A hybrid mathematical model for international target market decision: the case of fibreboard industry

Abstract

Determining the target market constitutes one of the most important strategic decisions. During the target market selection, many factors need to be considered and evaluated systematically and the most accurate choice is required to be made. In this study, the target country market selection is made for the fibreboard industry, which is one of the main sectors of the forest products industry in Turkey. For this purpose, multi-criteria decision-making (MCDM) methods, which are considered the most appropriate decision-making techniques among alternatives with many criteria, are utilised. AHP, VIKOR and TOPSIS methods are used to identify the most appropriate target market. Furthermore, a hybrid mathematical model including goal programming is proposed. And to handle ambiguity and fuzziness in international market decisions, a fuzzy goal programming model is developed. Economic, risk, supply chain and sectoral strategies are determined as the main criteria. 29 target countries are identified by including the countries ranking first in the exports of Turkey in the sector and the target countries determined by Ministry of Development. Target countries are ranked with MCDM. The rankings of the solution are compared via correlation tests. The first 10 countries are selected for the target market by employing the proposed models.