Export Planning
How to write an international marketing plan
Chapter 4: Country Analysis and Selection
Internationalisation of the firm
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Learning objectives (learning tasks)
Ch. 4
At the end of the chapter you are able to:
1.
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;
3.
Explain the criteria of the second filter: filter 1 which provides a detailed analysis
of the DESTEP environment of potential countries;
4.
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.
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
IKEA case
Country
Year
Number of
Stores
Country
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
1958
1963
1969
1973
1974
1981
1976
1977
1978
1983
1984
1985
1987
1989
1990
1991
1991
1995
1996
1996
1998
2000
2004
2006
16
5
4
6
40
3
11
6
11
18
6
29
13
13
2
7
4
1
2
9
4
8
1
2
Australia
Greece
Hong Kong
Iceland
Israel
Kuwait
Malaysia
The Netherlands
Romania
Saudi Arabia
Singapore
Spain
Taiwan
Turkey
United Arab Emirates
USA
2
2
3
1
1
1
1
1
1
2
2
4
4
1
2
1
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
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
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Pre-Filter Selection
FACTORS:
Human development;
Environmental (disaster)
factors;
Import duties and sea delivery
cost
Football association presence
Pre-Filter Result
7,95
Guyana
5,95
Bolivia
EcuadorSuriname
Paraguay
Colombia
3,95
Peru
Venezuela
Brazil
Uruguay
Argentina Chile
1,95
Source: P.Kabanov a.o., students HAN University
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Filter 1 Selection
FACTORS:
Political risk
Social structure
GDP growth and size
Consumption
Exchange rate
Inflation
Ports information
Filter 1 Result
6,8
Paraguay
5,8
Venezuela
4,8
Uruguay
3,8
Peru
Colombia
Chile
Brazil
Argentina
2,8
Source: P.Kabanov a.o., students HAN University
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
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
$
0,2
26.38
73.95
12.50
Inflation direction
0,1
moderate growth
stable
stable
Import duties
0,2
20%
35%
6%
National football team sponsor
0,1
Adidas
Nike
Brooks
Main competitors representativeness
0,2
6
10
6
Sum of weighted score
1,8
1,7
1,8
Rank by sum
2
1
2
BEST
Result
First country for expansion in South America is Brazil
Source: P.Kabanov a.o., students HAN University
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Institute _II_BPM
Joris Leeman© , 2010
Export Planning
Chapter review questions
(10 min.)
1.
What are the three steps of the Export Audit – phase? Name the steps and explain them.
2.
Explain the three phase filter-model for country analysis and selection
3.
Explain the criteria of the filter-model per phase.
4.
What is a BERI-analysis / index? Explain and motivate your answer.
5.
How could you apply the GE – matrix for country selection?
Export Planning
Institute _II_BPM
Joris Leeman© , 2010