1. Optimal strategic approaches hinge on (1) whether competitive assets are suitable only for the home market or can be transferred abroad and (2) whether industry pressures to move toward global competition are strong or weak.
2. Using Home-Field Advantages: When the pressures for global competition are low and a local firm has competitive strengths well suited to the local market, a good strategy option is to concentrate on the advantages enjoyed in the home market, cater to customers who prefer a local touch, and accept the loss of customers attracted to global brands.
3. Transferring the Company’s Expertise to Cross-Border Markets: When a company has resource strengths and capabilities suitable for competing in other country markets, launching initiatives to transfer its expertise to cross-border markets becomes a viable strategic option.
4. Shifting to a New Business Model or Market Niche: When industry pressures to globalize are high, any of the following three options make the most sense:
a. Shift the business to a piece of the industry value chain where the firm’s expertise and resources provide competitive advantage
b. Enter into a joint venture with a globally competitive partner
c. Sell out to or be acquired by a global entrant into the home market who concludes the company would be a good entry vehicle
5. Contending on a Global Level: If a local company in an emerging market has transferable resources and capabilities, it can sometimes launch successful initiatives to meet the pressures for globalization head-on and start to compete on a global level itself.
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