EG7036 International Business: Skanska UK Brazil Market Entry

This report provides a case study analysis of Skanska UK, a European construction company, focusing on its potential expansion into the Brazilian market. The report identifies key factors influencing the company's success in Brazil, including the global business environment and strategies for achieving competitive advantages. It emphasizes the importance of market analysis, understanding local contractors, architectural and engineering consultants, and the potential benefits of joint ventures. The analysis highlights how these factors can contribute to Skanska UK's successful entry into the Brazilian market, enhancing its profitability and presence. The report also provides supporting references from books and journals.

EG7036 International
Business,
Organisational
management

INTRODUCTION
The global business environment can be defined as the environment in different
sovereign countries, with factors exogenous to the home environment of the organization,
influencing decision making on resource use and capabilities.
This report will take case study of Skanska UK which is well known European
construction company. This company made their name of late in the green construction and
eco- friendly arenas. This report company is thinking to expand their business in Brazil
market . It will briefly explain the factors which can influence and provide competitive
advantages of the Skanska UK.
MAIN BODY
Global business environment and factors which influence the company and provide
competitive advantages.
In my opinion Global expansion has huge impact on the firms which helps to increase
the business because it helps to increase the ravine of the business and company can earn
more profit as compare to the dogmatic market. Customers of the product as more but their
demand and needs are different so they should develop their product to take competitive
advantages. Skanska UK is one of the top leading construction company and they are
already working in the international level (Barac And et.al., 2016). This company play
important role in buling Sweden;s infrastructure which includes power plants, roads ,
houses and many o0fflicess. They are having good reputation in the market because of their
construction work. Now they are thinking to end their business in the new market which is
Brazil. They are thinking to expand their business. In my opinion they can have many
advantages and opportunities by expanding their business in this country and help them to
take competitive advantages in this country (Tallman, Luo and Buckley., 2018). This is
important for the Skanska UK to understand those factors which can help them to take
competitive advantages in the Brazil and they can overtake the top construction companies
the Brazil country. Marketing team of the company have to analyze the market an find the
contraction contractors which can help them to take competitive advantages. They can make
the good relationship with the construction contractors which will provide them work before
the expansion in this market. They have found those construction contractors which can
work with them and company can work for them and achieve competitive advantages.
Marketing team of the Skanska UK has to find the contractors who can work with them after
expansion of their business in the Brazil market. They have to contact them and approach
them to work with their company. So they can get their work in the Brazil and they can show
their presence in this market. Without having work in this country they cannot expand their
business so they have to find the work through contacting top contractor of this country and
approach them to work with their company (Hamilton and Webster., 2018). This can take
time to get construction contractors but without finding contractor they cannot enter in this
market. They have advantage of their work so they can show their work and take contract

with the companies in the market. Another factor is architectural and engineering consultant.
It is important for the every business to take consultancy from the experts , especially when
they are thin kin g to enter in the new market which they do not know about their culture
work etc.
There are many consultancy firm which helps other companies to provide information about
the country where they what to expand their business. They have found the experts in the
construction and provide consultancy to the construction firms. Skanska UK company can
talk about the new market and they will give them proper guidance and issues they can face.
This will help to know them about the environment of the country and they can also find the
problems they can face in the other international market (Lee., 2017). They will need
consultancy and if they enter in the Brazil market without having any knowledge than they
can face many problems and it can also affect on their profitability. There are many
construction consultancy firms are working 6o provide knowledge about the expansion they
can take consultancy and this will help them to take competitive advantages. They will have
proper knowledge about the market and they can also overtake the other companies after
gaining knowledge about the market of the Brazil. Joint venture – This can also a best
factor and strategy for the Skanska UK to enter in the new market. They can jointly start a
business with the one of the top construction company of the Brazil (Hill And et.al., 2017).
This will be advantage for the Skanska UK because the other partner have knowledge about
the market and they will also have contract with the top contractors so they will not have to
find the work because they will collaborate with the company from the brazil and they will
already have contacts with the construction contractors. This will also helps them to take
competitive advantages with this strategy (Pikhart., 2017). This is one of the best strategy
because expansion of the business in the other country need high amount of finance but in the
collaboration two companies invest equal amount in the work so their capital will be high, If
Skanska UK fail to expand their business in the Brazil then also both companies have to
equally for their loss which will be better than paying individually, they can use this strategy
to expand their business in the market of Brazil and this allow factors will increase the chance
of Skanska UK to successful expansion and they can also take competitive advantages and
show their presence in the new market. This will also affect on their profitability. Without
understand the market and their nature Skanska UK cannot expand their business in the other
country, they have to make proper strategy and after making the proper strategy and
understand the factors which can provide them competitive advantages company can
successful enter in the new market.
CONCLUSION
As per the report has been the case study of Skanska UK which is well known
European construction company (Fabus., 2018). This report has been discuss about the
factors which can help this company to take entry in the Brazilian market and also has been
explained how those factors can provide competitive advantages.

References
Books and journal
Barac, K. And et.al., 2016. The capability and competency requirements of auditors in today's
complex global business environment.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
Strategy Journal. 8(4). pp.517-535.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Hill, C. And et.al., 2017. Global Business Today Asia-Pacific Perspective. McGraw-Hill
Education.
Pikhart, M., 2017. Managerial communication and its changes in the global intercultural
business world. In SHS Web of Conferences (Vol. 37, p. 01013). EDP Sciences.
Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
SLOVAKIA. Journal of Security & Sustainability Issues. 7(4).