bb304 part 2 - Analysing International Opportunities 1 Four...

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Analysing International Opportunities 1) Four steps in the marketing- and site- screening process. 2) Important factors to consider when measuring market- and site- potential. 3) Field trips and competitor analysis. 4) Sources of secondary data and primary data. 5) Difficulties in conducting international market research.
Four Steps In The Market- and Site- Screening Process 1) Identify basic appeal 2) Assess the national business environment 3) Measure market- or site- potential 4) Select the best market or site (and carry out competitors’ analysis)
Identify Basic Appeal For a potential market , this entails determining: a) Whether a country’s climate is suitable for the product. Example: fishing gears not suitable for Gobi desert people. b) Whether a country’s law allow the product to be sold. Example: alcohol is not allowed in Muslim countries.
Can you sell ice cubes to the Eskimos?
What you can’t sell to the Gobi desert people?
Singapore banned chewing gum in 1992. Bhutan banned the sale of cigarettes in 2008. Canada banned baby walkers in 2004 because over 1,900 babies were injured while using it.
Haggis is a traditional Scottish pudding made out of sheep innards including livers, hearts and lungs. Lungs are forbidden in the US because they increase the risk of disease transmission between species.
Identify Basic Appeal For a potential site , this involves determining the availability of:
Assess The National Business Environment 1) Cultural Forces 2) Political and Legal Forces (government regulations, government bureaucracy, political stability) 3) Economic and Financial Forces 4) Other Forces (cost of transporting, country image, e-business)
Cultural Forces Countries differ in languages, education, work ethics, business, religions, beliefs, traditions, and customs. For market selection , companies may want to locate production in the local market when products must be customized for cultural reasons. For site selection , companies prefer countries where the workforce have good education, technical skills and work ethics.
Political and Legal Forces Government Regulation: placing restrictions on the foreign equity ownership , forcing the formation of joint ventures with local firms, restrict foreign companies from repatriating profits , impose strict environmental regulations, bar foreign companies from competing in certain sectors, require foreign companies to divulge certain information.
In 1985, media tycoon Rupert Murdoch renounced his Australian citizenship and became an American citizen to acquire Fox News. This is because U.S. law prohibits foreign ownership of television stations.

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