Prospects and Challenges of Market Entry for Austrian Companies in an Emerging Market – the Case of Chile

Stefan Rotter, Vito Bobek, Tatjana Horvat


Chile is, compared to several other South American countries, geographically
and demographically rather limited, but despite that it is the second most
important trading and investment partner for Austria in this region. The aim
of this paper is to gain firsthand insights into the motivations and perceptions
of the entry of Austrian firms into the Chilean market by using an exploratory
research approach.Interviews with thirteen qualified and experienced persons
were conducted and analyzed, using Mayring’s qualitative content analysis. The
Chilean market is an attractive opportunity for Austrian firms, as it performs
quite well in international business environment rankings. The study results
indicate a variety of motivationsfor entering the market, as well as diverse entry
mode decisions based on numerous factors, together with a prevailing positive
perception of the Chilean business environment. Several results probably cannot
be generalized for the entire country, as the capital city is the center of business,
and research in other regions of Chile might have different results. Challenges
have been identified in the matters of language, distance, time, culture,
recruitment, complexity, local partners and the indigenous population. Chile is
a highly developed emerging market where doing business faces few obstacles.
Therefore, the country represents a very attractive location in South America with
great potential for Austrian companies.


market entry, internationalization, entry mode, business environment in Chile, emerging markets

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