International Business
Jun Yeup Kim
Managing International
Operation - Analyzing
Global -local Opportunity
Projects: Market En-
try Strategies
Week 7 Learning Objectives
• Explain each of the four steps in the market- and
site-screening process
• Describe the three primary difficulties of conduct-
ing international market research
• Identify the main sources of secondary interna-
tional data and explain their usefulness
• Describe the main methods used to conduct pri-
mary international research
• Prepare the group project based on market and
site screening process
IB Homework
1. All students need to prepare the
chosen country’s ‘Market Analysis
Part’ by 30th Oct. (length 2 page
max.) in the class.
2. The homework must be written by
your hand.
- This homework is very important part
of your Final IB project!
- Late submission won’t be accepted!
Project?
应该最着重在哪里
1. Business Overview
- Business item (specific item, product/service) Explanation of product/
service choice
- Starting point of your market
2. Market Analysis4
- General industry trends of your business item in your chosen market
- PESTL (risks/opportunities) relevant in your item
- Main players on the market
- Barriers to entry for new business
- Potential Competitors
- Product/Service, price, target audience, brand identity
3. Marketing Plans4
- STP
- Pricing and Marketing channel (PR/Advertisement)
- Distribution Strategies 与买家联系
- Logistics
4. Successful strategies (Conclusions)
- Choice of Buyers 亚马逊，怎么跟小型企业联系
IB Final Project
All students should send me ppt. file
by 6th Nov.
Do not exceed 10 slides
10 min. Presentation 10 min. Q&A
Start with 11th Nov.
Evaluation of Project
Marking Criteria Poor Average Good Excel-
(1) (2) (3) lent(4)
PPT content’s quality (clarity/
structure/use of aids)
Creativity/originality of topic,
approach and conclusion
Identifies implications for the
international market entry
strategy
Use of textbook or lecture ma-
terials, suggested sources of in-
formation
An objective analysis and issue
handling
Screening Markets and
Sites
12 - 9
Identify Basic Appeal
Basic demand
&
Available resources
12 - 10
Cultural Forces
Market selection
Global product
Tailored product
Site selection
Education level
Technical skills
Work ethic
12 - 11
Political and Legal Forces
Government regulation
Investment barriers, tariff
Profit repatriation
Government bureaucracy
Administrative delays
Labour issue
Political stability
Unforeseen changes
12 - 12
Political Risk
Social unrest
can drive out
international
companies
12 - 13
Economic Forces
Country finances
Natural resources
Infrastructure
Currency and liquidity
12 - 14
Other Forces
Logistics
Country image
12 - 15
e-Business Forces
Market access
Infrastructure
Content and standards
Legal issues
Privacy and security
Intellectual property
Financial matters
Electronic payments
Tariffs and taxation
12 - 16
Industrialized Markets Potential
Demographics of local target market
Competitor’s production volume & market
shares
Import/Export volumes for the product
Structure of Wholesale & Retail Distribution
network
Market Background - Social Trends & Market-
ing approaches
Retail sales levels, Market price and total ex-
penditure
Future market outlook for product & potential12 - 17
Emerging Markets Poten-
tial
Market size – population, energy production or consumption
Market growth rate – GDP growth
Market intensity – wealth or buying power of expenditure,
per capita private consumption/per capita GDP at PPP
Market consumption capacity – spending capacity, % of a
market’s middle class population
Commercial infrastructure
Economic freedom – trade policy, gov. involvement in market
Market receptivity – market openness, % of international
trade in GDP
Country risk – political, economic risk
12 - 18
Measuring Site Potential
Labor and management
Productivity
Wage levels
Training needs
Local infrastructure
12 - 19
Select the Market or Site
Field trips
Engage in negotiations
Meet customers/others
Gain firsthand exposure
Competitor analysis
Competitor numbers/market shares
Competitor strategies
Channel distribution access
Customer loyalty
Access to inputs
12 - 20
International Market Screening issues
and questions
Market
- Is the target market in early development, growth, maturity or
decline stage?
- Is there sufficient future demand or potential?
- Are there established and adequate distribution channel?
Market entry mode
- What foreign market entry methods are most feasible or suitable?
- Can existing contracts or relationships be used to facilitate
market entry?
- How similar are the culture, values, and attitudes of local cus-
tomers to those of domestic customers in existing market?
- How well understood are differences in the target market com-
pared with existing markets and these differences addressable?
