Papers

Author(s)
Crystal M Volinchak
Youngstown State University
United States
Erin M Whitehouse
Youngstown State University
United States
Matthew R Yourstowsky
Youngstown State University
United States
Robert G Woolley
Youngstown State University
United States
Birsen Karpak
Youngstown State University
United States

Publication date: May, 2018

Journal: nternational Journal of the Analytic Hierarchy Process
Vol.: 10- Issue: 1

Publisher: Creative Decisions Foundation

Abstract: In this study, the authors utilized the Analytic Hierarchy Process (AHP) decision-making model to select the optimal market for international expansion for ABC Corporation located in Ohio[1]. The benefits of exporting to nine different countries: Germany, the United Kingdom, Canada, Mexico, Netherlands, China, United Arab Emirates, Australia and Brazil were analyzed. For the sake of more precise and in-depth research, preliminary studies performed on these nine countries were used to determine the top five markets: China, Mexico, Canada, Germany and the United Kingdom. Preliminary research included multiple factors about these nine countries. Market size, market growth rate, market consumption capacity, market intensity, market receptivity, commercial infrastructure, trade barriers, contribution margins, country risk and the growth rate of construction were the qualitative and quantitative criteria specifically considered. The importance of each criteria and sub-criteria were determined with export market experts and company decision makers. The AHP analysis enabled the authors to determine the best possible export market for the company by evaluating the data from China, Mexico, Canada, Germany and the United Kingdom. The robustness of the results was tested using sensitivity analysis. Sensitivity analysis results were then discussed with the decision makers. The best market was selected and alternative markets were presented with degrees of preference. Managerial implications of the study and future research directions will be discussed.

Keywords: AHP, Multiple Criteria Analysis, Export markets

URL: https://doi.org/10.13033/ijahp.v10i1.574