L3: Market Selection and Entry Strategies

These flashcards cover key terms and concepts in strategic marketing related to international market entry and risk management.

International Market Screening

The process of identifying and evaluating potential foreign markets for expansion based on specific criteria.

PESTEL Analysis

A framework for screening based on Political, Economic, Social, Technological, Environmental, and Legal factors.

Market Attractiveness Criteria

Factors such as market size, growth rate, competition, entry costs, and risk levels used to evaluate foreign markets.

Macro vs. Micro Screening

Macro screening involves broad indicators like GDP, while micro screening focuses on specifics like target audience and distribution.

Hofstede's Cultural Dimensions

A framework to evaluate cultural compatibility, including aspects like power distance and individualism.

Porter's Five Forces

A model used to analyze the competitive landscape, assessing threats and bargaining power in the market.

CAGE Distance Framework

A tool for assessing cultural, administrative, geographic, and economic distances between home and target countries.

SWOT Analysis

A strategic tool that identifies Strengths, Weaknesses, Opportunities, and Threats in the business context.

Entry Modes

Strategies used by businesses to enter foreign markets, including exporting, licensing, and joint ventures.

Wholly Owned Subsidiaries

A mode of entry where a company maintains full control over operations by owning the foreign entity.

Strategic Alliances

Partnerships between companies to achieve mutual goals in foreign markets, which may include equity or non-equity arrangements.

Risk Management

The process of identifying, assessing, and mitigating risks associated with international operations.

Economic Risk

Risk associated with exchange rate volatility, inflation, and economic downturns affecting international business.

Direct Investment

A hierarchical entry mode involving the establishment of wholly-owned subsidiaries in foreign markets.

Joint Ventures

Collaborative arrangements where two or more companies share resources and risks to pursue opportunities.

Franchising

A business model that allows local operators to use a company's brand and business model in exchange for fees or royalties.

Licensing

A mechanism where a brand owner allows a foreign company to manufacture and sell products under their trademark.

Pilot Testing

The process of introducing a product in a new market on a limited scale to evaluate its potential success.

Performance Indicators

Metrics used to measure the success of a business operation, particularly in new market entries.