The Internationalization Process Of A Sme During A General Financial Crisis: A Case Study Of A Greek Company

In the mid of 2008, an unprecedented and, for most of the world, unpredicted financial dept crisis was unfolded, leading to a dramatic increase of public debt in many advanced economies. One of the major European countries that were hit by this dept crisis was Greece due to a combination of structural weaknesses that the Greek economy had been facing for decades. One of the main industries mostly affected was the construction industry. The Greek construction industry has shown a considerable decline since 2008, according to data provided by the Hellenic Statistic Authority. Moreover, many small and medium sized companies (SMEs) had to alter their strategic planning in order to adapt to the new conditions. In order to investigate in fact the corporate strategies that have been adopted by some small and medium sized companies to overcome the crisis and become competitive and profitable again, an empirical research in March 2014 was carried out. As a case study, the enterprise named “Roka Refractory” has been chosen, which has been found in a difficult and crucial position because of the stagnation of the construction sector and the reduction of purchasing power of the consumers in the internal market. However, it has managed to overcome after taking the decision to enter in foreign markets. The enterprise “Roka Refractory” was founded in 1989, in Thessaloniki, Greece, aiming at the massive production of specialized refractory ceramic products (fire-bricks), used on fireplaces, kilns, barbecues, furnishes etc. The company constitutes the only manufacturing unit of its kind in Greece, covering up to 60% of the domestic market, meeting the exigencies of international competition. However, as the vast majority of the enterprises of the building materials business sector have been seriously affected over the last five years from the general financial crisis that has beset the Greek economy, Roka Refractory could not avoid being affected as well. In an attempt to overcome this crisis, the company decided to take brave decisions. During the last three years it has changed its corporate strategy, following a corporate growth strategy for the internal (Greek) market in combination with an internationalization strategy for the external markets, making use of innovative marketing strategies. The company has aimed to its entrance into the markets of neighboring countries (especially in the Balkan Peninsula) as well as the entrance into the Arabic countries surrounding the Mediterranean Sea. This paper examines, in the beginning, the corporate profile and the historical evolution of the company. Next it is presented a sales analysis and the internal and external environment of the enterprise. Also, the internationalization process that has been followed by the company is described with details. Finally, an attempt to evaluate the adopted internationalization strategy was made in order to assess the results that have been brought to the company after the implementation of this strategy.