Case Study Foreign Industry Acces Brazil

 Case Study Overseas Market Acces Brazil Article

* Universidad Autonoma de This town

* Master en Direccion de Marketing

* International Marketing

* Shintaro Okazaki

Case Study you:

Foreign Marketplace Entry Analysis:

BRAZIL

Diogo Areias

Marion Scherzinger

Marius Weitz

28. 10. 2011

Contents

1Foreign Market: Brazil1

2Brazil Luxury Market1

3SWOT- Analysis1

several. 1Strengths1

3. 2Weaknesses2

three or more. 3Opportunities2

three or more. 4Threats3

4Market Entry Strategy3

Bibliography4

Appendix5

Foreign Industry: Brazil

Right now Brazil features 190. several million habitants and is the 7th biggest economy on the globe, the initial in Latin America, with a GDP of around 2088 billion dollars2. It is economy has been expanding with the help of booming products (meat, cacao, sugar cane, corn, grain and soya). В The biggest Latin American economy at the moment has a 7, 5% GROSS DOMESTIC PRODUCT growth price and an increasing 7, 3% inflation charge. The raising inflation price is linked to food and fuel costs or targets of selling price and income raises. (Employees expect larger prices and demand bigger wages). Brazil has a huge agricultural and industrial basic, but the developing service sector has accounted for over 70 percent in the GDP in recent years. Brazil Luxury Market

It seems like paradoxical which a country with so many interpersonal problems just like Brazil, exactly where over twenty percent of the human population lives in low income, can be thus appealing for companies providing luxury items. Compared to additional countries where the tourists are definitely the principal buyers of luxury products, in Brazil the products are almost entirely used by regional citizens. While the economy develops, wages maximize as well and are also generating an excellent opportunity for the premium brands. According to a GFK Asking study, the reflection of this fact is the consumption of luxury products worth $6, 5 billion dollars per year. Furthermore, in the last five years this kind of sector grew 60% and in 2010 the invoiced sales of luxury products increased 27% based on the same study. Another examine of Goldman Sachs states that in 2025, the luxury market could represent 6% of the global market (approximately $60 billion). SWOT- Research

Strengths

* Brazil's luxury companies are growing fast. The middle and high classes buy a lot of status symbols and sales of luxury products are excessive. The demand is out there and might expand further. 5. Brazil imports were really worth 20. a couple of Billion CHF in September of 2011. * Joblessness rate gradually decreased the past ten years. That kicks off in august 2011 it absolutely was reported for 6%. 2. The B razil Real exchange rate declined 4. 08 percent against the US Money during the last 12 months. Historically, from 1992 till 2011 the USDBRL exchange averaged 1 . 78 achieving an traditional high of three or more. 95 in October of 2002. 2. Consumer confidence is on a high level with 112. 5 in Sept of 2011. * Brazil reduced its poverty during the last 10 years. Even though the poverty headcount ratio remains to be high, it decreased regarding 50% seeing that 2000. With the increase of higher education it will eventually raise the populations' ability to produce high valued goods and services, essentially, a country's earnings. Significantly less poverty lowers the long term expense of welfare towards the poor, or to be more particular, general expenditures.

Weaknesses

* Official data for the last three decades display that Brazil has among the world's many unequal droit of cash flow. But the GINI index reduced from above 60 more than a decade ago to about 55 currently and the govt continues looking to reduce this kind of inequality. 2. Brazil reached in 2010 a corruption index score of three. 7. Substantial levels of crime deter overseas investments in a country and boost the cost of organization due to bribery and safe concerns of staff. If criminal offenses is epidemic, it could likewise affect laws and regulations and contencioso procedures that ensure good treatment for local businesses and and also the looking to trading with the nation. * Although the luxury merchandise sales increase, it is nonetheless difficult to foreign trade to Brazil, as the...


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