U.K. exporters are clearly conservative in their strategic approachto overseas activities, at least in their short term planning.With efficiency and differentiation strategic intentions analogousto exploitation and exploration, these firms show a clear preferencefor exploitation over exploration and this appears to bestrengthened when they have already achieved a clear strategicposition in the overseas market—efficiency or differentiation.Greater insights are gained by examining the role of marketing capabilitiesvis-à-vis that of market performance. In an attempt tobreak the “circle of efficiency” observed, managers should lookinto nurturing those elements that contribute to a more explorative,differentiation approach in terms of information gatheringand product development capability. Firms that are up to datewith developments in the overseas markets are certainly keenerto pursue differentiation avenues for their products.