I want to export but where to? A proposed method for selecting international markets

Authors

DOI:

https://doi.org/10.14211/regepe.e1945

Keywords:

Selection of international markets, International market segmentation, internationalization of companies

Abstract

Objective: to develop a suitable method for selecting international markets in order to meet firms’ needs. Methodology/approach: this is a technological paper, which has established a target market in Africa, with great potential for attractiveness and accessibility. Therefore, the ranking method, preceded by a cut-off line (clustering) of countries that did not meet minimum requirements, was applied through the decision matrix tool. Main results: the market selection started with the definition of the African continent and the 49 clustered countries, and then the unattractive ones were excluded, resulting in South Africa, Angola, Algeria, Egypt and Morocco. After applying ranking, Angola was the target market chosen for export. Theoretical/methodological contributions: the contribution is made through the use of a blend of methods – clustering and ranking – to select the target market, according to objective criteria. Relevance/originality: in view of the existing international market selection models, the proposed method stands as an improvement, as it brings two differentials – clustering as a cut-off line and the decision matrix as a tool for ranking countries. Managerial contributions: the indication of a simple and accessible method, capable of contemplating the specificity of attractiveness and accessibility of a given product, with the selection of international markets based on objective and not merely intuitive criteria, in order to increase its assertiveness.

JEL CODE: M16

Downloads

Download data is not yet available.

Author Biographies

Beatrice Maria Zanellato Fonseca Mayer, University of Vale do Itajaí (UNIVALI), Itajaí, SC, Brazil

is a doctoral student in Administration at the University of Vale do Itajaí (PPGA/UNIVALI), Master in Administration at the Federal University of Santa Catarina (PPGA/UFSC) and graduated in Administration with a Qualification in Foreign Trade at UNIVALI. She has professional experience as an analyst and consultant in the area of international business with a focus on internationalization of companies and also as a researcher and professor in Business Administration courses, at the undergraduate and graduate levels.

Pâmela Martini, University of Southern Santa Catarina (UNISUL), Florianópolis, SC, Brazil

has a Master's degree in Marketing from the University of Coimbra, Portugal, and a degree in International Relations from the University of Southern Santa Catarina - UNISUL, with an extension to the AMICUS program at the University of León / Spain. She has professional experience in the field of foreign trade.

Rejane Roecker, University of Southern Santa Catarina (UNISUL), Florianópolis, SC, Brazil

holds a Ph.D. in Administration from the University of Vale do Itajaí (PPGA/UNIVALI), Master and Bachelor in Administration from the Federal University of Santa Catarina (PPGA/UFSC). She has professional experience in Project Management with business consulting and market research. Professor at the University of Southern Santa Catarina, in the courses of Administration, International Relations and Production Engineering, at undergraduate and graduate levels.

References

Al Qur’an, M. (2020). Success factors influencing the selection of the location of international firms. Competitiveness Review: An International Business Journal, 30(5), 665-679. https://doi.org/10.1108/CR-05-2018-0030

Apex-Brasil. (2018). Painéis de Inteligência de Mercado. Agência Brasileira de Promoção de Exportação e Investimentos. Recuperado de https://paineisdeinteligencia.apexbrasil.com.br/#

Carneiro, J., & Dib, L. A. (2007). Avaliação comparativa do escopo descritivo e explanatório dos principais modelos de internacionalização de empresas. Revista Eletrônica de Negócios Internacionais (Internext), 2(1), 1-25. http://doi.org/10.18568/1980-4865.211-25

Cavusgil, S. T., Kiyak, T., & Yeniyurt, S. (2004). Complementary approaches to preliminary foreign market opportunity assessment: Country clustering and country ranking. Industrial Marketing Management, 33(7), 607-617. https://doi.org/10.1016/j.indmarman.2003.10.005

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business: The new realities. Melbourne, Australia: Pearson.

Centro Internacional de Negócios (CIN/RS). [2021]. Home. Recuperado de https://www.fiergs.org.br/servicos/centro-internacional-de-negocios-cinrs

Jardon, C. M. (2018). Location and competitiveness in subsistence small businesses. Competitiveness Review: An International Business Journal, 28(2), 155-171. https://doi.org/10.1108/CR-11-2016-0075

Koch, A. J. (2001). Selecting overseas markets and entry modes: two decision processes or one? Marketing Intelligence & Planning, 19(1), 65-75. https://doi.org/10.1108/02634500110366120

Nunes, M. P., & Lequain, L. de S. (2017). A utilização da inteligência competitiva na seleção de mercados para exportação: Uma análise comparativa de quatro métodos. Internext, 11(3), 22-35. http://doi.org/10.18568/1980-4865.11322-35

Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship theory and practice, 29(5), 537-553. https://doi.org/10.1111%2Fj.1540-6520.2005.00097.x

Ozturk, A., Joiner, E., & Cavusgil, S. T. (2015). Delineating foreign market potential: A tool for international market selection. Thunderbird International Business Review, 57(2), 119-141. https://doi.org/10.1002/tie.21686

Papadopoulos, N., Chen, H., & Thomas, D. R. (2002). Toward a tradeoff model for international market selection. International Business Review, 11(2), 165-192. https://doi.org/10.1016/S0969-5931(01)00054-3

Papadopoulos, N., & Martín, O. M. (2011). International market selection and segmentation: perspectives and challenges. International Marketing Review, 28(2), 132-149. https://doi.org/10.1108/02651331111122632

Ramadani, V., Zendeli, D., Gerguri-Rashiti, S., & Dana, L. P. (2018). Impact of geomarketing and location determinants on business development and decision making. Competitiveness Review: An International Business Journal, 28(1), 98-120. https://doi.org/10.1108/CR-12-2016-0081

Rocha, A., Ferreira, J. B., & da Silva, J. F. (2012). Administração de marketing: conceitos, estratégias, aplicações. São Paulo: Atlas.

Schu, M., & Morschett, D. (2017). Foreign market selection of online retailers – A path-dependent perspective on influence factors. International Business Review, 26(4), 710-723. https://doi.org/10.1016/j.ibusrev.2017.01.001

Sousa, C. M., & Bradley, F. (2005). Global markets: does psychic distance matter? Journal of Strategic Marketing, 13(1), 43-59. https://doi.org/10.1080/0965254042000328668

The World Factbook. (2014). Explore All Countries. Recuperado de https://www.cia.gov/the-world-factbook/countries/

Tran, H. T. (2019). Institutional quality and market selection in the transition to market economy. Journal of Business Venturing, 34(5), 105890. https://doi.org/10.1016/j.jbusvent.2018.07.001

Published

2021-09-01

How to Cite

Mayer, B. M. Z. F., Martini, P., & Roecker, R. (2021). I want to export but where to? A proposed method for selecting international markets. Iberoamerican Journal of Entrepreneurship and Small Business, 10(3), e1945. https://doi.org/10.14211/regepe.e1945

Issue

Section

Technology articles