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Key Economic Indicators

• Market Size Indicator: GDP measures the total value of goods and services produced within a country
• Higher GDP typically indicates a larger market and more economic activity
• Countries with high GDP often have higher consumer spending, attracting businesses for entry or expansion
• Economic Viability: Rising GDP suggests a growing economy with increased business opportunities and higher consumer confidence
• Stability and Investment Potential: A stable or growing GDP attracts investors because it signals a strong, sustainable economy with reduced risks
• Sectoral Contributions: Breaking down GDP into sectors like agriculture, industry, and services helps assess thriving industries and guides investment and market entry decisions
• Comparative Market Analysis: Businesses and investors use GDP to compare different markets to determine demand strength and whether an economy can support business growth
• GDP per capita is particularly useful in understanding consumer purchasing power and potential market profitability

TAM, SAM, & SOM definitions

• The SAM and SOM are portions of the TAM
• TAM: Total Addressable Market, is the value of the entire market or the total possible demand for product or service. TAM = (Total number of potential customers) x (Average annual revenue per customer)
• SAM: Serviceable Addressable Market, is the portion of the TAM that can actually be reached with the product or service, typically limited by geography and demographics. = (Total number of potential customers) x (Percentage of potential customers that can be realistically served) x (Average annual revenue per customer)
• SOM: Serviceable Obtainable Market, the market share that can realistically capture. = (Total number of potential customers) x (Percentage of potential customers that can be realistically served by your business) x (Percentage of the market that your business can realistically capture) x (Average annual revenue per customer)
• The SOM is the short-term target

TAM, SAM, and SOM Example

• Launching a fair-trade coffee, the TAM is everyone who drinks coffee worldwide
• Starting distribution in a limited region, like the U.S., targeting higher-end coffee drinkers willing to pay more means that is the SAM
• Accounting for competition, the reasonably expected share of that high-end coffee market represents the SOM

Smartphones in India (2023)

• Total Smartphone Users ≈ 700 million
• Projected Smartphone Users by 2025 ≈ 1 billion
• Total Market Revenue ≈ $38 billion
• Middle Class Consumers: ~300 million people
• Premium & Mid-Range Revenue: 60% of total market revenue
• SAM (India 2023): ≈ 300M users or $23B
• Total Smartphone Shipments ≈ 146M units
• Top Players Market Share ≈ 80%
• The TAM is 700M
• The Revenue is $38 Billion
• The Middle Class Consumers are ≈ 300M people
• The Premium & Mid-Range Revenue: 60% of total market revenue ( $23 billion)
• Remaining Market ≈ 20%
• SOM (India 2023): ≈ 29M users or $5-7B revenue

Role of Technology in Internationalization

• Digital transformation drives global competitiveness
• Automation, AI, and cloud computing streamline operations, reduce costs, and improve decision-making, which allows businesses to run faster and smarter
• Enhanced customer experience made possible via digital tools, data analytics, and personalization enhances customer interactions and boosts loyalty in competitive markets
• Digital transformation enables new product creation, entering global markets, and e-commerce usage to widen reach beyond geographical limits
• Companies using digital tech can adapt to market changes, disruptions, and consumer demands, sustaining a competitive edge

Importance of Digital Tools

• E-commerce platforms, digital marketing, and online payments enable businesses to reach global customers without the need for a physical presence
• Analytics, AI, and CRM tools help businesses understand consumer behavior, optimize marketing strategies, and target the right audience
• Cloud computing, automation, and digital supply chains reduce operational costs, streamlining expansion into new markets

Definition of Digital Transformation

• Digital tech is integrated into all business aspects, fundamentally changing how it operates, delivers to its customers, and competes
• It involves innovations like cloud computing, AI, automation, data analytics, and digital communication tools to improve efficiency, enhance customer experiences, and drive growth

Technologies Enabling Internationalization

• E-commerce Platforms: expand market reach and enable direct sales
• Artificial Intelligence (AI): Enhance market insights through predictive analytics
• Cloud Computing: Enable remote collaboration and data access.
• Digital Payments: Facilitate cross-border transactions

Digital Tool Assistance with Market Research and Analysis Data

• Digital tools gather real-time data on customer behavior, preferences, and trends, enabling businesses to make informed decisions via web analytics, social media, and surveys
• AI tools and big data analytics track competitors, industry trends, and market dynamics, allowing identifying opportunities and threats
• Machine learning and statistical modeling analyze historical data to forecast demand, optimize pricing, and improve product development

Big Data Analytics for understanding consumer behavior and market trends

• Google Analytics: Tracks website traffic, user behavior, demographics, and conversion rates to help businesses understand their audience and optimize digital marketing strategies
• SEMrush: Provides keyword research, competitor analysis, and SEO insights to help businesses identify trends, improve search rankings, and refine content marketing strategies
• SurveyMonkey: Enables creation and distribution of surveys for collecting customer feedback, measuring market sentiment, and gaining insights into consumer preferences

Online tools for competitor benchmarking and pricing strategies

• Price2Spy: A price monitoring tool that tracks real time competitor pricing, detects pricing changes, and provides repricing recommendations
• Similarweb: Analyzes competitor website traffic, audience demographics, benchmarks performance and refines marketing strategies
• SpyFu: Helps businesses research competitor keywords, ad campaigns, and optimize their own digital marketing and pricing approach

Social media analytics for real-time customer feedback

• Hootsuite: Monitors brand mentions, sentiment, and customer feedback across multiple social platforms for businesses to respond proactively
• Sprout Social: Provides in-depth social media analytics, engagement tracking, and audience sentiment analysis to help brands refine strategies via real-time feedback
• Brandwatch: Uses AI-driven social listening to track customer conversation, trend, and sentiment to give businesses valuable consumer insights
• Talkwalker: Analyzes social media engagement, brand mentions, and customer sentiment across multiple channels to help businesses understand public perception

Enabling Localization and Consumer Engagement

• Automated Translation & Cultural Adaptation: AI tools and natural language processing allows for customization of content
• Personalized User Experiences: AI analyze user behavior, preferences, and region trends to tailor content, product recommendations, and marketing strategies to improve engagement between different markets
• Dynamic Pricing & Market Customization: AI driven analytics adjust pricing, promotions, and services based on local demand to remain competitive in diverse markets

Operational Efficiency and Scalability

• Instant access to inventory levels, shipments, and supplier data improving coordination and efficiency
• Provide instant access to inventory levels, shipments, and supplier data, improving decision‐making and reducing delays
• Manufacturers, and logistic providers can access data in real time, which improves coordination and reducing bottlenecks without bottlenecks
• Cost savings results since reduced staff, manual processes, and optimized resource allocation, which drives expenses down and improves supply chain resilience

Future of Technology in Global Trade

• Blockchain for secure and transparent transactions ensures transparent information sharing
• The use cases for blockchain include: smart contracts; cybersecurity; internets of things; cryptocurrency; non-fungible tokens (NFTs)

4 Main types of blockchain

• Public Blockchain: Any internet user can become an authorized node by signing on
• Private Blockchain: There is a person in charge of the read/write and granting access
• Consortium Blockchain: Network is managed by more than one organization
• Hybrid Blockchain: Data is stored on the public blockchain without sacrificing compromising data privacy

Metaverse and Virtual Trade Shows

• 5G technology reduces latency for global communication
• Enhances Internet of Things (IoT) connectivity as well as global access for mobile innovation

Demographic Trends

• Aging Population: The aging population is increasing demand for healthcare, wellness, and accessibility-focused products
• Urbanization: As more people move to cities, there is greater demand for smart techs and convenience products like fast-moving consumer goods
• Rising Middle Class: With increased purchase power in emerging economies, like India, China and Brazil, the demand is increasing for premium goods and branded products
• Youth Consumer Influence: With digital engagement, younger generations such as Millenials and Gen Z heavily take brand authenticity and sustainability into consideration when making purchasing decisions
• Migration and Diversity: Multicultural populations create demand for culturally diverse products, which can include foods, fashion, and media

Cultural Trends

• Local Preferences & Traditions: Cultural norms affect product design, branding, and marketing, such as different meanings for certain colors
• Health & Wellness Focus: Consumers shift towards healthier lifestyles, increasing demand for things like wellness services, organic foods, and fitness products
• Sustainability & Ethical Consumption: Eco-friendly products, fair trade sourcing, and sustainable packaging become differentiators and global brands in the sustainable market
• Technology & Digital Transformation: Mobile-first economies, e-commerce growth, and social media all shape products in the acceptance of society
• Religious & Ethical Considerations Religious norms affect product development

Business Implications

• Localization Strategy: Brands must adapt products and marketing to align with local preferences and cultural sensitivities
• Personalization & Digital Engagement: Drive artificial intelligence via recommendations, marketing with influencers, and user generated content can affect the overall product
• Sustainability & Ethical Engagement: Responsibility and transparency can impact consumer trust and loyalty
• Adaptation to Changing Lifestyles: Business should be monitoring shifts in lifestyles, remote work trends, and evolving structures of families to better understand customer needs

Responsible Consumption

• Sustainability & Eco-Friendly Products: Consumers want carbon products with sourcing and production that is sustainable, like Patagonia and Unilever
• Ethical & Fair Trade Practices: Transparency is demanded by shoppers in supply chains, supporting brands making sure there is cruelty free protection as well as fair wages
• Minimalism & Conscious Consumption: Minimize purchasing of fast fashion items. Instead promote buying fewer, high quality items
• Accountability via Corporate Social Responsibility (CSR): Consumers see businesses taking a stand on social and environmental issues, prompting companies to take investor action in social impact projects and sustainability programs

Global Trends in Eco-Friendly Products

• Online searches pertaining to sustainable goods have risen by 71% Consumers reports that they are purchasing eco-friendly products more than they had five years ago
• Global brands like Amazon and Microsoft have committed to having net zero carbon emissions
• Key sustainability strategies include energy adoption via solar and wind, carbon off set programs, and supply chain transformation

Regulatory Requirements:

• Includes mandates to set and meet nationally determined contributions for net zero waste reduction by mid-century
• Action plan: Enforces management policies including extended producer responsibility, and landfills waste reduction
• Clean Air Act & EPA Regulations: Standards for air pollutants and requiring limits on carbon, vehicles, and other hazardous materials

Business strategies consist of:

• 73% of global consumers are more likely to purchase with brands that take strong strategic sustainability commitments
• Revenue increase comes from products that are eco-friendly, leading to a faster growth in terms of sustainability with companies due to that impact
• Strategies for sustainability are critical due to reputational damages and the impact of meeting standard regulations
• Investors are increasingly concerned with companies that maintain environmental safety due to an increase in stake holder appeal
• Enhanced performance results and efficiencies come via the supply chain's new costs and practices

Leveraging Sustainability for Market Opportunities

• Consumers now prefer brands that are sustainable, even if the price points are slightly higher
• Brands in particular that ensure labor is fair and ethical include companies that create food products, like chocolate and coffee
• There is increase in environmental awareness amongst consumers due to the rainforest alliance which supports biodiversity and responsible sourcing in agriculture

Sustainability Success Cases

• Ben & Jerry, Dove, and Unilever grow 50 percent faster
• 60% of Unilever revenue comes from eco-friendly product lines

Circular Economy Principles

• Materials reuse, recycling, and repurposing is where sustainable models minimize waste and resource consumption
• Ikea is using a program where used furniture items are returned in exchange for store credit
• Customers get store credit for old products

Industry based applications:

• H&M recycles old clothes into new textiles
• Aluminum and rare earth metals are recovered by apple trade and in recycling programs
• Remanufacturing car parts to extend product life and reduce waste is standard amongst automotive vendors

What are existing trends?

• Corporations aim to maintain carbon neutrality
• Greener funds or the driving force of green finances lead to issues in renewable energy and Eco project sectors
• Linked sustainability loans provide better loan terms for those that meet guidelines
• A large amount of investor demand has been triggered by the shift to ESG goals