COMMERCE 4SA3 : Chapter 12.docx
5 Mar 2012
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Chapter 12: strategies for analyzing & entering foreign markets. In deciding whether and how to enter a market, a firm will match its internal strengths and weaknesses to the unique opportunities and needs of that market. In order to successfully increase markets share, revenue, and profits in a new market, firms must follow. 3 steps: assess alternative foreign markets, evaluate the costs, benefits and risks of entering each market, select the market with the most potential for entry or expansion. The firm must consider several factors including: market potential, levels of competition, legal and political environment and sociocultural influences. Market potential is dependent upon the positioning of the firms products relative to those of its competitors. A firm must collect data relevant to the specific product line under consideration. Firms must also consider the potential for growth in a country"s economy by using both objective and.
