Analyzing International Opportunities.PPT

* Measuring site potential in step 3 involves determining whether a site can supply adequate resources needed to carry out the proposed business activity. Key issues include: For many companies the most important resources will be labor and management. The productivity and wage levels of local labor and managers. The cost of training local managers, which can mean substantial investments of time and money. And the efficiency of local infrastructures, including roads, bridges, airports, seaports, and telecommunications systems. * In step 4, “select the market or site,” managers perform their final analyses on all remaining locations. Field trips to each remaining site let senior managers engage in any final negotiations, meet potential customers and distributors, and experience the culture firsthand. The firm may also evaluate each location’s potential contribution to cash flows by undertaking a financial evaluation. Competitor analyses typically address the following types of issues: The number of competitors in each market domestic and international and their market shares. Whether each competitor’s product appeals to the entire market or a market segment, and if it is of high quality or low price. Competitors’ control of channels of distribution and customer loyalty. Access to production inputs, such as labor, capital, and raw materials. * International market research supplies information on local cultural practices, regulations, economy, market potential, buyer behavior, logistics, and other factors. Market research helps managers to design marketing strategies and understand buyer preferences and attitudes when selecting a new market. It informs managers about employment levels, wage rates, and the local infrastructure when exploring a potential new site for operations. Findings of good research are timely and relevant to decision making and help a company anticipate shifts in markets, regulations, and the potential entry of new competitors. * The unique circ