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Lia Kristianti
Katelyn Sharratt
Yulin An
Elena Pette
Marco Cersosimo
Introduction
Key problem
Inability to
respond to or fulfil
the needs of its
target market
Causes
Liabilities of smallness
Centralized decision making
process
Liabilities of foreignness
Lower quality
No R&D
investments
Symptoms
NO
differentiation
in revenue
resources
Sensitive to
fluctuations
in advertising
budgets
Negative
results
Failure of
products
Lack of
Competitive
Advantage
Decreasing
Demand &
Increasing
threats of
competitors
Option 1 – Solitary expansion
Existing
products
International
High amount of
resources4 stages
Opportunities
Diversify
risks
Developing
countries
Dynamic
targets
Challenges
Dispersion of resources
Greater control and
coordination needed
Difficulties attracting
international players
Opportunity cost of
internalizing
Option 2 – Consolidate
Opportunities
RESOURCES
Challenges
Market
Share
Revenues
Option 3 – Strategic Alliances
“If you think you can go it alone
in today’s global economy, you
are highly mistaken.”
- Jack Welch, CEO of General Electric
Opportunities
Revenue
Challenges
Finding the
Why?
Innovative,
Quality
Products
Meeting
Markets’
Needs
Sustainable
Competitive
Advantage
Internationalization as an outcome of strategic alliances
(Freeman et al., 2010)
Implementation Plan
Partner Selection Process
Assess internal & external capabilities
Determine which products should be
outsourced & internalized
Identify the right partners
Form alliances with partners
1
2
3
4
Gantt Chart
Backup plan
References
Freeman, S., Hutchings, K., Lazaris, M., & Zyngier, S.
(2010). A model of rapid knowledge development: The
smaller born-global firm. International Business Review,
19(1), 70-84.
Gottfredson, M., Puryear, R., & Phillips, S. (2005). Strategic
sourcing. Harvard Business Review, 83(2), 132-139.
Quélin, B., & Duhamel, F. (2003). Bringing together strategic
outsourcing and corporate strategy:: Outsourcing motives
and risks. European management journal, 21(5), 647-
661.
Expatica.com - Challenges of Internationalising
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