Case Study: Walter Meier JET intnl Expansion
1. Is Brazil the right market for JET expansion?
2. Develop a forecast of how Brazilian business might evolve over the first five years of entry into Brazil.
3. Discuss and evaluate JET entry mode into Brazil.
4. What other factors and issues should Walter Meier consider when selecting new markets to enter?
Note: Your answers should be around 1000 words or more and also cite your sources
WALTER MEIER JET INTERNATIONAL EXPANSION CASE ANALYSIS
International Expansion in Brazil
Walter Meier Manufacturing Inc. had undertaken extensive research to identify best market growth opportunity for company's JET brand of industrial products and metalworking and woodworking machinery. With the focus of finding large markets which offer sufficient market scale rather than smaller countries that had faster growth but less short term revenue potential, Brazil was identified as an attractive new market for expansion. Other markets which were underserved were China, India, Japan, and South Korea in Asia. Brazil was a carefully chosen market after considering other competing markets as well. Growth was almost guaranteed for Brazil in coming years as it was host to both World Cup in 2014 and Olympics in 2016. Brazil has different business culture than US and was not geographically close to US to get influenced by it. Brazil generated 43% of regional sales. While selecting country for expansion, Mexico was another choice which appeared to be an easier place to do business than Brazil. However the sheer size of the economy and tools market which was twice that of Mexico's GDP made Brazil a lucrative market.
On the contrary Brazil would increase cost of operations owing to increased distribution and tariff costs and increased sourcing costs. However, weighing benefits versus costs, Brazil would present many opportunities to Walter Meier for expansion and help it meet the financial objectives.
Evolvement of Business in Brazil
In order to prove successful, Brazil would have to generate $3 million ...
Case analysis of Walter Meier's entry into Brazilian market