Multinationals' sins pave the way to the expansion of domestic companies

Abstract

Purpose

The purpose of this paper is to investigate factors affecting the position of multinationals versus domestic companies.

Design/methodology/approach

With the strong interest of multinationals in non‐alcoholic drinks, and the relatively solid position of local firms, the non‐alcoholic drinks industry in Poland is the focus of this study. The author conducted numerous trade interviews. Data from various sources such as trade magazines, trade associations was also the component of research approach.

Findings

Domestic companies proved their ability not only to sustain their position, but also to expand within Eastern Europe.

Research limitations/implications

More insight into cultural sensitivity and financial crisis is required in order to better understand factors affecting the position of multinationals across international markets.

Practical implications

In‐depth study that highlights sins committed by multinationals. Local companies could transform themselves into regional players and threaten multinationals within Eastern Europe.

Originality/value

Presents some of the key points, strategy, brand, new product developments, cultural sensitivity, learning, that are significant enough to draw the attention of global managers.

Citation

Wycislak, S. (2010), "Multinationals' sins pave the way to the expansion of domestic companies", Business Strategy Series, Vol. 11 No. 1, pp. 13-19. https://doi.org/10.1108/17515631011013087