Analysis of Brazil as a Potential Market for Digital Cameras

This report provides a detailed analysis of Brazil as a potential market for digital cameras. It covers political and social systems, degree of openness of the economy, labor market, product market, and marketing strategy. The report concludes that Brazil has the potential to provide an effective digital industry for the organization, but it also poses high risks of threat from substitute and competition between existing companies.

Running head: GLOBAL BUSINESS MANAGEMENT
Global Business Management
Name of the Student
Name of the University
Author Note

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Introduction
The demand of the digital cameras is hastily shifting from the developed nations to the
developed countries. The chief cause behind the shift in demand is that in developed countries,
demand for digital camera is reaching maturity stage due to high ownership level of digital
cameras among the consumers. On Contrary, the penetration level of digital camera is low in
emerging nations like Brazil which in turn results in growing demand from the 1st time buyers. In
this report, detailed analysis of Brazil as the chosen country for new entrance will be performed.
Discussion
 Political and social systems
Considering the fact that the political system of a country affects its labor, product and
capital market, it posses the potential to highly influence the revenue of any emerging
organization. In order to establish successful business in the digital industry of a foreign land,
the management of the company must assess the political environment of Brazil. The social
environment of Brazil also posses the potential to impose vital impact on the business of
digital camera in the nation. Currently the political environment of Brazil is stable. However,
as per the researchers, the nation posses the history of rapid changes in the political system.
Moreover, corruption is still considered to be a big issue in Brazil (Menezes et al. 2016). As a
result of that emerging businesses needs to pay additional payments to government official
which can be considered as a major obstacle for emerging market. However, recently the
government is working on globalizing the digital industry of the nation and as the result of
this the corruption level in the mentioned industry is low.

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When it comes to social environment of Brazil, Class distribution in the nation is
comprised of a huge portion of individuals with low or moderate income rate. As a result of
this, Brazil lacks technological advancement. This will be beneficial for the company since
lack of technological advancement mean that majority of the middle class people in Brazil
uses mobile that lacks high quality camera. Thus the company will be able to establish a
successful business in Brazil.
 The degree of openness of the economy :
The degree of openness of the economies of a country is highly crucial since it
determine whether international investors are welcomed to the nation or not. According to
researchers, a country where globalization is highly acceptable tends to have lower barrier to
entrance which in turn impose positive impact on the revenue of the international business
(Prado Jr et al. 2016). Considering the fact that, with the emergence of middle class in the
Brazilian society, the demand for technological goods are increasing, the government of
Brazil is getting incline to globalize the digital industry (Low 2016). Thus, the openness of
the government towards foreign investors has got increased over time. This will positively
affect the company since lower barrier to market means lower investment costs, lower tax
rates and higher cooperation of the government.
 The labor market of Brazil
As per a survey conducted in the year 2018, almost 78 percent of the population falls
under the age group of 17-51 years (Fujiwara 2015). Thus it can be clearly understood that
unlike majority of the developed nation, the population in Brazil is not an aging population.
This in turn has imposed a positive impact on the labor market of the nation. Moreover, being

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a developed country, there prevails lack of job opportunity in the mentioned nation. High
demand for job along with lack of job opportunities has resulted in a cheap labor market.
This factor will impose positive impact on the company since cheap labor will ensure lower
investment costs and higher revenue (Kavanagh et al. 2018). Moreover, the literacy rate of
Brazil is 92.3 percent which indicate that the organization will be able to recruit higher
officials from the nation itself. This in turn will save the costs of travelling for the country
and ensure a further enhancement in the revenue.
 The product market of brazil
Brazil is continuously increasing. However with the emerging demand for
technology, the demand for mobile phones with high quality camera has also got enhanced.
Moreover, due to globalization, several popular international Smartphone manufacturing
companies have established their market in the nation. Thus the threat from substitute is high
in the digital market of Brazil (Schmandt and Wilson 2018). Along with that, the competition
between the competitors is also high in the nation. Along with international brands like
Nikon and Sony several local brands are offering Digital camera to the consumers within a
similar price range. Considering the fact that a good number of local as well as international
Smartphone brands in Brazil are offering the consumers with smartphone with high quality
camera at a price range lower than that of the digital camera, the target consumer of the
organization selling digital camera is slowly shifting their choices (Haberli Jr, Oliveira and
Yanaze 2017). This in turn is imposing highly negative impact on the existing digital camera
manufacturing companies thus in order to deal with that, our company needs to develop
effective marketing strategy.

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 The marketing strategy that needs to be adopted
Effective marketing strategy posses the potential to effectively establish a company
in a foreign market and enhance the revenue of the same to a great extent. As per the
information of the market obtained from the above research the following marketing strategy
will help the company to successfully establish its business in the digital industry of Brazil.
Strengths and weaknesses of Brazil
Strengths Weaknesses
 Political system is stable
 Low cost of labor
 High openness of the government
 Emerging middle class
 High demand for digital gadgets
 Underdeveloped technology
 High threat from substitute
 High competition from competitors
Table 1: Strengths and Weakness of Brazil
Source (Created by author)
4P’s marketing Mix
1. Promotion
In order to develop consumer base as well as gain loyalty of the consumers, it is
highly crucial to enhance the awareness of the same about the company and the product that
is being offered to the consumers. The company should use social media for online
promotion since more than 93.4 percent of the Brazilians are available in popular social

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media platforms like Facebook and Twitter (Tavares 2016). Communication through social
media is not only cost effective but it will also help the management to understand the
specific requirements of the consumers and provide them with effective products. Moreover
direct consumer to management communication will enhance the bonding of the same and
thus will facilitate consumer loyalty. In order to promote the brand offline, celebrity
endorsement can be considered as an effective way.
2. Price:
The company should offer the product to the consumer at a lower price range
compared to that of its competitors and substitute. Not only those unique and exceptional
features can be included in the mentioned item in order to gain competitive advantages
over the substitutes.
3. Product
Considering the fact that the threat from the substitute along with the threat from the
competitors is high, the management should develop high quality digital cameras at lower
price range from the competitors. Unique features like Bluetooth system, removable memory
card, anti shake and burst mode facilities can be incorporated in order to attract the attention
of the consumers.
4. Place
In order to establish excellent availability, the company needs to show strong distribution
strategy. Considering the fact that the internet is available to the consumers of Brazil, the
company can make it s products available at Flipkart and Amazon exclusive. Collaboration
with efficient suppliers and strong distribution channel is also required.

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Conclusion
From the above discussion, it can be concluded that Brazil has the capability to provide
the organization within an effective digital industry. The emerging demand for technology in the
nation along with the low cost of labor in the mentioned market will impose highly positive
impact in the revenue of the company. However, it has been found that the mentioned industry
posses high risk of threat from substitute and competition between the existing companies.
Hence in order to deal with this, the company has been suggested to promote it business through
online and offline Medias and offer the product to the consumers at a lower prize compared to
the competitors.

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Reference list
Fujiwara, T., 2015. Voting technology, political responsiveness, and infant health: Evidence
from Brazil. Econometrica, 83(2), pp.423-464.
Menezes, E.T.N., Santos, R.E.A., da Silva, G.F. and Russo, S.L., 2016. Science and Technology
Growth in Universities of Brazil after the Creation and Implementation of Innovation
Law. Razón y palabra, (92), pp.39-14.
Prado Jr, F.A., Athayde, S., Mossa, J., Bohlman, S., Leite, F. and Oliver-Smith, A., 2016. How
much is enough? An integrated examination of energy security, economic growth and climate
change related to hydropower expansion in Brazil. Renewable and Sustainable Energy
Reviews, 53, pp.1132-1136.
Schmandt, J. and Wilson, R. eds., 2018. Growth Policy in the Age of High Technology (Vol. 46).
Routledge.
Tavares, M.D.C., 2016. The growth and decline of import substitution in Brazil. ECLAC
Thinking, Selected Texts (1948-1998). Santiago: ECLAC, 2016. pp. 129-140.