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discuss the objectives of market entry, including market attractiveness;…

- - - - table 4.5
- - - - Among the modes of entry most employed are:
        exports;
        licensing;
        franchising;
        strategic alliances;
        joint ventures; and
        foreign direct investment in wholly foreign-owned enterprises.
        JFLEWS
      - Timing
        
        It can be as expensive to move too early as it is to leave investments too late. Judging what is the best window of opportunity is paramount.
        
        If the objective is to secure access to resources, the right moment is when there is a realistic opportunity to secure rights of access, without competitors pre-empting this.
        
        If the objective is market penetration, the move has to be made when sufficient demand exists but competition is not too intense.
        
        highly innovative products can succeed no matter how crowded the market is
    - - relevant considerations include:
        distribution of income among the population in the country,
        stability of growth and
        existing degree of local and international competition in the market.
      - considerations ALL
        Consideration for market entry:
        
        Which market(s) to select?
        
        Entry objectives (refer to above table)
        
        Timing of entry  when to enter (refer to Timing of entry below)
        
        Scale of entry: how much investment is required  the higher the investment, the higher degree of accuracy in determining market size and profitability
        
        Mode of entry: how to entry? (refer to mode of entry below)
        
        Market distribution of income among population (can potential customer afford your product?)
        
        Size and value of the proposed market
        
        Market growth/ profitability  what is driving the growth/ profitability of a particular industry
        
        Existing degree of local and international competition in the market ( is there any substitution?)
        
        How the product will get to the market?
        
        a. Distribution how will the customer be reached? Anyone has control over the channel?
        b. Value proposition if target customers are already being served, could to entice these customer to switch?
        
        Organisation capabilities  sufficient resources to enter the market? Sufficient capacity to supply/service the market? If not, how to get it?
        
        laws and regulations of that country (taxation laws, corporate governance systems and customs restrictions)
        
        Barriers to entry which may prohibit, or at least discourage, foreign firms from entering some industries
        
        The attitude of the regulators in the target market to bringing in expatriate workers (and their families)
        
        Considerations of corporate social responsibility
        
        stability of growth and
        
        existing degree of local and international competition in the market.
    - - • The laws and regulations of that country including taxation laws, corporate governance system and customs restrictions.
        • Foreign exchange regulations because it can be difficult to repatriate future profits back to the head office.
        • Barriers to entry (in selected industries in some countries), which may prohibit or at least discourage foreign firms from entering some industries.
        • The attitude of the regulators in the target market to bringing in expatriate workers and their families.
        • Consideration of corporate social responsibility.
- - - - Market size
        
        In general, a generous tolerance
        on market size is permissible under the following conditions:
        • Where an investment is very small within the total market;
        • When the study is preliminary scan of the market and/or
        • When the key objective is to decide how something rather than what is going to be achieved.
        PHS
        
        On the other hand a higher degree of accuracy would be expected when:
        • The investment is large within the total market and the investor aims to achieve a significant share within it;
        • Market size from different years is needed to show a trend; and/or
        • It is necessary to separate out segments of the market which could be attractive targets.
        LMS
    - - The next consideration is how the product will get to the market:
        • Distribution
        • Value proposition
        
        Is the offer better than the current suppliers’ offer to the proposed customer segment? How?
        
        How will the customers in the market be reached? Does anyone have control over distribution channels to reach these customers? Can new methods of distribution be established?
- - - - Global financial organisation resources
        
        The World Economic Forum produces a report each year that ranks countries in order of their competitiveness
        
        Information on a country’s competitive environment can help organisations identify gaps in the market. More importantly, it also helps them understand whether growing into that geographic market would be strategically effective and successful.
        
        Basic requirements
        Institutions.
        Infrastructure.
        Macroeconomic environment.
        Health and primary education.
        IHIM
        Efficiency enhancers
        Higher education and training.
        Goods market efficiency.
        Labour market efficiency.
        Financial market development.
        Technological readiness.
        Market size.
        LhEFTGM
        Innovation and sophistication
        Business sophistication.
        Innovation.
        BI
        
        World Bank,
        which compiles an index in which countries are benchmarked against one another in a region and then against OECD averages (World Bank Group 2015).
        
        Six key indicators are covered:
        The life cycle of companies.
        Business entry regulations.
        Labour regulations.
        Contract enforcement.
        Access to credit markets.
        Bankruptcy provisions.
        CBBALL
    - - Assisting imports into that region or by facilitating business investment into particular countries & provide legal info
        
        government and non‑government groups, can assist in market development in foreign markets by enhancing your awareness and knowledge of potential differences between your home market and a new geographic market.
        
        local chamber of commerce groups