Post on 21-Dec-2014
description
Screening ,Selection and Choosing Entry Mode; (The case of European CIS countries)
Screening ,Selection and Choosing Entry Mode; (The case of European CIS countries)
Maliheh Ghadiri,
Habib Ramezanzadeh,
Kaveh Yazdifar,
Haleh Hamedifard,
Maliheh Ghadiri,
Habib Ramezanzadeh,
Kaveh Yazdifar,
Haleh Hamedifard,
Group 6Group 6
Key globalization decisionsKey globalization decisions
1. Decide whether to enter : Deciding on going international market or not
2. Decide which markets to enter Screening country markets Selecting country markets
3. Decide how to enter Choice of entry mood
4. Deciding entry timing5. Plan marketing programs
Deciding on marketing plan
1. Decide whether to enter : Deciding on going international market or not
2. Decide which markets to enter Screening country markets Selecting country markets
3. Decide how to enter Choice of entry mood
4. Deciding entry timing5. Plan marketing programs
Deciding on marketing plan
IM Strategy Process& Our Focus
IM Strategy Process& Our Focus
Understand the environmental influences on a firm’s international markets
Segment international markets, identify &analyse opportunities
Develop appropriate international marketingstrategies, planning & processes
Decide marketing entry strategies
Build added value through effectivemarketing mix strategies
Feedback & reassesscontinually
1-Why expand internationally?1-Why expand internationally?
limited domestic market opportunities enjoying economies of scale/global
volumes leverage the competencies of the firm stake holder's expectations
limited domestic market opportunities enjoying economies of scale/global
volumes leverage the competencies of the firm stake holder's expectations
2-1-Screening country markets2-1-Screening country markets
Assess the External Environment of each country
PEST Analysis(political, economical, Social, Technological)
Assess the Firm’s Competences & Competitive Power (Internal analysis)
Market knowledge, Porter’s 4P (product, price, place, promotion)
Assess the External Environment of each country
PEST Analysis(political, economical, Social, Technological)
Assess the Firm’s Competences & Competitive Power (Internal analysis)
Market knowledge, Porter’s 4P (product, price, place, promotion)
Selecting country marketsSelecting country markets
External EnvironmentExternal Environment
Competitive PositionCompetitive Position
2-2-Selecting country markets2-2-Selecting country markets
Market EnvironmentCompetitive
Position
Russia 4.67 3.95
Ukraine 3.37 2.9
Georgia 2.63 2.73
Belarus 3.61 2.61
Moldova 1.73 2.3
Market Attractiveness Matrix
5 1
1
5
Attractiveness Results
Country Attractiveness
ch4_6
5
1 15 1.73.3
1.7
3.3Russia
Ukraine
Georgia
Belarus
Moldova
Market Segmentation
Country Markets
Select
Prioritize
AnalyzeApproximately 210 countries
European CIS countries
3.Entry Mode Options
• Exporting
• Contractual Agreements
• Foreign Direct Investments
Internationalization Process
?
Entry Modes: A Decision Framework
How highare Transport costs?
Can Know-howbe licensed
Is tightcontrolrequired
Can know-howbe protected bylicensing contract
Export
InvestmentEntry or JV
Then License
Low
High No
yes
yes
Yes
No
The Internationalization Stages
Internationalization StagesStage 1 – Indirect exporting, licensingStage 2 – Direct exporter, via independent distributorStage 3 – Establishing foreign sales subsidiaryStage 4 – Local assemblyStage 5 – Foreign production
Marketing and direct sale of domestically-produced goods in another country.Does not require that the goods be produced in the target country.No investment in foreign production facilities is required.Low risk of investment
Why Exporting?
Modes of Entry
Cost
Risk
Exporting
Licensing
Franchising
Joint Venture
Wholly OwnedSubsidiary
Low High
High
Acquisition
In general, there is a cost/control tradeoff in choosingwhich mode of entry to use.
4.Deciding entry timing
Waterfall StrategyThe firm gradually moves into overseas markets
Export Expansion Strategies
Sprinkler Strategy
The firm tries to enter several country markets simultaneously or within a limited period of time
The Waterfall Gradual Expansion
Home Country
Other country markets
Home Country
Other country markets
The Sprinkler Simultaneous Expansion
Step 1 Step 2
Identify a potential market
Match needs to abilities
Step 3
Initiatemeetings
Developing an Export Strategy
Step 4
Commit resources
ReferencesReferences
Course Handouts & Articles www.CIA.gov www.en.wikipedia.org
Course Handouts & Articles www.CIA.gov www.en.wikipedia.org