The management has the responsibility of determining the extent to which the products and services are suitable for international markets once it has confirmed that the firm is ready to internationalize (Cavusgil, Hussain and Susan 369). Most or all of the offerings produced by companies may hold the potential to generate international sales. The following are factors that contribute to product suitability for foreign markets.
First, products with the best international prospects sell well in the domestic market. Products or services received well at the domestic market are likely to do well overseas (Cavusgil, Hussain and Susan 369). Besides, such products are likely to succeed in foreign markets that have similar needs and conditions. Firms always prepare their products for international markets through packaging, which is critical in international connections (Keillor 91). Regarding the gradual elimination screening methodology, products or services that sell well in the domestic market will help the firm to identify target markets with more consumers. As the firm narrows down its choices and examines specific information, it would be easy for them to identify potential targets since the product or service is already performing well in the domestic market.
Second, products or services with the best international anticipations cater to universal needs. The existence of universal needs is critical since it associates to conceptions of human nature (Keillor 92). Food and drinks, medical devices, personal care products, banking services are all universal needs and firms need to provide them at all locations in the modern world. Firms will find foreign sales promising if products or services they offer are unique (Cavusgil, Hussain and Susan 369). When a firm sales a product with characteristics that is hard for international firms to replicate then they would have a competitive edge over rivals. An international firm that uses gradual elimination screening methodology will benefit from this factors since the firm can target markets with products that are not widely consumed. The firm will take advantage of the non-existence of the product or inadequate consumption of the product and offer a unique product that may attract buyers.
Third, the product or service address a need that firms in foreign markets do not provide adequately. In developing countries, a product or service may not exist; therefore, such markets provide a potential for generating international sales (Cavusgil, Hussain and Susan 369). Similarly, firms may take advantage of international markets where the demand is beginning to emerge. The demand for a product plays a critical role in the growth of the business; therefore, a product will be suitable for the international market if the firm identifies the demand gap and the consumers are willing to buy. With the gradual elimination screening methodology, the firm may be more profitable by targeting markets with products that are not yet widely consumed (Cavusgil, Hussain and Susan 373). It is significant for the firm to consider all the available markets and gradually narrow to those that the demand is beginning to emerge.
The fourth factor is that the product or service addresses a new or emergent need in international markets. In a situation when there is an emergent trend or disaster, buyers can have a sudden demand for products or services (Cavusgil, Hussain and Susan 369). For instance, the rising cases of AIDS and other chronic diseases in developing countries suggests the need for urgent drugs and medical services. Similarly, major earthquakes in Japan, Italy, and Haiti resulted in demand for easy-to-build housing. The ability to offer product or service that addresses the new need is significant to a foreign firm with a gradual elimination screening methodology since it allows the firm to identify target countries by examining their specific needs easily. The firm will eliminate unattractive markets and remain with those that have emergent needs.
Cavusgil, S. Tamer, Hussain Rammal, and Susan Freeman. International business: the new realities. Pearson Higher Education AU, 2011. Print.
Keillor, Bruce David. Understanding the Global Market: Navigating the International Business Environment. Santa Barbara, Calif: Praeger, 2013. Print.
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