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Globalization frustrated: The case of white goods

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  • Charles W. F. Baden‐Fuller
  • John M. Stopford

Abstract

This paper challenges the common view that mature industries are always ripe for global strategies. Based on data from the European Domestic Appliance industry, this paper shows how changing economic conditions can diminish the value of global strategies. Critical in these shifts were simultaneous rises in demand for variety (that eroded the benefits of scale and continental market share) and decreases in manufacturing scale (that permitted new supply options), which reduced the extent of the strategic market to national dimensions. They added complexity that decreased the profitability of the global players and increased that of national strategies. The fluctuating fortunes of leading firms are shown to have been caused primarily by choices of strategy, not by national factor costs.

Suggested Citation

  • Charles W. F. Baden‐Fuller & John M. Stopford, 1991. "Globalization frustrated: The case of white goods," Strategic Management Journal, Wiley Blackwell, vol. 12(7), pages 493-507, October.
    • Handle: RePEc:bla:stratm:v:12:y:1991:i:7:p:493-507
    DOI: 10.1002/smj.4250120703
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    Cited by:

    1. Morgan, Mary S., 2019. "Exemplification and the use-values of cases and case studies," LSE Research Online Documents on Economics 104057, London School of Economics and Political Science, LSE Library.
    2. Ahmed, Rasha & Segerson, Kathleen, 2011. "Collective voluntary agreements to eliminate polluting products," Resource and Energy Economics, Elsevier, vol. 33(3), pages 572-588, September.
    3. Andreas Grossler, 2010. "An Exploratory Study of Differences in Manufacturing Strategy between National and Global Production Firms," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 1(1), pages 47-62, December.
    4. Ng, Wilson & Arndt, Félix & Huang, Tori Y., 2020. "Do-It-yourself laboratories as integration-based ecosystems✰," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    5. Mascarenhas, Briance, 1995. "International industry evolution patterns," International Business Review, Elsevier, vol. 4(2), pages 233-246, June.
    6. Guey-Huey Li & Chwo-Ming Yu & Dah-Hsian Seetoo, 2010. "Toward a Theory of Regional Organization," Management International Review, Springer, vol. 50(1), pages 5-33, February.
    7. Dunning, John H., 2004. "The contribution of British scholarship to international business studies," International Business Review, Elsevier, vol. 13(2), pages 257-279, April.
    8. Sobrero, Maurizio & Roberts, Edward B., 2002. "Strategic management of supplier-manufacturer relations in new product development," Research Policy, Elsevier, vol. 31(1), pages 159-182, January.
    9. Fabio Pieri & Riccardo Verruso, 2019. "The determinants of corporate profitability in the Italian domestic appliances industry," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(1), pages 83-115, March.

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