Gain international experience Explore own advantages on markets abroad Increase profit Increase...
description
Transcript of Gain international experience Explore own advantages on markets abroad Increase profit Increase...
![Page 1: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/1.jpg)
Repositioning Strategy for Malaysian Companies Internationalization
ISMI RAJIANI
Universiti Teknikal Malaysia Melaka
![Page 2: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/2.jpg)
Malaysia in Brief
Progressed socio economicallySince 1957
First-class network of infrastructure that is comparable to those
in developed countries
strategic location in the fastest-growing
region with a strong natural resource
endowment
![Page 3: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/3.jpg)
Xavier, J. A and Ahmad, Z. U. (2012). Proposed scholarly research agenda for transforming Malaysia into a model developing nation. International Journal of Public Sector Management, 25 (3), 231 – 243.
Stuck in the middle-income trap
Cannot compete with Vietnam and
Indonesia in lower costs and labour-
intensive production
Unable to compete with high value-added
economies
![Page 4: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/4.jpg)
Malaysian COMPANIES
Will they all adopt the
Overall Cost Leadership
Product Strategy co-
aligning with their
local competitive advantage?
Going Global
![Page 5: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/5.jpg)
Proposition 1:
Malaysian exporting companies have a different initial position compared to that of Western companies when starting their export activities as form of internationalization.
![Page 6: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/6.jpg)
Uppsala model
“psychic distance” companies expand
first to market which is psychically close
move further as their knowledge well-
developed
![Page 7: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/7.jpg)
Uppsala’s model for Malaysia
culture language, religious customs
close distance
Indonesia as
potential market
![Page 8: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/8.jpg)
Variables Definition
COI : buyer’s attitudes and feelings toward the country , developed through contact, association, or past experience with the country, its people, and its products (Sahin, 2010).
Animosity: the remnants of antipathy related to previous or ongoing military, political, or economic events"(Klein et al, 1998).
Ethnocentrism: believe that buying a foreign product or foreign brand is not patriotic, and they tend to choose local products or local brands, regardless price or quality considerations (Shankarmahesh, 2006).
![Page 9: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/9.jpg)
![Page 10: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/10.jpg)
Thus…
The case of Air Asia and Proton (Ahmad and Neal, 2006 ; Ahmed & Humpreys, 2008), and many firms believe that a low-price strategy is the main competitive advantage (Young et al., 1996, ; Ahmed & Humpreys, 2008).
![Page 11: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/11.jpg)
Preposition 2:
There are 15 triggering cues for internationalization motives
![Page 12: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/12.jpg)
15 triggering cues for internationalization motives
1. Gain international experience2. Explore own advantages on markets
abroad3. Increase profit4. Increase sales volume5. Gain access to internationally
experienced management or skilled human resources
![Page 13: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/13.jpg)
15 triggering cues for internationalization motives
6. Gain international experience7. Achieve international reputation and brand
recognition8. Receive government support or finance9. Improve own-product development and
innovation ratio10.Increase technology content of own
products
![Page 14: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/14.jpg)
15 triggering cues for internationalization motives
11.Improve customer service12.Improve quality of products13.Improve cost efficiency in production 14.Search efficient alliance15.Maintain domestic positioning
![Page 15: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/15.jpg)
Proposition 3:
The 15 triggering cues can be allocated to and distributed
between four strategic positions, based on expected
importance in securing competitive advantage in each
position.
![Page 16: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/16.jpg)
Four Strategic Position (Soderman et al., 2008)
3. High Price Low Volume
4. High Price High Volume
2. Low Volume Low Price
1.High volume Low Price
Volume
PRIC
E
![Page 17: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/17.jpg)
Four Strategic Position (Soderman et al., 2008)
3. Focus on innovation
4. Focus on Growth
2. Start up company
1.Focus on cost efficiency
Volume
PRIC
E
![Page 18: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/18.jpg)
Four Strategic Position (Soderman et al., 2008)
3. Focus on innovation
4. Focus on Growth
2. Start up company
1.Focus on cost efficiency
Volume
PRIC
E
![Page 19: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/19.jpg)
None will be willing to stay in position 2!
3. Focus on innovation
4. Focus on Growth
2. Start up company
1.Focus on cost efficiency
Volume
PRIC
E
![Page 20: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/20.jpg)
1.Focus on cost efficiency
1. Sales Volume2. Cost Efficiency in Production3. Explore own advantages4. Profit5. International Experience6. Government Support7. Opportunity
![Page 21: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/21.jpg)
3.Focus on innovation
1. International Reputation & Brand Recognition2. Product Development and Innovation Ratio3. Technology Content of Product4. Searching Efficient Alliance5. Management and Skilled Human Resources6. Internationally Experienced7. Maintaining Domestic Position8. Profit
![Page 22: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/22.jpg)
4.Focus on Growth
1. Customer Service2. Quality of Product
![Page 23: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/23.jpg)
Proposition 4:
Most Malaysian companies will stay in position 1 because of their country-specific advantages, but will reposition by leaving position 1 and aiming for position 3, the
high-price/low-volume segment.
![Page 24: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/24.jpg)
Data and Methodology
• The research questions were operationalized in a questionnaire adapted from Soderman et al., (2008) .
• The target population of this study is managers in manufacturing sectors in Selangor, Negeri Sembilan, Malacca and Johore Bahru states.
• The survey is targeted to obtain 100 respondents.
![Page 25: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/25.jpg)
Conclusion
• Uppsala model concept of psychic distance by preference to start exportation to neighboring countries seems to apply also for Malaysian companies
![Page 26: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/26.jpg)
Conclusion
• As competition increases in their domestic market, great numbers of Malaysian companies will consider Western markets attractive for their products and services thus make the company reposition their strategy
![Page 27: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/27.jpg)
Conclusion
• Europe does not represent a neighboring or ‘home’ market, as do markets in South-East Asia making the Uppsala model concept of psychic distance and Porter’s overall cost leadership are no longer relevant.
![Page 28: Gain international experience Explore own advantages on markets abroad Increase profit Increase sales volume](https://reader035.fdocuments.net/reader035/viewer/2022070501/5681691f550346895de0490a/html5/thumbnails/28.jpg)
THANK YOU FOR BEING ATTENTIVE!