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New foreign market place analysis

New foreign market place analysis
Learning outcome 3: Be able to demonstrate how to prepare a new foreign market analysis
1. Rationale for Exporting
This section builds on information presented in B1 (question 2 of this assignment) and highlights the benefits of
proceeding with an export strategy. Include:
• Linkages with the company’s goals and objectives
2. Rationale for Selected Foreign Market
In this section, summarize why the preferred foreign market presents the best opportunity.
• Why does the company want to enter this particular foreign market(s) over other potential markets?
3. DESTEP Analysis
This section provides specific information about conditions that may impact your company’s ease of conducting
business in another country. Include:
? Political, economic, social conditions.
? Country CSR-analysis: prevalent CSR-issues in the country, relevant stakeholders to cope with these issues or
prevent these from happening. Make the country analysis, as it is relevant for your entire physical product
chain, as if you procure from the country or export to the country.
? Regulatory environment.
? Legal structure.
? Determine relevant CSR-related international laws and conventions and the relevance of these for the
? Fiscal/taxation structure. ? Infrastructure conditions (e.g. roads, ports, rail, airports, telephones, and communications, etc.).
? Cultural and business practices.
4. Industry Profile
This component provides specific information about your industry sector and competitors in the market. Consider
existing business practices and discuss the following:
? Broadly identify direct customers (e.g. buyers, agents, distributors, trading houses) or actual end users (e.g.
individuals, businesses) and current market trends.
? Competitive Analysis
– Overall competitive conditions.
– Who are the existing competitors?
– Unique selling attributes or competitive advantage(s) of each, incl. CSR-attributes
– Existing sources of production and channels of distribution.
– Marketing practices used.
– Typical payment terms offered.
? Determine relevant industry wide CSR-initiatives in the industry and the relevance of these initiatives for the

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