Daya
Chapter 12
Strategies for Analyzing and Entering Foreign Markets
Copyright â 2013 Pearson Education
Chapter 12 - 1
Learning Objectives ῆ Learn how firms analyze foreign markets ῆ Explore how firms choose a mode for entering a foreign market ῆ Investigate exporting and types of intermediaries that help export goods ῆ Identify international licensing issues and Education Copyright â 2013 Pearsonpros and cons of
Chapter 12 - 2
Learning Objectives ῆ Identify basic international franchising issues and pros and cons of franchising ῆ Analyze contract manufacturing, turnkey projects, and management contracts as entry modes for international business
Copyright â 2013 Pearson Education
Chapter 12 - 3
Foreign Market Analysis
To successfully increase foreign market share, firms must assess alternative markets; evaluate the respective costs, benefits, and risks of entering each; and select those that hold the most potential for entry or expansion.
Copyright â 2013 Pearson Education
Chapter 12 - 4
1.Assessing Alternative Foreign Markets
Copyright â 2013 Pearson Education
Chapter 12 - 5
ῆ Market potential-include
population,
GDP, per capita GDP, public infrastructure, and ownership of goods such as automobiles and televisions. ῆ Firms must also consider the current and future level of competition in foreign markets. Firms assessing their competitive environment should identify the number and size of firms already competing in the potential market, their relative market shares, their pricing and distribution strategies, and their relative strengths and weaknesses.
Copyright â 2013 Pearson Education
Chapter 12 - 6
ῆ Legal and Political Environment . It is important that a firm understand the host countryᾼs policies toward trade, as well as its general legal and political environment, prior to making an investment. ῆ Sociocultural Influences . In many cases, firms will attempt to minimize the potential impact of
Strategies for Analyzing and Entering Foreign Markets
Copyright â 2013 Pearson Education
Chapter 12 - 1
Learning Objectives ῆ Learn how firms analyze foreign markets ῆ Explore how firms choose a mode for entering a foreign market ῆ Investigate exporting and types of intermediaries that help export goods ῆ Identify international licensing issues and Education Copyright â 2013 Pearsonpros and cons of
Chapter 12 - 2
Learning Objectives ῆ Identify basic international franchising issues and pros and cons of franchising ῆ Analyze contract manufacturing, turnkey projects, and management contracts as entry modes for international business
Copyright â 2013 Pearson Education
Chapter 12 - 3
Foreign Market Analysis
To successfully increase foreign market share, firms must assess alternative markets; evaluate the respective costs, benefits, and risks of entering each; and select those that hold the most potential for entry or expansion.
Copyright â 2013 Pearson Education
Chapter 12 - 4
1.Assessing Alternative Foreign Markets
Copyright â 2013 Pearson Education
Chapter 12 - 5
ῆ Market potential-include
population,
GDP, per capita GDP, public infrastructure, and ownership of goods such as automobiles and televisions. ῆ Firms must also consider the current and future level of competition in foreign markets. Firms assessing their competitive environment should identify the number and size of firms already competing in the potential market, their relative market shares, their pricing and distribution strategies, and their relative strengths and weaknesses.
Copyright â 2013 Pearson Education
Chapter 12 - 6
ῆ Legal and Political Environment . It is important that a firm understand the host countryᾼs policies toward trade, as well as its general legal and political environment, prior to making an investment. ῆ Sociocultural Influences . In many cases, firms will attempt to minimize the potential impact of