Order # 1111741 – Case Study Example
The Europeanization of Marimekko: International Growth and Single European integration and market grouping had a positive impact on Marimekko. When Finland (the local economy of Marimekko) entered the European Union (EU) in 1995, the country’s firms stood on a better business ground since there was a wide market for their products. The advanced European integration that came with the EU translated to the elimination of transaction and red tape costs among the members of the EU, reduction in financial, political and financial risks, and the shift and share benefits. Besides, the political, economic and regulatory policies of EU members were harmonized. As a result, Marimekko was able to export its products to other EU member states without tariff, customs and other forms of restrictions. Further, a common tariff against imports from non-EU members helped Marimekko to dominate the market without fear alternative supplies from abroad and competition from the global arena (Suder 404) Market grouping and European integration aided Marimekko in accessing the international market with ease while being protected from international competition.
European integration had a myriad of benefits to Marimekko. The European integration led to the creation of EUROCOTON that instituted anti-dumping concerns against a given cotton bed linen. The case was ruled in favor of the EU and as a member; Marimekko commanded a larger undisputed market share. Moreover, the use of a common currency, the euro, among the member states of the EU reduced the financial, economic and transaction cost involved when conducting business among the EU countries; Marimekko enjoyed these benefits. With the reduced tariffs and custom restrictions, Marimekko increased its exports to other EU states and the proximate Nordic countries (Suder 404). Besides the wider market, the European integration also aided Marimekko in operations, development and facilitated prolonging of the company’s products life cycle. Marimekko experience reduced fraud and corruption with the strengthening of the legal system owing to Finland’s adoption of EU’s regulations (Suder 411). The continued benefits derived from the European integration have enabled Marimekko to prosper from time to time.
Suder, Gabriele. Doing Business in Europe. 2nd Ed. A Thousand Oaks, CA: Sage, 2011. Print