This article describes the development of an analytical framework of strategic
behavior in globalizing markets, based on different strands of literature
(internationalization process, strategic groups, intra-industry trade, and
global management). The framework consists of a three-by-three matrix with the
following dimensions: the global structure of the industry (industry globality)
and the firm's preparedness for internationalization. In each of the nine
resulting cells (“The Nine Strategic Windows”) the author discusses consequences
for strategic behavior of the firm. The author makes concrete suggestions on
company strategy, varying from “stay at home” to “strengthen your global
position.” In order to illustrate the framework, the study of a Norwegian ship
equipment manufacturer is briefly discussed.
Get full access to this article
View all access options for this article.
References
1.
AabyNils Erik, and
SlaterS. F. “Management
Influences on Export Performance: A Review of the Empirical Literature
1978–88.” International Marketing Review6, no. 4 (1989):
7–26.
2.
BainJoe S.Barriers to New Competition. Their Character and Consequences in
Manufacturing Industries.Cambridge: Harvard University
Press, 1956.
3.
BartlettChristopher A., and
GhoshalS.Managing Across Borders: The Transnational Solution.Boston: Harvard Business School
Press, 1989.
4.
BoddewynJean J., SoehlR., and PicardJ. “Standardization in
International Marketing: Is Ted Levitt in Fact Right?”
Business Horizons29, no. 6 (Nov-Dec. 1986):
69–75.
5.
BuzellRobert D., and
GaleB. T.The PIMS Principles.New York: Free
Press, 1987.
6.
CavesRichard A., and
PorterM. E. “From Entry Barriers
to Mobility Barriers; Conjectural Decisions and Contrived Deterrence to New
Competition.” Quarterly Journal of
Economics91–2 (1977):
241–61.
7.
CavusgilS. Tamer. “Differences
Among Exporting Firms Based on their Degree of
Internationalization.” Journal of Business
Research12, no. 2 (1984):
195–208.
8.
ForsgrenMats. Managing the
Internationalization Process, The Swedish Case.London:
Routledge,
1989.
9.
GrubelHerbert G., and
LloydP. J.Intra-Industry Trade: The Theory and Measurement of International Trade
in Differentiated Products.London:
Macmillan,
1975.
10.
HagedoornJohn, and
SchakenraadJ. “Leading Companies and
the Structure of Strategic Alliances in Core Technologies.”
Paper presented at Workshop on Europe and Globalisation, EIASM, Bruxelles: May,
1990.
11.
HåkansonHakan, ed. International Marketing
and Purchasing of Goods; An Interaction Approach.Chichester: John Wiley and Sons,
Ltd., 1982.
12.
HamelG., and PrahaladC. K. “Do You Really Have a
Global Strategy?” Harvard Business Review,
no. 4 (July-August 1985):
139–48.
13.
HedlundGunnar. “The Hypermodern
MNC—A Heterarchy?” Human Resource
Management25, no. 1 (1986):
9–35.
14.
HuntM. S. “Competition in the
Major Home Appliance Industry, 1960–1970.” Unpublished Ph.D.
diss., Graduate School of Business Administration, Harvard University,
1972.
15.
JohansonJan, and
Wiedersheim-PaulF. “Internationalization of
the Firm; Four Swedish Case Studies.” The Journal of
Management Studies12, no. 3 (October 1975):
305–22.
16.
JanJohanson and
VahlneJ.-E. “The
Internationalization Process of the Firm—A Model of Knowledge Development
and Increasing Foreign Commitments.” Journal of
International Business Studies8, no. 2 (Spring/Summer 1977):
23–32.
17.
JanJohanson and
VahlneJ.-E. “The Mechanisms of
Internationalization.” International Marketing
Review7, no. 4 (Fall 1990):
11–24.
18.
JohansonJan, and MattsonLars Gunnar. “International
Marketing and Internationalization Processes—A Network
Approach.” In Research in International
Marketing, edited by TurnbullP. W. and
PaliwodaS. J.,
234–66. London:
Croom Helm,
1986.
19.
KitchingJ. “Why Do Mergers
Miscarry?” Harvard Business Review45, no. 6 (November-December 1967):
84–101.
KrugmanPaul R. “Industrial
Organization and International Trade.” In Handbook
of Industrial Organization, edited by
SchmalenseeRichard and
WilligR. D.,
1181–1223.
Amsterdam: Elsevier Science
Publishers NV., 1989.
22.
KvernelandAdne. “Japan's Industry
Structure—Barriers to Global Competition.” In
Strategies in Global Competition, edited by
HoodNiel and VahlneJan Erik,
225–55.
Stockholm: Stockholm School
of Economics, 1988.
23.
LeontiadesJames. “Market Share and
Corporate Strategy in International Industries.”
Journal of Business Strategy (Summer 1984):
30–37.
24.
LeontiadesJames. “Going Global;
Global Strategies vs. National Strategies.” Long
Range Planning19, no. 6 (1986):
96–104.
25.
LevittTheodore. “The
Globalization of Markets.” Harvard Business
Review61, no. 3 (May/June 1983):
92–102.
26.
PerlmutterHoward V., and
HeenanD. A. “Cooperate to Compete
Globally.” Harvard Business Review64, no. 2 (March-April 1986):
136–52.
27.
PorterMichael E., ed. “Competition in
Global Industries.”Boston: Harvard Business
School-Press, 1986.
28.
PorterMichael E.The Competitive Advantage of Nations.London: The Macmillan Press
Ltd., 1990.
29.
PrahaladC. K., and DozYves. The Multinational Mission:
Balancing Local Demands and Global Vision.New York: The Free
Press, 1987.
30.
SolbergCarl Arthur. “Successful
and Unsuccessful Exporters: An Empirical Study of 114 Norwegian Export
Companies.” Working Paper, Norwegian School of Management,
Sandvika, Norway, 1988.
31.
SolbergCarl Arthur. “Strategy
Development in Globalising Markets: The Case of Norwegian Small and Medium
Sized Firms.” Unpublished Ph.D. diss., University of
Strathclyde, 1994.
32.
SölvellÖrjan. “Entry Barriers and
Foreign Penetration.” Ph.D. diss., Stockholm School of
Economics, 1987.
33.
WelchLawrence S., and
LuostarinenR. “Internationalization:
The Evolution of a Concept.” Journal of General
Management14, no. 2 (Winter 1988):
34–55
34.
WindYoram, and
DouglasS. “The Myth of
Globalization.” Colombia Journal of World
Business22, no. 4 (Winter 1987):
19–29.
35.
YipGeorge S.Total Global Strategy, Managing for Worldwide Competitive
Advantage.Englewood Cliffs, NJ: Prentice
Hall, 1992.
