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Management article
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Reference no. 85409
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1985

Abstract

Corporate response to the threat of foreign competition is often misdirected and ill timed - in part because many executives don''t fully understand what global competition is. Executives must anticipate competitive moves by starting from new strategic intentions rather than from old strategies. They must think and act in complex ways. They may slice the company in one way for distribution investments, in another for technology, and in still another for manufacturing. In addition, global competitors must develop varied criteria and analytical tools to justify these investments. Even when its manufacturing is not on a global scale, a company must be sensitive to the potential of global competitive interaction.

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Abstract

Corporate response to the threat of foreign competition is often misdirected and ill timed - in part because many executives don''t fully understand what global competition is. Executives must anticipate competitive moves by starting from new strategic intentions rather than from old strategies. They must think and act in complex ways. They may slice the company in one way for distribution investments, in another for technology, and in still another for manufacturing. In addition, global competitors must develop varied criteria and analytical tools to justify these investments. Even when its manufacturing is not on a global scale, a company must be sensitive to the potential of global competitive interaction.

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