If the Western company's primary strategy is access to resources, it will target countries with the best and cheapest sources of supply, setting up sourcing offices or production plants in areas that have cheap labour (south China) or which specialize in processing raw materials (Sumatra, Kalimantan). There is a danger, however, in focusing exclusively on resources and neglecting Asia's potential in terms of markets, learning and competitiveness, as some US companies learned in the 1960s and 1970s. Their strategy of setting up assembly plants in export processing zones backfired as conditions in terms of labour costs and government policies towards foreign business can change quickly in the region.
A company with a marketbased strategy will set up marketing, maybe manufacturing activities, either wholly-owned or with local partners. Its choice will depend on market potential, the competitive climate, government policies and its own capabilities.
Far from having to choose 'either resources or markets', Western firms should adopt an appropriate mix of the two so that the search for resources and markets form a mosaic of activities across the entire region.
Resource-based, or market-based, strategies : Resource based and Market based article from Resource Management Catagory Resource-based, or market-based, strategies
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