Country market studies

Antoine D.

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Country market studies

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Themes

Country market study, potential customers, foreign market, transportation costs, communication, decision-making, methodology, recommendation, business value, market complexity, prioritization matrix, PESTEL analysis, Porter's 5 forces

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Abstract

Knowing why firms go global is only part of the battle, you also need to know where to go. Imagine that you lead a company in the United States, and are responsible for deciding which three countries to enter. First, what types of countries would you choose? What criteria would you use to make that choice? The easiest answer to this question is to enter the country with the largest number of potential customers for your product countries like China and India. However, wise leaders also think about how likely they are to succeed in a particular foreign market. After all, "foreign" means different and different can be difficult to deal with. One way to think about differences is to measure the distance between countries, but not just geographic distance: cultural, administrative and economic distance as well. The smaller the distance between your country and the target country, the greater the likelihood of succeeding.

Principles
1. General features
2. Methodology
3. Deliverables
Select a country
Country study
1. PESTEL analysis
2. Country risks
3. Structure of a country study
Market study
1. Porter's 5 forces
2. Commercial risks
3. Structure of a market study
Recommendations

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[...] Which solutions? NO GO why? Which major risks? Why is there no solution? An in-depth study is necessary why? How? [...]

[...] The central bank freezes currency outflows. The local client's account is debited but the exporter will be paid lately Payment in advance or presentation of an irrevocable and confirmed letter of credit (or bank guarantee, bank deposits) are alternatives as the payment will be made in France by a French bank. Economic: - protectionism French products are subjects to high customs duties Relocate the production in the country or in a third country not submitted to such customs duties Business environment: - foreign investment The Chinese government is slowly liberalizing its policy on foreign investment It remains easier to set up a joint venture ensuring that our Company has the majority of the capital. [...]

[...] It also makes it easier to develop online sale and services. Modes of communication - Social media importance As a result of the Netherland's excellent connectivity, its residents regularly use social media platforms like Facebook, WhatsApp, Instagram and SnapChat. This social media usage allows citizens to stay up to date with the latest news, while also allowing retail companies a unique, powerful customer touchpoint. Natural barriers Mountains Seas Rivers Deserts Micronesia is made of a string of islands, some of them being of little access Distances In miles or kilometers In journey time Natural or artificial obstacles In unsecured zones (some parts of Africa, Iraq, Israel), checkpoints make it necessary to regularly stop for merchandise control Climate Extreme temperatures Recurring weather events cyclones, monsoon, snow) Hemispheres austral winter) A refrigerated container and water-resistant packages are necessary to transport fresh goods to tropical countries Infrastructure and connections Structure and development of ports: deep-sea port, facilities for containerships Airports: facilities for jumbo jets Road network Railways and piggyback The deep-sea port project of Enfidha in Tunisia will enable the country to meet external trade requirements and ensure the economic development of the country. [...]

[...] One way to think about differences is to measure the distance between countries, but not just geographic distance: cultural, administrative and economic distance as well. The smaller the distance between your country and the target country, the greater the likelihood of succeeding. Geographic distance literally means how many miles separate two countries. Companies are more likely to succeed in nearby countries because physical proximity lowers both transportation and communication costs. That's why most US companies expand first to Canada and Mexico. [...]

[...] Principles General features A country market study serves as a support for decision-making. It enables the managers to make an informed decision on whether to implement activities in a new country or not. The aim is to get information on the targeted country and its market in order to assess the commercial opportunities and risks and prioritize if several countries are studied. To do so, a pre-study or general study can be carried out first to have a general outlook. [...]

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