In analyzing market opportunity USA environment must first be assessed; followed then by an assessment of the competitive environment in the target USA. In assessing the USA environment, the macro elements of a market will typically lend themselves to a very precise analysis from the perspective of a particular firm. Macro elements typically include such item s as: 1) population; 2) culture; 3) disposable income; 4) climate; 5) trade statistics; 6) political structure and stability; 7) laws affecting production and trade; 8) economic climate; 9) production and consumption technology; 10) logistics and communication technology; and 11) relative level of government control of the marketplace; all of which serve to reflect the general opportunity for a designline .
For Eg. Population in New York can be a market opportunity for design line as more population means they need more buses so this can be opportunity. this means they have to consider about all these opportunities when they making strategic decision. Assess Product Potential: It is sometimes hard for companies to accept the fact that consumers, even in neighboring countries, demand quite different products, and thus requires product adaptation by the company.
For example, in the home appliances markets of Australia, preferences concerning stoves and ovens vary a great deal from USA. In Australia, consumers want the knobs on the top, in USA the front panel; in Australia the color must be white, in the USA it can be virtually any basic color; in Australia the double-oven is a must, USA the single oven is the standard; Australia the built-in appliances are dominant, in the USA free-standing models are more popular.
So they have to assess their buses how the customer in New York’s wants. Establish Market Entry Mode: From a management and operational perspective, the designline exporter can plan an entry into a USA(New York) in one of three basic ways: export entry mode, contractual entry mode and investment entry mode. Each entry mode offers different benefits and costs to the designline.
Export entry modes may be direct or indirect. The direct method involves choosing an agent or distributor, or establishing a branch or subsidiary to represent the designline in the marketplace. The indirect method consists of making an arrangement whereby the designline delegates varying degrees of foreign sales/or distribution responsibility to a third party. This third party may be an independent buyer for export to the New York, or an export management company. Second, contractual entry modes involve different alternatives including licensing, franchising in New York, technical agreements, construction or turnkey contracts, contract manufacturing, and co-production agreements. Likewise, each of these contractual entry modes has different advantages and disadvantages and legal perspectives.
Third, it can transfer its resources in technology, capital, human resource skills and enterprise to the New York where they may be sold directly to users or combined with local resources to manufacture products for sale in the New york market and perhaps other national markets. This entry mode strategy is often referred to as investment entry mode or direct investment. Investment entry modes include the acquisition of an existing business or the establishment of a new solely owned venture, or the acquisition or establishment of a joint venture in the New York. of a new solely owned venture, or the acquisition or establishment of a joint venture in the New York.
Make a Sincere Commitment:
Of course, this commitment must be carefully weighed in the light of other present or potential alternatives for growth of the designline, and the financial and other resources that are available for such. In taking the time and effort to analyze carefully its commitment to the export market, and to make that commitment that will assure a reasonable chance at success in the market In New York, management reflects a systematic approach to the future growth and development of the designline. Making a sincere commitment focuses on a SWOT analysis of a company’s strengths and weaknesses, along with market opportunities and threats, developing formal policies to guide export operations, and carefully considering the resource needs. The SWOT analysis provides information that is helpful in matching the designline’s resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.