Presentation on theme: "Search for Markets Suresh George. Outline of the lecture The Process of Searching for Markets The Module 2 of the GMMSO3 software Resources and databases."— Presentation transcript:
Outline of the lecture The Process of Searching for Markets The Module 2 of the GMMSO3 software Resources and databases for the search
Background Following on from company situational analysis, is your company a candidate for Internationalization? Do you have a product for Internationalization? Seek Markets for the company
Process A 4 step methodology Source:Janavaras.B, Paladini.S and George S (2013). Going Global: A Practical Guide Pearson
Step1 - New Markets Research and select countries where you feel there are opportunities for the expansion of your selected product or service Select the criteria that are essential in determining high potential country markets for your company's product(s)/service(s) Determine the relative importance (weight) of each criterion on a scale of 1-100 Enter the value of all criteria against each market Determine the best possible markets from this Grid Can you create a new market space?
Can you create a new market? Use innovation to create a new market space Looking Across Substitute Industries Looking Across Strategic Groups Within Industries Looking Across the Chain of Buyers Looking Across Complementary Product and Service Offerings Looking Across Functional or Emotional Appeal to Buyers Source: Chan & Mauborgne(2015)
Bodyshop Is the Body Shop a Cosmetics Company? Reduced price, glamour, and packaging costs while creating a new emphasis on natural ingredients and healthy living. Source: Chan & Mauborgne(2015)
Polo Ralph Lauren Built on the advantages of the two strategic groups that dominated the high-end clothing market—designer haute couture and the higher-volume, but lower-priced, classical lines of Burberry’s, Brooks Brothers, Aquascutum emotional value of wearing an exclusive designer’s name + low price Positions itself in the middle with options to move up and down Source: Chan & Mauborgne(2015)
Lexus Offers the quality of the high-end Mercedes, BMW, and Jaguar at a price closer to the lower-end cars Source: Chan & Mauborgne(2015)
Step 2- Selection of criteria/variables to rank the countries Select appropriate criteria! For example, if the product/service is intended for adults over 65 years old, you should select the age distribution criterion; determine how many adults are over 65 years old in a particular country. The company’s target market is the most important indicator of which criteria to choose Create an Analytical Grid
Step 3: Market evaluation Against each selected criteria, research and input the values on the grid You will need to include the year the information was collected, the unit of measure, the weight, and the value. +ve and –ve relationships for the criteria Once the grid is completed and the values inputted against each country, the grid should show the country with the best potential for your product/service. Your top Market should emerge from the Grid
References Janavaras.B, Paladini.S and George S (2013). Going Global: A Practical Guide Pearson Kim,Chan, W & Mauborgne, Renée (2015) Creating New Market Space HBR blog. Available on https://hbr.org/1999/01/creating-new-market-space, last accessed on 10/02/2015https://hbr.org/1999/01/creating-new-market-space
Useful Resources AT Kearney Ideas and Insights (http://goo.gl/WnKQI )http://goo.gl/WnKQI Market Potential Index from Global Edge (http://goo.gl/Gm3vp)http://goo.gl/Gm3vp World Integrated Trade Solution(http://goo.gl/pIoPO )http://goo.gl/pIoPO UNCTAD (http://goo.gl/Z2DY7 )http://goo.gl/Z2DY7 Suresh George resource base https://sites.google.com/site/theartofgoingglobal/https://sites.google.com/site/theartofgoingglobal/
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