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Analyzing International Opportunities 12 Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall.

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Presentation on theme: "Analyzing International Opportunities 12 Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall."— Presentation transcript:

1 Analyzing International Opportunities 12 Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall

2 Chapter Objectives Explain each of the four steps in the market- and site-screening process Describe the three primary difficulties of conducting international market research Identify the main sources of secondary international data and explain their usefulness Describe the main methods used to conduct primary international research

3 Copyright © 2014 Pearson Education, Inc Starbucks Entered Europe and then China Success rooted in market research Focus on coffee and societal needs

4 Copyright © 2014 Pearson Education, Inc Screening Markets and Sites

5 Copyright © 2014 Pearson Education, Inc Identify Basic Appeal Available resources Basic demand

6 Copyright © 2014 Pearson Education, Inc Discussion Question What are the four main steps in the process of screening potential new markets and sites for operations?

7 Copyright © 2014 Pearson Education, Inc Answer to Discussion Question The first step is to identify a location’s basic appeal in terms of product demand or resource availability. The second step is to analyze all forces in the national business environment. The third step is to measure market or site potential by collecting data on each one being considered. The fourth step is to select the best market or site by taking field trips and performing competitive analyses.

8 Copyright © 2014 Pearson Education, Inc Cultural Forces Site selection  Education level  Technical skills  Work ethic Market selection  Global product  Tailored product

9 Copyright © 2014 Pearson Education, Inc Political and Legal Forces Government bureaucracy  Administrative delays Political stability  Unforeseen changes Government regulation  Investment barriers  Profit repatriation

10 Copyright © 2014 Pearson Education, Inc Political Risk Social unrest can drive out international companies Source: imago stock&people/Newscom

11 Copyright © 2014 Pearson Education, Inc Economic Forces  Country finances  Currency and liquidity

12 Copyright © 2014 Pearson Education, Inc Other Forces  Logistics  Country image

13 Copyright © 2014 Pearson Education, Inc e-Business Forces Market access  Infrastructure  Content and standards Legal issues  Privacy and security  Intellectual property Financial matters  Electronic payments  Tariffs and taxation

14 Copyright © 2014 Pearson Education, Inc Discussion Question The key element of political risk that concerns companies in markets abroad is __________. a. Slowing innovation b. Spiking logistics costs c. Unforeseen political change

15 Copyright © 2014 Pearson Education, Inc Answer to Discussion Question The key element of political risk that concerns companies in markets abroad is __________. a. Slowing innovation b. Spiking logistics costs c. Unforeseen political change

16 Copyright © 2014 Pearson Education, Inc Industrialized Markets Potential Demographics Competitor market shares Import/Export volumes Distribution network Marketing approaches Retail sales levels Income elasticity

17 Copyright © 2014 Pearson Education, Inc Emerging Markets Potential Market size Market growth rate Market intensity Market consumption capacity Commercial infrastructure Economic freedom Market receptivity Country risk

18 Copyright © 2014 Pearson Education, Inc Measuring Site Potential  Labor and management  Productivity  Wage levels  Training needs  Local infrastructure

19 Copyright © 2014 Pearson Education, Inc Field trips  Engage in negotiations  Meet customers/others  Gain firsthand exposure Competitor analysis  Competitor numbers/shares  Competitor strategies  Channel access  Customer loyalty  Access to inputs Select the Market or Site

20 Copyright © 2014 Pearson Education, Inc Discussion Question What are the key components of a market-potential indicator and why is it useful to firms exporting to emerging markets?

21 Copyright © 2014 Pearson Education, Inc Answer to Discussion Question The main components of a market-potential indicator are market size, market growth rate, market intensity, market consumption capacity, commercial infrastructure, economic freedom, market receptivity, and country risk. The indicator provides a quantitative measure of market size when data is limited in emerging markets.

22 Copyright © 2014 Pearson Education, Inc International Market Research Marketing strategy Field research Data analysis Source: Alexander Joe/Getty Images/Newscom

23 Copyright © 2014 Pearson Education, Inc Market Research Difficulties CulturaldifferencesAvailability of data Comparability

24 Copyright © 2014 Pearson Education, Inc Top Research Firms

25 Copyright © 2014 Pearson Education, Inc Secondary Data Sources International organizations Government agencies Industry/Trade associations Service organizations World Wide Web

26 Copyright © 2014 Pearson Education, Inc Methods of Primary Research Trade shows and missions Interviews and focus groups Consumer panels Environmental scanning Surveys

27 Copyright © 2014 Pearson Education, Inc Discussion Question Each of the following is a difficulty of researching international markets except __________. a. Data comparability b. Cultural differences c. Data availability d. Environment scanning

28 Copyright © 2014 Pearson Education, Inc Answer to Discussion Question Each of the following is a difficulty of researching international markets except __________. a. Data comparability b. Cultural differences c. Data availability d. Environment scanning

29 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2014 Pearson Education, Inc


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