Global Market Participation
Global Market Participation
Global Market Participation
Global
Market
Participation
Internationalizing
-Is the term use for a firms expansion from its domestic market
into foreign markets
-Is a strategic decision that affects any firm, including its
operation and management
Born-Globals
-term referring to a firm that establishes
marketing and other businesses operations
abroad upon formation of the firm or
immediately thereafter.
-this is the organizations that from inception,
seeks to derive significant competitive
advantage from the use of resources and the
sale of outputs in multiple countries.
Lead Markets
- Countries or regions that posses major
research and development sites for an industry
or are recognized for being trendsetters.
Developing Countries
Transitional Economies
Richest market
Poor markets
Potential sources of
major profits
Great variation in
national markets
Lead markets
Educated population
Cultural distance is
higher for triad firms but
lower for regional
competitors
Government incentives
may be available for less
attractive markets
Some developing
countries emerging as
lead markets and home
markets of global
competitors
Developed
countrieshave
post-industrial
economies,meaningthe service sector provides more
wealth than the industrial sector. They are contrasted
withdeveloping countries, which are in the process of
industrialization, or undevelopedcountries, which are
pre-industrial and almost entirely agrarian.
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Developed Countries:
United States 6. Netherlands
Canada 7. Sweden
United Kingdom8. Switzerland
Germany
9. Japan
France 10. Australia
Developed
economies
account
for
a
disproportionately large share of world gross
national product (GNP) and thus tend to attract
many companies. Competition from both
international firms and local companies is usually
more intense in these markets, developed
countries are often deemed to be more
standalone attractive than are most developing
countries.
Three parts of the triad:
1. United States
2. Europe
3. Japan
Middle-class consumers
- are appearing in markets once seen as consisting
of a small elite and a large impoverished
underclass.
Developing Countries:
* Latin America * Middle East
* Africa * some parts of Asia
BRIC
- Brazil, Russia, India and China
Macroindicators
- describe the total market in terms of economic,
social, geographic, and political information.
- This data are useful in estimating the total
market size of a country or region
2. The screening process focuses on microlevel
considerations, such as competitors, ease of entry,
cost of entry and profit potential.
3. Evaluation and rank-ordering of the potential
target countries on the basis of corporate
resources objectives and strategies.
Political Conditions
Market Similarity
-managers believe that their success in the
home market is more easily transferrable to
markets similar to the one in which they already
compete.
Psychic Distance the perceived degree of
similarity between markets.
Two dangers of choosing markets on the basis of
similarity:
1. The benefits of similarity need to be balanced
against the market size.