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Strategies for a pan European market
45
0024-6301/89 $3.00 + .OO Pergamon Press plc
Long Range Planning, Vol. 22, No. 3, pp. 45 to 53, 1989 Printed in Great Britain
Strategies for a Pan European Market A
Sandra Vandermerwe
With 1992 on the horizon, there is a groundswell of interest in the coming 320 million strong market-destined to be the largest in the industrialized world. Corporations within the Economic Community (EC) are posed to profit from the muchneeded expanded home market. A barrier-free Europe will not only offer them lucrative opportunities, but also the opportunity to improve their global competitive position. The dismantling of Europes borders has also attracted corporations outside the EC into Europe. They too are looking to take advantage of the new unifiedmarket, andmany of these corporations are rapidly adopting a pan European outlook and committment. Although the impetus for 1992 came from the Commission, business must be prepared for the complexities, and make it work. Some companies are assessing the implications of the proposed programme. Others are already forging ahead planning new strategies and restructuring their organizations. This article focuses on 1992 and changes in the way firms can expect to do business in the future. It is based on a literature review and a survey among 80 senior business executives. It centres on two issues: the probable environmental and consumer behaviour changes, and the impact on marketing and overall corporate strategy in the future.
The vision of a unified market by 1992 is in sight. Business leaders are suddenly aware that the Economic Community (EC) is well on its way to becoming an integrated single economy. Anticipated are new business opportunities and threats that call for different ways of doing business in the Europe of the future. The new Europe we now know:
will be quite different
*
citizens will be able to move
*
goods will be freed borders,
of all controls
manufacturers
be
*
will
able
from the one
and work
to
freely,
products anywhere on the basis of mutually agreed Community-wide standards,
a
service providers services throughout
will be able the market.
to offer
their
This unified Europe, free of physical, technical and fiscal barriers, will lead to profound change in market and competitive dynamics. Whether a firm’s thrust is to protect existing business, or find new and exciting opportunities, there will be significant impacts on business strategy and its implementation. The challenge to manage the process is squarely in the hands of the executives, who, based on their perception of what 1992 will bring, will act and so create the future.
The Executives
in the Survey
This article reports on research done among 80 executives both inside and outside the EC. The object of the survey was to get a wide but useful spread of views and experiences, and see whether there are any differences in the responses of ‘insiders’ and ‘outsiders’. The sample is made up of 40 ‘insiders’ from the United Kingdom (23 per cent), West Germany (15 per cent), France (12 per cent), The Netherlands (12 per cent), Belgium (12 per cent), Italy (10 per cent), Denmark (5 per cent), Spain (5 per cent) and Portugal (5 per cent). The 40 ‘outsiders’ are from the European Free Trade Association (EFTA) countries (55 per cent), U.S.A. and Canada (25 per cent), Australasia (10 per cent), and the Far East (10 per cent).*
at national market
their
Dr Sandra Vandermerwe is Director of the MBA Programme and a senior faculty member in International Marketing and cervices at IMI, Geneva. She was previously Professor of Marketing at the Witwatersrand Business School.
In both the ‘insider’ and ‘outsider’ samples, 70 per cent of the respondents are in CEO and top general management and senior corporate planning positions. The other 30 per cent are almost exclusively ‘Percentage rounded off, and therefore does not add up to 100 cent.
per
46
Long Range
Planning
Vol. 22
June 1989
in senior marketing positions. Seventy per cent of the group are in manufacturing and 30 per cent in traditional services (several of the manufacturers are however also in services). Size-wise 30 per cent come from smaller firms (assets of up to U.S. S500m), just over 40 per cent from medium sized companies (assets over U.S. S500m and up to U.S. S5000m), and 30 per cent from large corporations (assets over U.S. S5000m). Responses were obtained by questionnaire. All questions were open-ended without any prompting. About a dozen questionnaires were completed by two or more individuals who wanted to discuss the issues with colleagues and present a ‘company’ view. Personal interviews were also conducted. The five responses made most often are presented in the tables below, ranked in order of times mentioned. Individual items are discussed more fully, the higher rankings in more detail. Where relevant, remarks have been clustered into meaningful groupings for ease of discussion.
*
as a general rule, markets more but at the same time complex,
*
the emphasis to switch from national market focus to regional market focus, i.e. not necessarily along political boundary lines.
Ability to reduce costs. They see an ability to reduce costs as paramount to future opportunities in the unified market. This they expect to obtain through: A common and harmonized tions and Euro-environmental
Increased market opportunities. One message that comes across clearly is that executives expect more market opportunities from a unified market. The main points they make on the new market are that they expect: *
a *
a huge pan European market standardized goods and services, niches, previously more lucrative,
small, to become
products and services quickly, and therefore life cycles,
Table
receptive
to
rationalized
*
reduced production scale runs,
*
better Europe-wide sourcing opportunities -cheaper with improved speed and service,
*
cheaper housing
*
streamlining of organizational tive functions,
*
reduced costs of R SC D due to centralization activities, less complexity and co-operative rangements.
of ar-
Saving of time and energy. Roth samples also strongly about the prospect of saving time and eliminating wasted energy, human resources money, that have, in the past, partly contributed loss, they say, to their competitive edge. majority specifically refer to :
feel thus and to a The
larger
and
to get to markets more more rapid diffusion and
1. Five major
opportunities
Factor Increased market opportunities
*
product
ranges costs, due primarily
physical distribution, and logistic systems,
less and simpler
easier logistics, infrastructures.
A stronger Europe. the overall effects prospect of using expansion. Their
1
65%
ware-
and administra-
procedures
faster transportation,
related to and better
‘Insiders’ expressed an interest in of a ‘more healthy Europe’ and the this strength as a base for world point is that the single market can
OUTSIDERS Per cent respondent Ranking mention 1
80% 40%
Ability to reduce costs
2
62%
2
A ‘stronger’ Europe
3
40%
-
Saving time and energy
4
32%
4
22%
More competitive conditions
5
27%
3
27%
5
20%
Labour opportunities
centralized
of 1992 for companies
INSIDERS Per cent respondent Ranking mention
to large-
paperwork,
$7 time saved due to common safety and other testing, *
.
technical specificastandards,
*
What are the Major Opportunities? The first question asked executives to state the five main opportunities of 1992 they see for their companies (see Table 1).
homogeneous,
Strategies be used as a leverage and competitiveness.
to create world-wide
presence
Increased competitive conditions and labour opportunities. A smaller proportion, but both samples, mentioned increased competitive conditions as a distinct advantage, once barriers are removed. Some of the ‘outsiders’ also cited labour opportunities, talking specifically about the rotation of jobs, and labour transferability.
for a Pan European
are the Major
Threats?
The next question called for an opinion of the five most important threats executives see arising from 1992. The results are shown in Table 2. IntensiJied competition. Ranked the number one threat by both ‘insiders’ and ‘outsiders’ was intensified competition. Most executives mentioned both a general change in the level and type of competition, as Europe attracts more competitors and shifts occur in both the competitive dynamics and balance of power within industries and countries. ‘Insiders’ expressed concern with increased competition in their own long-held domestic markets. Points
made most often were:
*
unfair competition from state monopolies peting across borders,
*
the entry of outside countries, some better equipped right now to handle the new market,
*
fierce competition
fr
the rise of new competitive alliances as rivals,
72 competition standards,
from
*
the possibility countries,
of
double
72 evasion tion,
standards
and ‘full-hearted’
and non-compliance
in some support,
of the new legisla-
*
a ‘piecemeal’
*
informal
*
discrepancies in interpretation differences and language,
*
insufficient managers,
*
delays in the dismantling of barriers, and differences in speed between countries and sectors.
approach
protection
due to lack ofknowledge, and blockages,
education
and
due to cultural preparation
of
Protectionism. It has often been said that it would be absurd to open Europe only to close it again. Yet the ‘outsiders’ stated this as their second major concern: that a unified Europe could join forces and call for protectionism. ‘4 view expressed by over half the sample is that a new potential market will be created but only to be redistributed among EC corporations.
from the low wage countries, groupings
outsiders
and large
applying
pressure from 72 tough competitive high added value, niche operators, *
com-
47
A clumsy transition and non-compliance. A clumsy transition, non-compliance and ‘getting round’ the new rules, is another main concern. Some executives anticipate a lack of uniformity in attitude, knowledge, understanding and purpose. This, they see as a potential threat to both their competitive ability and the whole system. Here are their main remarks :
Q a lack of commitment
What
Market
lower
third-party,
the emergence of ‘supra-nations’ and ‘supracorporations’ and a consequent increasing gap between the smaller companies and giants. Table 2. Five major
threats
Factor
Pressure on prices and inferior standards. Other perceived threats they found worth noting: the pressure on margins as prices are forced down and a decrease in standards. The latter remark refers to standards lower than the accustomed, and those inferior to some international standards. Excessive bureaucracy. the ‘insiders’ also mentioned the possibility of excessive bureaucracy from regulatory bodies ‘enforcing’ the system. They see this as
of 1992 for companies INSIDERS Per cent respondent Ranking mention
OUTSIDERS Per cent respondent Ranking mention
intensified competition
1
70%
1
65%
Clumsy transition and noncompliance
2
37%
3
20%
Pressure on margins and pricing
3
17%
4
10%
Excessive bureaucracy
4
17%
Inferior standards
5
15%
5
10%
2
55%
Euro-protectionism
48
Long Range
Planning
Vol. 22
June 1989 Q they will be more aware of their choices and will make more product and services comparisons,
the consequence of potential country-for-country authorities, rather than a single EC authority.
*
What Changes are Expected Consumer Behaviour?
in
The sample was asked to state the five main changes they expect in the behaviour of customers in a single market. This question was in two parts: the first related to the consumer market shown in Table 3, the second to business and industrial customers in Table 4. Here is what is expected
from the consumer
A more demanding customer. Most executives agree that one way or another, come 1992, consumer expectations will go up. This they foresee in these main ways: will have (and want)
Table 3. Main expected
Factor
more customization
More and better service. Some executives see a demand for more, and extended, services by consumers. Generally, goods can be made anywhere. Services will be wanted where customers live. Again, this is part and parcel of the overall trend of more informed and demanding customers, be they the mass market or specific niches.
market:
More sensitivity to price. Executives expect that customers will be more sensitive to price. By this they mean expecting (and actively seeking) higher quality and performance at lower prices. This is linked to their next remark : customers will be more demanding.
r?r customers tion,
niche markets will demand and added value.
more informa-
changes
Pan European purchasing. Several individuals, particularly the ‘outsiders’, visualize a move to pan European purchasing. None claim that the expanded market will be completely homogeneous. But, say respondents, there will be an internationalization (‘blending’) of lifestyles, more uniform tastes and purchasing behaviour. Their responses don’t suggest they believe local needs will disappear, only that purchasing behaviour will not conform conventionally to political boundaries. Generally
speaking,
$r EC consumers demands,
in consumer
they see: with
more
behaviour
INSIDERS Per cent respondent Ranking mention
OUTSIDERS Per cent respondent Ranking mention
More sensitivity to price
1
47%
1
60%
A more demanding customer
2
45%
2
53%
More and better service needs
3
32%
4
17%
Pan European purchasing
4
20%
3
50%
More mobile consumers
5
15% 5
17%
More fragmented markets
Table 4. Main expected
Factor
changes
in industrial
similar
behaviour
INSIDERS Per cent respondent mention Ranking
Pressure to reduce prices
1
40%
OUTSIDERS Per cent respondent mention Ranking 2
60%
Europe-wide sourcing
2
35%
1
62%
Increased demand for service
3
30%
3
40%
Just-in-time
4
17%
-
5
17%
4
27%
-
5
27%
delivery
New Euro-standards Increased search for alternatives
tastes
and
Strategies *
continued and global products
*
more confidence in pan European goods and services, and more of a ‘made-in-Europe’ purchasing mentality,
*
less overall demand bound products,
*
a decrease preference brands,
A less loyalty
increased interest and brands,
by
for essentially
them
in
culturally-
(gradual, some executives add) in a for locally produced products and and national
patriotic
purchasing.
More mobile custotiers and more fragmented niches. Some Community executives foresee customers more mobile in their purchasing. They anticipate that they will engage in more cross-border purchasing of both goods and services. In the former case, the customers will move. In the latter, either the customers will go looking for services, or the services will be electronically transmitted to them. ‘Outsiders’ mentioned that markets will become more fragmented. They expect the following business customers:
from
industrial
for a Pan European
Market
49
many companies are expected to centralize their buying function (in some cases on an even larger global scale). This is feasible for all buying from commodity ingredients, capital equipment, and services to products for resale. Medium and smallersized customers may also form collective buying groups and the results will be the same: country sourcing will primarily be replaced by Europe-wide purchasing. Increased demand for service, services and]lT delivery. With expectations up, there will be continued demand for better service and more services. Like the consumer market, services will be demanded on the spot. Also predicted is that more companies will want improved delivery and supply, like just-intime (JIT) and daily direct deliveries (DDD), i.e. no stock carried by end-users. Increased search for alternatives. ‘Outsiders’ suggest that industrial consumers will look for more alternatives before choosing suppliers in the future. They talk about customers having increased options and exercising these options more often.
and
What are the Main Marketing Strategy Adjustments?
Pressure to reduce and equalize prices. Respondents expect pressure, especially from large business customers and centralized buying groups to bring prices down. They also expect that they will look for vendors that offer Europe-wide prices.
Respondents were asked to state the five main adjustments their companies have made (or intend to make) to their marketing strategy in anticipation of 1992 (see Table 5).
New Euro-standards and Europe-wide sourcing. With Euro-standards and a more homogeneous market,
Several ‘insiders’ their corporations
Table 5. Major
strategic
marketing
mentioned that the outlook in had visibly shifted. They now
adjustments
Ranking
Per cent respondent mention
Strengthening distribution and sales networks
1
52%
Differentiating with services
2
52%
Europe-wide positioning
3
37%
Europe-wide products and brands
4
27%
Europe-wide pricing
5
17%
Creating presence through acquisitions and alliances
1
80%
Europe-wide products and brands
2
40%
Advertising and promoting of image and products
3
30%
Strengthening distribution and sales networks
4
20%
Europe-wide pricing
5
20%
Factor INSIDERS
OUTSIDERS
50
Long Range
Planning
Vol. 22
June 1989
have a more dedicated pan European approach to strategy. This came across in remarks like: the need for ‘European-ness’. As one executive put it ‘we are beginning to think of Europe strategically instead of country for country’. In line with expected consumer behaviour changes, corporations are adjusting their marketing strategies. Their responses are in Table 5. Strengthening the sales and distribution networks. ‘Insiders’ are strengthening their sales and distribution networks. Respondents talk about ‘dedicated presence’ and the improvement and consolidation of their distribution setup on an integrated Europewide basis. The strengthening of regional networks and formation of new sales networks is also emphasized. D$?rentiating with services. Corporations are accelerating their plans to provide customized services at a regional level. Through flexible manufacturing and real-time delivery and other specialized services, executives intend to add a customized dimension to improve their lead in some of the Euro-segments. They either intend to handle these services themselves or appoint agents or other third parties. Europe-wide positioning of corporations, products and brands. Many firms believe they can tap a unified market with Europe-wide products and brands. These companies are determined to take advantage of the numbers, by finding the common markets and developing products and services for them. This will include a strong pan European image and a standard (or similar) marketing programme across the EC. Mentioned most often are: ‘European corporate identity programmes’, ‘European product ranges’, ‘product development for the new Europe’, and ‘integrated product and service systems’. Europe-wide pricing. Understandably, corporations are putting an effort into pricing policies. They see Table 6. Five major
marketing
Factor
organizational
this as key to maintaining a competitive position in the EC. They specifically mention Europe-wide price equalization and common ECU accounting. Not surprisingly, the strategic market adjustments discussed by ‘outsiders’ are not too different from the ‘insiders’. For them, part of the challenge of 1992 is also one of corporate attitude. They find that a lot more of their corporate energy, and resources, are going into devising specific strategies for 1992. They do however rank two different factors among some difference in their top five, underscoring emphasis between the two samples. These are: Creating presence through acquisitions and alliances. Their major activity is clearly looking for acquisitions, alliances and co-operative agreements in the Community. Also, they are strengthening their subsidiaries, distributor and sales networks. Advertising and promoting image and products. Coupled with the drive to create a stronger presence in the EC, is the need to promote this presence. Specifically, respondents mention more public relations, advertising, and corporate positioning programmes.
What are the Main Marketing Organizational Changes? Executives were asked to state the major organizational marketing changes in their strategies for 1992 (see Table 6). There is no doubt that corporations are structuring their marketing organizations to fully profit from a unified Europe. They report: Centralization of strategic marketing activities. Ranked first by both samples is the move to centralize strategic market decisions and the so-called marketing services like advertising and promotion. It seems changes
INSIDERS Per cent respondent Ranking mention
OUTSIDERS Per cent respondent Ranking mention
Centralization of strategic activities
1
65%
1
40%
Decentralization of operations
2
50%
3
25%
Co-ordination between countries
3
25%
Strenthening sales and distribution networks
4
20%
2
35%
Flexibility in relationship
5
17%
Sending staff into Europe
5
10%
4
20%
Strategies
for a Pan European
Market
51
a lot of effort is going into centralizing pricing decisions and negotiations. They also mentioned creating ‘centres of excellence’ for product development, logistics and delivery, administrative functions like credit management and so on.
provide some interesting insights and information which add to the limited academic research done so far on 1992. It also shows that both ‘insider’ and ‘outsider’ executives have a persistently common view of 1992 and what it will mean for business.
Decentralization of marketing operations. Particularly the ‘insiders’ stress that, equally important, are decentralized local ‘centres of excellence’. These will be located where customers are situated in order to ‘get close to consumers’ and ‘deliver quality’. The overriding observation is that the decentralized activities will be those related to the application of strategic market decisions. The operational en’d, embracing account management services, will be left to country managers.
It is obvious from the responses that companies expect more and fierce competition for the new For some ‘insider’ corporations single market. previously in protected markets, 1992 will bring new rivals both from without and within. The thrust of their strategy will be to monitor competitive moves and make the necessary adjustments to keep their existing markets.
Co-ordination between countries. ‘Insiders’ are trying to find ways to get better co-ordination between country managers. Both buyer networks (some have pan European, cross border and country purchasing) and their own organizations (with more centralization of some activities, and more decentralization of others), are expected to get more complex. Co-operation between subsidiaries and associations intra-country is therefore, seen by these executives, to be critical to success. Strengthening sales and distribtction nelworks. The strengthening of distribution channels and sales networks is again repeated as a priority. ‘Outsiders’ are giving this emphasis, in line with their need to create and promote presence-‘buying in’ or ‘strengthening what they’ve already got’. ‘Insiders’ are enlarging their existing networks, geographically expanding, finding new agents, and negotiating other associations and partnerships. Flexibility in relationships. Flexibility in relationships was mentioned in a variety of ways. The message was simply this: with organizations controlled from chosen centres, but many decisions impacting on country personnel and their customer relationships, corporations are endeavouring to make reporting and communication relationships more flexible. For individuals may have dual reporting instance, responsibilities with head office and their own local management. Sending stuJto Europe. ‘Outsiders’ are sending more people into Europe. This is part of an overall strategy to create a pan European outlook and culture. With the removal of barriers, this trend is expected to continue in an effort to obviate some of the obvious problems anticipated with culture and language.
Reflections Ahead
and Key Challenges
Although this survey is based on a convenience sample and is therefore not representative, it does
‘Outsider’ corporations in the European Free Trade Association (EFTA) countries, North America, the Far East and elsewhere, are similarly preparing to get a stake in what they feel may turn out to be a ‘Euro-fortress’ where insiders get the lion’s share. Already, networks of alliances, joint ventures and other technological and marketing partnerships are mushrooming with concerted effort being put by them into strengthening their existing European relationships. The overriding message however from the executives who took part in the research is that they see plenty of opportunity from the new market. When specifically asked whether or not they expect a change in market share in the EC after 1992, over 60 per cent of both samples said they anticipate an increase. Many are already taking a proactive stand, pushing ahead in their plans to create and exploit these new market opportunities. Needless to say, the battle for the EC market is a battle for the global market as well. Up to now the absence of a truly common market in Europe has been a handicap for industry. Now, not only will the unified market have potential of its own, but it will provide the domestic base needed to gain more global clout. It’s difficult to be precise, but undoubtedly the EC will be one of the largest, most monied and stable markets in the industrialized world.: Executives will have to base their strategies on the probable scenarios, of which a likely one is: *
12 member countries consumers by 1990,
with
about
325 million
*
the inclusion of Austria, enlarging the market consumers by 1995,
*
the three remaining EFTA countries, Iceland, Finland and Switzerland joining by 2000 bringing the figure to 362 million.
Norway and Sweden, to about 348 million
As the respondents pointed out, there are several good reasons why 1992 will make European industry stronger as a whole. But the real issue for
52
Long Range
Planning
Vol. 22
June 1989
individual corporations is, given all the changes foreseen and a new competitive frame, how will they create and maintain a competitive advantage for themselves? Several critical strategic decisions will have to be taken, the most important of which will be what markets to concentrate on, where to set up functions to serve these markets, and how to organize and coordinate these activities.
Come 1992, the traditional geo-political divide that previously separated markets and corporate buyers will gradually fall away. In the consumer market a new mosaic will emerge. Euro-consumers are expected to increase their spending and change their buying habits. In the business markets, large centralized organizations will dominate market buying patterns. The most intriguing question, though, is to what extent customers will be common in their demand for goods and services compared to say the U.S.A. or Japan? In reality, the single market will have a built-in paradox: becoming more culture-free and homogeneous on the one hand, yet still complex and with diverse local markets and highly fragmented specialized niches. What executives expect to see is less differences between, than within, national boundaries in many product/markets. Clusters of ‘cross-country’ and regional segments with similar demographic and lifestyle needs, receptive to the same products and services, either pan Europtan or global’ will enable large operators to rationalize offerings and activities, and thus bring prices down. For them, the challenge will be to produce and deliver either mass standardized goods and services or core standard offerings with customized features and services. The medium and smaller firms will be able to capitalize on their flair and customized capabilities and relationships to cater for the local and more specialized niches. Where to Set Up Functions to Serve These Markets? Location of facilities will be another key strategic consideration. The new Europe will allow and encourage companies to carry out their marketing and other activities such as R & D, procurement, production and administration at the locations which offer the best competitive advantage.
regional managers or decentralized networks who can accommodate regional needs, stay close to customers and provide the backup and services. How to Organire and Co-ordinate These Activities? How much benefit companies get from decisions on locations will depend on how well each dispersed activity, located wherever there are cost or other benefits, is integrated into an overall European system. It probably goes without saying therefore that co-ordination will be fundamental to a successful EC strategy, both in terms of organizational structure and the information networks that are set uPa Firstly, marketing strategies and decisions cannot be separated from those on R & D, manufacturing, logistics, finance, or human resource management. The networking of the various systems and the coordination of these with marketing, service and logistics will be vital to success. Secondly, relationships between head of&e and decentralized units and divisions will become increasingly intricate and complex. This will be especially true for companies who take decisions at head office which impact directly on subsidiaries with profit responsibility. Whatever format is chosen to achieve the benefits from 1992, firms must make flexibility in these relationships a priority.
Conclusion The advent of a single market by 1992 is an important event for business executives worldwide. An ever-changing European framework will increasingly affect so-called ‘insider’ and ‘outsider’ corporations in both their local, national and international markets. The implications of 1992 are not all obvious. There will be social, political and economic adjustments, the results of which will only be understood in time. The pace of change will differ from country to country, and that too will complicate matters. Notwithstanding, the battle for the new market has already begun. Corporations need to develop an active ongoing approach to 1992. They must decide how they are going to compete, set up systems to monitor competitive activities from both the ‘insiders’ and ‘outsiders’, and make the appropriate changes to their strategies and organizations. As is usual with any change process, to work the commitment must come from top management.
Pan European market strategy will have to come from centralized points. Apart from the obvious benefits of this, like a consistent image, price equalization and so on, this will maximize the chances of a more holistic and integrative approach to the EC and focus on key clusters and accounts on a pan European basis.
Reference
At the same time the application of these Europewide strategies will have to be left to the country or
(1) Sandra Vandermerwe and Marc-And& L’Huillier, Euro-consumers 1992: new market, new marketing, Business Horizons. January/February (1989).
Strategies Bibliography For some reading on costs of a Non-Europe, government and business reactions see:
the 1992 programme, and
Commission of the European Communities, Completing the internal Mar&et, White Paper from the Commission to the European Council, Brussels, 14 June (1985). Europe. They have designed the future and it just might work, Economist, pp. 41-42, 13 February (1988).
The
Boos Allen 8 Hamilton Inc., Europe’s Fragmented Markets. A Survey of European Chief Executives, p. 1, Executive Summary, London (1987). Commission of the European Communities. Europe without Frontiers -Completing the Internal Market. Office for Official Publications, Luxembourg (1987).
for a Pan European
Market
53
EEC acts to open bids for utility markets, Business Marketing, 30-33, June (1987). Bullying Europe towards unity, International Management, 20-27, February (1987).
42 (2).
L’Europe sans frontieres: vers un grand march6 interieur. Le Dossier de /‘Europe. Publication des Communautes Europeennes, No. 17/87, Bruxelles, Novembre (1987). Commission of the European Communities. The Economics of 1992 European Economy, No. 35, Brussels, March (1988). The World Bank, World Population Projections. 1987-l John Hopkins University Press. Baltimore/London. Fortress Europe finally takes shape, 43 (1). 48-50, January (1988).
International
988 edn, The
Management,
0024-6301/89 $3.00 + .OO Pergamon Press plc
Long Range Planning, Vol. 22, No. 3, pp. 45 to 53, 1989 Printed in Great Britain
Strategies for a Pan European Market A
Sandra Vandermerwe
With 1992 on the horizon, there is a groundswell of interest in the coming 320 million strong market-destined to be the largest in the industrialized world. Corporations within the Economic Community (EC) are posed to profit from the muchneeded expanded home market. A barrier-free Europe will not only offer them lucrative opportunities, but also the opportunity to improve their global competitive position. The dismantling of Europes borders has also attracted corporations outside the EC into Europe. They too are looking to take advantage of the new unifiedmarket, andmany of these corporations are rapidly adopting a pan European outlook and committment. Although the impetus for 1992 came from the Commission, business must be prepared for the complexities, and make it work. Some companies are assessing the implications of the proposed programme. Others are already forging ahead planning new strategies and restructuring their organizations. This article focuses on 1992 and changes in the way firms can expect to do business in the future. It is based on a literature review and a survey among 80 senior business executives. It centres on two issues: the probable environmental and consumer behaviour changes, and the impact on marketing and overall corporate strategy in the future.
The vision of a unified market by 1992 is in sight. Business leaders are suddenly aware that the Economic Community (EC) is well on its way to becoming an integrated single economy. Anticipated are new business opportunities and threats that call for different ways of doing business in the Europe of the future. The new Europe we now know:
will be quite different
*
citizens will be able to move
*
goods will be freed borders,
of all controls
manufacturers
be
*
will
able
from the one
and work
to
freely,
products anywhere on the basis of mutually agreed Community-wide standards,
a
service providers services throughout
will be able the market.
to offer
their
This unified Europe, free of physical, technical and fiscal barriers, will lead to profound change in market and competitive dynamics. Whether a firm’s thrust is to protect existing business, or find new and exciting opportunities, there will be significant impacts on business strategy and its implementation. The challenge to manage the process is squarely in the hands of the executives, who, based on their perception of what 1992 will bring, will act and so create the future.
The Executives
in the Survey
This article reports on research done among 80 executives both inside and outside the EC. The object of the survey was to get a wide but useful spread of views and experiences, and see whether there are any differences in the responses of ‘insiders’ and ‘outsiders’. The sample is made up of 40 ‘insiders’ from the United Kingdom (23 per cent), West Germany (15 per cent), France (12 per cent), The Netherlands (12 per cent), Belgium (12 per cent), Italy (10 per cent), Denmark (5 per cent), Spain (5 per cent) and Portugal (5 per cent). The 40 ‘outsiders’ are from the European Free Trade Association (EFTA) countries (55 per cent), U.S.A. and Canada (25 per cent), Australasia (10 per cent), and the Far East (10 per cent).*
at national market
their
Dr Sandra Vandermerwe is Director of the MBA Programme and a senior faculty member in International Marketing and cervices at IMI, Geneva. She was previously Professor of Marketing at the Witwatersrand Business School.
In both the ‘insider’ and ‘outsider’ samples, 70 per cent of the respondents are in CEO and top general management and senior corporate planning positions. The other 30 per cent are almost exclusively ‘Percentage rounded off, and therefore does not add up to 100 cent.
per
46
Long Range
Planning
Vol. 22
June 1989
in senior marketing positions. Seventy per cent of the group are in manufacturing and 30 per cent in traditional services (several of the manufacturers are however also in services). Size-wise 30 per cent come from smaller firms (assets of up to U.S. S500m), just over 40 per cent from medium sized companies (assets over U.S. S500m and up to U.S. S5000m), and 30 per cent from large corporations (assets over U.S. S5000m). Responses were obtained by questionnaire. All questions were open-ended without any prompting. About a dozen questionnaires were completed by two or more individuals who wanted to discuss the issues with colleagues and present a ‘company’ view. Personal interviews were also conducted. The five responses made most often are presented in the tables below, ranked in order of times mentioned. Individual items are discussed more fully, the higher rankings in more detail. Where relevant, remarks have been clustered into meaningful groupings for ease of discussion.
*
as a general rule, markets more but at the same time complex,
*
the emphasis to switch from national market focus to regional market focus, i.e. not necessarily along political boundary lines.
Ability to reduce costs. They see an ability to reduce costs as paramount to future opportunities in the unified market. This they expect to obtain through: A common and harmonized tions and Euro-environmental
Increased market opportunities. One message that comes across clearly is that executives expect more market opportunities from a unified market. The main points they make on the new market are that they expect: *
a *
a huge pan European market standardized goods and services, niches, previously more lucrative,
small, to become
products and services quickly, and therefore life cycles,
Table
receptive
to
rationalized
*
reduced production scale runs,
*
better Europe-wide sourcing opportunities -cheaper with improved speed and service,
*
cheaper housing
*
streamlining of organizational tive functions,
*
reduced costs of R SC D due to centralization activities, less complexity and co-operative rangements.
of ar-
Saving of time and energy. Roth samples also strongly about the prospect of saving time and eliminating wasted energy, human resources money, that have, in the past, partly contributed loss, they say, to their competitive edge. majority specifically refer to :
feel thus and to a The
larger
and
to get to markets more more rapid diffusion and
1. Five major
opportunities
Factor Increased market opportunities
*
product
ranges costs, due primarily
physical distribution, and logistic systems,
less and simpler
easier logistics, infrastructures.
A stronger Europe. the overall effects prospect of using expansion. Their
1
65%
ware-
and administra-
procedures
faster transportation,
related to and better
‘Insiders’ expressed an interest in of a ‘more healthy Europe’ and the this strength as a base for world point is that the single market can
OUTSIDERS Per cent respondent Ranking mention 1
80% 40%
Ability to reduce costs
2
62%
2
A ‘stronger’ Europe
3
40%
-
Saving time and energy
4
32%
4
22%
More competitive conditions
5
27%
3
27%
5
20%
Labour opportunities
centralized
of 1992 for companies
INSIDERS Per cent respondent Ranking mention
to large-
paperwork,
$7 time saved due to common safety and other testing, *
.
technical specificastandards,
*
What are the Major Opportunities? The first question asked executives to state the five main opportunities of 1992 they see for their companies (see Table 1).
homogeneous,
Strategies be used as a leverage and competitiveness.
to create world-wide
presence
Increased competitive conditions and labour opportunities. A smaller proportion, but both samples, mentioned increased competitive conditions as a distinct advantage, once barriers are removed. Some of the ‘outsiders’ also cited labour opportunities, talking specifically about the rotation of jobs, and labour transferability.
for a Pan European
are the Major
Threats?
The next question called for an opinion of the five most important threats executives see arising from 1992. The results are shown in Table 2. IntensiJied competition. Ranked the number one threat by both ‘insiders’ and ‘outsiders’ was intensified competition. Most executives mentioned both a general change in the level and type of competition, as Europe attracts more competitors and shifts occur in both the competitive dynamics and balance of power within industries and countries. ‘Insiders’ expressed concern with increased competition in their own long-held domestic markets. Points
made most often were:
*
unfair competition from state monopolies peting across borders,
*
the entry of outside countries, some better equipped right now to handle the new market,
*
fierce competition
fr
the rise of new competitive alliances as rivals,
72 competition standards,
from
*
the possibility countries,
of
double
72 evasion tion,
standards
and ‘full-hearted’
and non-compliance
in some support,
of the new legisla-
*
a ‘piecemeal’
*
informal
*
discrepancies in interpretation differences and language,
*
insufficient managers,
*
delays in the dismantling of barriers, and differences in speed between countries and sectors.
approach
protection
due to lack ofknowledge, and blockages,
education
and
due to cultural preparation
of
Protectionism. It has often been said that it would be absurd to open Europe only to close it again. Yet the ‘outsiders’ stated this as their second major concern: that a unified Europe could join forces and call for protectionism. ‘4 view expressed by over half the sample is that a new potential market will be created but only to be redistributed among EC corporations.
from the low wage countries, groupings
outsiders
and large
applying
pressure from 72 tough competitive high added value, niche operators, *
com-
47
A clumsy transition and non-compliance. A clumsy transition, non-compliance and ‘getting round’ the new rules, is another main concern. Some executives anticipate a lack of uniformity in attitude, knowledge, understanding and purpose. This, they see as a potential threat to both their competitive ability and the whole system. Here are their main remarks :
Q a lack of commitment
What
Market
lower
third-party,
the emergence of ‘supra-nations’ and ‘supracorporations’ and a consequent increasing gap between the smaller companies and giants. Table 2. Five major
threats
Factor
Pressure on prices and inferior standards. Other perceived threats they found worth noting: the pressure on margins as prices are forced down and a decrease in standards. The latter remark refers to standards lower than the accustomed, and those inferior to some international standards. Excessive bureaucracy. the ‘insiders’ also mentioned the possibility of excessive bureaucracy from regulatory bodies ‘enforcing’ the system. They see this as
of 1992 for companies INSIDERS Per cent respondent Ranking mention
OUTSIDERS Per cent respondent Ranking mention
intensified competition
1
70%
1
65%
Clumsy transition and noncompliance
2
37%
3
20%
Pressure on margins and pricing
3
17%
4
10%
Excessive bureaucracy
4
17%
Inferior standards
5
15%
5
10%
2
55%
Euro-protectionism
48
Long Range
Planning
Vol. 22
June 1989 Q they will be more aware of their choices and will make more product and services comparisons,
the consequence of potential country-for-country authorities, rather than a single EC authority.
*
What Changes are Expected Consumer Behaviour?
in
The sample was asked to state the five main changes they expect in the behaviour of customers in a single market. This question was in two parts: the first related to the consumer market shown in Table 3, the second to business and industrial customers in Table 4. Here is what is expected
from the consumer
A more demanding customer. Most executives agree that one way or another, come 1992, consumer expectations will go up. This they foresee in these main ways: will have (and want)
Table 3. Main expected
Factor
more customization
More and better service. Some executives see a demand for more, and extended, services by consumers. Generally, goods can be made anywhere. Services will be wanted where customers live. Again, this is part and parcel of the overall trend of more informed and demanding customers, be they the mass market or specific niches.
market:
More sensitivity to price. Executives expect that customers will be more sensitive to price. By this they mean expecting (and actively seeking) higher quality and performance at lower prices. This is linked to their next remark : customers will be more demanding.
r?r customers tion,
niche markets will demand and added value.
more informa-
changes
Pan European purchasing. Several individuals, particularly the ‘outsiders’, visualize a move to pan European purchasing. None claim that the expanded market will be completely homogeneous. But, say respondents, there will be an internationalization (‘blending’) of lifestyles, more uniform tastes and purchasing behaviour. Their responses don’t suggest they believe local needs will disappear, only that purchasing behaviour will not conform conventionally to political boundaries. Generally
speaking,
$r EC consumers demands,
in consumer
they see: with
more
behaviour
INSIDERS Per cent respondent Ranking mention
OUTSIDERS Per cent respondent Ranking mention
More sensitivity to price
1
47%
1
60%
A more demanding customer
2
45%
2
53%
More and better service needs
3
32%
4
17%
Pan European purchasing
4
20%
3
50%
More mobile consumers
5
15% 5
17%
More fragmented markets
Table 4. Main expected
Factor
changes
in industrial
similar
behaviour
INSIDERS Per cent respondent mention Ranking
Pressure to reduce prices
1
40%
OUTSIDERS Per cent respondent mention Ranking 2
60%
Europe-wide sourcing
2
35%
1
62%
Increased demand for service
3
30%
3
40%
Just-in-time
4
17%
-
5
17%
4
27%
-
5
27%
delivery
New Euro-standards Increased search for alternatives
tastes
and
Strategies *
continued and global products
*
more confidence in pan European goods and services, and more of a ‘made-in-Europe’ purchasing mentality,
*
less overall demand bound products,
*
a decrease preference brands,
A less loyalty
increased interest and brands,
by
for essentially
them
in
culturally-
(gradual, some executives add) in a for locally produced products and and national
patriotic
purchasing.
More mobile custotiers and more fragmented niches. Some Community executives foresee customers more mobile in their purchasing. They anticipate that they will engage in more cross-border purchasing of both goods and services. In the former case, the customers will move. In the latter, either the customers will go looking for services, or the services will be electronically transmitted to them. ‘Outsiders’ mentioned that markets will become more fragmented. They expect the following business customers:
from
industrial
for a Pan European
Market
49
many companies are expected to centralize their buying function (in some cases on an even larger global scale). This is feasible for all buying from commodity ingredients, capital equipment, and services to products for resale. Medium and smallersized customers may also form collective buying groups and the results will be the same: country sourcing will primarily be replaced by Europe-wide purchasing. Increased demand for service, services and]lT delivery. With expectations up, there will be continued demand for better service and more services. Like the consumer market, services will be demanded on the spot. Also predicted is that more companies will want improved delivery and supply, like just-intime (JIT) and daily direct deliveries (DDD), i.e. no stock carried by end-users. Increased search for alternatives. ‘Outsiders’ suggest that industrial consumers will look for more alternatives before choosing suppliers in the future. They talk about customers having increased options and exercising these options more often.
and
What are the Main Marketing Strategy Adjustments?
Pressure to reduce and equalize prices. Respondents expect pressure, especially from large business customers and centralized buying groups to bring prices down. They also expect that they will look for vendors that offer Europe-wide prices.
Respondents were asked to state the five main adjustments their companies have made (or intend to make) to their marketing strategy in anticipation of 1992 (see Table 5).
New Euro-standards and Europe-wide sourcing. With Euro-standards and a more homogeneous market,
Several ‘insiders’ their corporations
Table 5. Major
strategic
marketing
mentioned that the outlook in had visibly shifted. They now
adjustments
Ranking
Per cent respondent mention
Strengthening distribution and sales networks
1
52%
Differentiating with services
2
52%
Europe-wide positioning
3
37%
Europe-wide products and brands
4
27%
Europe-wide pricing
5
17%
Creating presence through acquisitions and alliances
1
80%
Europe-wide products and brands
2
40%
Advertising and promoting of image and products
3
30%
Strengthening distribution and sales networks
4
20%
Europe-wide pricing
5
20%
Factor INSIDERS
OUTSIDERS
50
Long Range
Planning
Vol. 22
June 1989
have a more dedicated pan European approach to strategy. This came across in remarks like: the need for ‘European-ness’. As one executive put it ‘we are beginning to think of Europe strategically instead of country for country’. In line with expected consumer behaviour changes, corporations are adjusting their marketing strategies. Their responses are in Table 5. Strengthening the sales and distribution networks. ‘Insiders’ are strengthening their sales and distribution networks. Respondents talk about ‘dedicated presence’ and the improvement and consolidation of their distribution setup on an integrated Europewide basis. The strengthening of regional networks and formation of new sales networks is also emphasized. D$?rentiating with services. Corporations are accelerating their plans to provide customized services at a regional level. Through flexible manufacturing and real-time delivery and other specialized services, executives intend to add a customized dimension to improve their lead in some of the Euro-segments. They either intend to handle these services themselves or appoint agents or other third parties. Europe-wide positioning of corporations, products and brands. Many firms believe they can tap a unified market with Europe-wide products and brands. These companies are determined to take advantage of the numbers, by finding the common markets and developing products and services for them. This will include a strong pan European image and a standard (or similar) marketing programme across the EC. Mentioned most often are: ‘European corporate identity programmes’, ‘European product ranges’, ‘product development for the new Europe’, and ‘integrated product and service systems’. Europe-wide pricing. Understandably, corporations are putting an effort into pricing policies. They see Table 6. Five major
marketing
Factor
organizational
this as key to maintaining a competitive position in the EC. They specifically mention Europe-wide price equalization and common ECU accounting. Not surprisingly, the strategic market adjustments discussed by ‘outsiders’ are not too different from the ‘insiders’. For them, part of the challenge of 1992 is also one of corporate attitude. They find that a lot more of their corporate energy, and resources, are going into devising specific strategies for 1992. They do however rank two different factors among some difference in their top five, underscoring emphasis between the two samples. These are: Creating presence through acquisitions and alliances. Their major activity is clearly looking for acquisitions, alliances and co-operative agreements in the Community. Also, they are strengthening their subsidiaries, distributor and sales networks. Advertising and promoting image and products. Coupled with the drive to create a stronger presence in the EC, is the need to promote this presence. Specifically, respondents mention more public relations, advertising, and corporate positioning programmes.
What are the Main Marketing Organizational Changes? Executives were asked to state the major organizational marketing changes in their strategies for 1992 (see Table 6). There is no doubt that corporations are structuring their marketing organizations to fully profit from a unified Europe. They report: Centralization of strategic marketing activities. Ranked first by both samples is the move to centralize strategic market decisions and the so-called marketing services like advertising and promotion. It seems changes
INSIDERS Per cent respondent Ranking mention
OUTSIDERS Per cent respondent Ranking mention
Centralization of strategic activities
1
65%
1
40%
Decentralization of operations
2
50%
3
25%
Co-ordination between countries
3
25%
Strenthening sales and distribution networks
4
20%
2
35%
Flexibility in relationship
5
17%
Sending staff into Europe
5
10%
4
20%
Strategies
for a Pan European
Market
51
a lot of effort is going into centralizing pricing decisions and negotiations. They also mentioned creating ‘centres of excellence’ for product development, logistics and delivery, administrative functions like credit management and so on.
provide some interesting insights and information which add to the limited academic research done so far on 1992. It also shows that both ‘insider’ and ‘outsider’ executives have a persistently common view of 1992 and what it will mean for business.
Decentralization of marketing operations. Particularly the ‘insiders’ stress that, equally important, are decentralized local ‘centres of excellence’. These will be located where customers are situated in order to ‘get close to consumers’ and ‘deliver quality’. The overriding observation is that the decentralized activities will be those related to the application of strategic market decisions. The operational en’d, embracing account management services, will be left to country managers.
It is obvious from the responses that companies expect more and fierce competition for the new For some ‘insider’ corporations single market. previously in protected markets, 1992 will bring new rivals both from without and within. The thrust of their strategy will be to monitor competitive moves and make the necessary adjustments to keep their existing markets.
Co-ordination between countries. ‘Insiders’ are trying to find ways to get better co-ordination between country managers. Both buyer networks (some have pan European, cross border and country purchasing) and their own organizations (with more centralization of some activities, and more decentralization of others), are expected to get more complex. Co-operation between subsidiaries and associations intra-country is therefore, seen by these executives, to be critical to success. Strengthening sales and distribtction nelworks. The strengthening of distribution channels and sales networks is again repeated as a priority. ‘Outsiders’ are giving this emphasis, in line with their need to create and promote presence-‘buying in’ or ‘strengthening what they’ve already got’. ‘Insiders’ are enlarging their existing networks, geographically expanding, finding new agents, and negotiating other associations and partnerships. Flexibility in relationships. Flexibility in relationships was mentioned in a variety of ways. The message was simply this: with organizations controlled from chosen centres, but many decisions impacting on country personnel and their customer relationships, corporations are endeavouring to make reporting and communication relationships more flexible. For individuals may have dual reporting instance, responsibilities with head office and their own local management. Sending stuJto Europe. ‘Outsiders’ are sending more people into Europe. This is part of an overall strategy to create a pan European outlook and culture. With the removal of barriers, this trend is expected to continue in an effort to obviate some of the obvious problems anticipated with culture and language.
Reflections Ahead
and Key Challenges
Although this survey is based on a convenience sample and is therefore not representative, it does
‘Outsider’ corporations in the European Free Trade Association (EFTA) countries, North America, the Far East and elsewhere, are similarly preparing to get a stake in what they feel may turn out to be a ‘Euro-fortress’ where insiders get the lion’s share. Already, networks of alliances, joint ventures and other technological and marketing partnerships are mushrooming with concerted effort being put by them into strengthening their existing European relationships. The overriding message however from the executives who took part in the research is that they see plenty of opportunity from the new market. When specifically asked whether or not they expect a change in market share in the EC after 1992, over 60 per cent of both samples said they anticipate an increase. Many are already taking a proactive stand, pushing ahead in their plans to create and exploit these new market opportunities. Needless to say, the battle for the EC market is a battle for the global market as well. Up to now the absence of a truly common market in Europe has been a handicap for industry. Now, not only will the unified market have potential of its own, but it will provide the domestic base needed to gain more global clout. It’s difficult to be precise, but undoubtedly the EC will be one of the largest, most monied and stable markets in the industrialized world.: Executives will have to base their strategies on the probable scenarios, of which a likely one is: *
12 member countries consumers by 1990,
with
about
325 million
*
the inclusion of Austria, enlarging the market consumers by 1995,
*
the three remaining EFTA countries, Iceland, Finland and Switzerland joining by 2000 bringing the figure to 362 million.
Norway and Sweden, to about 348 million
As the respondents pointed out, there are several good reasons why 1992 will make European industry stronger as a whole. But the real issue for
52
Long Range
Planning
Vol. 22
June 1989
individual corporations is, given all the changes foreseen and a new competitive frame, how will they create and maintain a competitive advantage for themselves? Several critical strategic decisions will have to be taken, the most important of which will be what markets to concentrate on, where to set up functions to serve these markets, and how to organize and coordinate these activities.
Come 1992, the traditional geo-political divide that previously separated markets and corporate buyers will gradually fall away. In the consumer market a new mosaic will emerge. Euro-consumers are expected to increase their spending and change their buying habits. In the business markets, large centralized organizations will dominate market buying patterns. The most intriguing question, though, is to what extent customers will be common in their demand for goods and services compared to say the U.S.A. or Japan? In reality, the single market will have a built-in paradox: becoming more culture-free and homogeneous on the one hand, yet still complex and with diverse local markets and highly fragmented specialized niches. What executives expect to see is less differences between, than within, national boundaries in many product/markets. Clusters of ‘cross-country’ and regional segments with similar demographic and lifestyle needs, receptive to the same products and services, either pan Europtan or global’ will enable large operators to rationalize offerings and activities, and thus bring prices down. For them, the challenge will be to produce and deliver either mass standardized goods and services or core standard offerings with customized features and services. The medium and smaller firms will be able to capitalize on their flair and customized capabilities and relationships to cater for the local and more specialized niches. Where to Set Up Functions to Serve These Markets? Location of facilities will be another key strategic consideration. The new Europe will allow and encourage companies to carry out their marketing and other activities such as R & D, procurement, production and administration at the locations which offer the best competitive advantage.
regional managers or decentralized networks who can accommodate regional needs, stay close to customers and provide the backup and services. How to Organire and Co-ordinate These Activities? How much benefit companies get from decisions on locations will depend on how well each dispersed activity, located wherever there are cost or other benefits, is integrated into an overall European system. It probably goes without saying therefore that co-ordination will be fundamental to a successful EC strategy, both in terms of organizational structure and the information networks that are set uPa Firstly, marketing strategies and decisions cannot be separated from those on R & D, manufacturing, logistics, finance, or human resource management. The networking of the various systems and the coordination of these with marketing, service and logistics will be vital to success. Secondly, relationships between head of&e and decentralized units and divisions will become increasingly intricate and complex. This will be especially true for companies who take decisions at head office which impact directly on subsidiaries with profit responsibility. Whatever format is chosen to achieve the benefits from 1992, firms must make flexibility in these relationships a priority.
Conclusion The advent of a single market by 1992 is an important event for business executives worldwide. An ever-changing European framework will increasingly affect so-called ‘insider’ and ‘outsider’ corporations in both their local, national and international markets. The implications of 1992 are not all obvious. There will be social, political and economic adjustments, the results of which will only be understood in time. The pace of change will differ from country to country, and that too will complicate matters. Notwithstanding, the battle for the new market has already begun. Corporations need to develop an active ongoing approach to 1992. They must decide how they are going to compete, set up systems to monitor competitive activities from both the ‘insiders’ and ‘outsiders’, and make the appropriate changes to their strategies and organizations. As is usual with any change process, to work the commitment must come from top management.
Pan European market strategy will have to come from centralized points. Apart from the obvious benefits of this, like a consistent image, price equalization and so on, this will maximize the chances of a more holistic and integrative approach to the EC and focus on key clusters and accounts on a pan European basis.
Reference
At the same time the application of these Europewide strategies will have to be left to the country or
(1) Sandra Vandermerwe and Marc-And& L’Huillier, Euro-consumers 1992: new market, new marketing, Business Horizons. January/February (1989).
Strategies Bibliography For some reading on costs of a Non-Europe, government and business reactions see:
the 1992 programme, and
Commission of the European Communities, Completing the internal Mar&et, White Paper from the Commission to the European Council, Brussels, 14 June (1985). Europe. They have designed the future and it just might work, Economist, pp. 41-42, 13 February (1988).
The
Boos Allen 8 Hamilton Inc., Europe’s Fragmented Markets. A Survey of European Chief Executives, p. 1, Executive Summary, London (1987). Commission of the European Communities. Europe without Frontiers -Completing the Internal Market. Office for Official Publications, Luxembourg (1987).
for a Pan European
Market
53
EEC acts to open bids for utility markets, Business Marketing, 30-33, June (1987). Bullying Europe towards unity, International Management, 20-27, February (1987).
42 (2).
L’Europe sans frontieres: vers un grand march6 interieur. Le Dossier de /‘Europe. Publication des Communautes Europeennes, No. 17/87, Bruxelles, Novembre (1987). Commission of the European Communities. The Economics of 1992 European Economy, No. 35, Brussels, March (1988). The World Bank, World Population Projections. 1987-l John Hopkins University Press. Baltimore/London. Fortress Europe finally takes shape, 43 (1). 48-50, January (1988).
International
988 edn, The
Management,