STRATEGIC TASKS
DEFENDING WORLD DOMINANCE (muahaha)
- Companies that had dominance by perfectioning one of the old traditional strategies got increased competition from more transnational firms
Tried to reorganize their assets to become more transnational themselves but had issues with their own structure and governments
- Follow two principles
Concentrate at least as much on defending and reinforcing your existing assets and capabilities as on developing new ones
Imitate the asset structure and task configuration of competitors instead of just trying to match their source of advantage with what you currently have
Challenging the Global Leader
1. Find and exploit a niche
2. Expand your position on both product and geographic dimensions
- Improve cost and quality step-by-step
- Focus on products and markets not in the focus of market leader
- Build manufacturing volume
3. Become Original Equipment Manufacturer (OEM) manufacturer for competition
4. Move rapidly to convert niche position into global business or use acquisitions
PROTECTING DOMESTIC NICHES
Three approaches
1. Defend against competitor's global advantage
- Tie up distribution channels or change market
2. Offset competitor's global advantage
- Lobby for government help
- Become "national champion"
3. Approximate global competitor's advantage
- Form alliance with viable global company