Screening Process for Potential International Markets and Sites
Screening can be describing as market entry assessment. That is, identifying and selecting among opportunities in new markets. Screening process for potential international markets and sites involves two crucial stages: a preliminary stage and initial assessment. The preliminary stage involves elimination of markets which are unattractive due to domestic regulations and management preference. For instance, if foreign exchange and taxes laws of the potential market are not favorable, you eliminate such a market. The initial market entry assessment involves eliminating markets due to economic and competitive factors. For instance, if economic situation of a given potential market cannot afford to purchase your products, you eliminate such a market. Competition is also another key factor to consider when venturing to potential international markets. For instance, it is not possible to win confidence of the customers you are targeting if the region you are targeting is dominated by another company offering products which are similar to yours.
Updating political, legal and economic situation in Vietnam means that market economy within the region will grow rapidly. For instance, improving the purchasing power of the poor population living in Vietnam through provision of reliable electricity, infrastructure development and banking system development will directly impact the market economy of the region. On the other hand, communist party of Vietnam should fully support all the principles of market economy to ensure smooth running of the sector. All the complaints affecting foreign exchange and taxes laws should be straightened to attract foreign investors who are interested in investing within Vietnam.
A product which would fit very well in the growing economy of Vietnam is the mobile phones. If political, legal and economic situation is updated telecommunication sector would perform well in this region due to the huge population which is in constant need of communicating. As a manufacturing site of mobile phones, their sales would rapidly increase due to closeness to the customers as well as reduced prices as a result of excluding other expenses such as transportation. Mobile use is growing rapidly in the region, thus, it is a ready market to this product.
One of the things the Western countries should do to help improve the political climate for doing business in Vietnam is to devise ways of eliminating the “unofficial economy”. With unofficial economy within a nation many investors will fear to commit their resources in such an economy. Western countries should try to eliminate the unofficial economy by imposing sanctions on Vietnam government so that it can support official economy only. Western countries should also try to sign economic treaties with Vietnam government which will break barriers that exist in carrying out economic activities between the two sides. This will help in allowing free movement of products and people. Such atmosphere will eliminate some cases observed in Vietnam. For example, it will eliminate cases such as pulling down or painting over any sign or billboard printed in a language other than Vietnamese
One of the major problems which will faced a company conducting a market research would be language barrier since the region seems to value its language so much and are not interested in other languages. Another problem would be inaccessibility of some areas due to poor infrastructure. There is also a problem of electricity power which is required to operate some research machines. Above all, majority of the Vietnamese population are not only poor but also majority are illiterate and hence cannot give accurate responses to the asked questions, fill questionnaires properly or appreciate the researchers.
My perception towards any product made in Vietnam is likely to be influenced by the type of product. This is so because I expect agricultural products from Vietnam as that is what they export most. In other product such as electronics and automobiles can be of high quality if they are manufactured by foreign companies which have decided to invest in the region.