zMarket SelectionStage screening approachInvolves analysis of each country on the basis of Domestic issue Macro environmental issues Competitive environments Response to marketing activities Firm objectives

Progressively eliminate markets stage by stage Small number of markets selected at last stageStage 11) Which international markets are of no interest to the firm regardless of their apparent potential? Could be perceived very foreign or odd by senior management

2) Which remaining international markets should be excluded because of regulations initiated by or involving support of the home government? Restrictions are constantly changing and need to be trackedStage 2Questions relating to macro-environmental factors in international markets & initial assessment of prospects1) Which remaining overseas markets have the least attractive political and social environments?

2) Which remaining overseas market are least attractive because of their nature & potential size?

There is tension between the current & recent political instability and its perceived attractiveness of a country

Stage 31) Which remaining markets have substantial entry barriers to protect domestic industry or prohibitive trade regulations with other countries?2) Which remaining markets should be avoided because competitors (domestic & foreign) are already well entrenched in them? Challenger competitive strategy of a firm tend to face competition rather than avoid it

Stage 4Degree to which markets are unlikely to respond to, or prohibit, certain market activities:1) Which markets are not large enough?2) Which markets prohibit the form of presence?3) Unattractive because of costs and problems of reaching them from home market?Stage 5Internal trade-off analysis (matching firms resources & objectives to foreign market opportunities and requirements)1) Extent which resources need to be committed and changes to existing resources 2) Which markets fail to meet companys objectives/ match its competitive advantage? Apparently very attractive market may not be a good targets for its large size & resource needs