Jun 8, 2018 By: yunews
Dr. Sharon Poczter, associate professor and chair of the strategy and entrepreneurship department at , has co-authored an article with Dr. Aldo Musacchio, associate professor of business at the Brandeis International Business School, and Dr. Sergio G. Lazzarini, professor of organization and strategy at the Insper Institute of Education and Research, on May 30, 2018, for MIT Sloan Management Review.
Titled 鈥淗ow to Compete Against the New Breed of National Champions,鈥 the authors contend that the competitive threat posed by what they call 鈥渘ational champions,鈥 defined as companies either heavily subsidized or owned by a government, is nothing new, the nature of the threat has changed because 鈥渢oday鈥檚 national champions are much more sophisticated, competing in more industries, and harder to spot than ever before, [and so] Western companies need a new strategic guide for competing against them.鈥
After studying hundreds of national champions over the past 15 years, the authors have identified four strategies: two involve head-to-head competition with national champions (called 鈥渕arket offense鈥 and 鈥渕arket defense鈥); two involve enlisting the support of government to more effectively compete (called 鈥減olitical offense鈥 and 鈥減olitical defense鈥). The success of these strategies will vary 鈥渄epending on the kind of national champion involved and the context of the competition.鈥
Poczter noted that what has been happening in the past few weeks concerning trade talks with China, contentions within the North American Free Trade Agreement, and the imposition of tariffs 鈥渙nly strengthen our conclusions,鈥 citing a recent article in the about how China skirts America鈥檚 antidumping tariffs on steel by owning production outside of the country.
