The creation of a market – LP South America (A)

Abstract

Theoretical basis One of the major issues present in this case is whether there is significant industry pressure to internationalize. Yip’s (1989) global strategy drivers are a helpful approach for examining this issue. This case also applies two important marketing concepts – the product life cycle and diffusion of innovation theory – and how differences across international markets impact these concepts. Finally, there are significant cultural issues at play in this case as well. Theoretical models of national culture, such as Hofstede, Hall and others, can be used to examine cultural influences on an industry that is not often associated with culture. Research methodology The case is based upon a combination of secondary research and primary research. The lead researcher and a team of graduate students conducted interviews with Louisiana-Pacific Corporation (LP) executives in the USA and Chile in 2017. Case overview/synopsis This three-part case examines the internationalization of LP into South America. Case A begins in 1999 as LP attempts to decide whether to take its oriented strand board product international. The reader is asked to consider where LP should go in South America. Case B examines the factors LP used to decide to enter Chile and then outlines the key decisions that led to its impressive growth between 2000 and 2015. Case C begins in 2015 as LP now considers whether to expand its markets into Argentina or Colombia. Complexity academic level Given the complexity of issues raised in the case and the need to narrow these issues down to an implementable decision, this case is most appropriate later in the schedule of a graduate or executive-level business course in international business or international marketing.