Trends in Global Market Opportunities for the Year 2017 - Research Paper Example

TRENDS IN GLOBAL MARKET OPPORTUNITIES FOR THE YEAR 2017 BY NAME Table of Contents Background of the Problem 2 2. Objectives of the Study 2 3. Research Questions 3 4. Significance of the Study 3 5. Literature Review and Hypothesis Development 4 7. References 9 Questionnaire 10 Background of the Problem A global market opportunity is existence of a combination of good conditions for a business to thrive such as good location, good timing, availability of resources and market niche. Companies require reliable source of information on marketing trends to determine the appropriate measures that will lead to sustainable profitability and reduced risk margins (Achten et al., 2010; Flint, 2004; Papadopoulos, Martín Martín, Papadopoulos, & Martín Martín, 2011) Business that operate in foreign markets risk collapsing due to lack of marketing intelligence. To avoid jeopardizing operations of a company, a continuous assessment of global markets is an important strategy for companies intending to invest in foreign countries where they have little or no information about. When businesses expand beyond their country of origin boundaries, they look forward to exploiting new markets and making bigger profits. In addition, the internal competition from their country of origin pushes business to look for external markets where competition is lower (Gilad, 2003). International businesses face numerous risks due to highly volatile international business platforms. Investing in foreign markets requires high market intelligence, which can be gathered through surveys.Businesses are at risk of making blind foreign market marketing strategies. There is inadequate information on the expected global market opportunities for the year 2017. Hence, international businesses are at a risk of facing unanticipated challenges that can wreck growth of a business or make it collapse. Conducting information search is an important marketing strategy that enables a business to make informed direction on its foreign investments 2. Objectives of the Study 2.1 General objective The general objective of this research is to evaluate trends in global marketing opportunities for the year 2017. 2.2 Specific objectives The specific objectives will be, 1. To determine market opportunities available for global firms in 2017 2. To identify trends in risks associated with global markets in 2017 3. Research Questions The research questions will be, 1. What opportunities will be available for global firms in 2017 2. What risks are expected in in 2017 global markets 4. Significance of the Study Expansion of markets beyond country of origin has mixed effects to businesses. There is opportunity for profit making, growth and expansion as well as probability of making loss and decline in profitability and growth of the company. The study will assess trends in market opportunities for the year 2017. Information gathered from the research will be used by global business to predict the future of their investments. Additionally, research findings will enable the corporate managers to make critical decisions concerning the strategic policies that their businesses will use. Based on the findings of this research, shareholders are likely to make their investments with a formed mind on what is likely to happen in the year 2017. It will provide vital information to companies that have intention to venture in foreign markets to gauge the benefits against risks of taking such moves. Besides, the research is seeking to gather information on possible risks to global marketing opportunities. Such information is required by businesses, governments and international businesses regulation bodies to make a contingency plan that enable them to plan ahead of facing the risks. Hence, businesses and governments can mitigate or reduce the effects of global market opportunities, which is important in enabling global businesses, navigate dynamics presented by global markets. Marketing firms will use information presented by this research to advise their clients on the best markets to invest in 2017. Marketing and business students will also use the study findings as a reference in their thesis. It will provide additional knowledge for all readers to understand the likely market opportunity trends in 2017. 5. Literature Review and Hypothesis Development Global markets present tricky situations for global businesses. Therefore, companies are required to do rely on research that predicts the future of their ventures. Evaluation of companies Strengths, Weaknesses, Opportunities and Threats (SWOT analysis) is essential in determining the preparedness of a company to venture in a global market. Reaching new markets provides businesses with an opportunity to tap the profits of reaching a wider market and increasing consumption of its commodities. In underserved markets, new entrants have an opportunity to make superfluous profits and excelling in global markets (Gereffi, Humphrey, & Sturgeon, 2005). Investors are likely to invest in rapidly expanding markets than shrinking markets. Investors are interested in growth potential of a business when determining where to invest. Growing markets are able to expand business opportunities, demand for commodities and reduce the effect of competition thereby creating opportunities for new entrants (Aaker, 2008). Therefore, competition is a key factor in determining the suitability of a global market. The possibility of new entrants, bargaining power from suppliers and customers’ bargaining power are key measures of competition in a market. Good markets are able to meet the needs of both the rich and the poor who depend on competition of business to lower prices (Luo, 2007). Companies that invest in global markets are driven by the need to expand businesses at cheaper cost that gives maximum benefits. Low operation costs in certain countries also encourage people to invest in global markets. A country that produces goods at low price than the world price have a competitive advantage when they expand to global markets. They are able to enter new markets with a low price for the same or better quality of goods and services. However, such businesses still require conducting investigation on market trends to understand dynamics that change market needs (Luo, 2007). Monitoring international market trends Crucial factors that analyse international markets should be considered before a company makes decision to expand in international markets. They include analysis of market size, the cost of running the business, diversity of customer needs, existing market needs and the options in market accessibility. It is important to analyse potential customers through literature review or through interrogating market experts using tools such as CAGE and PESTLE (Startienė & Remeikienė, 2015). There exits regional and national differences in markets. Therefore, it is important to analyse individual international market segments. Moreover, within a country, there are market segments that require analysis and better strategies that overcome particular needs of a market segment. For example, rural areas have specific challenges that are not experienced by urban areas such as poor road networks and distribution challenges. The culture of people may influence consumption of a commodity. Companies should be culturally sensitive when venturing into new markets (Hollensen, 2015). Moreover, international businesses value understanding local consumers. It is important to understand customer values and factors that influence their decisions to buy certain commodities. The price of a commodity is a key factor that influence customer decision making. Besides, customers are also influenced by the quality of goods and services. Therefore, the price and quality of goods and services influence the influence how customers consume them. Subsequently, they influence local, regional and international market opportunities available for businesses. Before, venturing into foreign markets, businesses are required to conduct surveys to determine customer values and preferences in order to establish viability of an international business venture (Hollensen, 2015). The existing local laws, peace and stability in a country is a consideration that international businesses rely on to determine suitability of investing in a foreign market. There are laws that discourage international companies venture by protecting local firms from competition and taxing foreign companies. Peace and stability in foreign countries is also essential in ensuring there is a good business environment free from insecurity related disruption and destabilization of businesses (Hollensen, 2015). Market analysis is key in tapping global market opportunities. PESTEL is one of the common tools used to analyse markets. It analyses all the crucial areas of establishing a good business opportunity by looking at social cultural, legal, political, environmental, economic and technological aspects of foreign markets to identify the opportunities available and prepare to minimize or avoid threats and weaknesses that the business could be having (Startienė & Remeikienė, 2015). Screening the macro-environment enable a firm to make strategic policies that are able to respond to market needs and forces that influence international market opportunities thereby enabling the business to make sustainable profits by exploiting the opportunities and avoiding the threats presented by international markets. Through use of PESTEL, companies are able to determine applicable consideration in a foreign market, categorize them and make conclusions on how best the company can maximize gains from utilizing its strengths to exploit the available opportunities while preventing the effect of threats and weaknesses that face a certain business (Startienė & Remeikienė, 2015). Additional tools are also required to compare the performance of various markets by comparing different countries to enable businesses decide on the suitable locations to expand their businesses. The CAGE framework is an essential tool for analysing and comparing markets in different countries. It looks at the geographical, economical, administrative and cultural differences between or among countries to raise adequate information that guide businesses on the best international market to invest in (Hollensen, 2015). A firm’s international experience is crucial in determining preparedness of a business to expand. Moreover, it is crucial to conduct an internal analysis of organisation strengths in preparation for expanding to global markets. Internal aspects of consideration include the technical ability of a company, the objectives of the company in international markets, technology and networks to assess the global markets and most importantly availability of resources to finance the foreign market venture (Crotty, 2009). Hypothesis The first hypothesis is that global market opportunities will increase in the year 2017. The second hypothesis is that the overall global economy will grow in 2017. The third hypothesis is that there will be reduction risk that is associated in with global market opportunities. 6. Methodology This section will explain the methods that will be used to collect and analyse date. It explains how the research will be carried. Study design It will be a cross-sectional study. It will collect data on a specific period to determine the views of respondents at that particular time. It will rely on both primary and secondary data. Study Area The study will be conducted across the world focusing on 140 countries. Study participants The study will interview 140 participants from an association of global investors that has members across the world in 140 countries. Inclusion and exclusion criteria Data collection technique All the 140 countries’ representatives will be invited to participate in the survey. Thereafter, a convenient sample will be used to analyse data based on the number of responses received. In a non-probability sampling criteria, the researcher is allowed to use the convenient number that is adequate to provide adequate evaluation of the hypothesis. Additionally, the researcher is allowed to interview the people who are having a certain characteristic or information that is required. The information up to a situation where the researcher feels adequate information has been obtained. An invitation will be sent to all the 140 participants to fill and online survey. There will be 9 questions set that will aim at analysing the available global market opportunities and potential risks for the year 2017. They will aim at finding out the markets that are expected to have the highest return on investments. Secondary data will be obtained from World Data Bank, and review of journal articles through google scholar (Berger, 2015). Primary data obtained will be analysed via Statistical Programme for Social Sciences version 22 and secondary data will be analysed by grouping concepts and findings that are useful in determining trends for global market opportunities. Findings will be presented through narratives, diagrams and charts. Reliability and validity The questionnaire will be discussed with five global investors to improve its quality and reliability to test the hypothesis. Thereafter, internal reliability will be measured using Cronbach’s Alpha method. Techniques for compliance with ethics The researcher will seek approval from the Ethics Committee. Participants will be required to give informed consent before filling the survey. Additionally, participants will not be required to fill their names on the questionnaire. 7. References Aaker, D. A. (2008). Strategic market management. John Wiley & Sons. Achten, W. M., Maes, Wh., Aerts, R., Verchot, L., Trabucco, A., Mathijs, E., … Muys, B. (2010). Jatropha: from global hype to local opportunity. Journal of Arid Environments, 74(1), 164–165. Berger, A. A. (2015). Media and communication research methods: An introduction to qualitative and quantitative approaches. Sage Publications. Crotty, J. (2009). Structural causes of the global financial crisis: a critical assessment of the “new financial architecture.” Cambridge Journal of Economics, 33(4), 563–580. Flint, D. J. (2004). Strategic marketing in global supply chains: Four challenges. Industrial Marketing Management, 33(1), 45–50. Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104. Gilad, B. (2003). Early warning: Using competitive intelligence to anticipate market shifts, control risk, and create powerful strategies. AMACOM Div American Mgmt Assn. Retrieved from https://books.google.com/books?hl=en&lr=&id=UpCAmLFfM0oC&oi=fnd&pg=PR7&dq=Business+that+operate+in+foreign+markets+risk+collapsing+due+to+lack+of+marketing+intelligence&ots=CRz69gAAy_&sig=c5IwWfEGm-v__ywyq0RYIwwvXb4 Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education. Retrieved from https://findresearcher.sdu.dk:8443/ws/files/108612027/Marketing_Management_3e_Suggested_lecture_plan_2015.docx Luo, Y. (2007). A coopetition perspective of global competition. Journal of World Business, 42(2), 129–144. Papadopoulos, N., Martín Martín, O., Papadopoulos, N., & Martín Martín, O. (2011). International market selection and segmentation: perspectives and challenges. International Marketing Review, 28(2), 132–149. Startienė, G., & Remeikienė, R. (2015). Methodology of Business Risk Analysis and its Practical Application in the Enterprises Working in the Global Market. Engineering Economics, 53(3). http://doi.org/10.5755/j01.ee.53.3.12217 Questionnaire SECTION A: DEMOGRAPHICS a. Kindly fill the correct demographic information below Variable Choice Sex Male Female Age 25-34years 35-44 years 45-60 years 61 and above Experience in years 0-10 years 10-20 years 20-30 years 30 and above Continent of origin America Africa Asia Australia Europe Name your country of origin SECTION B: MARKET PERFORMANCE IN 2017 b. Which of the following markets perform best in 2017? CHINA, INDIA USA, UK, AUSTRALIA, RUSSIA, SOUTH AMERICA, AFRICA. _____________ c. What is the expected economic growth for the following countries in the year 2017? Country Expected growth rate China India USA UK Australia Russia South America Africa SECTION C: MARKET RISKS d. Kindly name two major potential risks for global markets in the year 2017. 1._____________________________________________________ 2._______________________________________________________ e. In a scale of 1-5 where 1 is the least risk and 5 the greatest risk, kindly rate the risk of each of the following factors to disrupt global business opportunities in the year 2017. Factors Rating Weather Insecurity Unfriendly laws Weak economies Rise in cost of living Political instability f. Which of the following markets will be most affected the global market risks in the year 2017? CHINA, INDIA USA, UK, AUSTRALIA, RUSSIA, SOUTH AMERICA, AFRICA.__________________________ Read More