The business venture can prove to be successful if the company takes couple of distinct steps in the planning process for the foreign market. Such key steps for success in any foreign market are (John R. Darling et.al, 2004):
In order to assess and analyze the market potential market research proves to be handy tool. The phenomenal growth in the number of marketing research departments suggests that this technique is being rapidly accepted by the business community. Marketing research itself comprises of studying the;
Most of the theories of internationalization have their roots in industrial organisation and economics (from Coase in 1930s through Bain in 1950s to Williamson in the 1970s) and most of these theories were developed as a direct consequence of US MNCs desire to explore the markets of Europe and elsewhere. Since then the world has changed a lot with Asian nations like India taking a big lead in IT sector and China in manufacturing sector. The dominant change in the world economy is of course is the globalisation of markets. This phenomenon is a result of the convergence of the advances in technology, transport processes and production techniques. Globalization of markets and international competition are requiring firms to operate in a multicultural environment. People from different cultures may vary in convenience orientation not only because of time pressures but also because of the value placed on physical or mental comfort. For example, the oil rich consumers or Arabian Gulf countries place less value on time and more on high levels of comfort, as their oil wealth fuels convenience-driven demand. But in Southeast Asian nations money and time are more valued than the comfort.
Southeast Asia comprises of huge developed markets like Indonesia, Malaysia, Philippines, Singapore and Thailand, besides other significant markets like Vietnam and Myanmar. Southeast Asian markets have made tremendous efforts in restructuring recovering, and strengthening their economies since the 1997 crisis. This recovery is very much visible in the stock market indices of these nations. For example, Malaysia's Kuala Lumpur Composite Index (KLCI), Singapore's Straits Times Index (STI) Thailand Index (SET) and Indonesia's Jakarta Stock Exchange Composite Index (JCI) have been on an upswing throughout the year 2006. These nations led by China and India are being termed as Asian tigers as a tribute to the consistent performances in their economies. Though there are country specific issues affecting the entry modes and the extent of entry by any MNC, still the overall environment appears to be investment