Export market expansion strategy: Differences between market concentration and market spreading

Abstract

In light of certain important gaps observed in the export marketing literature, a study was conducted to investigate the presence of significant differences in the profile and behaviour between the two generic export market expansion strategic alternatives of concentration and spreading. Following a review of the extant literature, certain firm characteristics, export marketing effort and policy elements, and export‐related perception variables were viewed as potentially important discriminating factors between these two approaches. Based upon data generated from a focus on firms in a small EU country, the findings suggest the existence of several significant differences between market concentration and market spreading. These differences facilitate the development of extensive export profiles of concentrators and spreaders. The implications of the study for managers and public policy markers are discussed, and future research directions identified.