Supporting market entry decision for global expansion using real option + scenario planning analysis

Kim Du Yon, Kim Byungil, Heon Han Seung

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The world has witnessed the dramatic expansion of international construction markets during the last decades, particularly around the developing economies and energy resource-rich countries. However, despite the booming markets, the risks of emerging regions have also increased under the rapidly changing environments confronting global contractors. Most of all, success in overseas business mainly depends on selecting a right market to enter. Accordingly, the right market selection requires global firms to carefully carry out the scientific market entry decision by evaluating country risks, market prospects, firm's capability, level of competition, and among others. This study aims at developing a market entry model by the use of real option analysis (ROA) and scenario planning, which places emphasize on firm's strategic flexibility against uncertainties encompassing the overseas construction markets. Based on the suggested approach, global contractors are expected to make a better decision rather than a widely used static NPV approach in pursuing, postponing, or abandoning a prospective market to their capacity with a consideration of uncertainties as well as its flexible option value. Copyright ASCE 2009.

Original languageEnglish
Title of host publicationBuilding a Sustainable Future - Proceedings of the 2009 Construction Research Congress
Pages756-765
Number of pages10
DOIs
Publication statusPublished - 2009 Sep 11
Event2009 Construction Research Congress - Building a Sustainable Future - Seattle, WA, United States
Duration: 2009 Apr 52009 Apr 7

Publication series

NameBuilding a Sustainable Future - Proceedings of the 2009 Construction Research Congress

Other

Other2009 Construction Research Congress - Building a Sustainable Future
CountryUnited States
CitySeattle, WA
Period09/4/509/4/7

Fingerprint

Contractors
Planning
Energy resources
Industry
Uncertainty

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction

Cite this

Du Yon, K., Byungil, K., & Seung, H. H. (2009). Supporting market entry decision for global expansion using real option + scenario planning analysis. In Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress (pp. 756-765). (Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress). https://doi.org/10.1061/41020(339)77
Du Yon, Kim ; Byungil, Kim ; Seung, Heon Han. / Supporting market entry decision for global expansion using real option + scenario planning analysis. Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress. 2009. pp. 756-765 (Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress).
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Du Yon, K, Byungil, K & Seung, HH 2009, Supporting market entry decision for global expansion using real option + scenario planning analysis. in Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress. Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress, pp. 756-765, 2009 Construction Research Congress - Building a Sustainable Future, Seattle, WA, United States, 09/4/5. https://doi.org/10.1061/41020(339)77

Supporting market entry decision for global expansion using real option + scenario planning analysis. / Du Yon, Kim; Byungil, Kim; Seung, Heon Han.

Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress. 2009. p. 756-765 (Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Du Yon K, Byungil K, Seung HH. Supporting market entry decision for global expansion using real option + scenario planning analysis. In Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress. 2009. p. 756-765. (Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress). https://doi.org/10.1061/41020(339)77