Högskolan i Skövde

Our understanding of the process of firm establishment in foreign markets is relatively limited especially in relation to host-developing and host-emerging markets. The market-specific and context-driven nature of the firm establishment process is largely overlooked in the literature. Against this background, we aim to chart the establishment process of a Spanish telecommunication firm, Telefonica, in Brazil and Chile by applying the 'four stage firm establishment process model in foreign markets' (Abraha, 1994). We identify strategic responses crafted by Telefonica to overcome the challenges during its establishment process. We revise Abraha's model in view of the findings and conclude with implications for managerial practices.