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Uppsala Movel v. Born Global
Transcript of Uppsala Movel v. Born Global
Strengths & Weaknesses
Characterized by high
specificity and description
of the company actions
Base and inspiration for
creation of many other
Self reinforcing phenomenon
→remains basic standard
In depth foreign market and operation research→more comprehensive understanding
better market knowledge→
stronger market commitment
Entry or withdrawal from
foreign markets quickly
It becomes a standard
model for how companies
do business abroad
Usually specialized goods
with superior quality
Reaching diverse and
process is much quicker
than to U-model
Operates in 92 countries
Operates in 74 countries
Not every company is
domestic oriented from the
Ignores other forms of
business entries such as
franchising or licensing
It does not discuss the
reason behind foreign
Model is outdated
Born Global concept
ignores the efforts of the
Born Global companies
might be less stable
Extra Capital required to
service specialized buyer needs
process efficiently with low cost
Different differentiation strategy
raise standards competitors
Direct international sales rely on external facilitators
easily enter or
withdraw from foreign markets
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long-term growth of born global firms. Management International Review.
Kudina, A., Yip, G., & Barkema, H. (2008). Born Global. Business
Strategy Review, 19(4), 38-44.
McDougall,P. and Oviatt, B. (1994). Toward a theory of international
new ventures. Journal of international Business Studies, 25(1),
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Tanev, S. 2012. Global from the Start: The Characteristics of Born
Global Firms in the Technology Sector. Technology Innovation Management Review. March 2012: 5-8
Zohari, T. (2012). The Uppsala Internationalization Model and It's
Limitation in The New Era.
Strong base in domestic market
Gradually gain experience and
Heterogeneous marketplace →
Psychic distance important
World is one market place
May (not) strong domestic market
Experience and knowledge gained at
Homogeneous marketplace →
products are standardized
No psychic distance
Thank you for time and