Multinational corporations (MNC) seeking to survive and grow in an age of global competition need a thorough understanding of the logistics of global competition. Primarily, global contenders need to recognize potential global competitors in the same or related business segments, either abroad or on home turf. RCA failed in this objective by overlooking the gravity of the Japanese challenge to its domestic market. The company also overlooked the strategic importance of cultivating overseas markets. Texas Instruments, on the other hand, acted to establish a semiconductor production facility in Japan, thereby securing a position in the world marketplace. The expansion of an MNC's operations into its global rivals' key geographic markets yields several significant benefits. An MNC's strategic decisions should consider: 1. a market's barriers to entry, 2. competitors' collective strength and the intensity of their retailation, and 3. the company's sales in the market.
CITATION STYLE
Kim, W. C., & Mauborgne, R. A. (1988). Becoming an Effective Global Competitor. Journal of Business Strategy.
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