Defensive strategy framework in global markets A mental models approach Fahri Karakaya Department of Marketing, Charlton College of Business, University of Massachusetts Dartmouth, North Dartmouth, Massachusetts, USA, and Peter Yannopoulos Department of Management, Marketing and Human Resources, Brock University, St Catharines, Canada Abstract Purpose – The purpose of this study is to develop a conceptual framework for defensive strategy by integrating market entry modes and the typology of firms suggested by Day and Nedungandi, and to attempt to propose how local incumbent firms utilize their mental models in order to react against market entry of new competition in global markets. Design/methodology/approach – The theoretical perspective adopted in the study is how mental models used by incumbent firms influence their reaction to market entry of new competition in developing defensive strategies to defend their markets. Findings – Mental models of incumbent firms, categorized as self-centered, competitor-centered, customer-oriented, and market-driven firms, impact their reaction and the development of defensive marketing strategies against market entrants using a variety of market entry modes in global markets. Originality/value – The paper presents an extensive review of the defensive marketing and mental models literature and shows how the way in which incumbent firms react to market entry of new competition contributes to understanding of incumbent reaction to market entry of new competition in global markets. Research directions for future research and managerial implications are also provided. Keywords Marketing strategy, Market entry, International marketing Paper type Conceptual paper Introduction As a result of increased competition from both domestic and global competitors, shrinking market size, and declining market growth rates, companies seek opportunities in global markets. However, the success of entry into global markets often depends on the reaction of incumbent firms already in the markets. Many research studies have primarily focused on the export behavior of US and Western European businesses (see for example: Cavusgil and Zou, 1994; Moen and Servais, 2002; Zou and Cavusgil, 2002). The strategic management and marketing literature show that incumbent firms employ defensive strategies to discourage market entry of The current issue and full text archive of this journal is available at www.emeraldinsight.com/0309-0566.htm The authors would like to thank the three anonymous reviewers for their suggestions in the revision of this manuscript. In addition they wish to acknowledge the suggestions and thoughtful comments from Tevfik Dalgic, Bulent Menguc, Trib Puri, and Susanne Scott in the development of this manuscript. Defensive strategy framework 1077 Received May 2008 Revised September 2008 November 2008 Accepted November 2008 European Journal of Marketing Vol. 44 No. 7/8, 2010 pp. 1077-1100 q Emerald Group Publishing Limited 0309-0566 DOI 10.1108/03090561011047535