STRATEGYMonths to result

Strategic Alternatives in Global Industries Framework

Choose a strategic alternative

Problem it solves

unclear strategic direction

Best for

Multinational corporations

Not ideal for

Small businesses with limited resources

Overview

Why this framework exists

The Strategic Alternatives in Global Industries Framework is a strategic approach to competing in global industries. It involves choosing a strategic alternative such as broad line global competition, global focus, national focus, or protected niche.

Core principles

3 total
  1. Firms must choose a strategic alternative to succeed in global industries
  2. Firms must understand the competitive forces in their industry and build strategies to succeed
  3. Firms must be aware of the political and economic relations between governments

Steps

2 steps
  1. Choose a strategic alternative
    Choose a strategic alternative such as broad line global competition, global focus, national focus, or protected niche
    Pro tipUse a framework such as the Strategic Alternatives in Global Industries Framework to choose a strategic alternative
    WarningFailing to choose a strategic alternative can lead to poor strategic decisions
  2. Implement the chosen strategic alternative
    Implement the chosen strategic alternative and build strategies to succeed
    Pro tipUse strategies such as building political capital and establishing relationships with governments in buying countries
    WarningFailing to implement the chosen strategic alternative can lead to a competitive disadvantage

Checklist

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Examples

2 cases
IBM's global strategy

IBM has successfully competed in global industries by choosing a strategic alternative and implementing it

OutcomeIBM has maintained a competitive advantage in global industries
Japanese firms in the television and automobile industries

Japanese firms have successfully competed in global industries by choosing a strategic alternative and implementing it

OutcomeJapanese firms have maintained a competitive advantage in global industries

Common mistakes

2 traps
Failing to choose a strategic alternative
This can lead to poor strategic decisions and a competitive disadvantage
Failing to implement the chosen strategic alternative
This can lead to a competitive disadvantage and reduced access to major markets

Origin story

How this framework came to be

The Strategic Alternatives in Global Industries Framework was developed in response to the increasing globalization of industries and the need for firms to compete on a worldwide basis. It is based on the idea that firms must choose a strategic alternative to succeed in global industries.

Source

Traced to primary
Source · BOOK
Competitive Strategy
Michael E. Porter · 1980
Open source →

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