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CHAPTER 5 - IDENTIFYING & ANALYZING DOMESTIC & INTERNATIONAL…
CHAPTER 5 - IDENTIFYING & ANALYZING DOMESTIC & INTERNATIONAL OPPORTUNITIES
Opportunity Assessment Plan
Determines the profitability of a product/service idea
Constitutes of four sections
Second sections
- focuses on the market :
Trends
Characteristics
Size
Growth Rate
Third section
- Focuses on the entrepreneur's and management team's skills and experience
First section
- identifies
Available competitive products
Uniqueness of the ideas in terms of its unique selling propositions
Companies in the product market space
Fourth section
- Develops a time line indicating steps to successfully launch the venture
Motivations to go global
Profits
Competitive pressure
Lower cost
Unique products/services
Excess production capacity
Declining home country sales
Resources and supplies
Economics of scale
Technology advantages
Information Sources
Assistance
General information
Industry & Market Information
Competitive company & product information (competitor)
Government sources
Search engines
Trade associations
Trade publications
International vs domestic
Current Account
Domestic - local transactions
International - status imports/exports & valuation of a country's currency
Stages of economic development
Domestic - Its not a big problem since we are in the same country are ENT aware
International - depends on:
Fundamental infrastructure
Banking facilities & systems
Educational system
Legal system
Business ethics and norms
Political-legal environment
Domestic - aware the political conditions
International - political risk analysis (assessment of a country's political policies & stability
Economics
Domestic - organized under a single economic
International - dealing with difference in:
currency evaluations
government regulations
Banking, venture capital, marketing & distribution system
Levels of economic development
Language
Domestic - entire country use the same language
International - hire translator
Type of economic system
International - barters and third party arrangements
Domestic - entry country use system and currency
Types of political risks
ownership risks
conflict and changes
transfer risks
operating risks
Technological environment
- products can be marketed in new ways and processes
Culture
Culture - There are many challenges.
Complex construct that embodies people's knowledge, morals, arts. beliefs, customs, laws and others
Entrepreneurial Entry Strategies
No equity arrangements
Turn-key projects
Licensing
Exporting
Direct
Indirect
Direct foreign investment
Monitory interests
Joint ventures
Majority interest
Mergers