International Market Selection for Emerging Markets: evidence from the Italian wine SMEs
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In the context of an increasing critical role of Emerging Markets in today’s globalized economy and international trade flows, this study contributes to the research on the topic of International Market Selection (IMS) and the criteria used when selecting among Emerging Markets. In particular, the Italian wine industry is addressed with regards to the factors that lead Italian wine companies to target a specific country among the all the emerging economies. The existing literature on International Market Selection and emerging markets is reviewed in order to identify the most relevant criteria for Italian wine companies, classifying them in two main categories. The criteria are primarily tested on the 26 MSCI Emerging Markets hence, in order to validate their adequacy, in-depth semi structured interviews with Italian wine companies’ representatives are carried out. As a result, the study confirms the appropriateness of the distinction of companies in two different profiles - high volume, low-end wine producers vs. small volume high-end wine firms – and demonstrates the variation of the factors according to the size of the firm and to the average bottle price. Most of the identified criteria are considered important by the interviewed professionals, with different metrics taken into consideration depending on the company’s profile and some unexpected considerations are collected regarding the expansion towards Emerging Markets. Drawing on these findings, the outcomes of this study can prove insightful for small-scale firms, professionals, or marketers in the wine sector pursuing international expansion. As this research is based upon empirical experience and behavior of Italian wine companies, similar firms can compare their current decision- making process with these findings.