Competing in international markets

Determining Competitive Advantage Distinctive competences CompetitionInternal factorsExternal factors Market Attractiveness Competitive Strengths Critical success factors After Dahringer and Muelbacher

Market attractiveness Size of total market Demand indicators Growth Structure - oligopolistic, fragmented, gaps? Segmentation – needs, purpose, affordability, specialisation Political/legal barriers

Competitive strengths Technology Quality Image Market focus Price

Countering competitors Terpstra p 171 Three generic strategies - based on Porter Low cost producer Differentiated products Focus –on protected markets –on national loyalty - champions –on under-served segments

Compete or co-operate? Value-added chain analysis –where does your distinctive competence lie? Use existing distribution and retail networks? Offer your product to existing suppliers as an extra part of their range?

Competing in local markets Johansson (1997) Mature markets eg Europe, US, Japan aim -compete for market share identify competitive strengths focus on fragmenting specialist tastes –exotic value –brand image –customer satisfaction

New Growth Markets Eg Latin America, Central Europe Aim -participate in growth Appeal of foreign products/global brands Focus on minority educated middle-class Focus on youth markets

Emerging markets Africa, Eastern Europe aim - develop new market first mover advantage consider counter-trade - payment in kind to set up networks basic low-cost versions target small urban elite