Product factors: Specialized products like IBM Supercomputers may not sell in Bhutan, Burkinafaso Degree of specialization-Pre & post sales services Position in IPLC
Harvest/Divest/Co mbine/License XXXXXXXXXXXXXXX XXXXXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXXXXXX XXXXXXXXXXXXXXX XXXXXXXXX Company Attractiven ess High Low Competitive strength High Low Country Matrix: Invest/Grow Countries:
Call for high level marketing commitments large market can be tapped Harvest/Divest/License/Combine countries:
Countries attractiveness low Growth in market share would demand equal increase in marketing efforts, wiping out any gains Better to sell out Follow a policy which minimizes the investment till operations are abandoned
Dominant/Divest countries High on attractiveness Low on competitive strength Develop competitive strength or sell out Market analysis to reap benefits Selectivity countries Fall in the centre of the matrix Companys position that can be built or break Limited resources to be used meticulously/judiciously Analysis of which segment to be catered to, must be done New products, Innovations, Technology updation Some strategies Reactive vs. Proactive approach Firms receive information about a foreign market, respond in reactive mode Such approach reflects absence of planning Used by small or middle sized firms Short term policy Contrast- Proactive : Japan-Manufactured defected parts(Lighter side) Expansive & Contractible approach Benchmark-Home or other market they are familiar with Expand Nearest neighboring market Environmental proximity Trade policy proximity Temperature gradient approach-moderate-hot & cold countries on the basis of seven variables(political Stability, Economic development & performance, cultural unity, legal barriers, physiographic barriers, geo-cultural difference) Contractible-general market identified, then specific markets evaluated against knock out factors Geographic segmentation: Geo-proximity-Japan & Vietnam, but difference in economic status One fully developed, another one less developed Demographic segmentation: Population-Age, gender, income, education, occupation Different markets different market problems Psychographic segmentation-Attitude, values, life styles 1. Top guns(Ambitious-show off) 2. Elitists( Old classy) 3. Bon Vivants (Thrill seekers) 4. Proud patrons (Brand loyalists) 5. Fantasists (Dont bother)