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


Entry

phase

Strategic focus

Better Product

Lower

Price

Global

Brand

Lining up



Direct Fight:

Technological improvement



Indirect Fight:

Market blocking

Counter-offensive:

Expansion into foreign markets



Direct Fight:

Signal defense commitment

Lowering prices

Indirect Fight:

Cultivate government intervention



Join:

Production agreements



Direct Fight:

Signal defense commitment

Communicate with focus on domestic culture and tradition
Join:

Brand licensing



Entry


Direct Fight:

Product service improvement



Indirect Fight:

Control of distribution

Counter-offensive:

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



Join:

Production agreement



Direct Fight:

Enhance local brand Image


Join:

Introduce licensed brand



Expansion



Direct Fight:

Continue product improvement



Indirect Fight:

Lower prices

Cultivate government intervention

Flee

Move to other product/segment



Direct Fight:

Price matching



Indirect Fight:

Differentiated marketing

Cultivate government intervention

Join:

Production agreement




Direct Fight:

Brand variation



Flee:

Private label agreements

Brand variation

Join:

Joint venture with global brand



Entrenchment

Flee :

Niche strategy



Flee:

Niche strategy




Flee:

Private label agreements



Niche strategy


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