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Lia Kristianti
Katelyn Sharratt
Yulin An
Elena Pette
Marco Cersosimo
Introduction
Key problem
Inability to respond to or fulfil
the needs of its target market
Causes
Liabilities of smallness
Centralized decision making
process
Liabilities of foreignness
Lower quality
No R&D
investments
Symptoms
NO differentiation
in revenueresources
Sensitive to fluctuations
in advertising budgets
Negative results
Failure of products
Lack of Competitive Advantage
DecreasingDemand & Increasingthreats of
competitors
Option 1 – Solitary expansion
Existing products
International
High amount of resources4 stages
Opportunities
Diversify risks
Developing countries
Dynamic targets
Challenges
Dispersion of resources
Greater control and coordination needed
Difficulties attracting international players
Opportunity cost of internalizing
Option 2 – Consolidate
Opportunities
RESOURCES
Challenges
Market
ShareRevenues
Option 3 – Strategic Alliances
“If you think you can go it alone in today’s global economy, you are highly mistaken.”
- Jack Welch, CEO of General Electric
Opportunities
Revenue
Challenges
Finding the
Why?
Innovative, Quality
Products
Meeting Markets’ Needs
Sustainable Competitive Advantage
Internationalization as an outcome of strategic alliances
(Freeman et al., 2010)
Implementation Plan
Partner Selection Process
Assess internal & external capabilities
Determine which products should be outsourced & internalized
Identify the right partners
Form alliances with partners
1
2
3
4
Gantt Chart
Backup plan
References
Freeman, S., Hutchings, K., Lazaris, M., & Zyngier, S. (2010). A model of rapid knowledge development: The smaller born-global firm. International Business Review, 19(1), 70-84.
Gottfredson, M., Puryear, R., & Phillips, S. (2005). Strategic sourcing. Harvard Business Review, 83(2), 132-139.
Quélin, B., & Duhamel, F. (2003). Bringing together strategic outsourcing and corporate strategy:: Outsourcing motives and risks. European management journal, 21(5), 647-661.
