Antes de servir retirar del fuego y mezclar bien con las 2 yemas 7) Servir caliente.

Initially, the analytical process concentrated on a within-case analysis to formalise each case through a succinct case write-up (Eisenhardt, 1989; Chetty, 1996; Perry, 1998; Amaratunga & Baldry, 2001; de Weerd-Nederhof, 2001). The process of within-case analysis was conducted so that each individual case could stand alone as an independent entity prior to the cross-case analysis, shown in Section 4.3 (Perry, 1998; Amaratunga & Baldry, 2001; Amaratunga, et al., 2002). Additionally, the within-case analysis gives further credence to the richness of the data sources. These individual within-case analyses were summarised into a number of categories including firm code, firm size, product orientation, number of employees, customer type, regional focus, international market proportion, turnover, age, number of outlets, position held by interviewee, and a short description of the firm‘s business as shown in Table 4.1. However, in Table 4.1 and in the within-case analysis information may have been altered slightly or omitted to ensure the confidentiality of the firms involved. These changes or omissions do not, however, affect the quality of the data or its interpretation and findings. Now that the within-case summary table has been presented, an outline of each case will follow.

Table 4.1 Within-case study analysis matrix

Note: Each case has been given a Greek letter to represent the company, as the anonymity of firms is an imperative ethical consideration. ‗Start-up‘ denotes an Internet company

that started online. Conversely, if not indicated, the firm is not a start-up.

*A broader scope of SME definition was used for the first phase of exploration to get a better understanding of a range of key issues. For example, Case 9, Iota has 500 employees (seasonal), and falls beyond the definition by the Australian Bureau of Statistics (ABS, 2002). However, this falls within the OECD definition of SME, as outlined earlier in Chapter 1 (OECD, 2002).

Source: developed for this research

Company case code Company type/size Product orientation Number of employees Customer type

Regional focus Proportion (%)

of total Business is International Turnover per/ ann. Age/ # of outlets

Interviewee position Description of firm

Case 1: Alpha

Start-up Goods 2 B-to-C Global

US/ UK

70% <$1 mill. 3 years 2 outlets

Managing Director Online bikini retailer

Case 2: Beta

Start-up Service Digital product

8 B-to-B US/ Europe 99% $15 mill. 5 years 3 outlets

CEO Adult entertainment online

Case 3: Gamma

Small Goods 4 B-to-C US/ UK 35% $1.75 mill. 30 years

1 outlets

Owner Jewellery retailer

Case 4: Delta

Small Goods 2 B-to-C UK/ US 100% <$1 mill. 2 years

1 outlets

Owner Specialised artwork and images

Case 5: Epsilon

Small Good and Service/ digital goods

7 B-to-B NZ/UK/ HKG 10% <$1 mill. 5 years 1 outlets

Managing Director Retail point of purchase software and hardware

Case 6: Zeta

Small Services 13 B-to-B Asia/ South America

100% <$1 mill. 2 years 3 outlets

Marketing Manager Secondary education exporter

Case 7: Eta

Medium Goods 38 B-to-B

B-to-C

Asia/ US 75% $1–$2.5 mill. 4 years 4 outlets

Business Development Director

Stored value cards: financial payment solutions Case 8:

Theta

Medium Service & goods

140 B-to-C US/UK/ Asia/ Europe

40% $5–$10 mill. 90 years 1 outlets

Marketing Director Tourism destination/ accommodation

Case 9: Iota

Medium Service & goods

500 * B-to-C NZ/ Asia/ North America

20% $10 mill. + 23 years 4 outlets

General Manager, Sales and Marketing

Tourism attraction

Case 10: Kappa

Medium Service 50 B-to-B Global 60% $10 mill. + 11 years 5 outlets

General Manager, Asia– Pacific

Business services franchiser

Case 11: Upsilon

Medium Service 150 B-to-B Global 7-70% $10 mill. + 39 years 20 outlets

Business Development management Australasia

Catering and hospitality contracts

Case 12 Omega:

Medium Services 49 B-to-B NZ/UK/ South Asia/ Middle East/ UAE

10-20% $5–$10 mill. 18 years 5 outlets

Case 1: Alpha

Alpha is an Internet start-up firm. This small online bikini retailer was established in 2002. The firm was pre-conceived as an international company, and thus was instantly internationalised as it ‘went from garage to global’ (Alpha, 2004). Alpha

produces and designs bikinis, outsourcing the manufacturing to independent contractors in Australia. The two founders had extensive experience in Internet development. Designing bikinis and undergarments was assessed as a good venture as the founders understood from their Internet experience that ‗sexy sells online’ (Alpha, 2004). That is, their primary target market is men purchasing sexy undergarments for wives and girlfriends. The firm has a business-to-customer orientation. The company distributes to more than 45 international markets including Alaska, Iceland, Russia, Chile, United Arab Emirates, Nigeria and the Seychelles, within a three-year period. However, the major international markets for Alpha were the United States (US) and the United Kingdom (UK). The international component of the total business is 70%, as shown in Table 4.1. Further, the Internet is the primary mechanism for international sales. However, the online brand and public relationship success has spawned new international market growth in the UK through more established retailers, because of this success online success.

Case 2: Beta

Beta is also a Internet start-up firm. Beta is an adult entertainment company, which focuses primarily on business-to-business transactions and has a turnover of more than $15 million per annum. The firm has both a broad online multi-site strategy and an affiliate program. That is, the firm not only creates an affiliate program for intermediaries and producers of adult material, but also develops a broad range of end-customer-focused products in the adult industry. From inception the firm was international, as the domestic market was perceived to be somewhat less desirable. The firm capitalises predominantly on international markets over domestic markets, as the firm ‘don’t care if we don’t get another Australian customer’ (Beta, 2004). Between 0–1% of revenue is generated in the domestic Australian market, with more than 99% in international markets. More specifically, the US market makes up 75%, Germany 5%, the UK 5% and others countries 15%. Beta uses the Internet as the sole mechanism for international growth.

Case 3:Gamma

Gamma is a small retail jewellery firm. Gamma was an offline traditional jeweller that entered the virtual world. Established more than thirty years ago, Gamma is a jeweller with a niche product range. Thus, the firm has extensive industry experience. The retail firm distributes jewellery all over the world, with an international geographical focus that includes the US, the UK, Canada, Japan and France. International distribution was direct to customers through postage. For example, FedEx postage was chosen for postal distribution because of the domination of its US customer development online, as FedEx is a well-known brand in the US. Pre- Internet the firm had no international customers. As a consequence of the Internet business, over the last five years revenue has increased 200 fold, with 35% of business generated in international markets. The firm now turns over $1.75 million annually. The firm had the capacity to internationalise only because of their Internet and web presence, which Gamma affirms: ‘we had no international business other

than tourists before the Internet’.

Case 4: Delta

Delta is a retail art firm. The firm sells both the artwork and augmented products developed from the artwork. Currently, Delta deals predominantly in international markets, with the international component accounting for more than 80% of total revenue. The owner-manager uses third-party virtual network intermediaries online (eBay) as a conduit for international transactions. Further, email was the primary mechanism used to facilitate international transactions and maintain customer relationships, due to the vast geographical distances between company and customers. However, growth is generated not only through virtual markets such as eBay, but also primarily through more traditional methods of networks. The ability to digitalise the artwork was perceived as a significant innovation that helps to accelerate and facilitate internationalisation. For example, the firm not only has the ability to digitalise the artwork, but also has the capacity to do so with a very high level of image quality, which is seen as crucial for international customers. That is, the quality of the representations of augmented images from the artwork was the most significant advancement in capitalising on new customer markets. However, the firm‘s own website was not used in the growth, as virtual network intermediaries such as e-bay could generate a larger market than a firm-based website.

Case 5: Epsilon

Epsilon is a small retail technologies firm. The firm produces technologies for retail point of purchase use for the client‘s offline and online retail. Consequently, Epsilon

is a business-to-business operator. The firm has been operating predominantly in the domestic market. However, the firm does have international customers, which account for more than 10% of its total revenue. The firm has international customers in New Zealand, the UK, Japan, Sri Lanka and Hong Kong. The firm is still, however, in its international infancy. Epsilon perceived international markets to be their greatest chance for revenue, profit and growth: ‘We see future firm growth in

Hong Kong and the United Kingdom.‘ (Epsilon, 2005). The company has recently adjusted the product to be more digital in nature. Digitalisation was used to support international growth aspirations—for example, through the implementation of a self- install system. Growth is generated predominantly through traditional networks and marketing activities, such as trade shows and word of mouth. The firm uses e-mail, website real-time support systems and digital automation of processes to satisfy clients. In addition, the website gave the firm legitimacy in markets where the firm does not have a physical presence.

Case 6: Zeta

Zeta is a small education exporter intermediary offering a service for international students looking to study in Australia. Consequently, the firm generates 100% of its business in international markets. The firm has grown international markets in Korea, Japan, Taiwan, China, Indonesia, Thailand, Russia, and South America. Predominantly, Zeta generates new business in international markets through traditional means, such as personal networks, agents and other referral processes. Thus, the firm has a business-to-business focus. Therefore, the Internet is not used as a major source of growth in International markets. However, email was used significantly with third parties in the network relationship-building process. The Internet was also used as a source of legitimacy for the firm. That is, the firm may develop initial leads through traditional networking methods, while the Internet was used as a secondary source by both agents and students to check the legitimacy of the firm. As Zeta states: ‗we have to have a web presence, otherwise you are not considered real’ (Zeta, 2005).

Case 7: Eta

Eta is a medium-sized financial payment systems firm, which employs 38 staff and has three offices: Singapore and the United States, in addition to their domestic presence in Australia. Eta conducts business in the United States, New Zealand, Malaysia, Hong Kong and Singapore. China was also being developed presently. The firm generates between $1–2.5 million in revenue annually, with more than 75% of total business from international markets. The product is a range of stored value cards with both a physical and digital component that facilitates transactions in multiple payment situations. The financial system product is a consumer good; however, the firm generates the bulk of their revenue predominantly through business-to-business transactions. Thus, the firm has a dual focus in product delivery. The firm uses traditional mechanisms such as business networks to grow new international customers. However, the Internet was used in all facets of the internationalisation process, as ‗without the Internet our office would shut down‘ (Eta, 2004). For example, Eta uses live website virtual helpdesks, email and a sophisticated website with personalised financial payment systems.

Case 8: Theta

Theta is a medium-sized tourism service provider. The focus is on tourism destinations, with an accommodation services export focus. Consequently, the firm has predominantly a business–to-consumer product; however, operations tend to be business-to-business focused through agents. The business was established 90 years ago and now employs over 140 people, with an annual turnover of between $5–10 million. The international proportion of the total business turnover was 40%. The bulk of business is in western international markets including North America, the United Kingdom, and Europe, although Asia is a growing market. Consequently, mature international markets can be developed online where travellers prepare their own travel itineraries, e.g. in the US, the UK, Japan and Singapore. However, in non- mature markets, such as China and Taiwan, group bookings are made through agents. Networks remain the predominant form of marketing, as ‗aggressive marketing is primarily done through the travel trade in all markets’ (Theta, 2005). That is, ‗we promote through the travel trade by going into markets and participating in marketing activities that may be led by body organisations such as tourism Australia‘ (Theta, 2005).

Case 9: Iota

Iota is a medium-sized tourist attraction. A significant proportion of profit is generated through business-to-business. The firm relies on network mechanisms for growth in non-mature international markets. Conversely, more contemporary virtual network intermediaries were established for mature independent international travellers. For example, online affiliate programs generate new growth in the independent traveller market. The company has been established for more than 20 years.The firm has a well-known brand with multiple sub-brands and has a high level of positive association in the domestic market. Currently, the firm generates more than $10 million annually, with international markets accounting for more than 20% of that figure. Presently, Iota has customers travelling from New Zealand, North America, Europe, Japan, China, Korea, and Taiwan. Additionally, ‘China has the

greatest international market potential, as statistics indicate significantly more Chinese travelling to Australia in the near future’ (Iota, 2005). The firm developed the website in multiple languages—simple Chinese, traditional Chinese, Korean and Japanese— in conjunction with the English website. The Internet presence in China is not seen as being as important as relationship-based networks with agents.

Case 10: Kappa

Kappa is a medium-sized franchiser of business services. It was established 12 years ago and currently employs 50 staff in five offices. With a turnover of over $10 million per annum, Kappa has established business in Australasia, Europe and the United States. The international component is more than 60% of total revenue. Future growth will be focused on Asia: more specifically, China. However, business in Asia requires face-to-face relationship building. Kappa saw a larger risk of intellectual property infringement in Asia. Predominantly trade shows were used to access new international customers. However, approximately 23% of new business is generated through the website: ‗The Internet currently equates for 90% of the success of the firm. However, the Internet is limited in Asia’ (Kappa, 2005). The firm uses online system support to maintain customer relationships and generate new business through referrals. Kappa has invested a large amount of resources to integrate the business online. All processes and procedures occur online. For example, customers have a personalised web-space and can interact with each other, franchisee-to-franchisee, as well as franchisor to franchisee.

Case 11: Upsilon

Upsilon is a medium-sized hospitality and catering services company. The firm currently generates more than $10 million turnover per annum, with the international proportion of that turnover ranging up to 70% depending on the contracts at the time. Besides Australia, Upsilon has contracts in Papua New Guinea, the Middle East, Russia, the United Arab Emirates, New Zealand, Africa, and China. The contracting of tenders means the firm has a business-to-business customer orientation. Established approximately 40 years ago, the firm employs 150 staff in 20 offices, both domestic and international. The firm uses traditional methods of referrals and networks to gain new international business. However, the Internet was used to grow business in two ways: firstly, email was used extensively in the negotiation process of the contract. Secondly, virtual intermediaries were used to access tenders in international markets. The firm uses the Internet for the maintenance and facilitation of contracts: ‘the Internet is like the provider of life to our business, just like

electricity’ (Upsilon, 2005). Further, as Upsilon explains, ‘the website is used as an

introductory tool and then we go into building relationships through e-mail.’

Case 12: Omega

Omega is a medium-sized asset management software firm. The product is both an asset management software program and personal service provider. Thus, ‘the

company needs to have some level of physical presence or interaction with the client in the international market’ (Omega, 2005). Established over 18 years ago, the firm currently employs 49 staff and has five offices. Omega now generates between $5–10 million per annum, with the international proportion accounting for between 10–20% of that turnover, depending on contractual agreements. Omega presently has international markets in New Zealand, the United Kingdom, Malaysia, Indonesia, the Middle East and the United Arab Emirates. Although a technologically based business, the firm uses more traditional methods for development in international markets. The website was used for clients to crosscheck the firm‘s credentials. Indeed, the firm directs potential international clients to the website to check that the company is legitimate. Thus, the firm uses the Internet as a mechanism to facilitate international business, rather than to generate new market growth. That is, Omega

used more traditional methods, such as relationship-based networks through agents, to pursue international clients.