Business Plan For Digital Cameras In Brazil

External Environment

The aim of the report is to form a business plan which includes a written document that reflects the way through which the company can meet its goals in the foreign market. This assessment is linked with the previous assessment which includes the feasibility of expansion of digital cameras in the market of Brazil. It was concluded in the previous assessment that Brazil offers the capability of effective industry in Brazil. The emerging needs of technology with the availability of low cost of labour in the market helps in generating high revenue. On the basis of which the business plan is prepared.

This will include an evaluation of the external environment of Brazil that helps in understanding the impact of external factors. Further, it includes the market environment review for the digital camera on the basis of affordability, culture, buying behaviour and market segmentation. The paper includes a SWOT analysis of the opportunity that is an expansion of the range of digital cameras in Brazil. It includes the objective that will help the company to meet the gaols. The entering of the digital cameras in the market needs an appropriate mode of entry strategy which is discussed with the review of implementing this plan.  

For any company to expand in any country, it is very much essential to review the external environment of the country. This is necessary for understanding the factors that works in favour of company’s plan for expansion as well as factors that is acting as a threat. The external analysis of Brazil is analysed below.

• Political: Brazil has faced many types of political turmoil in the past. But now it is having a federal government that is highly proactive in attracting investments. Still there is a problem of corruption in Brazil hence companies had to invest a lot of money in the lobbying. Due to lack of transparency companies usually have to face many types of challenges in establishing themselves in the country. At the same time, corruption has increased the time taken by the government in the process of expansion (Evans, 2018). The negative impact will be posed by the fact that government and the opposition are always standing against each other. This will create challenges related to the management of the operations as they will have to face political restrictions at every stage of the business process. In the long term this will have impact on the growth of the company
• Economical: Brazil being a developing nation has a lot of potential in economic terms. Due to the large population in the country and growing middle class, the chances of investment by the camera company increases. Country’s currency is also stable hence companies will not face problems in the investment stage (Nagano, Stefanovitz and Vick, 2014). Numbers of unemployed people have also increased in the last few years and this has reduced their target base. But the positive thing about the economy is that the inflation is in under control. There is also decrease the tariff base which is further an important point towards investment but on the other hand tax rates are higher which might affect the profit margins of the camera company (Kang and Huang, 2012). It is one of the fastest developing nations of the world hence they can ensure long term growth of them.
• Social: The society of the Brazil has changed significantly especially in terms of consumer’s choices related to digital equipment.  People are moving towards digital technologies that is having advanced features. This country is creating large numbers of skilled employees that will help the camera company in fulfilling their demands related to talent management (Hoffmann, Bandeira-de-Mello and Molina-Morales, 2011). There are people from the different segments of the society but the youth constitutes a major part of the society. This will have the positive impact on the company as the youngsters acts as their major target market. Apart from this it is seen that people’s approach towards luxury products have changed and they are trying purchasing lots of items that are luxurious. The growing middle-class will give boost to the investment plans of the organisation as they can add them with luxury class so as to increase the numbers of the people in the target segment.
• Technological: Brazil is not so much advanced in technology but it investing a lot of their budget on the innovation and research. This weaker technological infrastructure will not go in favour of the company as they will have to bring technology from the external market. Company will also have to invest a lot of money on development of talent pool and training them so as to make them capable of handling these advanced technologies (Montes and Tiberto, 2012). It is also to be noted that IT sector in the company has expanded with a huge pace and this will have a positive impact on the plan of the camera firm related to investment in the country. Innovation which is a major criterion for success of the digital products and hence new investments will boost the advancements of technology.
• Legal:  The legalities in the country especially related to consumers and employees have changed and this has forced the companies to find a route that does not put them in any kind of legal compliances. The changes in the legal factors are also reflected by the fact that laws for long term investment has been made easier (Graham, 2014). On the other hand the laws related to making partnerships have been made easier so that more joint ventures could be promoted in the country. It has also been seen in the past that central and the local authorities have made changes in the legalities so as to increase the numbers of investments.
• Environmental: Brazilian government has made many types of plans for managing the environmental issues. This will not be a problem for the company that deals in the production of Camera. Still the company will have to ensure that they have a long term waste management plan for dealing with the waste that is created in packaging and different stages of supply chain management (Prajogo, 2016). In order to reduce the impact on the company’s plan, it is essential that firm makes all its policies that is according to the environmental norms in the country.

It is also crucial that a firm evaluates the internal environmental condition of the nation. This must be based on the factors that can influence the purchasing power of the government and the expenditure capacity of the government. Some of the factors that need to analyse for this analysis are as follows:

• Income level: The income level of the people of Brazil is on the higher side. This is attributed by the fact that the per capita income of the people in the country is 15,160 dollars (Sawyer, 2015). There is increase in the income level noticed from last few years and due to this enhancement, the purchasing power of the people have also enhanced. The real increase in the income level is of the middle class who is acting as the boost to the investment plans of the company. More the income of the people more is the chance to sell luxury camera. Since it is a developing nation hence it is expected that income level of the company will further increase in the future. On the other hand increasing unemployment will have negative impact on the operations of the firm.
• Culture: The culture of Brazil is highly diverse and consists of many ethnic groups. The diversification in the cultural norms and the practices has to be respected in the strategies of the firm. At the same time there are companies from the local and international levels and they have different types of culture but it is essential that company makes their strategies that comply with cultural orientation of the firm (Aguiar, et al. 2012). In the time to come there will be more people from different countries settling into Brazil hence it is essential that company maintains a framework that helps in diversity management. Company will also have to act according to the ethnic groups.
• Buying behaviour:  They have been conventional in terms of purchasing behaviour of the people especially related to the way in which people go for purchasing any certain kinds of products. In the urban and rural areas the purchasing behaviour is different as the per capita income of the people in the urban is high hence they like to purchase luxury products while the people in the rural areas have relatively lower income. The camera company will have to target the urban population ore in the initial stage of the expansion. The changing society has generated greater love for the technologically advanced equipment and hence are highly attracted towards the purchasing such products. They are now trying to buy most of the things from the online shopping hence company will have to invest money on doing business through online mediums (Novais, 2012).
• Market segmentation: Since Brazil contains people from different sections of the society hence it has become essential for the organisation to segment their target segment in a proper manner. Segmentation is based on different variables (Costa and Monte-Mór, 2015). In geographic terms they need to target people from the urban and semi-urban areas. In demographic terms, they need to target people that are between the age group 15-55 years.  In this they should target people that are having high or average income as well as the people of all the life cycle stage. In terms of psychographic segmentation they need to target people that are technology lover. They can target both mainstream and strugglers. In behavioural terms they need to target the people that are easy going and careless as well as the person that looks for time efficiency and cost benefits.

SWOT analysis is a tool that is undertaken by the company to analyse the strengths, weakness, opportunities and threats related to the expansion of the wide range of digital cameras in Brazil market (Cavusgil, et al 2014).

• One of the biggest strength is that Brazil has the largest and most advanced ICT sectors in Latin America which company to expand the digital cameras because they can easily bring the innovations in the existing products.
• The largest ICT sector leads to the rise in the demand of the latest and innovative products which helps in generating high revenue.
• Strengths of the labour market which include the easy availability of the labours in Brazil and also saves the operation cost of the company.
• Digital cameras get the effective integration of the different digital platforms which majorly include the social networking sites which help in performing the marketing to target a large number of the audience (Lovelock and Patterson, 2015).

• The weakness that is present in the opportunity is related to the macroeconomic recession and current devaluation against the US dollar. This might affect the revenue of digital cameras in the market of Brazil (HM government, 2018).
• The company might face strict political regulations with the rise in the corruption in Brazil.

• The opportunity that the company maintain is to offer innovative products with good quality to the customers in the market.
• The company can increase their presence in the global market by implementing the strategy of the expansion.
• Digital cameras e-commerce market in Brazil is at boom which leads an effective option for marketing of products (David, 2011).

• The rapid changes in the technology in Brazil are one of the biggest threats because the change will force the company to bring the change in products that they are offering to the customers.
• The competitors of the company like Nikon, Sony and Canon are leading threats for the company that might affect the operations of company related to cameras in Brazil.
• The rise in the appeal of the high end and dual camera in the mobile phones is also capturing the market share of the digital cameras (Wilson and Gilligan, 2012).

The analysis which is completed reflects that the company need to make some objectives which are required to be fulfilled by them.

• The objective of the company is to earn maximum profit in the market by targeting a large number of people as this has been found that people are getting attracted towards the purchase of luxury products.  
• The training to the employees for the new updates in the technology is another objective of the company as this will lead to innovation and development of new technology.
• One of the major objectives of the company is to capture the huge market in the coming 1 year. This is possible by offering quality and innovative products to the customers and makes space in their mind.  

The company finds that Brazil market is appropriate for the expansion of the business due to which they need to plan for the market entry strategy. Market entry strategy is the planned distribution and delivery method of goods and services to a new target market. There are different types of market entry strategy such as Licensing, franchising, Joint Venture, Strategic alliances and many others (Grünig and Morschett, 2017).

Market Environment

According to the analysis, the company should make use of the joint venture strategy. The joint venture is referred to as the business agreement among the two companies with the motive to work together and to achieve the specific goals. The legal agreement takes place among the two companies and they start working together (Shen, Puig and Paul, 2017). The joint venture can be done by the company with the any emerging small companies or with the large company. This venture helps the company in making their products easily available in the market. This strategy offers numerous advantages to the digital camera company. Some of them are discussed below: –

• New insight and expertise: – Joint venture offers the opportunity to gain the new insight and expertise to the company which will enhance their knowledge of performing the business operations.
• Better resources: – Joint venture will allow the company to access the better resources which include advanced technology and specialised staff in the market of Brazil.
• Share the risks and costs: – The joint venture includes the sharing of loss, expenses, risk and profit among both the companies.
• More chances to succeed: – The chances of success of the business will increase the company get involved in a joint venture (Yan and Luo, 2016).
• Information about contacts: – The joint venture in Brazil with the company that is performing its business operations in Brazil can share the contacts. These contacts include the suppliers, intermediates, distributors and many others. This will further help the company to increase the market share in other countries.

All these benefits of the joint venture can easily be availed by them when they enter into the agreement with another company to make the products and services available in Brazil. These advantages reflect that joint venture offers more ways to the company to achieve success in the market. Though, the major issue which might be faced by the company in Brazil is finding the suitable company that can easily get involved in the joint venture with the digital camera company (Shen, Puig and Paul, 2017). In addition, the company should keep in mind that the company to whom they are performing the joint venture should have good financial stability. This can be measured with the use of the financial statement that the company is able to earn the profit or not. In addition, the company can face the loss or not with this they should ensure that they have the capital to invest in the business or not.

This section includes the implementation of the business plan for a wide range of digital cameras in the market of Brazil. Below given is the implementation of the business plan of digital cameras: –

• Review of external environment: – At the initial stage, the company needs to review the external factors that can affect the company. The review of these factors requires different resources which include: Human resource; an expert can review the factors that can affect the company as an expert is equipped with the skills and capabilities of proper forecasting. Along with this, there is the use of the intangible resources that is majorly goodwill and value for understanding the environment.
• Review of the market environment: -It is essential for the company to review the market environment where they will perform operations. This review will help the company in understanding the place where they are operating their business operation. This includes the review of income level, culture, buying behaviour and market segmentation.
• Conducting SWOT analysis: – The next step includes conducting the SWOT analysis of the opportunity. This will reflect the weakness that will be faced by the company with the opportunities that can grab and the threats that they should take care while operating in Brazil.
• Objective: – After the analysis of the external and internal factors the company makes the objectives of the digital camera in Brazil.
• Market entry strategy: – The final step includes the selection of the market entry strategy to expand the business in the market of Brazil. The market entry strategy that has been selected for the expansion of the digital camera.

Conclusion

In the end, it can be concluded that the company has vast opportunities in the market of Brazil. This can be said that expansion of the business will offer a high profit to the company. The analysis reflects that external factors can affect the working of the company but there are some positive elements that help the company to manage the operations. In addition, the market analysis reflects that the buying behaviour is towards the luxury products, the income level of the people are increasing in the country, the companies are managing the diversity, and the company needs to target different market segments.

References 

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