International market selection: a MABA based EDAS analysis framework
Keywords:international market selection, EDAS, General Electric (GE) Matrix, McKinsey matrix, MABA analysis
Research background: International market selection is an essential issue for big companies that supply food products. Different types of decision factors and different characteristics of different international markets have brought up a complicated decision-making problem for food supply companies. In order to select the most suitable and profitable market, food supply companies have to consider several qualitative and quantitative factors, including social, political, economic, and ecological aspects.
Purpose of the article: In order to overcome international market selection issues, the current study develops a novel integrated decision-making tool.
Methods: A novel decision-making model of market analysis is developed as an extended model of Market Attractiveness and Business Attractiveness (MABA) analysis based on the Multiple Attribute Decision Making (MADM). To improve the MABA analysis model, we combine the EDAS method with MABA analysis to empower decision-makers in food supply companies to evaluate several international markets and select the most profitable market for their products.
Findings & value added: In this study, we first identified the most important and frequently used decision factors for market analysis problems within MABA analysis under two categories: market attractiveness and business attractiveness. To show the proposed methodology's applicability and feasibility, we perform a case study for a food supply company in Iran that supplies products to Middle East and Asian countries. In order to investigate the reliability of the obtained results, we perform a sensitivity analysis concerning the importance of involved decision factors. The proposed decision-making tool results suggest that the model can be used as a reliable tool for market analysis problems. To sum up the long-term value of the study, we have developed a novel decision-making tool using MABA analysis and the EDAS method. No study integrates any MCDM methods with MABA analysis to the best of our knowledge. Integration of EDAS method with MABA analysis empowers decision-makers in market selection division to use more systematic methods for evaluating several markets.
Aghdaie, M. H., & Alimardani, M. (2015). Target market selection based on market segment evaluation: a multiple attribute decision making approach. International Journal of Operational Research, 24(3), 262?278. doi: 10.1504/IJOR.2015.072231.
Ahi, A., Kuivalainen, O., & Bahreinian, M. (2019). A systematic approach to international market selection: measuring the attractiveness of emerging economies in the case of the timber industry. International Journal of Export Marketing, 3(2), 105?118. doi: 10.1504/IJEXPORTM.2019.104396.
Al Qur?an, M. (2020). Success factors influencing the selection of the location of international firms. Competitiveness Review: An International Business Journal, 30(5), 665?679. doi: 10.1108/CR-05-2018-0030.
Amatulli, C., Caputo, T., & Guido, G. (2011). Strategic analysis through the general electric/McKinsey Matrix: an application to the Italian fashion industry. International Journal of Business and Management, 6(5), 61. doi: 10.5539/ijbm .v6n5p61.
Andersen, O., & Buvik, A. (2002). Firms? internationalization and alternative approaches to the international customer/market selection. International business review, 11(3), 347?363. doi: 10.1016/S0969-5931(01)00064-6.
Andersson, S. (2000). The internationalization of the firm from an entrepreneurial perspective. International Studies of Management & Organization, 30(1), 63?92. doi: 10.1080/00208825.2000.11656783.
Behzad, M., Zolfani, S. H., Pamucar, D., & Behzad, M. (2020). A comparative assessment of solid waste management performance in the Nordic countries based on BWM-EDAS. Journal of Cleaner Production, 122008. doi: 10.1016/ j.jclepro.2020.122008.
Brouthers, L. E., & Nakos, G. (2005). The role of systematic international market selection on small firms? export performance. Journal of Small Business Management, 43(4), 363?381. doi: 10.1111/j.1540-627X.2005.00142.x.
Buckley, P. J. (2017). The competitiveness of emerging country multinational enterprise. Competitiveness Review: An International Business Journal, 27(3), 208?216. doi: 10.1108/CR-03-2016-0017.
Budeva, D., & Mullen, M. R. (2016). Does culture matter for international market selection? International Journal of Export Marketing, 1(2), 193?214. doi: 10.1504/IJEXPORTM.2016.081570.
Cachon, G. P. (1999). Competitive supply chain inventory management. In Quantitative models for supply chain management. Boston, MA: Springer, 111?146.
Cavusgil, S. T., Kiyak, T., & Yeniyurt, S. (2004). Complementary approaches to preliminary foreign market opportunity assessment: country clustering and country ranking. Industrial Marketing Management, 33(7), 607?617. doi: 10.10 16/j.indmarman.2003.10.005.
Christian, A. V., Zhang, Y., & Salifou, C. K. (2016). Country selection for international expansion: TOPSIS method analysis. Modern Economy, 7(04), 470. doi: 10.4236/me.2016.74052.
Clark, D. R., Li, D., & Shepherd, D. A. (2018). Country familiarity in the initial stage of foreign market selection. Journal of International Business Studies, 49(4), 442?472. doi: 10.1057/s41267-017-0099-3.
Decuseara, N. R. (2013). Using the general electric/Mckinsey Matrix in the process of selecting the central and east European markets. Management Strategies Journal, 19(1), 59?66.
Dincer, H., & Yuksel, S. (2019). An integrated stochastic fuzzy MCDM approach to the balanced scorecard-based service evaluation. Mathematics and Computers in Simulation, 166, 93?112. doi: 10.1016/j.matcom.2019.04.008.
Dunning, J. H. (1988). The theory of international production. International Trade Journal, 3(1), 21?66. doi: 10.1080/08853908808523656.
Dunning, J. H. (2015). The eclectic paradigm of international production: a restatement and some possible extensions. In The eclectic paradigm. London: Palgrave Macmillan, 50?84.
Ebadi Torkayesh, A., Fathipoir, F., & Saidi-Mehrabd, M. (2019). Entropy-based multi-criteria analysis of thermochemical conversions for energy recovery from municipal solid waste using guzzy VIKOR and ELECTRE III: vase of Azerbaijan region, Iran. Journal of Energy Management and Technology, 3(1), 17?29. doi: 10.22109/JEMT.2018.134505.1098.
Ecer, F. (2015). Performance evaluation of internet banking branches via a hybrid MCDM model under fuzzy environment. Economic Computation & Economic Cybernetics Studies & Research, 49(2), 211?230.
Ecer, F. (2020a). An analysis of the factors affecting wind farm site selection through FUCOM subjective weighting method Pamukkale University Journal of Engineering Sciences, 27(1), 24?34. doi: 10.5505/pajes.2020.93271.
Ecer, F. (2020b). Multi-criteria decision making for green supplier selection using interval type-2 fuzzy AHP: a case study of a home appliance manufacturer. Operational Research. Advance online publication. doi: 10.1007/s12351-020-00552-y.
Ecer, F., & Pamucar, D. (2020). Sustainable supplier selection: a novel integrated fuzzy best worst method (F-BWM) and fuzzy CoCoSo with Bonferroni (CoCoSo'B) multi-criteria model. Journal of Cleaner Production, 121981. doi: 10.1016/j.jclepro.2020.121981.
Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R., & Sabattin, J. (2020). Conceptual framework for the strategic management: a literature review?descriptive. Journal of Engineering, 6253013. doi: 10.1155/2020/625 3013.
Ghorabaee, M. K., Amiri, M., Zavadskas, E. K., & Antucheviciene, J. (2018). A new hybrid fuzzy MCDM approach for evaluation of construction equipment with sustainability considerations. Archives of Civil and Mechanical Engineering, 18(1), 32?49. doi: 10.1016/j.acme.2017.04.011.
Górecka, D., & Szałucka, M. (2013). Country market selection in international expansion using multicriteria decision aiding methods. Multiple Criteria Decision Making, 8, 32?55.
Hashemkhani Zolfani, S., Ecer, F., Pamučar, D., & Raslanas, S. (2020). Neighborhood selection for a newcomer via a novel BWM-based revised MAIRCA integrated model: a case from the Coquimbo-La Serena conurbation, Chile. International Journal of Strategic Property Management, 24(2), 102?118. doi: 10.3846/ijspm.2020.11543.
Hashemkhani Zolfani, S., Yazdani, M., Ebadi Torkayesh, A., & Derakhti, A. (2020). Application of a Gray-based decision support framework for location selection of a temporary hospital during COVID-19 pandemic. Symmetry, 12(6), 886. doi: 10.3390/sym12060886.
He, X., Lin, Z., & Wei, Y. (2016). International market selection and export performance: a transaction cost analysis. European Journal of Marketing, 50(5/6), 916?941. doi: 10.1108/EJM-02-2013-0083.
Hofer, C. W., & Schendel, D. (1978). Strategy formulation: analytical concepts. St. Paul, MN: West Publishing Company.
Imran Khan, M. (2018). Evaluating the strategies of compressed natural gas industry using an integrated SWOT and MCDM approach. Journal of Cleaner Production, 172, 1035?1052. doi: 10.1016/j.jclepro.2017.10.231.
Johanson, J., & Mattsson, L. G. (1987). Interorganizational relations in industrial systems: a network approach compared with the transaction-cost approach. International Studies of Management & Organization, 17(1), 34?48.
Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm: Four Swedish cases. Journal of Management Studies, 12(3), 305?322. doi: 10.1111/j.1467-6486.1975.tb00514.x.
Kahraman, C., Keshavarz Ghorabaee, M., Zavadskas, E. K., Cevik Onar, S., Yazdani, M., & Oztaysi, B. (2017). Intuitionistic fuzzy EDAS method: an application to solid waste disposal site selection. Journal of Environmental Engineering and Landscape Management, 25(1), 1?12. doi: 10.3846/16486897.201 7.1281139.
Keshavarz Ghorabaee, M., Zavadskas, E. K., Turskis, Z., & Antucheviciene, J. (2016). A new combinative distance-based assessment (Codas) method for multi-criteria decision-making. Economic Computation & Economic Cybernetics Studies & Research, 50(3), 25?44.
Keshavarz Ghorabaee, M., Zavadskas, E. K., Olfat, L., & Turskis, Z. (2015). Multi-criteria inventory classification using a new method of evaluation based on distance from average solution (EDAS). Informatica, 26(3), 435?451. doi: 10.15388/Informatica.2015.57.
Kinuthia, B. K., & Murshed, S. M. (2015). FDI determinants: Kenya and Malaysia compared. Journal of Policy Modeling, 37(2), 388?400. doi: 10.1016/j.jpolmod .2015.01.013.
Koch, A. J. (2001). Selecting overseas markets and entry modes: two decision processes or one? Marketing Intelligence & Planning, 19(1), 65?75. doi: 10.11 08/02634500110366120.
Kotler, P. T. (2019). Marketing management. Pearson UK.
Li, C., Negnevitsky, M., & Wang, X. (2020). Prospective assessment of methanol vehicles in China using FANP-SWOT analysis. Transport Policy, 96, 60?75. doi: 10.1016/j.tranpol.2020.06.010.
Lu, M. T., Hsu, C. C., Liou, J. J. H., & Lo, H. W. (2018). A hybrid MCDM and sustainability-balanced scorecard model to establish sustainable performance evaluation for international airports. Journal of Air Transport Management, 71, 9?19. doi: 10.1016/j.jairtraman.2018.05.008.
Marchi, G., Vignola, M., Facchinetti, G., & Mastroleo, G. (2014). International market selection for small firms: a fuzzy-based decision process. European Journal of Marketing, 48(11/12), 2198?2212. doi: 10.1108/EJM-09-2012-0512.
Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1?25. doi: 10.1002/j.2158-1592.2001.tb00001.x.
Mersland, R., Nyarko, S. A., & Sirisena, A. B. (2020). A hybrid approach to international market selection: the case of impact investing organizations. International Business Review, 29(1), 101624. doi: 10.1016/j.ibusrev.201 9.101624.
Musso, F., & Francioni, B. (2014). International strategy for SMEs: criteria for foreign markets and entry modes selection. Journal of Small Business and Enterprise Development, 21(2), 301?312. doi: 10.1108/JSBED-10-2013-0149.
Natarajarathinam, M., & Nepal, B. (2012). A holistic approach to market assessment for a manufacturing company in an emerging economy. Industrial Marketing Management, 41(7), 1142?1151. doi: 10.1016/j.indmarman.2012.05.003.
Oey, E., Noviyanti, & Sanny, L. (2018). Evaluating international market selection with multi-criteria decision making tools-a case study of a metal company in Indonesia. International Journal of Business Excellence, 16(3), 341?361. doi: 10.1504/IJBEX.2018.095645.
Ozturk, A., Joiner, E., & Cavusgil, S. T. (2015). Delineating foreign market potential: a tool for international market selection. Thunderbird International Business Review, 57(2), 119?141. doi: 10.1002/tie.21686.
Paley, N. (1999). The manager?s guide to competitive marketing strategies. Boca Raton, FL: CRC Press.
Pamucar D., Ecer, F., Cirovic, G., & Alrasheedi, M. (2020). Application of improved best-worst method in real-world problems. Mathematics, 8(3), 414. doi: 10.3390/math8030414.
Papadopoulos, N., & Denis, J. E. (1988). Inventory, taxonomy and assessment of methods for international market selection. International Marketing Review, 5(3), 38?51. doi: 10.1108/eb008357.
Papadopoulos, N., & Martín, O. M. (2011). International market selection and segmentation: perspectives and challenges. International Marketing Review, 28(2), 132?149. doi: 10.1108/02651331111122632.
Ragland, C. B., Brouthers, L. E., & Widmier, S. M. (2015). Institutional theory and international market selection for direct selling. Marketing Intelligence & Planning, 33(4), 538?555. doi: 10.1108/MIP-02-2014-0033.
Rahman, S. H. (2003). Modelling of international market selection process: a qualitative study of successful Australian international businesses. Qualitative Market Research: An International Journal, 6(2), 119?132. doi: 10.1108/13522 750310470127.
Ramadani, V., Zendeli, D., Gerguri-Rashiti, S., & Dana, L. P. (2018). Impact of geomarketing and location determinants on business development and decision making. Competitiveness Review, 28(1), 98?120. doi: 10.1108/CR-12-2016-0081.
Reid, S. D. (1981). The decision-maker and export entry and expansion. Journal of International Business Studies, 12(2), 101?112. doi: 10.1057/palgrave.jibs.849 0581.
Rezaei, J. (2015). Best-worst multi-criteria decision-making method. Omega, 53, 49?57. doi: 10.1016/j.omega.2014.11.009.
Robinson, S. J. Q., Hichens, R. E., & Wade, D. R. (2001). The directional policy matrix?tool for strategic planning. Marketing: Critical Perspectives on Business and Management, 4, 103. doi: 10.1016/S0024-6301(78)80002-8.
Root, F. R. (1994). Entry strategies for international markets. Jossey-Bass.
Schoemaker, P. (2017). MABA analysis (General Electric Matrix), Web seminar, Amsterdam University of Applied Sciences. Retrieved from https://www.youtu be.com/watch?v=dWWg2dPSfgI (18.03 2020)
Schu, M., & Morschett, D. (2017). Foreign market selection of online retailers?a path-dependent perspective on influence factors. International Business Review, 26(4), 710?723. doi: 10.1016/j.ibusrev.2017.01.001.
Schühly, A., & Tenzer, H. (2017). A multidimensional approach to international market selection and nation branding in sub-Saharan Africa. Africa Journal of Management, 3(3-4), 236?279. doi: 10.1080/23322373.2017.1375812.
Sener, H. Y. (2014). Determining new markets using analytic hierarchy process: case study in Güral Porcelain. International Journal of Marketing Studies, 6(5), 149. doi: 10.5539/ijms.v6n5p149.
Shen, L., Zhou, J., Skitmore, M., & Xia, B. (2015). Application of a hybrid entropy?McKinsey Matrix method in evaluating sustainable urbanization: a China case study. Cities, 42, 186?194. doi: 10.1016/j.cities.2014.06.006.
Sheng, S. Y., & Mullen, M. R. (2011). A hybrid model for export market opportunity analysis. International Marketing Review, 28(2), 163?182. doi: 10.1108/ 02651331111122650.
Solangi, Y. A., Tan, Q., Mirjat, N, H., & Ali, S. (2019). Evaluating the strategies for sustainable energy planning in Pakistan: an integrated SWOT-AHP and Fuzzy-TOPSIS approach. Journal of Cleaner Production, 236, 117655. doi: 10.1016/j.jclepro.2019.117655.
Stević, Ž., Pamučar, D., Puška, A., & Chatterjee, P. (2020). Sustainable supplier selection in healthcare industries using a new MCDM method: measurement of alternatives and ranking according to COmpromise solution (MARCOS). Computers & Industrial Engineering, 140, 106231. doi: 10.1016/j.cie.2019.106231.
Torkayesh, A. E., & Basit, M. N. (2020a). Application of BWM-WASPAS model for digital supplier selection problem: a case study in online retail shopping. Journal of Industrial Engineering and Decision Making, 1(1), 12?23. doi: 10.31181/jiedm200101012t.
Torkayesh, S. E., Amiri, A., Iranizad, A., & Torkayesh, A. E. (2020b). Entropy based EDAS decision making model for neighborhood selection: a case study in istanbul. Journal of Industrial Engineering and Decision Making, 1(1), 1?11. doi: 10.31181/jiedm200101001t.
Tosun, N. (2017). Target market selection in fresh fruit-vegetable sector using Fuzzy VIKOR method. Journal of Management Marketing and Logistics, 4(4), 465?471. doi: 10.17261/Pressacademia.2017.734.
Vahlne, J. E., & Johanson, J. (2013). The Uppsala model on evolution of the multinational business enterprise?from internalization to coordination of networks. International Marketing Review, 30(3), 189?210. doi: 10.1108/0265133 1311321963.
Varmazyar, M., Dehghanbaghi, M., & Afkhami, M. (2016). A novel hybrid MCDM model for performance evaluation of research and technology organizations based on BSC approach. Evaluation and Program Planning, 58, 125?140. doi: 10.1016/j.evalprogplan.2016.06.005.
Vernon, R. (1992). International investment and international trade in the product cycle. In International economic policies and their theoretical foundations. Academic Press, 415?435.
Whitelock, J., & Jobber, D. (2004). An evaluation of external factors in the decision of UK industrial firms to enter a new non?domestic market: an exploratory study. European Journal of Marketing, 38(11/12), 1437?1455. doi: 10.1108/03 090560410560182.
Yang, W., & Jiang, X. (2018). Evaluating sustainable urbanization of resource-based cities based on the mckinsey matrix: case study in China. Journal of Urban Planning and Development, 144(1), 05017020. doi: 10.1061/(ASCE)UP .1943-5444.0000423.
Yazdani, M., Zarate, P., Zavadskas, E. K., & Turskis, Z. (2019a). A combined compromise solution (CoCoSo) method for multi-criteria decision-making problems. Management Decision, 57(9), 2501?2519. doi: 10.1108/MD-05-2017 -0458.
Yazdani, M., Hernandez, V. D., Chatterjee, P., & Zavadskas, E. K. (2019b). A statistical approach for improvement of Best Worst Method (BWM). In 17th international colloquium ?Sustainable decisions in built environment ?. Vilnius: Gediminas Technical University.
Yazdani, M., Chatterjee, P., & Torkayesh, A. E. (2020a). An integrated AHP-QFD-based compromise ranking model for sustainable supplier selection. In Handbook of research on interdisciplinary approaches to decision making for sustainable supply chains. IGI Global, 32?54.
Yazdani, M., Torkayesh, A. E., & Chatterjee, P. (2020b). An integrated decision-making model for supplier evaluation in public healthcare system: the case study of a Spanish hospital. Journal of Enterprise Information Management. 33(5), 965?989. doi: 10.1108/JEIM-09-2019-0294.
Zolfani, S. H., Yazdani, M., Pamucar, D., & Zarate, P. (2020). A VIKOR and TOPSIS focused reanalysis of the MADM methods based on Logarithmic Normalization. Facta Universitatis, Series: Mechanical Engineering, 18(3), 341?355. doi: 10.22190/FUME191129016Z.
Žižović, M., & Pamucar, D. (2019). New model for determining criteria weights: Level Based Weight Assessment (LBWA) model. Decision Making: Applications in Management and Engineering, 2(2), 126?137. doi: 10.31181/dmame19 02102z.
Zhu, Q., Sarkis, J., & Lai, K. H. (2008). Green supply chain management implications for ?closing the loop?. Transportation Research Part E: Logistics and Transportation Review, 44(1), 1?18. doi: 10.1016/j.tre.2006.06.003.
How to Cite
Copyright (c) 2021 Oeconomia Copernicana
This work is licensed under a Creative Commons Attribution 4.0 International License.