Export Planning How to write an international marketing plan Chapter 4: Country Analysis and Selection Internationalisation of the firm

Export Planning Learning objectives (learning tasks) Ch. 4 At the end of the chapter you are able to: Describe the three phase filter – model as an approach to analyse and select foreign countries/markets; 2. Explain the criteria of the first filter: the pre-filter which provides a rough scan of the market; Explain the criteria of the second filter: filter 1 which provides a detailed analysis of the DESTEP environment of potential countries; Explain the criteria of the third filter: filter 2 which provides a detailed market analysis of the most interesting countries/markets; 5. Prepare a proposal for choosing which country(ies) to start the market entry strategy with.

Export Planning IKEA case Country Year Number of Stores Sweden 1958 16 Norway 1963 5 Denmark 1969 4 Switzerland 1973 6 Germany 1974 40 Australia 1981 3 Canada 1976 11 Austria 1977 6 The Netherlands 1978 11 France 1983 18 Belgium 1984 6 USA 1985 29 UK 1987 13 Italy 1989 13 Hungary 1990 2 Poland 1991 7 Czech Republic 1991 4 Slovakia 1995 1 Finland 1996 2 Spain (mainland) 1996 9 China (PRC) 1998 4 Russia 2000 8 Portugal 2004 1 Japan 2006 2 Country Number of Stores Australia 2 Greece 2 Hong Kong 3 Iceland 1 Israel 1 Kuwait 1 Malaysia 1 The Netherlands 1 Romania 1 Saudi Arabia 2 Singapore 2 Spain 4 Taiwan 4 Turkey 1 United Arab Emirates 2 USA 1

Country Analysis Example PUMA Target: South America 12 countries Middle and low level of economic development Unstable political and economical situation in most countries Lack of information about markets Non-English domestic resources Source: P.Kabanov a.o., students HAN University

Pre-Filter Selection FACTORS: Human development; Environmental (disaster) factors; Import duties and sea delivery cost Football association presence Source: P.Kabanov a.o., students HAN University

Filter 1 Selection FACTORS: Political risk Social structure GDP growth and size Consumption Exchange rate Inflation Ports information Source: P.Kabanov a.o., students HAN University

First country for expansion in South America is Brazil Filter 2 Criteria Weight Argentina Brazil Chile Potential market size (population) 0,2 21,930,540 99,327,027 9,786,759 Potential market size (value), billion $ 26.38 73.95 12.50 Inflation direction 0,1 moderate growth stable Import duties 20% 35% 6% National football team sponsor Adidas Nike Brooks Main competitors representativeness 6 10 Sum of weighted score 1,8 1,7 Rank by sum 2 1 Result   BEST First country for expansion in South America is Brazil Source: P.Kabanov a.o., students HAN University

Export Planning Chapter review questions (10 min.) What are the three steps of the Export Audit – phase? Name the steps and explain them. Explain the three phase filter-model for country analysis and selection Explain the criteria of the filter-model per phase. What is a BERI-analysis / index? Explain and motivate your answer. How could you apply the GE – matrix for country selection?