Internationalization strategies in the face of constraints related to single supplier dependencies

: the case of the American wine company SYLTBAR

Abstract

While many small and medium-sized enterprises (SMEs) seek to expand internationally in order to grow, they are known to face challenges that limit their ability to do so. The purpose of this study is to demonstrate how an SME can grow in the face of constraints. It focuses on strategies at helping SMEs overcome the challenges associated with relying on a single supplier to enable them to advance their internationalization. For this purpose, qualitative primary and secondary data was collected, with a specific company's case serving as an illustrative example. The company SYLTBAR was selected because of its international origins, and the intricate relationship it maintains with its supplier, resulting in a complex internationalization process. This study aims to develop a recommended course of action for the company to solve the issue of single supplier dependency, ultimately facilitating its international expansion efforts by providing an in-depth theoretical review and a thorough analysis of SYLTBAR's situation. To support and make sense of the case, theoretical frameworks such as the Uppsala model, various entry modes, motives for internationalization, single sourcing strategies, and vertical integration strategies are applied and explained. This research contributes to the academic literature in this field by illustrating how a lack of exclusive distribution rights can limit a company’s international growth potential. Consequently, four different strategies to tackle this issue are being proposed.

Date of Award	25 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)