Chapter 12 Analyzing International Opportunities Chapter Preview • List each key factor to assess in national business environments • Discuss measuring potential in emerging and industrialized markets • Identify three key market research difficulties • Explain the usefulness of each secondary data source • Describe each method of primary research © Prentice Hall, 2008 International Business 4e Chapter 12 - 2 Screening Markets and Sites Step 1 Step 2 Step 3 Step 4 Identify basic appeal Assess national business environments Measure market or site potential Select the market or site © Prentice Hall, 2008 International Business 4e Chapter 12 - 3 Identify Basic Appeal Available resources Basic demand • Climate • Absolute bans © Prentice Hall, 2008 International Business 4e • Labor • Materials • Financing Chapter 12 - 4 National Forces: Culture Market selection Global product Tailored product Site selection Education level Technical skills Work ethic © Prentice Hall, 2008 International Business 4e Chapter 12 - 5 National Forces: Political/Legal Government regulation Investment barriers Profit repatriation Government bureaucracy Administrative delays Political stability Unforeseen political change © Prentice Hall, 2008 International Business 4e Chapter 12 - 6 National Forces: Economic/Other Country finances Trade and investment policies Currency and liquidity Logistics Country image © Prentice Hall, 2008 International Business 4e Chapter 12 - 7 National Forces: e-Business Infrastructure, market access Internet access Content and standards Legal matters Privacy and security Intellectual property Financial issues Electronic payments Tariffs and taxation © Prentice Hall, 2008 International Business 4e Chapter 12 - 8 Potential: Industrialized Markets Demographics Competitors’ market shares Import/Export volumes Distribution network Marketing approaches Retail sales levels Income elasticity © Prentice Hall, 2008 International Business 4e Chapter 12 - 9 Potential: Emerging Markets Market size Market growth rate Market intensity Market consumption capacity Commercial infrastructure Economic freedom Market receptivity Country risk © Prentice Hall, 2008 International Business 4e Chapter 12 - 10 Select the Market or Site Field trips • Engage in negotiations • Gain firsthand exposure • Contact customers/others Competitor analysis • • • • • © Prentice Hall, 2008 Access to inputs Competitors’ numbers/shares Competitors’ strategies Channel access Customer loyalty International Business 4e Chapter 12 - 11 Market Research Difficulties Availability of data © Prentice Hall, 2008 Comparability of data International Business 4e Cultural problems Chapter 12 - 12 Secondary Data Sources International organizations Government agencies Industry/Trade associations Service organizations Internet and World Wide Web © Prentice Hall, 2008 International Business 4e Chapter 12 - 13 U.S. States Go Global © Prentice Hall, 2008 International Business 4e Chapter 12 - 14 Methods of Primary Research Trade shows and missions Interviews and focus groups Surveys Environmental scanning © Prentice Hall, 2008 International Business 4e Chapter 12 - 15 Chapter Review • List each key factor to assess in national business environments • Discuss measuring potential in emerging and industrialized markets • Identify three key market research difficulties • Explain the usefulness of each secondary data source • Describe each method of primary research © Prentice Hall, 2008 International Business 4e Chapter 12 - 16