International Marketing

Global Entrepreneurships

udayyadkikar@gmail.com
 International Entrepreneurship
• International Entrepreneurship: refers to the
“discovery, evaluation and exploitation of
market opportunities.”
The Nature of International Entrepreneurship

• International entrepreneurship is the process of

an entrepreneur conducting business activities
across national boundaries.
– The activities necessary for ascertaining and
satisfying the needs and wants of target consumers
take place in more than one country.
• With a commercial history of only 300 years,
the United States is a relative newcomer to the
international business arena.
 Introduction
• Entrepreneurs find it difficult to both manage
and expand the venture they created.
• To expand a venture, entrepreneurs need to:
– Identify opportunities for domestic and
international expansion.
– Develop different management skills.
– Infuse new entrepreneurial spirit
(entrepreneurship).
 International Entrepreneurship
• Entrepreneur: person who creates new
ventures that seek profit and growth
- Faces risks and uncertainty of new and untested
business
• New ventures: entering a new market
- Offer a new product or services
- Introduce a new method technology or innovative
use of raw materials
 Why is International Entrepreneurship
important?
• Most experts consider entrepreneurship the driving
force of all small businesses
• If we want to get a complete understanding of small
businesses in any nation, we need to examine the
level of entrepreneurship in that country
• Entrepreneurship is also seen as the driver of
innovation and economic development for any
nation
• Entrepreneurship not only creates new job but also
generates new wealth and growth
 Motivations to Go Global
 Profits.
 Competitive pressures.
 Unique product(s) or service(s).
 Excess production capacity.
 Declining home country sales.
 Unique market opportunity.
 Economies of scale.
 Technological advantage.
 Tax benefits.
 Things to Consider Before Going Global

When entrepreneurs think about going global

they should make sure they have:
solutions
a new idea
a market for the product or service
the ability to handle risk and frustration
good contacts in other countries
 Things to Consider Before Going Global
• Conduct Market Research
– Is there a need for your product/service?
– Do you need to make any modifications in order to
sell in in foreign market?
– Can you solve a problem for people from country
– Study the country, its culture, and people
 Global Entrepreneurships

To conduct international business successfully,

you must understand foreign customs and
cultures.
Whether you choose to import or export
products, the international market presents
many profitable business opportunities.
 Entrepreneurial Entry Strategies
• Exporting
– Indirect exporting.
– Direct exporting.
• Nonequity Arrangements
– Licensing.
– Turn-key projects.
– Management contracts.
 The Global Economy

International markets importing the buying or

bringing in goods from other
provide opportunities for countries to sell
entrepreneurs to engage
exporting the selling and
in importing and shipping of goods to other
exporting goods and countries

services.
Strategies for Entering International Markets
One good resource in
finding an international
market for your product or
service is using Standard
Industrial Trade
Classification (SITC) codes.
( HS CODE under
International Trade
Classifications )
Standard Industrial Trade
Classification (SITC) codes
a system that details the
kinds of products that are
traded in specific countries
and how well certain
products sell in different
markets
 Foreign Market Selection
• One good market selection model employs a
five-step approach:
– Develop appropriate indicators.
– Collect data and convert into comparable
indicators.
– Establish an appropriate weight for each indicator.
– Analyze the data.
– Select the appropriate market from the market
rankings.
 Deciding on a Product
to Export

To be successful as an disposable income money

people have to spend after
exporter of consumer paying for necessary
products, it helps to expenses

market to countries to sell

where people have
enough disposable
income.
Where to Find Export Opportunities
Establish an e-commerce web site

Establish a foreign joint venture

Use an export management company

Hire a freight forwarder

License foreign businesses to sell your products

Use a trade intermediary

16
Where to Find Import Opportunities

Attend trade shows.

Read trade publications and catalogs.

Research the market.

Talk to potential customers.

17
 Deciding on a Product
to Export

An entrepreneur can trade intermediary an

agency that serves as a
expand a business into a distributor in a foreign
foreign market by using a country

trade intermediary.
 Where to Find Export Opportunities

Some entrepreneurs find foreign joint venture an

alliance between an
it helpful to establish a American small business
foreign joint venture in and a company in another
nation
order to gain entry into a
new global market.
 Where to Find Export Opportunities

An entrepreneur wishing export management an

organization that handles all
to export goods or the tasks related to
services to another exporting for a
manufacturer
country may employ the
freight forwarder a
services of an export company that arranges
management company shipments and prepares
necessary exporting
and/or a freight paperwork
forwarder.
 Entrepreneurial Partnering
• Foreign entrepreneurs know the country and
culture.
– They can facilitate business transactions and
update the entrepreneur on business, economic,
and political conditions.
• Good partners share the entrepreneur’s
vision, are unlikely to exploit the partnership,
and can help the entrepreneur achieve his or
her goals.
 International E-Commerce

Overseas markets represent an enormous

economic opportunity for e-commerce
enterprises, but doing business in another
country can be complex.
 
Entrepreneurs must be concerned with
language, currency, culture, and country
regulations.
 When Should a Small Business Go
International?
• If the following questions are answered
positively, small business is ready.
- Do we have a global product or service?
- Do we have the managerial, organizational, and
financial resources to internationalize?
- Is there willingness to commit resources to face
the risks of internationalization?
- Is there a country in which the company feels
comfortable doing business?
 When Should a Small Business Go
International? (cont.)
- Is there a profitable market for product or service?
- Which country should be entered?
- Do we have a unique product/service that is not
easily copied by multinationals or local
entrepreneurs?
- Do location advantages exist upstream in the value
chain?
- Can we afford not to be a multinational?
 International Entrepreneurship and Small
Businesses
• Many multinational firms rely on
entrepreneurs and small businesses to do
business when entering a new country
• Small businesses can play an important role in
assisting existing multinational companies in
developing or offering new products that can
improve productivity
 Small Business Advantage
• Speed becomes the small business advantage
- Faster innovation
- Can change products and internal operations faster
- Speed can overcome size disadvantages
- Larger firms must often overcome bureaucratic
procedures
 Opportunity Recognition and the
Opportunity Assessment Plan
• An opportunity assessment plan has four sections:
– The first section develops the idea, analyzes
competitive products and companies, and identifies
the unique selling propositions.
– The second section focuses on the market—its size,
trends, characteristics, and growth rate.
– The third section focuses on the entrepreneur’s and
management team’s skills and experience.
– The final section develops a time line indicating the
steps to successfully launch the venture.
International Marketing