External analysis - country and market selection

5 important questions on External analysis - country and market selection

For most countries, the majority of trade is done with countries in the same trade block, for exemple trade within the EU. Many companies choose to sell to neighboring countries  because they think they have a better undstanding of the culture. When an export market is close to home distribution costs are kept relatively low. Therefore, the typical exporter slects a market on the basis of the following criteria....

- It is nearby, allowing him to manage it himself
- It has a culture basically similar to the export country so there are no unpleasant suprises, or
- It holds opportunities that may lead to expanding export to alle corners of the world 

Your first selection of promising countries may be fairly broad but then you begin narrowing the focus to identify which contries need further research. This screening process has several phases. Selecion criteria should be concrete, each one should also meet the following requirements;

- Quantifiable = it must be expressed in numbers or money, which makes it measurable 
- Relevant = it needs to deliver useful information
- Discriminating = it must make it possible to distinguish the good from the bad. 

with wich sort of research do you start?

deskresearch

  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

How to acquire information

Desk research: can be done in house
Field research : must be done in the export market itself

Markets equal people. Ultimately your focus is on the final consumer, also known as the end-user. Your target market consits of people who need or desire the product and are willing to pay a fair price for it (buyers = users).  


Market selection can be divided in two phases based on:

1. Macro-economic criteria = general data about the economy of target countries/markets.
2. Meso-economic criteria = in-depth data related to economic factors in specific sectors. 

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo