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T he case of Air Asia and Proton (Ahmad and Neal , 2006 ; Ahmed & Humpreys , 2008), and many firms believe that a low-price strategy is the main competitive advantage (Young et al., 1996, ; Ahmed & Humpreys , 2008). . Gain international experience
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The case of Air Asia and Proton (Ahmad and Neal, 2006 ; Ahmed & Humpreys, 2008), and many firms believe that a low-price strategy is the main competitive advantage (Young et al., 1996, ; Ahmed & Humpreys, 2008).
Gain international experience • Explore own advantages on markets abroad • Increase profit • Increase sales volume • Gain access to internationally experienced management or skilled human resources
Gain international experience • Achieve international reputation and brand recognition • Receive government support or finance • Improve own-product development and innovation ratio • Increase technology content of own products
Improve customer service • Improve quality of products • Improve cost efficiency in production • Search efficient alliance • Maintain domestic positioning
Sales Volume • Cost Efficiency in Production • Explore own advantages • Profit • International Experience • Government Support • Opportunity
International Reputation & Brand Recognition • Product Development and Innovation Ratio • Technology Content of Product • Searching Efficient Alliance • Management and Skilled Human Resources • Internationally Experienced • Maintaining Domestic Position • Profit
Customer Service • Quality of Product
The research questions were operationalizedin a questionnaire adapted from Soderman et al., (2008) . • The target population of this study is managers in manufacturing sectors in Selangor, Negeri Sembilan, Malacca and JohoreBahru states. • The survey is targeted to obtain 100 respondents.
Uppsala model concept of psychic distance by preference to start exportation to neighboring countries seems to apply also for Malaysian companies
As competition increases in their domestic market, great numbers of Malaysian companies will consider Western markets attractive for their products and services thus make the company reposition their strategy
Europe does not represent a neighboring or ‘home’ market, as do markets in South-East Asia making the Uppsala model concept of psychic distance and Porter’s overall cost leadership are no longer relevant.