Figure 1.1: An Overview of Integrated Strategy: Triangulating
Strategic Responses to Market and Nonmarket Forces
STRATEGIC
ANALYSIS
POSITIONAL
ANALYSIS
Market
tactics
Market
strategy
Market
position
Choice of Trade,
Investment, or Mix
Nonmarket
position
TACTICAL
ANALYSIS
Firm
position
Integrated Strategic Choice
Nonmarket
strategy
Organizational
strategy
Feedback
Nonmarket
tactics
Firm
policy
Organizational tactics
Figure 1.2: Positional Analysis
Opportunities and Threats analysis
of Porter’s five forces at the national,
regional, or global level
Market
position
Nonmarket
position
Nonmarket analysis of four
I’s for national, regional,
or global setting
Firm
position
Analysis of Strengths and Weaknesses
of firm core competencies at the
national, regional,or global level
Figure 1.3: Geographical Arenas: Location and Target Markets
TARGET MARKET FOR SALES
National
Regional
Global
TRADE OR
National
(1) Domestic
(2)
(3)
INVESTMENT
Regional
(4)
(5)
(6)
LOCATION
Global
(7)
(8)
(9) Pure global
Figure 1.4: Strategic Analysis
Cost/quality,timing/know-how,
strongholds,and deep pockets
Market
strategy
Nonmarket
strategy
Distributive politics
worksheet for nonmarket
issues involving possible
strategies
Organizational
strategy
Transaction costs analysis to
choose form of organization
of trade or investment relations
in Asia
Figure 1.5: The Distributive Politics Spreadsheet
Supporting
interests
Interests
Opposing
interests
Interests
Demand Side
Supply Side
Prediction
Benefits from Supporting
Ability to Generate Political Action
Amount of
effective
political
action
Substitutes
Magnitude
Per
capita
Numbers
Coverage
Resources
Cost of
Organizing
Demand Side
Supply Side
Prediction
Benefits from Supporting
Ability to Generate Political Action
Amount of
effective
political
action
Substitutes
Magnitude
Per
capita
Numbers
Coverage
Resources
Cost of
Organizing
Figure 1.6: Choosing Organizational Forms Based on Transaction Cost Analysis
ASSET SPECIFICITY (BASED ON INDUSTRY CHARACTERISTICS)
Å Low ----------------------------------- Medium --------------------------------------- Higher Æ
TRADE ORGANIZATIONAL FORMS
Arms length
Sales organization
Trading Company
Intrafirm trade
INVESTMENT ORGANIZATIONAL FORMS
Minority owned
50/50 venture
Majority owned
Wholly owned
Figure 1.7: Tactical Analysis
R&D, Production,
and Marketing
Market
tactics
Nonmarket
tactics
Lobbying, grassroots activities,
coalitions, testimony, political
entrepreneurship, electoral support,
communication, judicial strategies
Organizational
tactics
Possible restructuring for joint
ventures, alliances, production
networks, subsidiaries, distributive
channels for trade, etc.