10/13/2022

Tutorial for midterm exam

Chosen Brand into the

Selected Market

International Market Selection

• “the process of establishing criteria for selecting

(country) markets, investigating market potentials,
classifying them according to the agreed criteria and
selecting which markets should be addressed first and
those suitable for later development” (Andersen & Strandskov,
1998)

• Many markets look appealing due to their market size

or low-cost production,
• Prioritize which countries to enter first and to evaluate
each country’s relative merits

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Alternative Approaches to
International Market Selection
• Cavusgil (1985)
• Preliminary country screening, based on screening the
physical, political, economic, and cultural environment;
• Assessment of industry market potential to determine the
aggregate demand for the industry based on market access,
product potential, and local distribution and production;
• Analysis of company sales potential, which is based on
sales and profitability forecasting.

Alternative Approaches to
International Market Selection
• Measuring market attractiveness
• A market’s size and growth rate
• A particular country or region’s institutional contexts
• A region’s competitive environment
• A market’s cultural, administrative, geographic,
and economic distance from other markets the company
serves.

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Alternative Approaches to
International Market Selection
• R. Wayne Walvoord (1980).

A Wayne Walvoord’s (1980) adaptation

Filter 1: Macro level • PESTEL, CAGE
analysis (General viability • Risk assessment – BERI, Fragile States Index…
of Market)

• Size, growth, seasonality, infrastructure, margins,

customer power, competitive intensity, entry barriers, and
Filter 2: Industry Market comm channels.
Analysis • Porter’s 5 forces
• Competencies needed, competitors strength.

Filter 3: Company • Competitive advantage - Porter’s value chain,

competitive advantage • Relative advantage - compared with competitors in the
relative to in-marker market
competitors • Competitive advantage transferability and sustainability

• Final selection in light of

Filter 4: Fit of company • CSAs and FSAs
offering with market • company objectives; experience; and resources
• Forecast costs, revenues, capital requirements, ROI

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PESTEL

• Variations: PEST, PESTLE

• Acronym for political, economic, sociocultural,
technological, environmental, and legal contexts
• Big picture of a firm’s external environment
• Opportunities and threats
• Analysis for market growth or decline
• Market flatteners
• Critical prior to entry into a new country or region

Xét giữa 2 countries có

khác biệt gì về 4 yếu tố
cultural, administrative,..
CAGE
không

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CAGE

Porter’s 5 forces
give the idea the market is competitive or not

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Porter’s Value chain

xem activities nào có thể transfer

CSAs and FSAs

• CSAs: advantages which a firm possesses because of the country it
is from or where it produces
• Porter Diamond (Porter’s Determinants of National Advantage): Firm
strategy, structure and rivalry; related supporting industries; demand
conditions; and factor conditions
• Country-of-Origin Effects
• FSAs: advantages that are specific to the firm
• Patent, trademark, or brand name, control of raw materials, know-how,
control of distribution outlets, process technology, managerial capacity, or
marketing skills
• Sustainable
• Transferable?