Repositioning Strategy for                   Malaysian Companies                   Internationalization                   ...
Malaysia in Brief                                First-class network of                      strategic location inProgress...
Xavier, J. A and Ahmad, Z. U. (2012). Proposed scholarly research agenda fortransforming Malaysia into a model developing ...
Will they all adopt  the Overall CostLeadership Product                                                                  G...
Proposition 1:Malaysian exporting companieshave a different initial positioncompared to that of Westerncompanies when star...
Uppsala model                    companies                                                         move further as“psychic...
Uppsala’s model for Malaysia                                                                    Indonesia                 ...
Variables DefinitionCOI : buyer’s attitudes and feelings toward the country, developed through contact, association, or pa...
Presented in International Conference and     Business Management Research University of Economic Ho Chi Minh City   and a...
Thus…The case of Air Asia and  Proton (Ahmad and  Neal, 2006 ; Ahmed &  Humpreys, 2008), and  many firms believe that  a l...
Preposition 2: Presented in International Conference and      Business Management Research  University of Economic Ho Chi ...
15 triggering cues for internationalization motives1. Gain international experience2. Explore own advantages on markets   ...
15 triggering cues for internationalization motives6. Gain international experience7. Achieve international reputation and...
15 triggering cues for internationalization motives11.Improve customer service12.Improve quality of products13.Improve cos...
Proposition 3:The 15 triggering cues can be allocated to and distributed    between four strategicpositions, based on expe...
Four Strategic Position (Soderman et al.,                         2008)         3. High Price                          4. ...
Four Strategic Position (Soderman et                      al., 2008)        3. Focus on                            4. Focu...
Four Strategic Position (Soderman et al.,                         2008)          3. Focus on                            4....
None will be willing to stay in position 2!          3. Focus on                             4. Focus on          innovati...
1.Focus on cost efficiency1.   Sales Volume2.   Cost Efficiency in Production3.   Explore own advantages4.   Profit5.   In...
3.Focus on innovation1.   International Reputation & Brand Recognition2.   Product Development and Innovation Ratio3.   Te...
4.Focus on Growth1. Customer Service2. Quality of Product             Presented in International Conference and           ...
Proposition 4:  Most Malaysian companies will stay in position 1  because of their country-specific advantages, but  will ...
Data and Methodology• The research questions were operationalized  in a questionnaire adapted from Soderman et  al., (2008...
Conclusion• Uppsala model concept of psychic distance by  preference to start exportation to neighboring  countries seems ...
Conclusion• As competition increases in their domestic  market, great numbers of Malaysian  companies will consider Wester...
Conclusion• Europe does not represent a neighboring or  ‘home’ market, as do markets in South-East  Asia making the Uppsal...
THANK YOU FOR  BEINGATTENTIVE! Presented in International Conference and      Business Management Research  University of ...
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Internationalization of company

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Learning from great companies of Malaysia on going International

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  1. 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. 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. 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. 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. 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. 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. 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. 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. 9. Presented in International Conference and Business Management Research University of Economic Ho Chi Minh City and awarded Best Research Paper in
  10. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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