Issues in International Business Brazils Economy

Question: Describe about the Issues in International Business for Brazils Economy. Answer: Concluding Report Boby Footwear Pte Ltd is a chain of popular footwear in Singapore. Founded in 2000, Boby Footwear Pte Ltd has been established as one of the most quality conscious stalwart company in the country. According to a 2012 Business Survey report, Boby Footwear Pte Ltd brand has emerged as the second biggest footwear manufacturing company in Singapore. Brazil is the largest country in the continent of South America. By area and population records, Brazil ranks as the fifth largest country in the world. The countrys official language is Portuguese and dominated by Portuguese culture. The country is also popular for its love for sports, especially football. Its Brazilian mens national team is considered one of the best among FIFA World cup teams. The country has state-of-the-art technologies and facilities to carry out high-quality research in research institutes and public universities. Sao Paulo is the largest city and one of the most important business centres in the country. As of 2014, Brazil has the third largest market size for footwear. Owing to high-quality production and cheap leather prices, the cost of production is cheaper in the country and leads to more profit. The target market for footwear in Brazil is vast targeting both genders of all ages. Brazilian footwear production in the year 2013 accounted for 57.1% womens footwear, 21.8% accounted for mens footwear, and kids footwear accounted for 21.1% ("Footwear Industry In Brazil", 2016). People in Brazil are attracted to Hawaiian flip flops the way United States people are attracted to Apple products. This is a good opportunity for Boby Footwear Pte Ltd Company in advertising their Hawaiian brand of flip flops. Almost 218 million pairs of Hawaiian flips flops were sold in the year 2014 (Bakshi, 2016). Boby Footwear Pte Ltd footwear with its unique flip flop designs, distribution chain, customer involvement, public relations, pricing, and communication can take over the Brazilian footwear market . The current population of Brazil is 209,567,920; 84% of the population is urban with 49.2% comprising males and 50.8% comprising females. The demography of the country with their rising demands for footwear will definitely provide a good market for Boby Footwear Pte Ltd footwear to conduct business. An estimate report shows that the Brazilian footwear market generates an estimated 350,000 USD dollars worth revenue annually (Ken_Research, 2016). The largest footwear chains in Brazil are situated in the Rio Grande do Sul, Santa Catarina, Sao Paulo, Minas Gerais, Ceara. The northeastern part of the country is the largest producer of footwear accounting majorly for sandal, slippers, and footwear production. The Brazilian footwear comprises over 600 footwear companies which directly employed a population of more than 350,000 people ("Market Research on Brazil", 2016). Brazil remains a very complicated country when it comes to doing business with foreign companies. Foreign companies face a very complex as well as expensive labour and tax environment, costly credits, burdensome bureaucracy, deep social imbalance, and lingering corruption issues (Ruiz, Bos, Nagamine, Machado, Kodaira, 2007). Brazil is the fifth most populous country globally and the countrys economy is growing rapidly at a rate of 7.5%. It is the seventh-largest economic country globally. However, the economy contracted by 4.1% in 2015 and is predicted to shrink by another 3.45%, so buyers need to gear up for short-term pain due to the declining economy. Also, there has been some decline about 7.3% in the sales of sandals and slippers in 2015 ("Brazil's Economy, Explained in a Pair of Flip-Flops", 2016). Brazil being a hub for footwear lovers, the country is mostly dominated by athletic footwear and sports footwear. The footwear market in Brazil has been dominated by world renowned footwear brands like Nike, Adidas, Puma, Crocs, Geox ("Footwear Industry In Brazil", 2016). Due to the shrink in the countrys economy, telecommunication, utility, and physical construction firms have been suffering a drawback in infrastructure investment ("Market Research on Brazil", 2016). To rise to the various political, economic challenges and competitors, approaches in accordance will be undertaken to deal with the challenges. These approaches will help in increasing the demands of the product to be sold in the targeted markets. The needs and demands of the Brazilian people will be understood and the footwear product will be designed according to their taste. The footwear will be designed in various colours, shapes so as to meet the needs of people of different age and gender keeping the pricing in mind so that people from all kinds of income classes can afford them ("The Marketing Mix and the 4 Ps: Understanding How to Position Your Market Offering", 2016). Footwear will be sold both in retail shops and online. Besides, a thorough investigation will be done about the marketing strategies of the competitor footwear companies. The footwear pricing will be done in such a way so that people from all income classes can afford them. Seasonal discounts and offers will be provided to attract the most number of customers. Periodic promotions will be done to advertise Boby Footwear Pte Ltd brand. Promotions will be done in notable cities and in urban areas so as to attract the most potential buyers. Promotions will be both seasonal and yearly ("The Marketing Mix and the 4 Ps: Understanding How to Position Your Market Offering", 2016). The most appropriate kind of entry mode for launching Boby Footwear Pte Ltd footwear in Brazil would be Distributorship and Franchising (Bakshi, 2016). Footwear industry in Brazil is exhibiting a high growth in production which is majorly contributed by the domestic markets. Initially, it will be tough for a novice footwear company to do business in Brazils giant footwear market. Selling it to various distributors would mean that the distributors take the ownership, this way they will accept all the risks associated with all local sales, they will sell to retailers, wholesalers or end users using their own distribution channels. This will reduce and control the risks of Boby Footwear Pte Ltd brand (Bakshi, 2016). This will give greater control over product sales in the target market, reduce the risk and will be economically cheaper. Having popular franchises sell Boby Footwear Pte Ltds footwear products will lead to rapid expansion and popularity of the brand name. This will also inc rease the local knowledge about the novice company and further expand its business ("Market Research on Brazil", 2016). The report provides a thorough research on the strategies regarding an expansion of Boby Footwear Pte Ltd footwear in Brazil. The report provides a detailed research about the trade market in Brazil, prospective regions where Boby Footwear Pte Ltd can do profitable business and the risks involved in doing so. Further, the report identifies potential challenges and the approaches to reduce risks and increase profit. References Bakshi,. (2016). Boby Footwear Pte Ltd Lecture. Slideshare.net. Retrieved 24 November 2016, from https://www.slideshare.net/bakshi1/Boby Footwear Pte Ltd-lecture Brazil's Economy, Explained in a Pair of Flip-Flops | Americas Quarterly. (2016). Americasquarterly.org. Retrieved 24 November 2016, from https://www.americasquarterly.org/content/brazils-economy-explained-pair-flip-flops Footwear Industry In Brazil. (2016). The Brazil Business. Retrieved 24 November 2016, from https://thebrazilbusiness.com/article/footwear-industry-in-brazil Ken_Research,. (2016). Brazil Apparel And Footwear Market Research Report. Slideshare.net. Retrieved 24 November 2016, from https://www.slideshare.net/Ken_Research/brazil-apparel-and-footwear-market-research-report Market Research on Brazil. (2016). Euromonitor.com. Retrieved 24 November 2016, from https://www.euromonitor.com/brazil Ruiz, M., Bos, A., Nagamine, R., Machado, E., Kodaira, A. (2007). Technical Barriers to Trade of Leather and Shoes: Potential Impacts and Challenges to the Brazilian Market. PICMET '07 - 2007 Portland International Conference On Management Of Engineering Technology. https://dx.doi.org/10.1109/picmet.2007.4349460 The Flip-flop Market in Brazil. (2016). The Brazil Business. Retrieved 24 November 2016, from https://thebrazilbusiness.com/article/the-flip-flop-market-in-brazil The Marketing Mix and the 4 Ps: Understanding How to Position Your Market Offering. (2016). Mindtools.com. Retrieved 24 November 2016, from https://www.mindtools.com/pages/article/newSTR_94.htm