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Description
Mind Map by dayana rojas, updated more than 1 year ago
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Created by dayana rojas
almost 7 years ago
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ANALYZING
INTERNATIONAL
OPPORTUNITIES
- Screening Potential
Markets and Sites
- Two important
issues
- Managers want to keep search
costs as low as possible.
- Managers want to examine every potential
market and every possible location.
- Managers want to keep search
costs as low as possible.
- To accomplish these two goals, managers can
segment the screening of markets and sites into
four-step
- Step 1: Identify Basic
Appeal
- The first step in identifying potential markets is to
assess the basic de- mand for a product. Similarly, the
first step in selecting a site for a facility to undertake
produc- tion, R&D, or some other activity is to explore
the availability of the resources required.
- Determining Basic Demand: The first step in searching
for potential markets means finding out whether
there is a basic demand for a company’s product.
- Determining Availability of Resources: Companies that
require particular resources to carry out local business
activities must be sure they are available.
- Determining Basic Demand: The first step in searching
for potential markets means finding out whether
there is a basic demand for a company’s product.
- The first step in identifying potential markets is to
assess the basic de- mand for a product. Similarly, the
first step in selecting a site for a facility to undertake
produc- tion, R&D, or some other activity is to explore
the availability of the resources required.
- Step 2: Assess the National
Business Environment
- Domestic forces in the
business environment actually
affect the location-selection
process.
- Cultural Forces: Cultural elements can influence what
kinds of products are sold and how they are sold.
- Political and Legal Forces Political and legal forces
also influence the market and site- location decision.
- Other Forces Transport costs and country image also play
important roles in the assessment
of national business
environments.
- Economic and Financial Forces: Managers must carefully analyze a
nation’s economic
policies before selecting it as a new market or
site for operations.
- Cultural Forces: Cultural elements can influence what
kinds of products are sold and how they are sold.
- Domestic forces in the
business environment actually
affect the location-selection
process.
- Step 3: Measure Market or
Site Potential
- Factors that further influence the potential suitability
of
markets and sites for operations.
- Measuring Market Potential As barriers to trade are
reduced worldwide, companies are
looking to increase
sales in industrialized and emerging markets alike.
- Industrialized Markets
- Some of the information in a typical industry analysis includes the
following: Names, production volumes, and market shares of the largest
competitors, Volume of exports and imports of the product and Structure
of the wholesale and retail distribution networks
- income elasticity: Sensitivity of demand for a
product relative to changes in income.
- Some of the information in a typical industry analysis includes the
following: Names, production volumes, and market shares of the largest
competitors, Volume of exports and imports of the product and Structure
of the wholesale and retail distribution networks
- Emerging
Markets
- The main variables commonly included in
market-potential analyses are as follows:
- Market Size: This variable provides a snapshot
of the size of a market at any point in time.
- Market Growth Rate: This variable reflects the fact that,
although the overall size of the market (economy) is
important, so too is its rate of growth.
- Market Intensity: This variable estimates the wealth or buying power of a
market from the expenditures of both individuals and businesses.
- Market Consumption Capacity.: The purpose of this
variable is to estimate spending capacity.
- Commercial Infrastructure: This factor attempts to
assess channels of distribution and communication.
- Economic Freedom: This variable attempts to estimate the
extent to which free-market principles predominate.
- Market Receptivity: This variable attempts
to estimate market “openness.”
- Country Risk.: This variable attempts to estimate the total risk of
doing business, including political, economic, and financial risks.
- Market Size: This variable provides a snapshot
of the size of a market at any point in time.
- The main variables commonly included in
market-potential analyses are as follows:
- Industrialized Markets
- Measuring Site Potential: In this step of the
site-screening process, managers must carefully
assess the quality of the locally available
resources.
- Measuring Market Potential As barriers to trade are
reduced worldwide, companies are
looking to increase
sales in industrialized and emerging markets alike.
- Factors that further influence the potential suitability
of
markets and sites for operations.
- Step 4: Select the Market or
Site
- At this stage, managers normally want
to visit each remaining location in order
to confirm earlier expectations and to
perform a competitor analysis.
- Competitor Analysis: competitor analysis should address the
following issues: Number of competitors in each market, and
Market share of each competitor
- Field Trips: The trip represents an opportunity
for managers to see firsthand what they
have so far seen only on paper.
- Competitor Analysis: competitor analysis should address the
following issues: Number of competitors in each market, and
Market share of each competitor
- At this stage, managers normally want
to visit each remaining location in order
to confirm earlier expectations and to
perform a competitor analysis.
- Step 1: Identify Basic
Appeal
- Two important
issues
- Conducting International
Research
- market research: Collection and analysis
of information used to assist managers in
making informed decisions.
- Difficulties of Conducting
International Research
- Availability of Data
- Comparability of Data
- Cultural
Differences
- Availability of Data
- Sources of Secondary International
Data
- Secondary market research: Process of obtaining
information that already exists within the company
or that can be obtained from outside sources.
- International Organizations: There are excellent sources of free and
inexpensive information about product demand in particular countries.
- Government Agencies: Commerce departments and international trade agencies
of most countries typically supply information about import and export
regulations, quality standards, and the size of various markets.
- Industry and Trade Associations: Companies often join associations
composed of firms within their own industry or trade.
- Service Organizations: Many international service organizations in fields
such as banking, insurance, offer information to their clients on cultural,
regulatory, and financial conditions in a market.
- International Organizations: There are excellent sources of free and
inexpensive information about product demand in particular countries.
- Secondary market research: Process of obtaining
information that already exists within the company
or that can be obtained from outside sources.
- Methods of Conducting Primary
International Research
- Primary market research: Process of collecting and analyzing original
data and applying the results to current research needs.
- Trade show: Exhibition at which members of an industry or group of
industries showcase their latest products, study activities of rivals, and
examine recent trends and opportunities.
- Trade mission: International trip by government officials and
businesspeople that is organized by agencies of national or provincial
governments for the purpose of exploring international business
opportunities.
- Interviews: this must be conducted carefully if they
are to yield reliable and unbiased information.
- Focus group: Unstructured but in-depth interview of a small
group of individuals by a moderator in order to learn the
group’s attitudes about a company or its product.
- Consumer panel: Research in which people record in personal
diaries information on their attitudes, behaviors, or
purchasing habits.
- Survey: Research in which an interviewer asks current or
potential buyers to answer written or verbal questions in order
to obtain facts, opinions, or attitudes.
- Environmental scanning: Ongoing process of gathering, analyzing,
and dispensing information for tactical or strategic purposes.
- Trade show: Exhibition at which members of an industry or group of
industries showcase their latest products, study activities of rivals, and
examine recent trends and opportunities.
- Primary market research: Process of collecting and analyzing original
data and applying the results to current research needs.
- Difficulties of Conducting
International Research
- market research: Collection and analysis
of information used to assist managers in
making informed decisions.
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