1. Export Planning How to write an international marketing plan
Chapter 4: Country Analysis and Selection
Internationalisation of the firm

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 and
select 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 analysis
of the DESTEP environment of potential countries;
Explain the criteria of the third filter: filter 2 which provides a detailed market analysis
of 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
Sweden
Norway
Denmark
Switzerland
Germany
Australia
Canada
Austria
The Netherlands
France
Belgium
USA UK
Italy
Hungary
Poland
Czech Republic
Slovakia
Finland
Spain (mainland)
China (PRC)
Russia
Portugal
Japan
Country Number of
Stores
Australia 2
Greece 2
Hong Kong 3
Iceland 1
Israel 1
Kuwait 1
Malaysia 1
The Netherlands 1
Romania 1
Saudi Arabia 2
Singapore 2
Spain 4
Taiwan 4
Turkey 1
United Arab Emirates 2
USA 1

7. Country Analysis Example PUMA
Target: South America
12 countries
Middle and low level of economic development
Unstable political and economical situation in most countries
Lack of information about markets
Non-English domestic resources
Source: P.Kabanov a.o., students HAN University

8. Pre-Filter Selection FACTORS: Human development;
Environmental (disaster) factors;
Import duties and sea delivery cost
Football association presence
Source: P.Kabanov a.o., students HAN University

9. Filter 1 Selection FACTORS: Political risk Social structure
GDP growth and size
Consumption
Exchange rate
Inflation
Ports information
Source: P.Kabanov a.o., students HAN University

10. First country for expansion in South America is Brazil
Filter 2
Criteria
Weight
Argentina
Brazil
Chile
Potential market size (population)
0,2
21,930,540
99,327,027
9,786,759
Potential market size (value), billion $
26.38
73.95
12.50
Inflation direction
0,1
moderate growth
stable
Import duties
20%
35% 6%
National football team sponsor
Adidas
Nike
Brooks
Main competitors representativeness 6 10
Sum of weighted score
1,8
1,7
Rank by sum 2 1
Result
BEST
First country for expansion in South America is Brazil
Source: 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 selection
Explain 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?