previous research elementos del modelo que aparecieron muy relevantes todavía son la estandarización de la mezcla de mer- regarding marketing strategies of born globals and cadeo, las condiciones externas de globalización y la software firms, and by using the GMS model as a orientación global. Para un análisis más detallado de guiding framework, this paper tries to give answer la estrategia global de mercadeo de los born globals to the following two research questions: 1) How de software, futuras investigaciones deberían tener en cuenta los resultados de la literatura relacionada con does global marketing strategy manifests itself el mercadeo de servicios y el mercadeo de business- in a small born global software firm? 2) To what to-business. Adicionalmente, la aplicación del modelo extend does the GMS model provide an adequate GMS a born globals debería investigarse con aplicación framework for researching global marketing a otras empresas de diferentes sectores y se debería comprobar estadísticamente el modelo ajustado basado strategies of small born global software firms? en datos de encuestas. First, the phenomenon of born globals is outlined, Palabras clave: Born global, empresarismo internacio- nal, estrategia global de mercadeo, Colombia. followed by an explanation of global marketing strategy. Then, the findings of extant literature regarding born globals’ marketing strategies are Introduction presented. In a next step, the case is described followed by a discussion of its findings and compared to conclusions of other authors. Finally, Born globals are a phenomenon that is increasingly the conclusions and areas for future research are being observed and researched around the globe. presented. Yet, few studies exist that research born globals’ marketing strategies. Hence, this paper tries to contribute to the recent debate about the topic Born globals by comparing previous research findings of born globals’ marketing strategies with the results of Research conducted over the last two decades a case analysis about a small software firm in regarding the internationalization of firms Colombia that globalized instantly and that serves emphasizes the existence of companies that global business-to-business markets by using an internationalize rapidly soon after their foundation 272 • Revista Ciencias Estratégicas. Vol. 18 - No. 24 (Jul-Dic 2010) Global marketing strategy: the case of a born global software firm in Colombia or instantly from inception, often not even having In a more recent contribution, Gabrielsson, sales in their home market. Such firms are termed Kirpalani, Dimitratos, Solberg and Zucchella differently. They are known as global start-ups (2008) provided criticism regarding the (Oviatt & McDougall, 1994), high technology different definitions of how different authors start-ups (Jolly, Alahuhta, & Jeannet, 1992), characterize born globals, measuring the degree international new ventures (McDougall, Shane, & of internationalization and time to export after Oviatt, 1994), born globals (Knight, 1997; Knight foundation ranging from a export ratio of 25% over & Cavusgil, 1996; Madsen & Servais, 1997; Rennie, 50% to 80% in different studies, and time to export 1993) or instant internationals (Preece, Miles, & from inception over 2 years to 3 years. Luostarinen Baetz, 1999). This is in contrast to conventional and Gabrielsson (2006) even suggested that for a firms whose international involvement is described firm to qualify as a born global it should at least as a gradual development process characterized derive 50% of its sales outside its home continent. by a relatively long domestic business period Thus, Gabrielsson, Kirpalani, Dimitratos, Solberg before internationalization occurs (Bilkey & Tesar, and Zucchella (2008, pp.387-389) suggested a set 1977; Cavusgil, 1980; Johanson & Vahlne, 1977; of four criteria a firm has to meet to be defined as Luostarinen, 1979). For the purpose of this paper, a born global: a) It should be a small- and medium the term born global is used. sized firm with a global vision from inception; b) The firm’s products should be unique and have Oviatt and McDougall (1994, p.49) define a global market potential; c) It should be an an “international new venture as a business independent firm; d) The firm should have the organization that, from inception, seeks to derive capability for accelerated internationalization, significant competitive advantage from the use i.e. its international activities feature both of resources and the sale of outputs in multiple precocity and speed. Such criteria should countries.” Knight (1997, p.1) follows a similar contribute to broaden the definition
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