Assessing International Markets

Abstract

It is important for companies seeking to develop their business in international markets to understand the full environment in which business opportunities are pursued in. A quantification of information on the target market, its environments and also its players are crucial to derive level-headed decisions on future engagements in markets. Generic data is typically available on a macro level, the task in an assessment is to make this generic data fit the company’s own setting and its offering. An assessment of the supply chain on a meso level, including (production-)materials and also services, the competitor market as well as the customer market are of importance. A differentiation on the various strata of markets makes the task of an assessment manageable. In addition to the numbers on the markets, a solid view on the qualities of the market has to be developed. Potential reactions and actions by other players upon a market entry, the use of social capital and affiliated existing networks need to be considered. Knowing the external circumstances in a target market, a closer look at a company’s own abilities is required. This includes abilities to internationalize. An internal view will provide valuable insights for decision making towards any internationalization. This internal view pertains to the company business itself as well as the product offering. Capacity (quantity of resources) and capability (quality of the resources) are important factors to consider. Merging the external and internal assessment, using appropriate tools, will lead to sound decision on any international development of business efforts.