Changing Patterns of International Competition

Abstract

What does international competition mean for competitive strategy? While there is an ample literature on the problems of becoming a multinational, the specific strategic needs of established multinationals requires closer examination in light of the increasingly competitive international environment. We need to distinguish between multidomestic industries and global industries. If American firms are to catch up with the Japanese, they must strive to achieve global platforms rather than engage in competition on a country-by-country basis. A global strategy requires that a firm rebalance the configuration and coordination of its activities so that comparative as well as competitive advantage is achieved. The increasing globalization of international competition requires strategic responses that overcome country parochialism.