Professional Documents
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Global Market Participation
Global Market Participation
Global
Market
Participation
INTERNATIONALIZING MARKETING OPERATIONS
Opportunistic Expansion
Pursuing Potential Abroad and Diversifying
Risk
Exploiting Different Market Growth Rates
Following Customers Abroad
Globalizing for Defensive Reasons
Born Globals
Is There a First-Mover Advantage?
COUNTRY SELECTION
The Screening Process
Criteria for Selecting Target Countries
Listing Selection Criteria
Grouping International Markets
Internationalizing
-Is the term use for a firms expansion from its domestic market
into foreign markets
-Is a strategic decision that affects any firm, including its
operation and management
Multinationals
have major sales in their home markets and
consequently want global suppliers to understand
and supply their needs those markets.
Lead Markets
- Countries or regions that posses major
research and development sites for an industry
or are recognized for being trendsetters.
Some developing
countries emerging as
lead markets and home
markets of global
competitors
Developed countrieshave post-industrial
economies,meaningthe service sector provides more
wealth than the industrial sector. They are contrasted
withdeveloping countries, which are in the process of
industrialization, or undevelopedcountries, which are
pre-industrial and almost entirely agrarian.
10 Developed Countries:
1. United States 6. Netherlands
2. Canada 7. Sweden
3. United Kingdom8. Switzerland
4. Germany 9. Japan
5. France 10. Australia
Developed economies account for a
disproportionately large share of world gross
national product (GNP) and thus tend to attract
many companies. Competition from both
international firms and local companies is usually
more intense in these markets, developed
countries are often deemed to be more
standalone attractive than are most developing
countries.
Developing countries
- May appear to be attractive markets for several
reasons
- Market growth can sometimes be higher than in
the triad, as a result of higher population growth
Middle-class consumers
- are appearing in markets once seen as consisting
of a small elite and a large impoverished
underclass.
Developing Countries:
* Latin America * Middle East
* Africa * some parts of Asia
BRIC
- Brazil, Russia, India and China
IV. Country Selection
Competition
Market Similarity
-managers believe that their success in the
home market is more easily transferrable to
markets similar to the one in which they already
compete.