MGT 1118- FEASIBILITY OF INTERNATIONAL TRADE

Week 2

Assessing Organizational Readiness:

It is important because by doing this we can future proof the business against the risks of
international trade. There are several motivations for international ventures:
 Market diversification
 Increased competitiveness
 Access to talent and technological expertise
 Increased capabilities
 Long-term expansion of business

Characteristics of export ready organizations:

 Product is successful domestically
 Solid and proven business plan (includes market entry strategy, budged, marketing
plan, etc.)
 Product has specific and identifiable advantages over the competition
 Uniqueness of products
 Product is competitively priced in the international market
 Willingness and ability to invest time and resources without any return for a time
period of 2-3 years
 Sensitivity towards, and awareness of, cultural differences in doing business in other
countries.

Week 3

PLANNING INTERNATIONAL MARKET RESEARCH (IMR)

International market research is the homework that a company has to do before entering a
new market.

Importance:
 Knowledge of market and customers can be gained
 You can understand the potential opportunities and risks
 You can assess the competition and strategically plan around them

Applications of IMR:
 Business planning
 Market entry strategies
 Determining market potential- determining the demand of the market, and avenues for
distribution of the product.
  Market selection- what are the attributes of the market you are entering
 Identify new opportunities in the new market
 Conducting a cost-benefit analysis of conducting business in a new market
 Guiding market processes- determining customer needs, preferences and how best to
market it to them.

Market Intelligence is the process of acquiring and analyzing data that is obtained from the
target audience of a product.

Factors to be considered in market intelligence:

1. Government policies- does the government incentivize or disincentivize international
trade?
2. Policies on international transactions within the country- what kinds of foreign
remittances are allowed
3. Market infrastructure- costs related to distribution of the product in that market
4. Supply and demand of the product

Competitive intelligence- it is knowledge of one’s competitors, it is affected by factors such

as:
 Competitors
 Technology available to competitors
 Materials used by them
 Suppliers of the competitors
 Political changes in the host and the target company

7 steps of market research:

1. Define research objectives- identify the problems (what product to be sold? where?),
develop questions on the subject (why this decision? Is there a better use of
resources?) and identify new opportunities

Macro-economic- GNP, GDP, PPP, Market Size, Infrastructure and Urbanization (read from
the net, they butchered it)

Cultural and Lifestyle information- factors like material culture, cultural preferences,
language, level of education, religion, ethics and values.