What are the factors that influence the attractiveness of a country as a market? How can you do the analysis to select a market to enter?
1. Market size (total and segments)
2. Market growth (total and segments)
3. Competitive conditions
4. Markets uncontrollables (political, economic, and cultural factors)
It is pretty clear that businesses prefer a country that is less costly, more profitable, and has fewer risks. Cost considerations are related with investment. Profitability is dependent on resources. Risks are associated with the environment and hence it is of prime concern.
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International Market Entry Strategies
- What is the establishment chain model?
- What are the market entry objectives?
- What is a wholly-owned subsidiary and what are the benefits of it?
- What are the factors that influence the strength of a company in a particular market?
- Why are strategic alliances popular and why do companies enter into these agreements?
- Why are joint ventures popular?
- How will entry into a developed foreign market differ from entry into a relatively untapped market?