An evaluation of the international market selection strategies utilised by UK companies

Purpose – The purpose of this paper is to empirically test theoretical models of international market selection and to compare with the process used by companies. Design/methodology/approach – Primary research was conducted using a questionnaire distributed to businesses operating in two market sectors. Results – This paper demonstrates a wide difference in the international market selection process adopted by companies in assessing potential new non-domestic markets and those models advocated in the academic literature. The results indicate that a significant number of companies have a weak international market selection process that is highly subjective as to which countries are included in the selection process. This subjectivity is demonstrated by the screening of only a very limited number of markets and the reliance upon a limited range of criteria which focus upon operational issues. Recommendations - Companies should adopt a more rigorous approach to their international market selection process by ensuring that a wider range of non-domestic markets are included at an early stage and that screening criteria are applied in a fair and transparent manner.