Here is a short film that summarises some of the basic factors in country choice:
In practice, there are more factors involved than can be captured in a short film. The purpose of the film is to explain how an initial country choice can be made depending on some simple criteria. The film focuses on only two choice factors – country population and wealth – in developing international and global strategy. In practice, there are five main areas in analysing international opportunities:
Customer demand in the main broad geographical areas
Market size, growth and history – including special customers such as large multinationals already involved as customers in a particular region. These factors include, but go beyond, the population and wealth issues identified in the film.
Competitors
Local and international companies already in country markets, their market shares and basic facilities -what major competitive advantages do they have?
International and regional infrastructures
What are the major costs involved in communicating, transporting and distributing in various parts of the world?
Country politics and economic trends
Some basic considerations only at this stage, such as political risk and economic growth – too much to analyse in depth at this stage.
International trade barriers, tariffs and quotas
Are there any major issues here that will support or block the market opportunity?
Conclusion
So what is the market opportunity? And where is it geographically?