Foreign Market Opportunity Assessment and Market Selection: An Industry Perspective

摘要

Identification and selection of the best foreign markets is essential for the success of internationally expanding firms. Yet, determining which markets best suit a company is not a straightforward task. This study addresses the question of how managers should go about evaluating and identifying target markets for their businesses. We take a new perspective in the foreign market opportunity assessment and selection by emphasizing the industry potential rather than the established country-level criteria in the literature. We propose a practical, flexible, and forward-looking, three-stage template for assessing foreign market opportunities and identifying best markets. The three stages include: determining country responsiveness for a specific industry, estimating future industry growth, and incorporating an industry-relevant aggregate measure. We illustrate the template with a real-industry application.