strategy in that the firm in the former seeks control whereas in the latter it

Strategy in that the firm in the former seeks control

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strategy in that the firm in the former seeks control, whereas in the latter it seeks to complement its resources/competencies or tries to find a partner to develop or defend a market position. Four items where chosen tapping into the intent of the firm to control its IO through ownership (reliability score of 0.75). The challenger strategy is measured using proxies of active market positioning versus competitors in international markets (rapid gain of market position, entry into competitors’ strongholds, retaliation), giving an a score of 0.75. Concerning standardisation we adopted variables from Zou and Cavusgil (2002) on product and promotion standardisation which in their study achieved high-reliability scores (0.89 and 0.94, respectively). However, since our data do not give any unambiguous construct with high reliability, we retain only two items yielding an a of only 0.61. One possible reason for the weak comparability between the two studies may lie in the fact that the Zou and Cavusgil (2002) study investigated large globally oriented firms, whereas the present study has been carried out mainly among SMEs. Table IV sums up the results of the factor analysis. Results of the factor analysis of the performance construct are presented in Table V. The items are drawn from previous research by Madsen (1987), Shoham (1998), Differentiation Cost leadership Focus We differentiate our products from our competitors 0.87 We maintain unique image for our products 0.85 We maintain higher quality standard for our products 0.75 Our IO are the most cost efficient in the industry 0.88 We have lower costs than our competitors 0.82 We achieve considerable economies of scale in our IO 0.74 Our customers have a special need which enables us to charge “above average price” for our products/services 0.83 We focus on a small segment/target market where there are few competitors 0.81 Our competence/products are so specialized that other competitors have difficulties to entering our niche 0.76 Percentage of variance 24.85 23.01 21.90 Reliability 0.86 0.86 0.84 Table III. Rotated matrix structure: competitive marketing strategy IMR 25,5 530
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Variable Step-wise Alliance Follower Integration Challenger Standard Our company’s international involvement has followed a “one step at a time” – approach 0.86 We may describe our international expansion as “slow and safe” 0.83 When entering new markets we have a cautious approach 0.77 We have decided to concentrate on a few markets abroad 0.66 We would characterize our international engagements as “consolidating” (rather than “expanding”) 0.65 Alliances with international partners is an essential part of our strategy 0.82 We often enter strategic alliances with international partners who will complete our own competence 0.78 We are co-operating with an equivalent partner to be better prepared to meet global market challenges 0.73 We use strategic alliances as a means to defend our market share 0.71 We are actively seek one main partner with a view to strengthen our capital base 0.66 We observe the ML to modify new product developments 0.87 We monitor the ML to imitate
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