Strategies of Entry Modes: The Case of Greek Banks Entering the Albanian Market
AbstractThe phenomenon of the globalization of services is increasing at an amazing path and the same has happened to the study related to this issue. Transition from centralized to open market economy has had a great impact in the ways countries of the Western Balkans have developed. This transformation has given many windows of opportunity to some foreign businesses to expand their activities in these countries. More specifically, the beginning of the ‘90s has lead many financial institutions to expand their branches in the Balkan region. Emerging markets are characterized by relatively rapid institutional change and higher rates of economic growth compared to developing countries. Obviously, economic growth in these countries is generally accompanied by trade liberalization measures. However their legal, political and financial institutions are not as mature as those prevailing in the industrialized regions of the world, and this creates an ambiguous and uncertain climate for foreign investors. During the second half of the 1990s the operations of the foreign banks in the emerging market’s banking system have increased dramatically as a result of surpassing the financial repression and stagnant international financial flows. In fact, selecting overseas market and deciding on how to approach these markets are the essential elements of any international strategy. International banks enter and develop into a foreign market in different ways, but the long – term success of the banking industry does not depend solely on transaction management and extensive brand network; but still, it depends on being in the right place at the right time! The aim of this research paper is to provide explanation to the strategic process by which Greek banks cope with the institutional differences in Albania. Specifically, this study was focused in studying issues such as: Greek banks entry modes in Albania; factors motivating their expansion; time of entering the market. To attain answers to this research questions, there were conducted semi-structured interviews with marketing managers of each bank operating in Albania. The result of this study confirms what was previously confirmed from literature and other similar research projects.
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