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| Tekijä: | Jaffe, E.D. Nebenzahl, I.D. Schorr, I. |
| Otsikko: | Strategic options of home country firms faced with MNC entry |
| Lehti: | Long Range Planning
2005 : APR, VOL 38:2, p. 183-195 |
| Asiasana: | Management Strategy Planning Markets Multinational companies Case studies Israel |
| Kieli: | eng |
| Tiivistelmä: | This study analyses the strategic options facing a domestic firm threatened by the entry of MNCs, whether to attack the incoming MNC, to cooperate with it, to defend their home position or to exit the market. A framework is suggested for determining an optimum strategy based on the firm's market (global or local) and the strength of its strategic and marketing assets. The framework is tested by studying the response strategies to MNC entry of 78 Israeli firms, tracking their reactions from 1993 to 1999, as significantly more MNCs entered the market. For firms competing in global markets, barely half of those with strong assets chose to 'contend' with MNCs as predicted. The rest chose a 'co-operator' strategy, as did all firms with weak assets. For firms competing locally, the majority with strong assets followed the predicted 'contester' strategy, and the majority with weak assets chose a 'defender' strategy, again in accordance with the model. There are two case studies presented, showing the results of 'wrong' and 'correct' decisions. |
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