Reference no: EM133049523
Method of Entry in Brazil: The McGrew Corp.
The McGrew Corp., a manufacturer of peanut combines, has for years exported very profitably a significant number of machines to brazil. However, a new national Brazilian firm has entered the market and started to manufacture and sell these machines in Brazil.
Roger Shaffu, the exclusive distributor for McGrew in Brazil, has told Mr. Jim Allen, the CEO, that if McGrew expects to maintain its share of the market it will also have to manufacture locally.
Allen is in a quandary: The market is too good to lose, but McGrew has had no experience with foreign manufacturing operations. Further, because Brazilian sales and repairs have been handled by the distributor, McGrew does not have any firsthand marketing experience in Brazil.
Allen has made calculations showing that McGrew can make tremendous profit by manufacturing and marketing in Brazil as a national company. However McGrew's lack of foreign marketing expertise in Brazil is particularly troubling to him!
Allen calls YOU, McGrew's Exports V.P., and ask you to study and evaluate the situation and submit to him a report that requires YOU:
- To identify three top VIABLE METHODS 0f ENTRY and OPERATIONS in BRAZIL with a comparison showing, in general, the ONE main advantage and One main disadvantage of each method and:
- To recommend a choice of entry and operation method in Brazil; and to succinctly explain why.