How A Company Approaches Entry Into The Brazilian Market

The process of integration of economies around the world, known as globalisation, has catalysed the development of Brazil as a powerful emerging economy, through the expansion of trade and investment. Emerging countries are defined as those progressing toward becoming more advanced, through rapid growth and industrialisation. Consequently, Brazil’s rapid economic growth has secured its place in BRICS, an association of five major emerging economies, Brazil, Russia, India, China, and South Africa.

Since the year 2000, according to a report written by the United Nations (2013), FDI going to BRICS countries (Brazil, Russia, India, China and South Africa) has tripled reaching an amount of $263 billions in 2012. This amount represents 20% of FDI in the world. Moreover, Hall (1976) states that there are certain countries that can be described as High-context cultures that are based in interpersonal relationships. Those are countries where factors like trust or legitimacy are crucial for business and BRICS are considered as high-context countries. Therefore, firms need to gain legitimacy in order to operate in those markets and Institutional provides an excellent theoretical framework for defining success in those markets.

Brazil is one of the largest IT markets within the emerging economies. IT end-user spending in Brazil is expected to grow to $134 billion in 2014. The largest share of spending will be on telecom equipment, representing 72% of the market, followed by IT services at 13.3% and computing hardware at

Brazil’s level of GDP is significantly ahead of any other country in Latin America because this country has a high-level of development of agriculture, mining and manufacturing industries and the service sector. Now the country is expanding its presence in world markets.

The two major points to keep in mind when providing for the mass consumer in Brazil is they do not trust big companies and face to face contact is of big appeal. Low-income consumers associate a big company with scamming the public just for business profits. They feel as if big companies are for the rich, by the rich. A strategic way of luring in consumers is face-to-face contact. Brazilian consumers purchase based on trust and education the company provides. If a company does not educate the consumer, they become suspicious and fail in trusting the company. The trust is built more through the people than an

To determine the cost of doing business in Brazil, its future economic status, and business practices, first we must briefly examine its geographical area, culture, and government.

Once an organization has decided to expand into the global marketplace, it must select a method of market entry. Companies may choose from five general options: (1) exporting, (2) franchising, (3) a strategic alliance, (4) a joint venture, and (5) direct investment. Deciding which option is right for an organization is based upon the level of financial commitment, risk,

The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions heavily influence the firm’s other marketing-mix decisions. Company can enter International Market with many ways, some of them are as follows:

When it comes to business the communication is very important; nevertheless, doing business with Brazilians you need to really make time to know the person you are dealing with. For example. Some Brazilians companies makes at least two or more meetings in order to know the person they are doing business with and trust them which is really important to Brazilians to feel a strong connection . If there is no connection between them the deal may be hard to come into something more. On other hand, Americans don’t need to make any personal connections with the person they are doing business with. As a matter of fact, they prefer not to. As fast it goes is better for them in a way they always separate business from personal. To Americans,

As Brazilians are tied to technology, another potential technological opportunity is their ability and desire to purchase things online. Not only does the company need to introduce a product or company through social media, the product or service also needs to be able to be purchased or ordered online.

During the 1950’s the current president of Brazil, Juscelino Kubitschek, established a plan to develop an automobile industry. The plan included attracting foreign automaker investors into the Brazilian automobile industry with financial incentives and the use of market restrictions. Volkswagen, Ford, and General Motors embraced the plan and competed to be market leaders in the Brazilian automobile industry. In this case study we will look more closely into why the Brazilians wanted to build an automobile industry. We will examine the strategy that the Brazilian government used to establish their automobile industry. Lastly, we will further examine the power struggle between the Brazilian government and the global automakers and why Volkswagen won in the Brazilian automobile industry.

Four Seasons Hotels and Resort is the world’s premier luxury hotel management company. It is currently operating 83 hotels in 35 countries and has built an unrivalled reputation for reliability, trust and connection with its guests (Four Seasons, 2010). As the hotel mogul prepares to enter Brazil, this paper narrates in detail the marketing plan Four Seasons will implement in the local geopolitical environment. Brazil’s present political, legal, social and economic state draws the conclusion that acquiring a local luxury hotelier while utilizing its business resources like a partner, is the best

Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)

There are many different types of market entry strategies that may be implemented by a foreign firm in an emerging country. Amongst the most popular are:

The reluctance of firms to change entry modes once they are in place, and the difficulty involved in doing so, make the mode of entry decision a key strategic issue for firms operating in today’s rapidly internationalizing market place.