- Notes on Contributors
- The History of Strategy and Some Thoughts about the Future
- The Boundary of the Firm
- Evolutionary Theory
- Institutional Approaches to Business Strategy
- The Strategic Management of Technology and Intellectual Property
- Strategy and Valuation
- The Knowledge-Based View of the Firm
- Analysing the Environment
- Strategic Groups: Theory and Practice
- Scenario Thinking and Strategic Modelling
- Analyzing Internal and Competitor Competences: Resources, Capabilities, and Management Processes
- Dynamic Capabilities
- Formulating Strategy
- Organizational Learning
- Strategy in Service Organizations
- Why Diversify? Four Decades of Management Thinking
- The Rationale for Multi-SBU Companies
- The Role of the Parent Company
- Mergers and Acquisitions: Motives, Value Creation, and Implementation
- Cooperative Strategy: Strategic Alliances and Networks
- International Strategy
- Strategies for Multinational Enterprises
- Globalization and the Multinational Enterprise
- Managing Strategic Change
- Organizational Structure
- Strategy Innovation
- Game Theory In Strategy
- Strategy, Heuristics, and Real Options
- Strategic Flexibility Creating Dynamic Competitive Advantages
- Subject Index
- Name Index
Abstract and Keywords
This article focuses on various strategies for multinational enterprises. Porter has argued that a generic strategy consists of two major choices. First, with regard to the type of competitive advantage being pursued, the choice is between low cost and differentiation. Second, is the choice of the firm's competitive scope, which reflects the breadth of its target market segments; the alternatives are a broad target, covering a whole industry and a narrow target, including only specific segments within an industry. Rugman and Verbeke and Rugman have demonstrated how Porter's generic strategies framework can be extended to take into account the issue of geographic scope in a global industry. They show that Porter's three initial generic strategies can be transformed into the set of five generic global strategies. This is a simple way to integrate Porter's ideas, but it does highlight two conceptual problems associated with Porter's generic global strategies.
Alan M. Rugman is Professor for International Business in the Henley Business School at the University of Reading.
Alain Verbeke is the McCaig Chair in Management at the University of Calgary and Professor of International Business at the University of Brussels.
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