Chapter 12 Analyzing International Opportunities Prentice Hall 2003

Chapter 12 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, 2008 International Business 4 e 2

Screening Markets and Sites Step 1 Identify basic appeal © Prentice Hall, 2008 Step 2 Step 3 Step 4 Assess national Measure market Select the business or site potential market or site environments International Business 4 e 3

Identify Basic Appeal Available resources Basic demand • Climate • Absolute bans © Prentice Hall, 2008 International Business 4 e • Labor • Materials • Financing 4

National Forces: Culture Market selection Ø Global product Ø Tailored product Site selection Ø Ø Ø © Prentice Hall, 2008 International Business 4 e Education level Technical skills Work ethic 5

National Forces: Political/Legal Government regulation Ø Investment barriers Ø Profit repatriation Government bureaucracy Ø Administrative delays Political stability Ø Unforeseen political change © Prentice Hall, 2008 International Business 4 e 6

National Forces: Economic/Other Ø Country finances Ø Trade and investment policies Ø Currency and liquidity Ø Logistics Ø Country image © Prentice Hall, 2008 International Business 4 e 7

National Forces: e-Business Infrastructure, market access Ø Internet access Ø Content and standards Legal matters Ø Privacy and security Ø Intellectual property Financial issues Ø Electronic payments Ø Tariffs and taxation © Prentice Hall, 2008 International Business 4 e 8

Potential: Industrialized Markets ü Demographics ü Competitors’ market shares ü Import/Export ü Distribution ü Marketing ü Retail network approaches sales levels ü Income © Prentice Hall, 2008 volumes elasticity International Business 4 e 9

Potential: Emerging Markets ü Market size ü Market growth rate ü Market intensity ü Market consumption capacity ü Commercial infrastructure ü Economic freedom ü Market receptivity ü Country risk © Prentice Hall, 2008 International Business 4 e 10

Select the Market or Site Field trips • Engage in negotiations • Gain firsthand exposure • Contact customers/others Competitor analysis • • • © Prentice Hall, 2008 Access to inputs Competitors’ numbers/shares Competitors’ strategies Channel access Customer loyalty International Business 4 e 11

Market Research Difficulties Availability of data © Prentice Hall, 2008 Comparability of data International Business 4 e Cultural problems 12

Secondary Data Sources International organizations Government agencies Industry/Trade associations Service organizations Internet and World Wide Web © Prentice Hall, 2008 International Business 4 e 13

U. S. States Go Global © Prentice Hall, 2008 International Business 4 e 14

Methods of Primary Research Trade shows and missions Interviews and focus groups Surveys Environmental scanning © Prentice Hall, 2008 International Business 4 e 15

Chapter Review • 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, 2008 International Business 4 e 16