WDM method Level 1

External export diagnosis

How to build a weighted decision matrix

1- Define a list of general and specific criterias and make groups

• General criterias are macro-economic criterias :

Population, GDP per capita, Gini coefficient, exchange rate, Unemployement rate, Inflation rate, COFACE risk,total imports in the country, imports of this good geographical closeness , Tariff and non tariffs barriers, Trade agreements...

• Specific criterias are market criterias which allow you to understand the targeted markets :

Average basket per year and per capita, Total amount consumed per year and per capita, Local competition for this type of goods, Features of the distribution , Link Religion/product, Link colour/product, Consumption habits...

2- Research of information needed on the targeted markets

• Business France Export
• COFACE
• Craft and trade unions
• Statistics institutions :
• INSEE, STATISTA...
• Bank websites, and Chamber of commerce websites
• BNP PARIBAS
• Doing business - The wolrd Bank

3- Weight the criterias and Evaluate the colected informations

• Weight the criterias depending on their importance in the final decision
• Evaluate the colected informations for each country on the different criterias to highlight the best potential to export.

WEIGHTED SCORE

NET SCORE

WEIGHT OF THE CRITERIA IN THE FINAL DECISION

COLLECTED INFORMATION

Structure de matrice à éviter

Structure de matrice à rechercher

4- Class "A", "B" and "C" countries

A- Country to targetB- Interesting country C- Country to avoid

Specific criterias are much more important than the general ones in the final decision and as a result must get a higher coefficient and/or be considered in a higher number.