In this theoretical framework all the models, which are used during the H4, are described.
These models will be described on the basis of the steps used for making an export plan.
The first model is named EPRG of Perlmutter. Perlmutter describes the next four types of
organisations that have a different internationalisation process:
1.
2.
3.
4.
Etnocentric organisation
Polycentric organisation
Region-centric organisation
Geocentric organisation
(Leeman, Export Planning, 2010).
The whole process of international strategy
formulation is called export planning. This
process contains four phases and shows
how to put this together in an international
marketing plan in 10 steps. In the figure
besides, this four phrases are described.
This model forms the basis of creating an
export plan. (Leeman, Export Planning,
2010).
In the first step of the export plan a business definition will be made. The model of Abell
describes this business definition. Abell’s model is a good tool to re-think in what business the
company is currently active, and where it will be active in the future. Abell uses three
dimensions to focus on: the needs of the customers, the customers groups which has this
needs and the technology used to fulfil this needs. (Leeman, Export Planning, 2010).
Furthermore, the DESTEP analysis is used. This is a model to describe the external trends.
The DESTEP analysis consists of six factors: demographic, economic, social, technology and
political and juridical. Because each factor might have an influence on the current and further
growth of the different divisions/product lines of the company. It is useful for Jobe Sports to
compare those factors with each country. (Leeman, Export Planning, 2010).
Besides an external analysis it is also important to chart the internal analysis. The next model
is called the SWOT model. It combines both of those analysis. The internal analysis refers to
the company’s strengths and weaknesses. The external analysis refers to the company’s
market opportunities and market threats (Leeman, Export Planning, 2010).
To make a decision to export to a country a filter model is used. During the filtering process
the criteria and factor score method need to be considered. When the criteria have been
determined, it is important to define the weighting factor of each criteria. For each filter it is
possible to apply the factor score method, in which is possible to multiply the country score
for a specific criteria by the weighting factor. In the end, the individual weighted scores will be
added up and compared with the total weighted score of the countries with each other
(Leeman, Export Planning, 2010).
To create a competitive advantage companies use their supply chain to differentiate from
their competitors. Companies create a specific focus on the following operational elements:
quality, reliability / on time, speed, flexibility / responsiveness and costs (Leeman, Export
Planning, 2010).
The value chain model developed by Porter is a tool to analyse the value creation through a
company’s activities. Porter identified nine general value-creating activities that are commonly
deployed within companies. It is a main tool for identifying ways to create more customer
value. The primary activities include the physical activities to buy ship and sell the goods or
services. The secondary activities include supporting activities: procurement/sourcing, R&D,
human resources and IT infrastructure (Leeman, Export Planning, 2010).
To enter a market it is possible to use several entry strategies. First of all, the company has
to make the decision to enter the market direct or indirect. Secondly, the firm has to clarify
which equity or non-equity mode should be used. Those two fundamental choices classify the
following market entry options: export sales orders, agents/distributors/licensing/franchising,
own subsidiary/acquisitions or a joint venture (Leeman, Export Planning, 2010).
The export market entry decision plot is a tool to determine the company’s strengths and
weaknesses, opportunities and threats in relation to the entry of the export country. The more
attractive the export market and more capable an organisation is, the greater the impetus to
choose acquisition or establishment of a subsidiary (Leeman, Export Planning, 2010).
To know how many people are interested in the product lines, the STP will be used. The
definition of STP is: segmentation, targeting and positioning. During this segmentation
process there will be set up identify bases of segmentation and determine important
characteristics of each market. During the market targeting the potential and commercial
attractiveness of each segment will be evaluated. There will be selected one or more
segment(s). Finally, during the positioning, there will be developed detailed product
positioning for selected segments and a marketing mix for each selected segment
(Armstrong, 2012) (smart insights, 2013).
A product lifecycle could differ from each other. In general, product life cycles are getting
shorter and shorter, due to the high pace of technological innovations and shifting demand.
The stages of the product life cycle are the innovators, early adopters, early majority, late
majority and laggards (Leeman, Export Planning, 2010).
At the end of the export planning, the export spider plot will be used to have a quick overview
of the four reviewed gate checklists based on the four phases of the export planning model.
For each phase two elements are included. The score of each of these elements indicates the
company’s overall readiness to start export or internationalisation. When the scores of all
eight elements are positioned, a line can be drawn between the points. The more the line is in
the yellow/green area, the more the company is ready for export. When the line is mostly in
the red area, the company is not ready for export (Leeman, Export Planning, 2010).