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International expansion of Marcopolo (A): Adventures in China

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  • de Góes, Bruno Barreto
  • da Rocha, Angela

Abstract

This case provides an opportunity to discuss the internationalization process of a very successful emerging market multinational firm from Brazil and the specificities of entering a psychically-distant market, China. The case describes the internationalization process of Marcopolo, the largest Brazilian manufacturer of bus bodies, and describes the firm's initial steps in China and the challenges faced. Before its entry in China, Marcopolo exports had not reached the largest markets of Asia and Eastern Europe. The licensing contract signed by Marcopolo with Iveco-CBC, a joint venture between an Italian firm and a Chinese state company, did not permit Marcopolo to have its own plant or to export to China until 2007. However, by 2005 the time came when the company had to make a decision on whether to continue licensing or to invest in a plant in China.

Suggested Citation

  • de Góes, Bruno Barreto & da Rocha, Angela, 2015. "International expansion of Marcopolo (A): Adventures in China," Journal of Business Research, Elsevier, vol. 68(2), pages 225-240.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:2:p:225-240
    DOI: 10.1016/j.jbusres.2014.09.031
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    References listed on IDEAS

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    1. Alan M. Rugman, 2006. "Inside the Multinationals 25th Anniversary Edition," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-62516-7, December.
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    3. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    4. Preet S Aulakh & S Tamer Cavusgil & M B Sarkar, 1998. "Compensation in International Licensing Agreements," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 409-419, June.
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