Researching and Analysing

Overseas Markets
• Background information
• Five rules for international research
• Entry evaluation procedure
• Stage 1 - Country identification
• Stage 2 - Preliminary screening
• Stage 3 - In-Depth screening
• Stage 4 - Final selection
 Market information
• Market potential
• Consumer / customer attitudes and
behaviour
• Channels of distribution
• Communications and media
• Market sources
• New products
 Competitive information
• Competitive business strategy and goals
(mission and rationale of the company)
• Competitive functional strategies and
programmes (target markets, marketing
mix, etc)
• Competitive operations (morale, employee
transfers, i.e. detail)
 Foreign exchange
• Balance of payments, interest rates, etc
• Prescriptive information e.g incentives,
controls, regulations.
• Country monetary and fiscal policy
• Expectations of bankers, traders, analysts, etc
• Government policy in relation to its own
competitiveness e.g China, USA
 Resource information
• Human resources
• Money
• Raw materials
• Acquisitions and mergers, joint
ventures
 General conditions
• Economic factors - e.g. growth
• Social factors e.g. customs, attitudes
• Political factors e.g investment climate
• Scientific and technological factors - major
developments and trends
• Management and administrative factors e.g.
report procedure
 Sources of information
• Human sources e.g company executives
• Documentary sources e.g too much!
• Perception sources e.g. what we see and
hear
• Information and media
• face-to-face conversation
• telex/fax/e-mail
• sight, smell, taste
 Five rules for international
research
• One:
– what information do I need?
– Where can I get this information?
– Why do I need this information?
– When do I need this information?
– What is this information worth in £ ?
– What is the cost of not obtaining this
information?
• Two: Start with desk research
• Three: Identify the type of information
that is available from overseas sources
• Four: Know where to look (or find
somebody that does)
• Five: Do not assume that the
information that you gain is
comparable or complete.
Keegan 1995
 Entry evaluation procedure

Stage 1 - Country identification

Stage 2 - Preliminary screening
Stage 3 - In-Depth screening
Stage 4 - Final selection
 Stage 1 - Country identification
• Candidate countries are identified and listed
• broadly based on general statistical
information
• conduct population comparisons to predict
market potential
• Indonesia 18 million, Malaysia 17 million
• Brazil 50 million, Chile 13 million
 Stage 2 - Preliminary screening
• Rating the identified countries
• macro level - political stability, geographical
distance, economic development
• Weed out countries from consideration
• anticipated cost of entry are calculated e.g.
warehousing, product support, distribution
 Stage 3 - In-Depth screening
• Core of attractiveness evaluation
• data specific to industry/market
• Market size
• Market growth - business cycle, computing rates
of growth
• competitive intensity - e.g. US Dept of
Commerce ‘Market Shares Report’
• Trade barriers
 Stage 4 - Final selection
• Objectives brought to bear for a match
• Revenues and costs are compared for ‘leverage’
• Weights can be added to criteria based on
objectives
• This leads to a final ranking
• Personal visits are made. ‘Direct experience’ leads
to final decision
Johansson (1999)