Rhandstad Holding NV Future Internation Expansion Strategy in Ireland

INTRODUCTION

Randstad Holding nv is the world’s second largest human resource consulting firm headquartered in Diemen Netherlands. It was founded in 1960 by Frits Goldschmeding and Ger Daleboudt. Ranstad has 29,320 workers operating from 4,496 branches in 40 countries and accounts for 90 percent of the global HR services market. They made a turnover of €17.1 billion (2012 FY) and a net profit of €36.6 million (2012 FY). In 1965, Randstad moved abroad when they opened a branch in Belgium followed by a branch in London in 1967. In 1968, the first German branch opened in Düsseldorf and in 1973 they moved into France. Randstad is a leader in key markets around Europe, South America and United States. They are also major players in Australia and Japan. Randstad has expanded its operations mainly through acquisitions. In 1992, they acquired the Flex Group which is their largest acquisition till date. They acquired Vedior in 2008 and integrated Vedior successfully in 2009 and over the years they have acquired various other companies that made them grow into the second largest HR service provider worldwide. Randstad’s aim is to be a world leader in matching demand for and supply of labor and HR services. Ireland would be a good international expansion choice as they are one of the most economically globalised countries in the world.

Ireland is located in the northwestern part of Europe with its capital in Dublin. It occupies about 83 percent of the island of Ireland. It is the third-largest island in Europe and the twentieth in the world. It is strategically located on major air and sea routes between North America and Northern Europe; over 40% of the population resides within 100 km from Dublin. Ireland is a parliamentary democracy and...

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... and short product lifespan are now looking for a more flexible workforce which has resulted in the increase of demand for temporary staffs. This resulted to the growth of a few firms like the Manpower, Sigmar, Kelly Services, Morgan McKinley etc in Ireland. Companies compete on the basis of brand and client's desire, hence adopts policies and pricing that will give them greater competitive advantage. There is little difference in services rendered as all staffs recruited by the clients are adequately trained. There are a lot of brand with each fulfilling same purpose. There is also high informational complexity and low diversity of competitors as there are few major recognisable global brands. Diversity of competitors is low since as of now only a handful of firms have established themselves in this industry. There is high corporate stakes and a low exit barrier.