Audioteka: Go Global or Not?

Audioteka S.A. was established in 2008 and had a presence in various European markets. It was time for Audioteka to reaffirm its value as a fast-growing mid-sized Polish company. By 2022 the company offered 80,000 audiobooks in 11 languages. Newly appointed chief executive officer Arkadiusz Seidler was exploring possibilities to enter new markets that could help the company grow. An unusual direction had been identified, India. Preliminary data indicated that the idea was promising. But was it worth considering a project that could be perceived as an expression of overconfidence and eccentricity on the part of Audioteka's current management? To date, no Polish company had achieved success in India.

This case is intended for use in graduate-level courses on international business, business strategy, and advanced strategic analysis. The learning objective of the case is to discuss how spatial context impacts strategic expansion plans in a distant location. Two theories widely used to understand the internationalization of small- and medium-sized enterprises and the role of distance are the knowledge-based view and the network theory. Both knowledge and networks are influenced by cultural distance and cultural diversity. The Audioteka case provides an excellent context in which topics such as knowledge transferability, the role of networks, the liability of outsidership, cultural distance, and cultural diversity can be brought into discussion on international expansion. Students are asked to determine the key factors for success or failure for Audioteka if they enter India. After working through the case and assignment questions, students will be able to do the following: <ul><li> Explain the challenges and opportunities of entry into distant foreign markets.</li><li>Explain the importance of cultural distance and cultural diversity in international business.</li><li>Analyze the merits of alternative internationalization paths. </li><li>Develop a foreign entry strategy using the business model canvas.</li></ul>

• cultural difference, network theory