In a short essay, explain the concept of a global market opportunity, and discuss the key questions to assess a firm's organizational readiness to pursue global market opportunities

What will be an ideal response?

A global market opportunity is a favorable combination of circumstances, locations, and timing that offers prospects for exporting, investing, sourcing, or partnering in foreign markets. In such locations, the firm may perceive opportunities to sell its products and services; establish factories or other production facilities to produce its offerings cheaper or more competently; procure raw materials, components, or services of lower cost or superior quality; or enter beneficial collaborations with foreign partners. Global market opportunities can enhance company performance, often far beyond what the firm can normally achieve in its home market.

A formal analysis of organizational readiness to internationalize requires managers to address the following questions:

What do we hope to gain from international business? Objectives might include increasing sales or profits, following key customers who locate abroad, challenging competitors in their home markets, or pursuing a global strategy of establishing production and marketing operations at various locations worldwide.

Is international expansion consistent with other firm goals, now or in the future? The firm should evaluate and manage internationalization in the context of its mission and business plan to ensure it represents the best use of company resources.

What demands will internationalization place on firm resources, such as management, human resources, and finance, as well as production and marketing capacity? How will the firm meet such demands? Management must ensure the firm has enough production and marketing capacity to serve foreign markets. It is frustrating to channel members—and management—when insufficient capacity prevents the firm from fulfilling customer orders from abroad. Because people are critical for carrying out company plans, it is critical to have the appropriate personnel on board.

What is the basis of the firm's competitive advantage? Companies seek competitive advantages by doing things better than their competitors. Competitive advantage can be based on strong R&D, superior input goods, cost-effective or innovative manufacturing capacity, skillful marketing, highly effective distribution channels, or other capabilities.