Tools for selection of International

Markets
 Strategic Planning

 It is the management
task concerned with the
growth and future of
business enterprise.

 It provides the route

map for the firm and
helps to take decision in
the future with a greater
awareness
 BCG & GE Matrix
Relative Position
(Market Share) Business Strength

Market Attractiveness
Market Growth
 Tools for International Market Analysis

Market attractiveness & Competitive strength is also important.

 Classification
Business Strength
Strong Medium Weak
5.00
High
Market Attractiveness

3.67
Medium

2.33
Low

5.00 3.67 2.33 1.00

 Market Attractiveness

 Annual market growth rate

 Overall market size
 Historical profit margin
 Current size of market
 Market structure
 Market rivalry
 Demand variability
 Global opportunities
 Business Strength

 Current market share

 Brand image
 Brand equity
 Production capacity
 Corporate image
 Profit margins relative to competitors
 R & D performance
 Managerial personal
 Promotional effectiveness
 Strategies
 Protect Position
• Invest to grow
• Effort on maintaining strength

 Invest to Build
• Challenge for leadership
• Build selectively on strength

 Build Selectively
• Invest in most attractive segment
• Build up ability to counter competition
• Emphasize profitability by raising productivity
 Strategies
 Protect & Refocus
• Manage for current earning
• Defend strength
 Selectivity for Earning
• Protect existing program
• Investments in profitable segments
 Build Selectively
• Specialize around limited strength
• Seek ways to overcome weaknesses
• Withdraw if indication of sustainable
growth are lacking
 Strategies
 Limited Expansion for Harvest
• Look for ways to expand

withoutfor
 Manage high risk
Earnings
• Protect position in profitable segment
• Upgrade product line
• Minimize investment
 Harvest
• Sell at time that will maximize cash value
• Cut fixed costs and avoid investment
meanwhile
 Overview
High Business Strengths Low

High

Attractive
Market Attractiveness

Moderate
Attractive

Unattractive

Low
 BCG v/s GE
BCG GE
Market Growth Market
Attractiveness
Market share
Market strength
4 cell 9 cell
Multi Products Multi Business
Units
Primary tools Secondary tools