Authors Mauro Guillen and Esteban Garcia-Canal examine the success of Spain's multinational companies to demonstrate how networking and other traditional methods can be used to conquer global markets
PHILADELPHIA, Nov. 29, 2010 /PRNewswire-USNewswire/ -- How is it that during a global economic crisis which has stymied many businesses seeking to expand abroad, that Spain has cranked out some of the most successful and thriving multinational success stories, even when faced with 20% unemployment and a declining GDP? The answers lie in a new book released this month by global economists Mauro Guillen and Esteban Garcia-Canal entitled, "The New Multinationals."
"In exploring opportunities for expansion, many Spanish companies avoided the risky and expensive strategy of operating their own facilities abroad, instead favoring alliance, joint ventures, and acquisition," say Mauro Guillen, director of the Lauder Institute at the University of Pennsylvania's Wharton School. "It comes down to smart, savvy and frankly, 'old-fashioned' networking strategies, coupled with excellence in implementation and execution."
Expansion successes featured in the book include the world's largest bridal gown maker, Pronovias, the world's fifth-largest telecom company, Telefonica, the world's fourth-largest bank, Santander, the world's fourth largest wind-turbine company, Gamesa, and the first foreign transit provider in China, ALSA.
The theories behind this business success, summarized in this month's Harvard Business Review under the title, "How to Conquer New Markets with Old Skills" include vertical integration expertise, refined political and networking skills, and project execution knowledge.
"These are capabilities available to many other companies working to grow in emerging markets," says Esteban Garcia-Canal, professor of management and international business at the University of Oviedo in Spain. "We see the Spanish model as very applicable to other companies hoping for the same success."
The book, "The New Multinationals" is available through Cambridge University Press, 2010. It is the result of research funded by the Rafael del Pino Foundation.
Mauro F. Guillen ([email protected]) is the Dr. Felix Zandman Professor in International Management and director of the Lauder Institute at the University of Pennsylvania's Wharton School.
Esteban Garcia-Canal ([email protected]) is a professor of management and international business at the University of Oviedo in Spain.
About the Lauder Institute:
The University of Pennsylvania's Lauder Institute, founded in 1983, combines a world–renowned Wharton MBA with a Master's in International Studies. Advanced language and foreign culture training, a two-month in-country immersion, and a Masters Thesis from the School of Arts & Sciences all prepare Lauder Fellows for the ever-evolving global economy. Graduates join the diverse, supportive and committed worldwide Lauder community – continuing a 25-year tradition of international business leadership. The Lauder Institute also offers an MA/JD joint degree. The Lauder Institute is also home to the Penn Lauder CIBER (Center for International Business Education and Research), funded by a grant from the U.S. Department of Education, which provided partial support for this conference. For more information, visit www.lauder.wharton.upenn.edu.
About the Wharton School:
The Wharton School of the University of Pennsylvania — founded in 1881 as the first collegiate business school — is recognized globally for intellectual leadership and ongoing innovation across every major discipline of business education. The most comprehensive source of business knowledge in the world, Wharton bridges research and practice through its broad engagement with the global business community. The School has more than 4,800 undergraduate, MBA, executive MBA, and doctoral students; more than 9,000 annual participants in executive education programs; and an alumni network of 86,000 graduates. For more information, visit http://www.wharton.upenn.edu.
SOURCE Lauder Institute/Wharton School at the University of Pennsylvania