We study the strategic positioning of Austrian manufacturing firms that face competition from emerging markets as opposed
to firms that do not. Using a unique sample of large Austrian manufacturing, we find that emerging market competitors are
not always a force majeure, but the result of the firms' international activity. Existing strengths and weaknesses are more
pronounced when firms face competitors from emerging markets. Emerging market competition is associated with a broader product
portfolio and triggers portfolio adjustments. Yet, a larger share of the companies facing emerging market competitors neither
adjusts the product portfolio nor plans to develop new competences.