The Response Strategies of Dominant US Firms to Japanese Challengers

Abstract

Six case studies are used to examine the response strategies of dominant US firms to the entry of Japanese challengers into their domestic industries. This study examines the question of whether it is better to respond quickly with individual competitive responses or wait until a broad strategic reorientation is possible. The results suggest that the US firms that had a slower but more concentrated and aggressive response lost less market share than firms that responded quickly.