Presentation is loading. Please wait.

Presentation is loading. Please wait.

Global Market Opportunity Assessment

Similar presentations


Presentation on theme: "Global Market Opportunity Assessment"— Presentation transcript:

1 Global Market Opportunity Assessment
International Business Dr. Attila Yaprak

2 A Three-stage Approach to Global Marketing Opportunity Assessment
Choice of country or region (including assessment of country market potential, and industry market potential) Choice of partner (including assessment of company sales potential) Structuring the business partnership Dr. Attila Yaprak

3 Key Points in Global Market Opportunity Analysis
Typically, managers attempt these tasks simultaneously, not sequentially. The three choices are independent; e.g., depending upon the country, the profile of ideal partners may be different. Choice of poor country market can be offset by an excellent partner, but not vice versa. Managers need to resolve these choices in a dynamic manner—i.e., make adjustments over time. Today’s prescription in terms of mot attractive countries, most competent and compatible partners, and a smooth relationship may no be good enough tomorrow. Effectively fulfilling each management task has positive implications in terms of reducing each of the four types of risks: commercial, political, cross-cultural, and currency risk. Best practices exist with respect to each of the three management tasks. Dr. Attila Yaprak

4 Three-State Approach Country/Region Choice
Structuring the Relationship Partner Choice Dr. Attila Yaprak

5 IMPLICATIONS FOR: Dr. Attila Yaprak
Significance Commercial Political Cross-Cultural Currency Risk Risk Risk Risk Choice of Country/ A macro decision, Region with very long-term consequences. Much learning about country. Abandonment can be costly. Choice of Partner A macro decision, with long-term consequences. Cultivating a strategic partnership is time and resources intensive. Divorce can be costly. Structuring the A gradual, evolving Agreement relationship is possible. Flexibility can be built into the relationship. Can adjust over time. Dr. Attila Yaprak

6 Scrutinize news media and trade publications
Network within trade/industry groups Examine country trends and reports Participate in trade fairs/shows Country rankings and cluster analysis Direct mail promotion Dr. Attila Yaprak

7 Country Choice Industry Specific Indicators of Market Potential
Surrogate indicators Industry trends/timing Stage in product life cycle Market entry barriers Standards and regulations Competitive intensity Dr. Attila Yaprak

8 Trend analysis: domestic production, plus imports, minus exports
Monitor key indicators of industry demand Monitor key competitors’ activities Follow your customers around the world Tap into special customer/supplier networks Do regression/econometric forecasting Dr. Attila Yaprak

9 Complementarities sought;
Deliberations over: What value-adding activities are expected to be completed in the foreign market; Complementarities sought; What organizational and financial resources (e.g., equity) we wish to commit to the venture; How much control we wish to retain over our strategic resources; What risks we wish to tolerate and out time horizon; Strategic importance of the market; Availability and capabilities of intermediaries… Dr. Attila Yaprak

10 ??? Determine the Entry Mode: Company-owned operation vs.
Partnering with Independent Entities (Contracted) Distributor Agent/Representative/Affiliate Licensee/Franchisee Contract manufacturer/Supplier JV partner Dr. Attila Yaprak


Download ppt "Global Market Opportunity Assessment"

Similar presentations


Ads by Google