Sakarya et al. (2007) argue that traditional market selection analysis relies on purely macroeconomic and political factors and fails to account for an emerging market’s dynamism and future potential. As a result based on literature they also develop a model to evaluate each most appropriate market entry.
March (1991) argues for his model of exploration-exploitation. This believes that a firm‘s choice of entry into a foreign market can be distinguished by its motivation to either explore for new resources in the foreign market or to exploit its existing capabilities. (Koza and Lewin 1998) (March 1991)
A study by Brewer in 2000 on the aspect pf internationalization and market selection revealed that the companies chose the international markets for operations and marketing based on the expected commercial returns they generated. The increased commercial return pertained to increased benefit attained by entering into the market. The paper also stated that “These expectations depend on judgments about the attractiveness of the market and the firm’s competitive position in it, which in turn are influenced by informants. It is the number and strengths of these informants that will underlie the probability of a country being identified and assessed as a new market by any firm.” (Brewer, 2000)
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