Gran Tierra Energy Inc. in Brazil Harvard Case Solution & Analysis

Approach to Internationalization

Gran Tierra, a Canadian company competing in the oil and gas industry has been quite reluctant in approaching new opportunities globally but instead of following a global strategy the company opted for an international strategy. Although the main focus of the international strategy as defined by different authors is to initiate by opening subsidiaries in different countries with each of the subsidiary is linked with the main hub.

However, the company started exploring new opportunities and in order to exploit opportunities the company had been quite attentive in finding the right places. Thus the company started establishing firm bases in the South American region by identifying opportunities in exploration and drilling. Since the company started operating in different countries but with the same brand name which made the company a multinational strategy.

Therefore, it is quite evident that the company has been following or selected the multinational strategy in regards to its approach towards internationalization strategy. However, with this approach the company has been able to cater different markets and has succeed in launching Grant Tierra as an international brand. Besides that this strategy allowed the company to enhance and increase its portfolio.

On the other hand, the company’s internationalization approach or strategy has been significantly linked with the important aspects required to successfully initiate and proceed with an approach towards internationalization. It has been quite vivid that the company has utilized all the key aspects that are required to run a multinational company but added a flavor to it as well which helped in strengthening the approach.

The most significant aspect of the company’s internationalization approach is the adoption of localization. It is stated that in order to succeed as a multinational corporation, the firm or the company requires to have high level of localization approach. Gran Tierra utilized the experience and expertise of the managers to search for new markets but in order to exploit those opportunities the company decided to rely on the local people.

Therefore, the company hired many local employees to run and handle operations and deal with the suppliers. This strategy allowed the firm to deal with the risks associated with the approach like the legal and political risks. Although, the South American region does not have experts in many fields and lack in providing talent pools for different fields but has a solid and effective labor intensive market.

In this regard the company decided to take help form the expatriates for a short span of time which helped in catering the business at initial stages and guided in establishing a firm base in every country. Later on the operations have been handed over to the local employees and the degree of adoption to localization increased which played a vital role for the company in succeeding as a multinational firm.

Thus the company’s approach towards internationalization has been quite successful and has catered the different aspects that are essential to launch an international strategy and successfully implement that strategy. The phases of development have been met quiet strongly and the operations in each country has been processing quite successfully. Thus the local subsidiaries are directly linked with the parent company but the key aspect is the brand name that stayed same in every country.

Competitive Advantage

In order to evaluate the competitive advantage of the company the VRIN model will be utilized that will allow the critical assessment of the competitive advantage of the company. Also, this model will help in assessing the different aspects of the advantage described and will also guide in placing the advantage at the right column. The huge success that the company attained as a multinational firm in a short span of time and has been able to witness and explore new opportunities is due to the management team of the company.

The management team allowed the company to succeed and exploiting and utilizing new opportunities efficiently and strengthening the financial position of the company as well. Therefore, the main competitive advantage for the company is the management team which is very vital for the long run and will be essential component for the future opportunities as well. Thus the VRIN model will be used to critically assess the management team as a competitive advantage for the company...........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.