I. INTRODUCTION The current business environments require firms to be highly aware of expansion of the global market. Entering a new market without sufficient understandings and preparation is never a good choice of companies to further their endeavor. Accordingly, a firm should take deliberate steps to analyze and recognize promising targets. For a company, especially an SME, the market research is an important issue that firms need to deliberate due to the limitations of its resources and capabilities. Researching the potential export markets is the significant preparation that needed to carry out prior to entering an overseas market because not many companies really comprehend geographical, social, economic facts of the foreign countries in comparison with the home countries (Cavusgil, 1985). Besides, researching for the international market opportunities is not a discrete activity, but a combination of collecting, analyzing, and concluding data logically. Regarding the international expansion, a great concern of a firm is to identify it promising markets. That is the problem of answering the questions: How does a firm evaluate its targeted markets? What criteria helps select the market? For these reasons, this report will develop a practical guide with highly recommended practice for the firm to evaluate and identify its attractive export markets. The discussion in the report aims to assist an SME Irish company to optimize its analysis and selection of the future market to expand its exporting activities to the BRICS (Brazil, Russia, India, China, and South Africa). The approach in the report is to provide the practical recommendations that based on significant studies on market selection. This is a highly contemplated report... ... middle of paper ... ...s. International Business Review, 3(3), 243-261. Porter, M. E. (1979). How Competitive Forces Shape Strategy. Harvard Business Review, 57(2), 137-145. Rahman, S. H. (2003). Modelling of International Market Selection Process: A Qualitative Study of Successful Australian International Businesses. Qualitative Market Research: An International Journal, 6(2), 119-132. ADDITIONAL REFERENCES Johanson, J. & Vahlne, J. E. (1977). The Internationalization Process of the Firm—a Model of Knowledge Development and Increasing Foreign Market Commitments. Journal of International Business Studies, 8(1), 23-32. Papadopoulos, N. & Denis, J. E. (1988). Inventory, Taxonomy and Assessment of Methods for International Market Selection. International Marketing Review, 5(3), 38-51. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance, NY: Free Press.
Fletcher, R., & Crawford, H. (2011). International Marketing: An Asia –Pacific Perspective, 5th Edition, Sydney: Pearson Education Australia.
For Caterpillar Inc. to explore new geographic markets particularly in Asia, it has to have a good strategy at the corporate level. At this level, decisions such as resource allocation, which markets to explore, and which products or services to develop are made. With regard to resource allocation, the focus needs to be on aspects such as how equipment, staffing, and cash will be distributed in the indentified markets. In addition to these, the corporate level also has the mandate or responsibility of deciding whether new services or products need to be added to the exi...
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
This model was based on empirical evidence from studying Swedish firms. The major assumption of the Uppsala model is that firms develop their international operations by taking incremental steps based on knowledge about foreign markets and this knowledge determines their commitments to foreign markets (Johanson andVahlne, 1977). Of importance in the model is the distinction between objective and experiential knowledge.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
International business can be quite challenging and unsuccessful, if multinational companies do not look at the environment where they want to explore and invest. There are different aspects and market dimensions that can tell decisions makers if it’s convenient to invest in different markets. According to Global Edge (2014), “Global marketing has become more and more important over the years with the increasing trend of internationalization. Faced with too many choices, marketers have the challenge of determining which international markets to enter” (para. 1). The market potential indicator (MPI) is an index that can help marketers understand statistically how consumers behave and use these numbers to analyze potential countries and its risks. Based on the MPI
If a company has set its objectives there is need to look into the following. Which countries are their target market and who are the consumers and how or which marketing strategy should they use to reach the consumers. The company needs to know what products are best for their chosen customers and if there may arise a need to adjust the company should be ready for it. The other thing they should consider are the import regulations in their country, market and the global rules also should focus on the competition involved looking...
Expansion across seas can be very advantageous and lucrative for many companies; however, there are many risks associated with doing business overseas, and companies that intend to expand internationally should be careful and strategic when doing so. Not only do companies run the risk of experiencing a product fail due to differences in cultures, they also face severe political and economic risks as well.
In this report, discussions aim to assist an Irish SME to optimise its analysis and assortment of the BRICS countries (Brazil, Russia, India, China, and South Africa) - the developing or newly industrialised nations. The term ‘company’ herein mainly refers to small and medium enterprises rather than the large international enterprises. Besides, the exporting aspect is the main concern in this context. Furthermore, the entry mode to each market is presumed to be the subsequent decision of a company after identifying the market. Thus, it would not be covered in this report.
Oesterie, M. J., Richta, H. N., & Fisch, J. H. (2012). The influence of ownership structure on internationalization. International Business Review, 22(1), 187-201.
At the present, the barriers among Enterprises for establishing the business and go overseas seem to be disappearing, since the figure of world demand keeps increasing. In this case, the activity of exporting and importing among countries certainly important in order to fulfil the demand of the public.
Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.