Small and midsize companies that want to expand abroad often face a
daunting task: finding the sweet spot between multinationals, with their
extensive resources and economies of scale, and the smaller players in
the foreign markets, which have an intimate understanding of local
conditions. The more than 75 Israeli companies that have transformed themselves into global
players in the past four decades prove that it can be done. Their
approach: Focus on countries and regions that offer an opportunity that
multinationals don't find attractive and local companies can't
adequately address, and then penetrate this middle
ground in ways that won't immediately trigger a response. Given the size
of their home market and their limited opportunities in the Middle East, Israeli companies have not had many other options for pursuing growth. The stories of three Israeli companies--Netafim, Teva Pharmaceutical, and Amdocs--illustrate tactics for seizing the middle ground: Evade the giants, disguise yourself as a local, and focus on weak spots.