The Latin American International Management Strategy: The Food Industry CaseNuno Ferreira
This investigation intends to analyze this tendency, looking specifically to the companies’ path from Latin American, and to understand which strategy these companies have been following to become global. Based on existing international strategy models and perspectives, we set out the analysis of seven case studies about Latin American food industry companies which will allow us to recognize which is the international strategy followed by each firm, how they organize their operations abroad in terms of multidivisional structures, what is the role of people in their internationalization processes, and how their financial partners look to this new reality.
The Latin American International Management Strategy: The Food Industry CaseNuno Ferreira
This investigation intends to analyze this tendency, looking specifically to the companies’ path from Latin American, and to understand which strategy these companies have been following to become global. Based on existing international strategy models and perspectives, we set out the analysis of seven case studies about Latin American food industry companies which will allow us to recognize which is the international strategy followed by each firm, how they organize their operations abroad in terms of multidivisional structures, what is the role of people in their internationalization processes, and how their financial partners look to this new reality.
Global Marketing PowerPoint- Kayleigh DavisKayleighDavis6
Global Marketing presentation that goes over GM strategies, entry strategies, customer acquisition, the top 10 global commercial markets, global trade, and examples.
Global Marketing PowerPoint- Kayleigh DavisKayleighDavis6
Global Marketing presentation that goes over GM strategies, entry strategies, customer acquisition, the top 10 global commercial markets, global trade, and examples.
The marketing and advertising arms race to create emotional appeal, generate buzz and move up brand valuation league tables, is creating a widening gap between brand strategy and business strategy. In this environment some of the once coolest and iconic brands are faltering at a game they once dominated. The key question for businesses today, is how to expose such strategic blind spots and remain relevant in the face of an evolving marketplace? This article explores one methodology and framework into just how that can be done.
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135
Chapter 5
Selecting Business-Level Strategies
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to understand and articulate answers to the following
questions:
1. Why is an examination of generic strategies valuable?
2. What are the four main generic strategies?
3. What is a best-cost strategy?
4. What does it mean to be “stuck in the middle”?
The Competition Takes Aim at Target
On January 13, 2011, Target Corporation announced its intentions to operate stores outside the United
States for the first time. The plan called for Target to enter Canada by purchasing existing leases from a
Canadian retailer and then opening 100 to 150 stores in 2013 and 2014. [1] The chain already included
more than 1,700 stores in forty-nine states. Given the close physical and cultural ties between the United
States and Canada, entering the Canadian market seemed to be a logical move for Target.
In addition to making its initial move beyond the United States, Target had several other sources of pride
in early 2011. The company claimed that 96 percent of American consumers recognized its signature logo,
surpassing the percentages enjoyed by famous brands such as Apple and Nike. In
March, Fortune magazine ranked Target twenty-second on its list of the “World’s Most Admired
Companies.” In May, Target reported that its sales and earnings for the first quarter of 2011 (sales: $15.6
billion; earnings: $689 million) were stronger than they had been in the first quarter of 2010 (sales: $15.2
billion; earnings: $671 million). Yet there were serious causes for concern, too. News stories in the second
half of 2010 about Target’s donations to political candidates had created controversy and unwanted
publicity. And despite increasing sales and profits, Target’s stock price fell about 20 percent during the
first quarter of 2011.
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http://www.saylor.org/books
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136
Concern also surrounded Target’s possible vulnerability to competition within the retail industry. Since its
creation in the early 1960s, Target executives had carved out a lucrative position for the firm. Target offers
relatively low prices on brand-name consumer staples such as cleaning supplies and paper products, but it
also offers chic clothing and household goods. This unique combination helps Target to appeal to fairly
affluent customers. Although Target counts many college students and senior citizens among its devotees,
the typical Target shopper is forty-one years old and has a household income of about $63,000 per year.
Approximately 45 percent of Target customers have children at home, and about 48 percent have a college
degree. [2] Perhaps the most tangible reflection of Target’s upscale position among large retailers is the
tendency of som.
Saylor URL: http://www.saylor.org/books Saylor.org
135
Chapter 5
Selecting Business-Level Strategies
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to understand and articulate answers to the following
questions:
1. Why is an examination of generic strategies valuable?
2. What are the four main generic strategies?
3. What is a best-cost strategy?
4. What does it mean to be “stuck in the middle”?
The Competition Takes Aim at Target
On January 13, 2011, Target Corporation announced its intentions to operate stores outside the United
States for the first time. The plan called for Target to enter Canada by purchasing existing leases from a
Canadian retailer and then opening 100 to 150 stores in 2013 and 2014. [1] The chain already included
more than 1,700 stores in forty-nine states. Given the close physical and cultural ties between the United
States and Canada, entering the Canadian market seemed to be a logical move for Target.
In addition to making its initial move beyond the United States, Target had several other sources of pride
in early 2011. The company claimed that 96 percent of American consumers recognized its signature logo,
surpassing the percentages enjoyed by famous brands such as Apple and Nike. In
March, Fortune magazine ranked Target twenty-second on its list of the “World’s Most Admired
Companies.” In May, Target reported that its sales and earnings for the first quarter of 2011 (sales: $15.6
billion; earnings: $689 million) were stronger than they had been in the first quarter of 2010 (sales: $15.2
billion; earnings: $671 million). Yet there were serious causes for concern, too. News stories in the second
half of 2010 about Target’s donations to political candidates had created controversy and unwanted
publicity. And despite increasing sales and profits, Target’s stock price fell about 20 percent during the
first quarter of 2011.
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://www.saylor.org/books
Saylor URL: http://www.saylor.org/books Saylor.org
136
Concern also surrounded Target’s possible vulnerability to competition within the retail industry. Since its
creation in the early 1960s, Target executives had carved out a lucrative position for the firm. Target offers
relatively low prices on brand-name consumer staples such as cleaning supplies and paper products, but it
also offers chic clothing and household goods. This unique combination helps Target to appeal to fairly
affluent customers. Although Target counts many college students and senior citizens among its devotees,
the typical Target shopper is forty-one years old and has a household income of about $63,000 per year.
Approximately 45 percent of Target customers have children at home, and about 48 percent have a college
degree. [2] Perhaps the most tangible reflection of Target’s upscale position among large retailers is the
tendency of som.
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Capital Renovable is a company dedicated to the
development, construction and operation of projects for
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Gracias a los blogs, wikis y plataformas colaborativas millones de usuarios dejaron de ser meros consumidores para convertirse en productores y distribuidores de información.
Publicación del openhouse "Evento DemoDay" para mostrar en detalle la operación del "Método C-lining". Proyecto de Transferencia tecnológica único en Chile.
A state of the art of the shopping center industry and possibilities to land the GAP brand in Perú.
Presentation to the team of GAP Corporation (GAP, Banana Republic)
4. Strategies
Sharp brand focus
Communicate the brand’s roots and
international charm through team with vast
experience in outdoor retail and actions sports.
Dedicated organization to XXX XXXXX in LATAM
Entrepreneurial environment
Focus start in Retail
6. SWOT ANALISIS
1.- Late arrive to some markets. Big brands precence 5+ years. With
medium to high penetration and efficiency
2.- Big volume sold by national brands or local retailers.
o Ex. Some brands represent 50-60% in bigbox retailers
o Products are middle quality but very well communicated and
marketed
1.- Local and Mercosur production
2.- China production for private labels is high.
Weaknesses
Threats
8. For a better understanding of this big and
diverse market the emerging Latin
American economies are grouped in 6
subregions.
OVERVIEW OF THE MARKET
The andean
Brazil
Mexico
The Caribbean
ntral America
Southern Cone
9. Doing Business 2014
Half of the economies of Latin America, among
the best in the world to do business
Chile, Mexico, Colombia, Peru and Costa Rica,
in the list of countries with good business
climate.
10. Why LATAM
Brazil is expected to be the fourth largest economy in 2050.
Expansion of foreign brands - many companies such as Burberry,
Mothercare and Adolfo Dominguez are focusing on Latin America.
Latin America has some of the most attractive markets in comparison
country risk and market potential (2012 GDRI)
11. Why LATAM
Strong expansion of the middle class
Supermarkets and depart. stores segment's are retail areas with higher
growth. Penetration is still low (25-30 m2/1000 inhabitants), a strong sales
growth and surface are expected.
U.S. $ 6.348 million will invest the six largest retailers in Latam 2017
(Cencosud, Falabella, Ripley, Walmart, Parque Arauco and SMU). Objective:
Peru, Argentina, Colombia and Brazil.
Big % of market is dominated 4-5 large retailers. Therefore competition (no
competition) is high.
Growth prospects 3-4% on average. Countries above the media Chile (5%),
Colombia (4.5%), Peru (6%). Controlled inflation in several countries.
Brazil, Mexico and Chile are the countries with the highest retail
development.
Colombia is the star, too much interest in Peru.
14. Most important outdoor markets
Colombia
Perú
Ecuador
Dominican Republic,
Puerto Rico
Costa Rica, El Salvador,
Guatemala
Panamá.
Argentina, Chile and
Uruguay
Brazil
15. Market size
Performance, action sports & outdoors
US$ 1.000 Millions Market Opportunity
(Excluding Mexico)
MM $450 MM $320 MM $230
MAIN ACTOR:
Coleman
Doite
TNF
National Geographic
Intex
Bestway
Private labels
Mountain Gear
Klimber
Apparel
Footwear
Equipment
Equipment
17. Main competitors country overview
60 stores (2013)
20-25% growth expected (2014)
Part. Market estimated 15-18%.
Last movements and projections:
Since 2012 direct representation office (Cali).
Double market share and revenue in 2014.
Installed with a factory for textiles in the region (5 + years)
COLEMAN - Main markets
COLOMBIA
18. Main competitors country overview
Keeps 9 years a strategic alliance with Jeep.
Strong promotion (Latam) line of tents Instant Dome
COLEMAN - Main markets
VENEZUELA
19. Marketing Tactics
CAMPING market opportunity is about MMUS$ 120 (retail sales).
15-20% annual sales growth.
COLEMAN is leading sales in almost every market, but PRIVATE LABELS
have been growing fast in the last years. Falabella private labels have
reached the same level of sales coleman.
Most of the countries have high taxes, retail prices for xxx xxxx remain
competitive and atractive, even when consider open doors at bigbox
retailers.
Ex: Coleman 4 pax tent Retail Chi US$200: Col. US$ 318
XXX XXXX 4 retail at US$ 179-189
Ex: Sleeping bag (30ºF) Coleman Retail US$ 60
XXXXXX similar retail at US$ 49
21. Opportunities
o XXXX Brand
o Key end-user insights:
o XX million runners in Latam: X% = the core of market
(enthusiast and active buyers).
o Runners also participate in other activities: strength training
(59%), cycling (36%), swimming (53%) and hiking (28%)
o Shelters, canopy and furniture: via sodimac and big box retailers.
Internet!
Ex: Brasil Kanui.com.br (action sports specialist)
Retail US$ 120 mill, growth 9.000%.
22. Key to Success in Latin America
Overcoming Trade Barriers
It is important to partner with locals how will help to
navigate among regulatory issues and tap into the
market potential there.
Offer Low Price Points for masive retailers.
Pacific coast must be the place to focus on.
Brazil - is considered impenetrable by many outdoor
brands. And Argentina is also dismissed as being
particularly hostile toward imports of manufactured
goods.
23. About me (skills)
+ 6 years of experience in managing a sales team with multiple retailers
and categories. Experience in managing independent sales reps and
agencies.
Worked with almost every big brand and retailer in the region, that give me
a full understanding of the products, market needs, business models,
negotiation skills and networks to succeed.
Knowledgeable and active in human powered outdoor activities.
One of my plus is the experience in the Consumer Goods industry
I got the ability to travel the region as necessary.
Experience in crunching and analyzing data to produce action plans
Demonstrated history of attention to detail and follow-through
Independent, creative self-starter with the ability to work independently with
limited direct supervision. Entrepreneur
Excellent communication, follow-up, organization and interpersonal skills.
Manage forecasting and reporting of financial commitments