Chapter 6 – International Opportunities

International Opportunities Ideas, Solutions and Opportunities International markets not right for every company Research and planning are needed for success Business Opportunity vs. Idea:

International Markets not Right for every company: Preliminary Questions Does the company have the product, the talent, and the skills to be successful internationally? Can the company meet the estimated demand for the product in international markets?

Preliminary Questions continued… How will the company’s ability to serve its current customer base be affected? How will a company’s decision to enter an international market affect its competitive position in its already established markets? Does the new international market have long-term potential? Will entry into the new market help achieve business goals?

Business Opportunity vs. Idea – A good idea may not be an opportunity due to: Bad timing Implementation is too expensive Business climate not positive in the new market Transportation issues – Evaluate, discard, change focus to reach success

Creativity, Change and Innovation Idea Generation – New knowledge of old understanding – New ideas (often from communication with others) Initial Experimentation – Referrals, prototypes, samples, expert review Feasibility Determination – Study of financial and function – test markets Final Application – Commercial launch (patents or copyrights)

Characteristics of Innovative International Companies Innovation is expected and failure is acceptable The organization is willing to take risks People from different functions work together to arrive at solutions Large organizations create smaller, more manageable teams Ideas for improvement are welcomed and rewarded

How can Canadian companies find international opportunities?

What is an entrepreneur? A person who organizes, manages, and assumes the risk of starting and running a business Global entrepreneurs pursue international opportunities

Entrepreneurs help their employees develop a global mindset.

Global Mindset: Be open to ideas from other countries and cultures Be sensitive to cultural differences, but not fearful View the international market as a source of ideas and technology Treat people equally

Global mindset: Be a leader in the international market Check all regions when researching Treat international customers with the same respect as domestic customers Universal identity

Models for Entrepreneurship The Free Market Model Guided Individualism Model Social Democratic Model

Trends vs. Fads Trend: a general direction or movement of the marketplace that is occurring now or is expected to occur in the immediate future Fad: something that everyone wanted yesterday and no one wants tomorrow

Product Life Cycle Introduction Growth Maturity Decline

Mapping International Trends The global workplace Increased global competition Global information technology, convergence, and infrastructure Asia’s global impact Global consumer, global culture Global companies versus nations