Strategic Instruments to Choose Foreign Target Markets
Purpose: The paper aims to elaborate the principles and the authors’ original method to choose target markets of textile and fibers manufacturers when internationalizing their economic activity. The decision on foreign target markets must be very reasonable as having chosen a new foreign market the company put a lot of resources into it. Design/Methodology/Approach: The authors suggest to take into account three factors for the most perspective foreign markets for export interventions. The cash flow in foreign trade by specific materials (textiles and fibers) was estimated by each country – to select the countries depending on textiles and fibers import. Among those countries the markets' attractiveness was estimated by their size and growth intensity. After that general opportunities of doing business by Russian companies in the country were estimated using a complex index calculated on a basis of data characterizing import from Russia volume and its dynamics, transport accessibility, GDP Volume and Dynamics. Findings: The paper contains a set of data characterizing the most perspective countries for Russian textile companies export expansion – Cambodia, Bangladesh, Sri Lanka, Iran, Saudi Arabia, Morocco, Nicaragua, Viet Nam. Central and Eastern European countries (Romania, Poland, Slovenia), United Kingdom, USA, Canada are attractive from a point of view of potential prospects of business development in the country, however cooperation with them may be difficult due to some serious barriers on entering the markets. Practical Implications: The matrix can be used in managerial practices of different companies oriented on their international business activities expanding. The results of the new methods implementation (the list of the most perspective foreign markets) can be used by for management of the Russian textile companies oriented on foregn markets. Originality/Value: The paper contains a new method of foreign target markets choosing and a new strategic instrument – the matrix of export expansion markets choosing.