Transcript Chapter 12 Analyzing International Opportunities Chapter Preview • List each key factor to assess in national business environments • Discuss measuring potential in emerging and industrialized.

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
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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
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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
•
•
•
•
•
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Access to inputs
Competitors’ numbers/shares
Competitors’ strategies
Channel access
Customer loyalty
International Business 4e
Chapter 12 - 11
Market Research Difficulties
Availability
of data
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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
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International Business 4e
Chapter 12 - 13
U.S. States Go Global
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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