Defending a Domestic Position against Global Entries Yaron Timmor; Samuel Rabino; Jehiel Zif Abstract

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Figure 1

A Framework for Analyzing Global Entry into a Domestic Market

Defense strategies of domestic firms along the phases of market entry and strategic focus of a global entrant



Strategic focus

Better Product





Lining up

Direct Fight:

Technological improvement

Indirect Fight:

Market blocking


Expansion into foreign markets

Direct Fight:

Signal defense commitment

Lowering prices

Indirect Fight:

Cultivate government intervention


Production agreements

Direct Fight:

Signal defense commitment

Communicate with focus on domestic culture and tradition

Brand licensing


Direct Fight:

Product service improvement

Indirect Fight:

Control of distribution


Expansion to foreign markets

Price competition

Direct Fight:

Attack weaknesses

Reduce price

Indirect Fight:

Brand differentiation

Enhance service and increase switching cost

Cultivate government intervention


Production agreement

Direct Fight:

Enhance local brand Image


Introduce licensed brand


Direct Fight:

Continue product improvement

Indirect Fight:

Lower prices

Cultivate government intervention


Move to other product/segment

Direct Fight:

Price matching

Indirect Fight:

Differentiated marketing

Cultivate government intervention


Production agreement

Direct Fight:

Brand variation


Private label agreements

Brand variation


Joint venture with global brand


Flee :

Niche strategy


Niche strategy


Private label agreements

Niche strategy

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