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, 2006
International Business 3e
Chapter 12 - 2
Screening Markets and Sites
Step 1
- Identify basic appeal
Step 2
- Assess national business environments
Step 3
- Measure market or site potential
Step 4
- Select the market or site
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International Business 3e
Chapter 12 - 3
Identify Basic Appeal
Basic demand
- Climate
- Absolute bans
Available resources
- Labor
- Materials
- Financing
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International Business 3e
Chapter 12 - 4
National Forces: Culture
Market selection
- Global product
- Tailored product
Site selection
- Education level
- Technical skills
- Work ethic
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International Business 3e
Chapter 12 - 5
National Forces: Political/Legal
Government regulation
- Investment barriers
- Profit repatriation
Government bureaucracy
- Administrative delays
Political stability
- Unforeseen political change
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International Business 3e
Chapter 12 - 6
National Forces: Economic/Other
Country finances
Trade and investment policies
Currency and liquidity
Logistics
Country image
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International Business 3e
Chapter 12 - 7
National Forces: e-Business
Infrastructure and market access
- Internet access
- Content and standards
Legal matters
- Privacy and security
- Intellectual property
Financial issues
- Electronic payments
- Tariffs and taxation
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International Business 3e
Chapter 12 - 8
Potential: Industrialized Markets
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Demographics
Competitors’ market shares
Import/Export volumes
Distribution network
Marketing approaches
Retail sales levels
Income elasticity
© Prentice Hall, 2006
International Business 3e
Chapter 12 - 9
Potential: Emerging Markets
• Market size
• Market growth rate
• Market intensity
• Market consumption capacity
• Commercial infrastructure
• Economic freedom
• Market receptivity
• Country risk
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International Business 3e
Chapter 12 - 10
Select the Market or Site
Field trips
- Engage in negotiations
- Gain firsthand exposure
- Contact customers / others
Competitor analysis
- Access to inputs
- Competitors’ numbers/shares
- Competitors’ strategies
- Channel access
- Customer loyalty
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International Business 3e
Chapter 12 - 11
Market Research Difficulties
Availability of data
Comparability of data
Cultural problems
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International Business 3e
Chapter 12 - 12
Secondary Data Sources
International organizations
Government agencies
Industry/Trade associations
Service organizations
Internet and World Wide Web
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International Business 3e
Chapter 12 - 13
Methods of Primary Research
Trade shows and missions
Interviews and focus groups
Surveys
Environmental scanning
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International Business 3e
Chapter 12 - 14