Market Selection Matrices
Market selection matrices involves following factors which influences the selection of the market.
- Firm Related Factors
- Market Related Factors
- Other Factors
Firm Related Factors:
- In firm related factor, the approach of the company regarding market selection is same for all parts of the world. The company consider the world as its market and focus on each areas where it can target the market.
- The vision of the firm is to do market in the globe.
- The priority of the company always remained to find a target market in other parts of the world.
- The planning and structure of the company is made and designed in such a way that it can attract the foreign markets.
- For reducing of the cost, the company should approach that areas where cost of labour is cheap.
Market Related Factors:
Market factors in general involves:
- Economic factor, as it effect the operation of the company because when the economy of the country is developed, the company operations would be smooth as compared to underdeveloped economies.
- Every country have its own business regulations which tend to influence on the working of the company and selecting that market where regulations are feasible for the company otherwise that market should be neglected.
- Another important factor is the Political factor which influence a lot towards the operations and existence of the company. Similarly the company needed to focus on that market where taxes are low as compared to other parts of the world otherwise most of the earning would be distributed towards the government.
Other factors in the market selection involves:
- Political restriction in certain countries does not allow smooth running of the business. In case of Apple, it is reluctant to operate in underdeveloped market due to many government restriction that are being faced by the company.
- Another factor that influence the market selection is the distant location. In case of Apple, it is not easy to link the business from headquarter to other parts of the world as well as shipping the product from one country to long distant other country.
- Business community plays a vital role in the selection of market and it helps the business to operate in best possible way.