Analyzing International Opportunities Prentice Hall 2003 1 Chapter

Analyzing International Opportunities Prentice Hall 2003 1

Chapter Preview • List each key factor to assess in national business environments • Discuss measuring potential in emerging and industrialized markets • Identify three key market research difficulties • Explain the usefulness of each secondary data source • Describe each method of primary research © Prentice Hall, 2006 International Business 3 e 2

Screening Markets and Sites Step 1 - Identify basic appeal Step 2 - Assess national business environments Step 3 - Measure market or site potential Step 4 - Select the market or site © Prentice Hall, 2006 International Business 3 e 3

Identify Basic Appeal Basic demand - Climate - Absolute bans Available resources - Labor - Materials - Financing © Prentice Hall, 2006 International Business 3 e 4

National Forces: Culture Market selection - Global product - Tailored product Site selection - Education level - Technical skills - Work ethic © Prentice Hall, 2006 International Business 3 e 5

National Forces: Political/Legal Government regulation - Investment barriers - Profit repatriation Government bureaucracy - Administrative delays Political stability - Unforeseen political change © Prentice Hall, 2006 International Business 3 e 6

National Forces: Economic/Other Country finances Trade and investment policies Currency and liquidity Logistics Country image © Prentice Hall, 2006 International Business 3 e 7

National Forces: e-Business Infrastructure and market access - Internet access - Content and standards Legal matters - Privacy and security - Intellectual property Financial issues - Electronic payments - Tariffs and taxation © Prentice Hall, 2006 International Business 3 e 8

Potential: Industrialized Markets • • Demographics Competitors’ market shares Import/Export volumes Distribution network Marketing approaches Retail sales levels Income elasticity © Prentice Hall, 2006 International Business 3 e 9

Potential: Emerging Markets • Market size • Market growth rate • Market intensity • Market consumption capacity • Commercial infrastructure • Economic freedom • Market receptivity • Country risk © Prentice Hall, 2006 International Business 3 e 10

Select the Market or Site Field trips - Engage in negotiations - Gain firsthand exposure - Contact customers / others Competitor analysis - Access to inputs - Competitors’ numbers/shares - Competitors’ strategies - Channel access - Customer loyalty © Prentice Hall, 2006 International Business 3 e 11

Market Research Difficulties Availability of data Comparability of data Cultural problems © Prentice Hall, 2006 International Business 3 e 12

Secondary Data Sources International organizations Government agencies Industry/Trade associations Service organizations Internet and World Wide Web © Prentice Hall, 2006 International Business 3 e 13

Methods of Primary Research Trade shows and missions Interviews and focus groups Surveys Environmental scanning © Prentice Hall, 2006 International Business 3 e 14