Santander

Environmental Analysis of Santander

Environmental Analysis of Santander

Discussion & Analysis

Prior to 1986 (date of incorporation of Spain the European Economic Community) and especially 1992 (implementation of EU single market) we can say that in general, the process of multi-nationalization of Spanish banks have responded mainly monitoring of Spanish clients in their international expansion. The time leading Spanish banks (Bank Santander, Bank Bilbao Central Bank and Argentaria), to its national customer loyalty beyond the Spanish borders and even not to lose, has followed to cover their foreign trade operations, the opening foreign subsidiaries of Spanish companies or to offer services Spanish migrants in countries of Latin America and Europe. Monitoring of domestic customers is a factor traditional internationalization justifies decisions and involves a high correlation between the trans-nationalization of industrial activity and banking (Reger & Huff, 1993). This factor explained from the theory of Internalization (Internalized international expansion and uses the advantage resulting from the information flow that is established between the bank and your client), and also from the eclectic paradigm, considering that the banks with multinational clients have, compared to banks local work to the advantage of lower transaction costs (benefit property). The limited transnational investment by major Spanish banks can also be seen from the perspective of the theory Uppsala, considering that given the inexperience of performance international markets, reduce risk, starting a timid activity in nearby markets "psychically" as is the case of Latin America, and physically nearby markets as in the case of Europeans. In this defense and strategy applied by the Spanish banking starting its international expansion, the main mode of entry used is the opening of representative offices and to a lesser extent, opening of subsidiaries. Thereby compromising yet scarce resources and taking few risks in their markets "close The European expansion of the ...