Tel Aviv University

^*Dr. Igal Ayal is with the Faculty of Management, Tel Aviv University. He has written extensively on international marketing strategy and on product policy. Dr. Ayal has also served as consultant on both strategic and marketing planning to several multinational firms.

^**Dr. Seev Hirsch is the Mel and Sheila Jaffee Professor of International Trade at the Faculty of Management, The Leon Recanati Graduate School of Business Administration, Tel Aviv University, Israel. He has written extensively on trade, investment, and industrialization.

Abstract

In the decision-making process, strategic market and product policy planning systems usually concentrate on market size, market growth rate, market share, and relative product quality. These factors emerge from studies involving relatively large firms that operate in the national market place. This study attempts to extend the findings to industries composed of much smaller firms that operate in international markets. Analysis of empirical data shows that market share, market size, and quality (in that order) retain their significance, while market growth rate becomes less important. These findings are highly important for small- and moderate-sized firms that are planning international market strategies.