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