Born global vs gradual internationalization strategies

: a case study of Mexican tequila SMES

Abstract

Small and Medium Enterprises (SME) seeking to internationalize their products or services enjoy many different strategies to find success in new global markets. An initial consideration for an SME is whether to seek international markets from its inception or whether to focus on local markets and gradually expand into global markets. The purpose of this paper is to suggest how the Mexican tequila industry, with several SMEs producing artisanal spirits for local and global distribution makes an interesting case study of SMEs in a developing region making the decision to adopt either Born Global or Gradual internationalization strategies. The unique constraints of a large but unevenly developed country of origin present challenges to tequila SMEs looking to expand into international markets. This paper considers three industry analysis models that can serve SMEs to evaluate their internal and external situations as they internationalize. As a product of cultural heritage with a globally recognized gastronomic tradition, the artisanal tequila industry also has some unique advantages in international expansion. The following presents a case study of Mexican tequila SMEs allowing students of internationalization to consider numerous factors in the internationalization process yet focusing on the distinction between Born Global and Gradual internationalization strategies. The paper concludes with anticipated learning outcomes of the case study.

Date of Award	26 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)