Market selection for international expansion: Assessing opportunities in emerging markets

Abstract

Purpose - Traditional market selection analysis relies on purely macroeconomic and political factors and fails to account for an emerging market's dynamism and future potential. The objective of this paper is to present a tool composed of four criteria specific to the preliminary assessment of emerging markets (EM) as international expansion opportunities. Design/methodology/approach - Based on the literature pointing out the limitations of international market selection (IMS) models and the need for a specialized approach, additional criteria are introduced to assess emerging market potential. Review of prior work on internationalization, EM and market selection provided the rationale for the selected criteria. Using secondary data and primary data from a sample of 500, the proposed criteria are applied to the assessment of an emerging market for US apparel specialty retailers. Findings - Assessment of the emerging market with the criteria introduced revealed growth and sourcing opportunities that might otherwise have been overlooked. Case application exposed strong future market potential, manageable level of cultural distance, supportive and developing local industry and positive customer receptiveness for foreign products and business. The findings illustrate the need to improve and supplement assessment criteria of traditional analysis for EM. Research limitations/implications - Follow-up studies validating, integrating and determining the relative importance of the criteria introduced will contribute to the development of an assessment model for EM. Practical implications - A useful complementary tool for international marketers. Originality/value - The paper develops the body of knowledge on IMS by addressing the shortcomings of traditional analysis and expands the two prior studies on emerging market potential. © Emerald Group Publishing Limited.