Strategies for Multinational Enterprises

Alan M. Rugman and Alain Verbeke

in The Oxford Handbook of Strategy

Published in print April 2006 | ISBN: 9780199275212
Published online September 2009 | | DOI:

Series: Oxford Handbooks in Business and Management C

 Strategies for Multinational Enterprises

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  • Business and Management
  • Business Strategy
  • International Business


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This article focuses on various strategies for multinational enterprises. Porter has argued that a generic strategy consists of two major choices. First, with regard to the type of competitive advantage being pursued, the choice is between low cost and differentiation. Second, is the choice of the firm's competitive scope, which reflects the breadth of its target market segments; the alternatives are a broad target, covering a whole industry and a narrow target, including only specific segments within an industry. Rugman and Verbeke and Rugman have demonstrated how Porter's generic strategies framework can be extended to take into account the issue of geographic scope in a global industry. They show that Porter's three initial generic strategies can be transformed into the set of five generic global strategies. This is a simple way to integrate Porter's ideas, but it does highlight two conceptual problems associated with Porter's generic global strategies.

Keywords: multinational enterprises; business strategy; competitive advantage; market segments; global strategies; generic strategy; Porter

Article.  7759 words. 

Subjects: Business and Management ; Business Strategy ; International Business

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