Globalisation or going global at the moment echoes throughout the land. But very often it is used as flowery phrase: some use it to express their fear of a more and more internationalised and fast changing world, others use it to find excuses why they do not
perform good any more. But the truth behind it is deeper as one could think. Let us have a look at the following quotation: “National champions are a phase-out model”
(Neelie Kroes, European Commissioner for Competition). This phrase stands for itself. Large companies usually have to go international or they can not participate in worldwide emerging or developing markets and can not compete in the long term. If a company is a national niche player it does not have to go international compulsory but if it wants to grow more than it is possible at its home market it has to choose new target markets.
This assignment deals with this more and more important topic of going international and especially with the target market selection using the example of SMA Solar Technology AG (SMA) way of entering the United States solar market.
Table of Contents
- 1. Introduction
- 2. Target market selection - a general strategic approach
- 2.1 Central criteria for the market selection
- 2.1.1 Market attractiveness
- 2.1.2 Market risks
- 2.1.3 Market entry barriers
- 2.2 Methods of target market selection
- 2.2.1 Single-level-methods of target market selection
- 2.2.2 Multi-level-methods of target market selection
- 3. Procedure of target market selection by SMA AG
- 3.1 The company – facts and figures as of 2005
- 3.2 SMA’s general domestic market standing in 2005
- 3.2.1 The company's market position based on a SWOT analysis
- 3.2.2 Corporate and product readiness for targeted markets
- 3.3 General forecast of the industry sector globally
- 3.4 SMA’s target market strategy and risk assessment going global
- 3.4.1 Determination of the company's key success factors abroad
- 3.4.2 STEP competitive environment analysis for target markets
- 3.4.3 Strategy implementation by a tailor-made marketing mix
- 3.5 Critical evaluation of SMA's international strategy as of today
- 4. Results and Conclusions
Objectives and Key Themes
This assignment analyzes the procedure and methods of target market selection and risk assessment, using SMA AG as a case study. The primary objective is to examine SMA AG's internationalization strategy, evaluating its approach to identifying and entering new markets. The analysis utilizes established frameworks for market selection and risk mitigation.
- Target market selection criteria and methodologies
- Risk assessment in international markets
- SMA AG's market positioning and competitive advantages
- Analysis of SMA AG's international expansion strategy
- Evaluation of SMA AG's success factors in international markets
Chapter Summaries
1. Introduction: This introductory chapter likely provides background information on the importance of target market selection and risk assessment for companies expanding internationally. It sets the stage for the subsequent analysis of SMA AG's strategies and methodologies. It probably establishes the scope of the study, introducing the company and the overall aim of the research. It might also briefly introduce the structure of the report.
2. Target market selection - a general strategic approach: This chapter likely presents a theoretical framework for target market selection, outlining key criteria and established methods. It is expected to cover a range of market selection approaches, from single-level to multi-level methods, as well as a discussion of the importance of considering market attractiveness, risks, and entry barriers. This forms the theoretical basis for the subsequent case study of SMA AG.
3. Procedure of target market selection by SMA AG: This chapter forms the core of the analysis, providing a detailed examination of SMA AG's approach to target market selection and risk assessment. It likely begins with a company overview, covering its market position and overall strategy. It then details the methodologies employed by SMA AG in selecting target markets and mitigating risks, possibly incorporating SWOT analysis and STEP analysis. The chapter likely presents a step-by-step illustration of SMA's internationalization process, incorporating their marketing mix and overall strategic implementation. It will probably also delve into a critical evaluation of their success to date.
Keywords
Target market selection, risk assessment, international strategy, SMA AG, market analysis, SWOT analysis, STEP analysis, marketing mix, international expansion, market entry barriers, competitive advantage, risk mitigation.
Frequently Asked Questions: Comprehensive Language Preview of SMA AG's Target Market Selection
What is the main topic of this document?
This document is a comprehensive language preview analyzing the target market selection and risk assessment procedures of SMA AG, a case study focusing on their internationalization strategy. It examines the company's approach to identifying and entering new markets, using established frameworks for market selection and risk mitigation.
What are the key themes explored in this analysis?
The key themes include target market selection criteria and methodologies, risk assessment in international markets, SMA AG's market positioning and competitive advantages, analysis of SMA AG's international expansion strategy, and an evaluation of SMA AG's success factors in international markets.
What is the structure of the document?
The document is structured into four main chapters:
- An introduction providing background information on international expansion and setting the stage for the case study.
- A chapter outlining general strategic approaches to target market selection, including criteria and methodologies.
- A detailed analysis of SMA AG's target market selection process, incorporating company facts, SWOT and STEP analyses, and a critical evaluation of their strategy.
- A concluding chapter summarizing the findings and conclusions.
What methodologies are used in the analysis of SMA AG's strategy?
The analysis utilizes established frameworks such as SWOT analysis and STEP analysis to assess the company's market position, competitive environment, and the risks involved in international expansion. The document also examines the specific methods employed by SMA AG in selecting target markets and mitigating risks, and details their marketing mix and strategic implementation.
What specific aspects of SMA AG's internationalization are examined?
The analysis delves into SMA AG's overall domestic market standing, their corporate and product readiness for international markets, their general forecast of the industry sector globally, and their target market strategy and risk assessment for global expansion. It also investigates the determination of key success factors abroad and their strategy implementation through a tailor-made marketing mix.
What are the key findings and conclusions (as previewed)?
The preview doesn't offer specific findings and conclusions, but it indicates that the full document provides a critical evaluation of SMA AG's international strategy, offering insights into their success factors and the effectiveness of their approach to market selection and risk management.
What are the keywords associated with this document?
Keywords include: Target market selection, risk assessment, international strategy, SMA AG, market analysis, SWOT analysis, STEP analysis, marketing mix, international expansion, market entry barriers, competitive advantage, and risk mitigation.
- Quote paper
- Michael Kemmer (Author), Torsten Ehnert (Author), 2010, Procedure and methods of target market selection and risk assessment on the example of SMA AG, Munich, GRIN Verlag, https://www.grin.com/document/197107
