International Market Selection

• Market Potential
• Learning Potential

encompasses both current market size and growth expectations

1. presence of sophisticated and demanding customers
2. pace at which relevant technologies are evolving in the market

This depends on two main factors:

1. the height of entry barriers
2. the intensity of competition in the market

A beachhead market is a market that closely resembles the targeted strategic market of a company and which provides a safer opportunity to learn how to enter and succeed in this market.

Commonly used examples for beachhead markets include:

• Switzerland and Austria for Germany
• Canada for the U.S.
• Hong Kong or Taiwan for China