Chapter 12: Global Market Opportunity
Assessment, Analyse org readiness;
Analyse org readiness;
is the firm objectively ready to do international biz.
- Achieved by doing the SW analysis on international business and looking at key factors;
- then do you have the money, resources and committed workforce
- if anything is lacking better to fix first
Formal analysis of org readiness;
- what does the business hope to gain from going international?
- Is going abroad aligned with the business goals for now or in the future?
- What demands will internationalization place on the firms internal process?
- What gives the firm a competitive advantage?
Assessing the suitability of the firm's products and services abroad;
is there a need for the firms product overseas
- Firms put together a portfolio of what they offer to see what can sell abroad
- Find barriers to each target market(country)
- What needs to be changed to suit the market
- what legal procedure are required
Criteria for product suitability;
- Sell well abroad .
- Cater to everyone's needs
- Find the niche market
- Address new and emergent markets
Screening countries to see where to set up;
- Pick a set amount of countries, then start cutting some off, till manageable.
How the dwindle target market countries;
- Gradual elimination;
Firm choose countries based on Macro factors
- Indexing and ranking,
firm looks for the country with highest potential, and ranks each country
Country screening for FDIs and Global sourcing;Best locations for FDI
- is there long-term prospects for growth and substantial returns
- Production quality and commercial infrastructure
- The competitive environment
- Government incentives
buying goods from suppliers abroad;
- keeping in mind the quality of outputs, Stability of ExR and Presence of a work force with superior skills
Assess Industry Market Potential;
How much market share will the company garner in each country, as well as assessing its barrier to entry, try forecast for 3-5 yrs
- Industry Market Potential
- Company sale potential
Choose qualified Biz partners;
- decides who they want to partner with; what are their qualifications, and crafts an appropriate market entry strat
- Types of Foreign Business partners
- Licensing partners
- International collabs