entering the cis market for export
DESCRIPTION
Studying Screening ,Selection and Choosing Entry Mode to export to Commonwealth of Independent States; International Marketing methodologies.TRANSCRIPT
![Page 1: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/1.jpg)
Screening ,Selection and Choosing Entry Mode; (The case of European CIS countries)
Screening ,Selection and Choosing Entry Mode; (The case of European CIS countries)
Maliheh Ghadiri,
Habib Ramezanzadeh,
Kaveh Yazdifar,
Haleh Hamedifard,
Maliheh Ghadiri,
Habib Ramezanzadeh,
Kaveh Yazdifar,
Haleh Hamedifard,
Group 6Group 6
![Page 2: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/2.jpg)
Key globalization decisionsKey globalization decisions
1. Decide whether to enter : Deciding on going international market or not
2. Decide which markets to enter Screening country markets Selecting country markets
3. Decide how to enter Choice of entry mood
4. Deciding entry timing5. Plan marketing programs
Deciding on marketing plan
1. Decide whether to enter : Deciding on going international market or not
2. Decide which markets to enter Screening country markets Selecting country markets
3. Decide how to enter Choice of entry mood
4. Deciding entry timing5. Plan marketing programs
Deciding on marketing plan
![Page 3: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/3.jpg)
IM Strategy Process& Our Focus
IM Strategy Process& Our Focus
Understand the environmental influences on a firm’s international markets
Segment international markets, identify &analyse opportunities
Develop appropriate international marketingstrategies, planning & processes
Decide marketing entry strategies
Build added value through effectivemarketing mix strategies
Feedback & reassesscontinually
![Page 4: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/4.jpg)
1-Why expand internationally?1-Why expand internationally?
limited domestic market opportunities enjoying economies of scale/global
volumes leverage the competencies of the firm stake holder's expectations
limited domestic market opportunities enjoying economies of scale/global
volumes leverage the competencies of the firm stake holder's expectations
![Page 5: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/5.jpg)
2-1-Screening country markets2-1-Screening country markets
Assess the External Environment of each country
PEST Analysis(political, economical, Social, Technological)
Assess the Firm’s Competences & Competitive Power (Internal analysis)
Market knowledge, Porter’s 4P (product, price, place, promotion)
Assess the External Environment of each country
PEST Analysis(political, economical, Social, Technological)
Assess the Firm’s Competences & Competitive Power (Internal analysis)
Market knowledge, Porter’s 4P (product, price, place, promotion)
![Page 6: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/6.jpg)
Selecting country marketsSelecting country markets
![Page 7: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/7.jpg)
External EnvironmentExternal Environment
![Page 8: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/8.jpg)
Competitive PositionCompetitive Position
![Page 9: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/9.jpg)
2-2-Selecting country markets2-2-Selecting country markets
Market EnvironmentCompetitive
Position
Russia 4.67 3.95
Ukraine 3.37 2.9
Georgia 2.63 2.73
Belarus 3.61 2.61
Moldova 1.73 2.3
![Page 10: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/10.jpg)
Market Attractiveness Matrix
5 1
1
5
![Page 11: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/11.jpg)
Attractiveness Results
Country Attractiveness
ch4_6
5
1 15 1.73.3
1.7
3.3Russia
Ukraine
Georgia
Belarus
Moldova
![Page 12: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/12.jpg)
Market Segmentation
Country Markets
Select
Prioritize
AnalyzeApproximately 210 countries
European CIS countries
![Page 13: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/13.jpg)
3.Entry Mode Options
• Exporting
• Contractual Agreements
• Foreign Direct Investments
Internationalization Process
?
![Page 14: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/14.jpg)
Entry Modes: A Decision Framework
How highare Transport costs?
Can Know-howbe licensed
Is tightcontrolrequired
Can know-howbe protected bylicensing contract
Export
InvestmentEntry or JV
Then License
Low
High No
yes
yes
Yes
No
![Page 15: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/15.jpg)
The Internationalization Stages
Internationalization StagesStage 1 – Indirect exporting, licensingStage 2 – Direct exporter, via independent distributorStage 3 – Establishing foreign sales subsidiaryStage 4 – Local assemblyStage 5 – Foreign production
![Page 16: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/16.jpg)
Marketing and direct sale of domestically-produced goods in another country.Does not require that the goods be produced in the target country.No investment in foreign production facilities is required.Low risk of investment
Why Exporting?
![Page 17: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/17.jpg)
Modes of Entry
Cost
Risk
Exporting
Licensing
Franchising
Joint Venture
Wholly OwnedSubsidiary
Low High
High
Acquisition
In general, there is a cost/control tradeoff in choosingwhich mode of entry to use.
![Page 18: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/18.jpg)
4.Deciding entry timing
Waterfall StrategyThe firm gradually moves into overseas markets
Export Expansion Strategies
Sprinkler Strategy
The firm tries to enter several country markets simultaneously or within a limited period of time
![Page 19: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/19.jpg)
The Waterfall Gradual Expansion
Home Country
Other country markets
![Page 20: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/20.jpg)
Home Country
Other country markets
The Sprinkler Simultaneous Expansion
![Page 21: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/21.jpg)
Step 1 Step 2
Identify a potential market
Match needs to abilities
Step 3
Initiatemeetings
Developing an Export Strategy
Step 4
Commit resources
![Page 22: Entering the CIS market for export](https://reader033.vdocument.in/reader033/viewer/2022061212/5495b378b47959fa5e8b4631/html5/thumbnails/22.jpg)
ReferencesReferences
Course Handouts & Articles www.CIA.gov www.en.wikipedia.org
Course Handouts & Articles www.CIA.gov www.en.wikipedia.org