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Internationalization of company

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Learning from great companies of Malaysia on going International

Learning from great companies of Malaysia on going International

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  • 1. Repositioning Strategy for Malaysian Companies Internationalization ISMI RAJIANI Universiti Teknikal Malaysia MelakaPresented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in Business and Management by ABEST 21
  • 2. Malaysia in Brief First-class network of strategic location inProgressed socio infrastructure that is the fastest-growing economically comparable to those region with a strong Since 1957 in developed natural resource countries endowment Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in Business and Management by ABEST 21
  • 3. Xavier, J. A and Ahmad, Z. U. (2012). Proposed scholarly research agenda fortransforming Malaysia into a model developing nation. International Journal of Public Sector Management, 25 (3), 231 – 243. Cannot compete with Vietnam and Unable to competeStuck in the middle- Indonesia in lower with high value- income trap costs and labour- added economies intensive production Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in Business and Management by ABEST 21
  • 4. Will they all adopt the Overall CostLeadership Product GoingStrategy co-aligning Global with their local competitive advantage? Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in Business and Management by ABEST 21
  • 5. Proposition 1:Malaysian exporting companieshave a different initial positioncompared to that of Westerncompanies when starting theirexport activities as form ofinternationalization. Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 6. Uppsala model companies move further as“psychic expand first to their knowledgedistance” market which is well-developed psychically close Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 7. Uppsala’s model for Malaysia Indonesia religious close asculture language, customs distance potential market Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 8. Variables DefinitionCOI : buyer’s attitudes and feelings toward the country, developed through contact, association, or pastexperience with the country, its people, and itsproducts (Sahin, 2010).Animosity: the remnants of antipathy related toprevious or ongoing military, political, or economicevents"(Klein et al, 1998).Ethnocentrism: believe that buying a foreign productor foreign brand is not patriotic, and they tend tochoose local products or local brands, regardless priceor quality considerations (Shankarmahesh, 2006). Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 9. Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 10. 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). Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 11. Preposition 2: Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 12. 15 triggering cues for internationalization motives1. Gain international experience2. Explore own advantages on markets abroad3. Increase profit4. Increase sales volume5. Gain access to internationally experienced management or skilled human resources Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 13. 15 triggering cues for internationalization motives6. 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 Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 14. 15 triggering cues for internationalization motives11.Improve customer service12.Improve quality of products13.Improve cost efficiency in production14.Search efficient alliance15.Maintain domestic positioning Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 15. Proposition 3:The 15 triggering cues can be allocated to and distributed between four strategicpositions, based on expected importance in securing competitive advantage in each position. Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 16. Four Strategic Position (Soderman et al., 2008) 3. High Price 4. High Price Low Volume High VolumePRICE 2. Low Volume 1.High volume Low Price Low Price Presented in International Conference and Business Management Research Volume University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 17. Four Strategic Position (Soderman et al., 2008) 3. Focus on 4. Focus on innovation GrowthPRICE 2. Start up 1.Focus on company cost efficiency Presented in International Conference and Business Management Research Volume University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 18. Four Strategic Position (Soderman et al., 2008) 3. Focus on 4. Focus on innovation GrowthPRICE 2. Start up 1.Focus on company cost efficiency Presented in International Conference and Business Management Research Volume University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 19. None will be willing to stay in position 2! 3. Focus on 4. Focus on innovation GrowthPRICE 2. Start up 1.Focus on company cost efficiency Presented in International Conference and Business Management Research Volume University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 20. 1.Focus on cost efficiency1. Sales Volume2. Cost Efficiency in Production3. Explore own advantages4. Profit5. International Experience6. Government Support7. Opportunity Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 21. 3.Focus on innovation1. 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 Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 22. 4.Focus on Growth1. Customer Service2. Quality of Product Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 23. 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. Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 24. 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. Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 25. Conclusion• Uppsala model concept of psychic distance by preference to start exportation to neighboring countries seems to apply also for Malaysian companies Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 26. 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 Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 27. 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. Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  • 28. THANK YOU FOR BEINGATTENTIVE! Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in