What is Dodger Strategy?

Dodger Strategy is used by local companies when the its home market industry has high
pressure to globalise while its assets are only customised to home market (Dawar and Frost,
1999).
Companys assets are localised to home market and cannot be transferrable to new markets
through expansion. However, those assets do not match the need of the industry in home
market which is very much globalised. By using the same business model, the company
would eventually be defeated by multinational companies.
What are the actions of Dodger Strategy?
Possible Actions for Dodgers:
1. Revamp and Develop New Business Model by:
a. Customise product to the degree where multinational cannot take advantage of
its own deep understanding of local market.
b. Overcome obstacles by exploring on downstream aspects in creating support
service component or also known as augmented product.
c. Obtain new technologies to make their assets more competitive to incoming
multinationals.
d. Invest more in in-house training and talent acquisition; making people a
competitive asset in competing with multinationals and prevent brain drain.
e. Consider scaling up quick to achieve economies of scale and high penetration
to market before multinationals.
(Dawar and Frost, 1999; Bhattacharya and Michael, 2008; Cateora et al.,
2010).
2. Form Strategic Alliance with Incoming Multinational Companies
3. Enter Joint Venture / Partially Selling Out to Incoming Multinational Companies
4. Completely Selling Out to Multinational Companies
(Dawar and Frost, 1999; Wu and Pangarkar, 2006)

Case Study: Lazadas Sell Out to Alibaba

What had happened?

Lazada, Southeast Asias largest e-commerce platform in Singapore, Indonesia, Malaysia,

Thailand, Vietnam, and the Philippines sold its controlling stake to Alibaba, Chinese ecommerce conglomerate at a price of 1 Billion Dollar in April 2016.
Why was it a successful attempt using dodger strategy?
Lazada realised that Alibaba would like to enter Southeast Asia eventually by taking over any
smaller e-commerce players in the region and invest by injecting capital, bringing in knowhow learnt from the Chinese market and cheap Chinese goods.
At least with the partially sell out of share, Lazada is still able to carry on its name along with
its strong operation know-how such as distribution channel and understanding of consumer
behavior in the region in which are needed and cannot be achieved in short period of time by
Alibaba. Moreover, Lazada would enjoy the incremental revenue synergized with Alibabas
incoming e-commerce expertise. Perhaps such revenue could even be higher than what
Lazada alone could achieved themselves (EU-Startups, 2016; Financial Times, 2016).
What were the Advantages and Disadvantages for Lazadas action in dodger strategy?
Advantages
Disadvantages
Lazada brand and operation still exist in the Lazada lose its controlling stake, becoming
region.
a minority shareholder.
Lazada could learn from Alibabas incoming e- Lazadas resources and operational knowcommerce expertise.

how in the region could be exploit by

Alibaba.
Lazada could enjoy incremental revenue more There is a possibility that Lazada brand
than what it could make themselves contributed and operation could extinct one day by
by synergizing with Alibaba.

Alibaba completely taking over.

Weighing both perspectives, advantages could be used to offset disadvantages by Lazada

learning Alibabas know-how by the time being as well as using the incremental revenue to
expand in other businesses.

References
Cateora, P., Gilly, M. & Graham, J., 2010. International Marketing. 15th ed. New York:
McGraw-Hill Irwin.

Dawar, N. & Frost, T., 1999. Competing with Giants. Harvard Business Review, 77(2), pp.
119-129.
EU-Startups, 2016. EU-Startups. [Online]
Available at: http://www.eu-startups.com/2016/04/alibaba-acquires-controlling-stake-inrocket-internets-ecommerce-platform-lazada-for-about-1-billion/
[Accessed 23 November 2016].
Financial Times, 2016. Financial Times. [Online]
Available at: https://www.ft.com/content/a61e1a7a-008c-11e6-ac98-3c15a1aa2e62
[Accessed 23 November 2016].
Wu, J. & Pangarkar, N., 2006. Rising to the Global Challenge: Strategies for Firms in
Emerging Markets. Long Range Planning, 39(3), pp. 295-313.