MANAGEMENT

Analytical Report - Analysing Market Entry Potential

Executive Summary

This research paper is aimed at providing theoretical background to organisations entering in international markets. The first part of the paper is aimed at discussing the analytical tools which managers and decision makers can utilize in assessing the attractiveness of the potential markets. The second part is aimed at discussing the analytical tools on which managers can analyse the potential capabilities of the organisations and whether the company possess the required strengths to capitalise the said opportunities in foreign market. This can translate into the fact that whether the company is endowed with enough financial prowess and managerial expertise to open foreign offices. The last section of the paper discusses the market entry modes for organisations entering the international market. This part discusses the Direct and Indirect entry strategies, and includes comprehensive options such as Exports, Licences, International Franchise, Acquisition, and Joint Ventures.

Table of Contents

Executive Summary1

Analytical Report - Analysing Market Entry Potential4

Introduction4

TASK 1 - Strategic Tools for Assessing and Analysing the Attractiveness of the Market4

Market Research or Analysis4

PESTEL Analysis5

Weaknesses of PESTEL Analysis6

Competitive Analysis7

Weaknesses of Competitive Analysis9

TASK 2 - Analytical Tools for Assessing the Internal Capability of an Organisation to Gauge Entry into a Potential Market10

SWOT Analysis10

Weaknesses of SWOT Analysis13

TASK 3 - Market Entry Modes for International Expansion13

Market Entry Strategy14

1.Direct Market Entry Strategy14

2.Indirect market entry strategy14

1.Independent Agent15

2.Foreign trade companies15

3.Export Consortia16

1.License17

2.International Franchise17

1.Production contract17

2.Contract management18

1.New investment18

2.Acquisition18

3.Joint Ventures19

Conclusion19

References20

Analytical Report - Analysing Market Entry Potential

Introduction

Various factors, such as globalisation, technological advancements, contracting domestic markets, competitive pressures, and unmet demand in foreign markets is compelling entrepreneurs and organisations to undertake international expansion. However, the international expansion is not an easy task and there are various steps in planning out and executing successful market entry.

TASK 1 - Strategic Tools for Assessing and Analysing the Attractiveness of the Market

Market Research or Analysis

Market analysis is focused on the analysis of the industry based on that take place in real time (i.e. dynamic) aspects of competitive events related to the 4P marketing mix (price, place, promotion and product) to market a product or service, in order to better understand the attractiveness the market. Analysis of the market as a strategy based on the time used by managers in marketing and sales in order to contribute to the rapid response of consumers in a dynamic, vertical (i.e. industry) market. Craig Fleisher suggests that this method is not as widely used as other forms of competitive analysis, which are implemented by other (non-marketing) decision-makers. Analysis of the market is also characterized by a shorter time horizon of the analysis of competition, and the action close within days, weeks, or in some areas of the economy, a few months (Kretzberg 2007, 220 - 245).

Marketing research is a tactical, methodical area, which includes most of the original neutral analysis that examine consumers through their beliefs and perceptions, and which is collected through surveys and focus groups and analyzed using statistical testing techniques. Competitive analysis, on the contrary, uses a larger number of sources (both primary and secondary), involving ...