Market attractiveness assessment and entering- How would you enter a market?

Market attractiveness assessment and entering- How would you enter a market?

1. Environmental Scanning

   • Increase in secondary data
     • Data vs Knowledge

2. Market Screening

   • Basic
     • Is there a demand?
     • Use Import data and other sales data as a guide
   • Economic \ Financial
     • Market Indicators
       • Market Factors
       • Market Size
       • Market growth rate
       • Estimation by Analogy
       • Trend Analysis
     • Growth \ GDP
     • Interest rates
     • Payment habits
     • Exchange Rates
   • Political \ Legal
     • Entry barriers
       • Entry enablers - Enterprise Ireland
     • Profit Remittance Barriers
     • Policy Stability
       • N 11 MKIT
   • Sociocultural
     • Subjective, hard to define
     • CSR policy?
   • Competitor Analysis
     • Number, Size, Financial Strength
     • Market Shares
     • (Marketing) Strategies
     • Quality Levels
     • Production Sources
       • Local
       • Imported
     • Pricing Policy
     • Level of After Care
     • Distribution
     • Market Coverage
     • Strategic Canvas
   • Final decision
     • Make Personal visit to Market
       • Trade fair
       • Govt Trade Misison
       • Unhurried Field Trips
         • Face to Face Interviews
     • Hire local research groups
     • Hire Local Project Manager
       • Experience of same area or culture
       • Experience in your company or industry

3. Entry Modes

   • Equity
     • Wholly Owned Subsidiary
       • Full ownership
       • Greenfield Site
       • Less Likely (export jobs)
     • Joint Venture
       • IJV
     • Merger \ Acquisition
   • Equity or Non Equity
     • Strategic Alliance
       • Reduced competition \ Collusion
   • Non Equity
     • Licensing
       • Access to patets \ tech
       • Royalties paid (2-5%)
       • Patent Laws being enforced
     • Franchise
       • Franchisee
         • Brand
         • Procedures
         • Suppliers
       • Franchisor
         • Retain rights on strategy
     • Turnkey
     • Exporting
       • Little investment
       • Low risk
       • Indirect through agents
       • Direct (easier www)
     • Contract Manufacturing

4. Type

   • Pioneer
     • Gains market share advantage
     • May not perform as well as followers long term
     • Successful when high barriers exist, strong resources
   • Follower
     • Many by default
     • Let pioneers take risk