3 Export Planning Learning objectives (learning tasks) Ch. 4 At the end of the chapter you are able to:Describe the three phase filter – model as an approach to analyse andselect foreign countries/markets;2. Explain the criteria of the first filter: the pre-filter which provides a rough scan of the market;Explain the criteria of the second filter: filter 1 which provides a detailed analysisof the DESTEP environment of potential countries;Explain the criteria of the third filter: filter 2 which provides a detailed market analysisof the most interesting countries/markets;5. Prepare a proposal for choosing which country(ies) to start the market entry strategy with.
4 Export Planning IKEA case Country Year Number of Stores SwedenNorwayDenmarkSwitzerlandGermanyAustraliaCanadaAustriaThe NetherlandsFranceBelgiumUSAUKItalyHungaryPolandCzech RepublicSlovakiaFinlandSpain (mainland)China (PRC)RussiaPortugalJapanCountry Number ofStoresAustralia 2Greece 2Hong Kong 3Iceland 1Israel 1Kuwait 1Malaysia 1The Netherlands 1Romania 1Saudi Arabia 2Singapore 2Spain 4Taiwan 4Turkey 1United Arab Emirates 2USA 1
7 Country Analysis Example PUMA Target: South America12 countriesMiddle and low level of economic developmentUnstable political and economical situation in most countriesLack of information about marketsNon-English domestic resourcesSource: P.Kabanov a.o., students HAN University
8 Pre-Filter Selection FACTORS: Human development; Environmental (disaster) factors;Import duties and sea delivery costFootball association presenceSource: P.Kabanov a.o., students HAN University
9 Filter 1 Selection FACTORS: Political risk Social structure GDP growth and sizeConsumptionExchange rateInflationPorts informationSource: P.Kabanov a.o., students HAN University
10 First country for expansion in South America is Brazil Filter 2CriteriaWeightArgentinaBrazilChilePotential market size (population)0,221,930,54099,327,0279,786,759Potential market size (value), billion $26.3873.9512.50Inflation direction0,1moderate growthstableImport duties20%35%6%National football team sponsorAdidasNikeBrooksMain competitors representativeness610Sum of weighted score1,81,7Rank by sum21ResultBESTFirst country for expansion in South America is BrazilSource: P.Kabanov a.o., students HAN University
17 Export Planning Chapter review questions (10 min.) What are the three steps of the Export Audit – phase? Name the steps and explain them.Explain the three phase filter-model for country analysis and selectionExplain the criteria of the filter-model per phase.What is a BERI-analysis / index? Explain and motivate your answer.How could you apply the GE – matrix for country selection?