Country Market Selection in International Expansion Using Multicriteria Decision Aiding Methods

• Authors: Dorota Górecka , Małgorzata Szałucka
• Languages of publication: EN

Abstracts

EN

Companies, facing globalization and technological revolution, are constantly forced to search for new ways to grow and develop. A profitable growth strategy can be built through international expansion. Recently it has become one of the few effective ways to develop and enhance the competitiveness of a company in response to the changing dynamics of the global economy. When a company is expanding its business operations to overseas markets a number of strategic decisions must be taken. The company must define the product it wants to market (what), the country market it wants to enter (where), the timing of entry (when) and the entry mode it wants to use (how). Consequently, the country market selection plays a critical role in shaping the performance of foreign activities and influences the future success of the company. This is a complex and difficult decision, requiring the company to analyse a wide spectrum of factors that affect both investment efficiency and effectiveness. The location selection in international expansion may be determined by general macroeconomic factors, demand factors, socio-political factors or cost factors. The purpose of this paper is to conduct a simulation of the market selection decision with the help of multi-criteria decision aiding methods based on the perspective of a dynamically developing company that is a leading manufacturer and distributor of hygiene, cosmetic and medical products.

Keywords

EN

Business strength; International market; Statistical methods

PL

Metody statystyczne; Pozycja przedsiębiorstwa na rynku; Rynki międzynarodowe

• Publisher: Uniwersytet Ekonomiczny w Katowicach
• Journal: Multiple Criteria Decision Making
• Year: 2013
• Volume: 8
• Pages: 32-55

Contributors

author

Dorota Górecka

author

Małgorzata Szałucka

References

• Albaum G., Duerr E. (2008), International Marketing and Export Management, 6th ed., Pearson Education Limited, Essex.
• Brans J.P., Vincke Ph. (1985), A Preference Ranking Organization Method: The PROMETHEE Method for Multiple Criteria Decision-Making, Management Science, 31, p. 647-656.
• Brans J.P., Vincke Ph., Mareschal B. (1986), How to Select and How to Rank Projects: The PROMETHEE Method, European Journal of Operational Research, 24, p. 228-238.
• Cavusgil S.T. (1985): Guidelines for Export Market Research, Business Horizons, November-December.
• Cavusgil S.T. (1997), Measuring the Potential of Emerging Markets: An Indexing Approach, Business Horizons, January-February.
• Cavusgil S.T. (2004), Complementary Approaches to Preliminary Foreign Market Opportunity Assessment: Country Clustering and Country Ranking, Industrial Marketing Management, Vol. 33.
• Cooper R.G., Kleinschmidt E.J. (1985), The Impact of Export Strategy on Export Sales Performance, Journal of International Studies, Spring.
• Diakoulaki D., Koumoutsos N. (1991), Cardinal Ranking of Alternative Actions: Extension of the PROMETHEE Method, European Journal of Operational Research, 53, p. 337-347.
• Douglas S.P. et al. (1982), Approaches to Assessing International Marketing Opportunities for Small-and Medium-sized Companies, Columbia Journal of World Business, Vol. 17, No. 3.
• Dunning J.H. (1988), The Theory of International Production, The International Trade Journal, Vol. 3, No. 1.
• Dunning J.H. (1993), Multinational Enterprises and the Global Economy, Addison-Wesley Publishing Company, Wokingham.
• Gaston-Breton Ch., Martin Martin O. (2011), International Market Selection and Segmentation: A Two-stage Model, International Marketing Review, Vol. 28, No. 3.
• Górecka D. (2009), Wielokryterialne wspomaganie wyboru projektów europejskich, TNOiK "Dom Organizatora", Toruń.
• Górecka D., Pietrzak M.B. (2012), Zastosowanie metody PROMETHEE II w procesie rankingowania projektów europejskich w ramach Regionalnego Programu Operacyjnego Województwa Kujawsko-Pomorskiego na lata 2007- 2013, in: Modelowanie Preferencji a Ryzyko '12, Zeszyty Naukowe Wydziałowe Uniwersytetu Ekonomicznego w Katowicach, p. 97.
• The Heritage Foundation, www.heritage.org (10 March 2013).
• Hinkle D. (1965), The Change of Personal Constructs from the Viewpoint of a Theory of Construct Implications, Ph.D. Dissertation, Ohio State University, Ohio.
• The Hofstede Centre, geert-hofstede.com (10 March 2013).
• Johanson J., Vahlne J.E. (1977), The Internationalization Process of the Firm - A Model of Knowledge Development and Increasing Foreign Market Commitments, Journal of Business Studies, Vol. 8, No. 1.
• Johanson J., Vahlne J.E. (1990), The Mechanism of Internationalization, International Marketing Review, Vol. 7, No. 4.
• Johanson J., Wiedersheim P.F. (1975), The Internationalization of the Firm - Four Swedish Cases, The Journal of Management Studies, Vol. 12, No. 3.
• Koch A.J. (2001), Selecting Overseas Markets and Entry Modes: Two Decision Process or One? Marketing Intelligence & Planning, Vol. 19, No. 1.
• Kotler P. (2005), Marketing, Rebis, Poznań.
• Kumar V. et al. (1994), An Interactive Multicriteria Approach to Identifying Potential Foreign Markets, Journal of International Marketing, Vol. 2, No. 1.
• Morosini P. et al. (1998), National Cultural Distance and Cross-border Acquisition Performance, Journal of International Business Studies, Vol. 29, p. 37-58.
• Natarajarathinam M., Nepal B. (2012), A Holistic Approach to Market Assessment for Manufacturing Company in an Emerging Economy, Industrial Marketing Management, Vol. 41.
• Papadopoulos N. et al. (2002), Toward a Tradeoff Model for International Market Selection, International Business Review, Vol. 11.
• Papadopoulos N., Denis J.E. (1988), Inventory Taxonomy and Assessment of Methods for International Market Selection, International Marketing Review, Autumn.
• Papadopoulos N., Martin Martin O. (2011), International Market Selection and Segmentation: Perspectives and Challenges, International Marketing Review, Vol. 28, No. 2.
• Porter M.P. (2001), Porter o konkurencji, Polskie Wydawnictwo Ekonomiczne, Warszawa.
• Rogers M., Bruen M. (1998), A New System for Weighting Environmental Criteria for Use within ELECTEE III, European Journal of Operational Research, Vol. 107, No. 3.
• Root F.R. (1994), Entry Strategies for International Markets, Jossey-Bass, San Francisco.
• Russów L.C., Okoroafo S.C. (1996), On the Way Towards Developing a Global Screening Model, International Marketing Review, Vol. 13, No. 1.
• Saaty T.L. (2006), Fundamentals of Decision Making and Priority Theory with the Analytic Hierarchy Process, Vol. VI of the AHP Series, RWS Publications, Pittsburgh.
• Saaty T.L., Vargas L.G. (1991), The Logic of Priorities. Applications of the Analytic Hierarchy Process in Business, Energy, Health & Transportation, Vol. III of the AHP Series, RWS Publications, Pittsburgh.
• Sakarya S. et al. (2007), Market Selection for International Expansion. Assessing Opportunities in Emerging Markets, International Marketing Review, Vol. 24, No. 2.
• Samli A.C. (1977), An Approach For Estimating Market Potential in East Europe, Journal of International Business Studies, Vol. 8, No. 2.
• Schroeder J. (2007), Badania marketingowe rynków zagranicznych, Akademia Ekonomiczna, Poznań.
• Sheng S.Y., Mullen M.R. (2011), A Hybrid Model for Export Market Opportuniy Analysis, International Marketing Review, Vol. 28, No. 2.
• Stonehouse G. et al. (2001), Globalizacja. Strategia i zarządzanie, Wydawnictwo FELBERG SJA, Warszawa.
• Toruńskie Zakłady Materiałów Opatrunkowych, www.tzmo-global.com (9 March 2013).
• Vernon R. (1996), International Investment arid International Trade in the Product Cycle, The Quarterly Journal of Economics, No. 2.
• Whitelock J., Jobber D. (2004), An Evaluation of External Factors in the Decision of UK Industrial Firms to Enter a New Non-domestic Market: An Exploratory Study, European Journal of Marketing, Vol. 38, No. 11/12.
• World Bank, www.worldbank.org (10 March 2013).

Identifiers

ISSN

2084-1531