Question

list and explain the essential information components for assessing a global market opportunity

Answer 1

Ans.1. Analyze organizational readiness to internationalize.

Analyze organizational readiness to internationalize for providing an objective assessment of preparedness of firm to engage in international business. It can be achieved through examining company strengths and weakness for doing international business, by evaluating availability in the firm of key factors, like Appropriate financial and tangible resources, Relevant skills and competencies, Management’s commitment to internationalization. and Eliminate deficiency that stopping business achieve its goals.

2. Assess the suitability of the firm’s products and services for foreign markets :

Product Suitability by conducting a systematized assessment of offerings of the company for international customers. Evaluate the fit between the offerings and foreign customer needs. For each possible target market, identify the factors that may obstruct market potential. Ascertain how the offering may need to be adapted for each market. Specifically, assess the offering regarding such factors as foreign customer characteristics, channel intermediary requirements, laws and regulations,and nature of competitors

3. Screen countries to identify attractive target markets:

Lower the total number of countries that warrant in-depth investigation as potential target markets to a manageable few. Identify 5 or 6 countries that hold the best potential by assessing each country regarding criteria of  size and growth rate, “market intensity” (buying power of customers), “capacity of consumption ” (growth and size rate of the middle class), receptivity of country to imports, good infrastructure for doing business, economic freedom, and country risk.

4. Assess the industry market potential, or the market demand, for the products or services in selected target markets:

The firm estimates the most likely share of sales that can be achieved in each target country, including consideration of market entry barriers. Firm should develop a three to five-year forecast of industry sales. Assess industry market capability in each market by examining criteria such as Size and growth rate of the market, and industry trends. Tariff and non-tariff trade barriers to market entry. Standards and regulations that affect the industry. Availability and sophistication of distribution. Unique customer requirements and preferences. Industry-specific market potential indicators.

5. Choose qualified business partners, such as distributors :

The firm decides on the type of foreign business partner, clarifies ideal partner qualifications, and then crafts an appropriate market entry strategy. Initially the firm determines what value-adding activities must be performed by foreign business partners, and then seeks the appropriate partners. The firm assesses and selects partners based on criteria such as industry expertise, commitment to the venture, access to channels of distribution ,strength financially, quality staff, and suitable facilities.

6. Estimate company sales potential for each target market:

The firm evaluate the most likely share of industry sales that the company can achieve, over a specific period of time, for each target market. Firm develops three to five-year forecast of its own sales in each target market, based on criteria such as partners capabilities ,distribution access, intensity of competitiveness, pricing and financing, market penetration timetable of the firm and senior managers risk tolerance .