IBMgmt Transcript for Week 6 - HGU

GLOBAL MARKET OPPURTUNITIES: 

To stay in the competition globally, every company need to serve the international market, and must be localized from translating languages to adapting all contents to meet cultural standards. When the domestic market shows improvement, expanding to an overseas market can be a right step toward seeking continued growth. The initial decision to globalize requires a great deal of planning. A firm that wants to take advantage of expansion must first have a dynamic strategy that is appropriate for its organization and is consistent with its resources and objectives.

 In India products sales is quite good and GDP is increasing. Networking is the main criteria.

QUALITY CONTROL:

In engineering and manufacturing, quality control and quality engineering are used in developing systems to ensure products or services designed and produced to meet or exceed customer requirements. These systems are often developed in conjunction with other business and engineering disciplines using a cross-functional approach. The thorough Research is required.

  

EVALUATING OPPURTUNITIES: 

Evaluating Global Market Opportunities involves a series of processes: 

1.     The Screening Process:

2.     The Selection Process

3.     The Grouping process

 

1.The Screening Process:

Level 1: There is a Macro level Research which identifies preliminary opportunities, such as; Macro General Research Variables: Data to be collected on each country.

  a.     Economic statistical data.

  b.   Political environment and stability.

  c.   Socio-cultural structure & features.

  d.Geographic and climate.

Level 2: Macro Specific 

a. What is the market size and development?

  b.   What is the growth history for like products?

  c.      Availability of market data?

  

Level 3: Micro level Research

a. What are the competition, existing and potential?

  b.    What are the conditions of market entry?

  c.     What is the projected level of sales?

  d.   What is the probable acceptance level of product?

  e.   What is the reliability of information available and gathered?

  f.     What is the cost of entry?

  g.    What is the potential timeline for profit?

  

Level 4: Corporate Factors

a. Once potential targets identified

b. What corporate factors must be considered?

c. For successful implementation.

 

2. The Selection Process:

To develop selection criteria at both macro and micro level.    Requirement is:                 

Market  Indexes: Economist  Intelligence  Unit  - EIU.com, publishes three useful indexes apart from economic data,

  a.         Market Size

  b.         Market  Growth

  c.         Market  Intensity

  

Necessity for on-going screening:

  a.     Once target markets are selected there is a natural tendency to focus on them and ignore others.

  b.     Since the world market is constantly changing, the global marketer should continually screen previously rejected targets.

 

3. The Grouping Process:

a. Many ways to group countries together.

b. Often important to do so to consider as a single market.

    - Major activities affected by grouping: Market Research, Product development & modification, Distribution channels, Promotion and Personal selling.

c. Main reasons for grouping: Economies of scale and Critical mass.