Case Study Aol: Lost in Translation

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Fachbereich Wirtschaft _______________________________________ Case Study Lost in Translation: AOL’s Assault on Latin America Hits Snags in Brazil Identify the controllable and uncontrollable elements that AOL encountered in entering the Brazilian Market! When entering a foreign market, as AOL entered the Brazilian Market, certain rules and regulations have to be followed. In case of AOL the controllable and uncontrollable elements are playing a significant role. The main problem of AOL’s strategy in Brazil was the insufficient research about typical country terms and condition. Controllable elements, such as product, price, promotion and the channels of distribution have to be adapted to the target market. AOL (America…show more content…
And so it was bound to happen, that Universo Online (UOL) a local competitor got 760,000 subscribers, compared to AOL’s 130.000. Beside this mistake, America Online has made more mistakes; another example is music they offered on a program disc, where the allocated URL belonged to a competitor. All mistakes could have been avoided with better research and preparation. AOL should try to anticipate these mistakes in the future, by adjusting their marketing approaches to different countries and their cultures. AOL should realize that its American approach is perceived in many other countries as too aggressive, thereby offending not only local competitors but also national consumers. AOL also has to adjust its prices to specific market standards that take the average national income into consideration. In case of Brazil, AOL offered its product at the same price - and quality as in the US, without considering national incomes. In summary, AOL failed to meet the necessary controllable elements of the foreign Brazilian target market. One opportunity to analyze a new market place is to conduct a SWOT Analyses. A SWOT-Analysis gives a company an overview and the chance to find out strengths,

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