Global market opportunities assessment: a brazilian inner perspective

5. Summary
The Brazilian market is one of the world’s emerging markets, which is attracting a large
number of investors and companies that wish to increase their revenue.
From the market opportunities’ point of view, the fundamental data are important to gain a
first outlook of the GDP‘s distribution in the society. The Brazilian market is aiming to
become the 6th largest economy in terms of Gross domestic product with a population of
200 millions people.
According to the GINI coefficient, the analysis has found that in spite of Brazil’s GDP being
ranked 73rd, it has one of the widest gap in the world for social inequality.
The graph shows the uneven growth of the Brazilian GDP - the lowest trend is during the
break out of the global crisis in 2009 whereas the highest peak is during the 2010 FIFA Cup.
The research illustrates that is possible using the analytical approach of the Global Market
Opportunities Assessment and following the six tasks to screen out the potential
opportunities and risks of investors and companies which desire to penetrate the Brazilian
market (SWOT analysis).
Those companies approaching a new emerging market must be aware of the potential risks,
‘unpredictable events’ (Black Swans), tricky legal and security issues that could rise their
production and starting up costs.
Finally, the research shows examples of successful companies in four different market
sectors – telecommunications, energy, automotive and retail.
In the detail, we selected five companies belonging to each sector and described strategies
they adopted to be flexible to the local consuming taste and market risks.
What we can further see that all had to diversify after they gained entry in the market.
Discussion
During the discussion emered several issues on 3 main topics.
SOCIETY
Large part of the Brazilian population are low-income consumers however tend not to buy
the cheapest products and they also spend more on consumer goods than those in
wealthier segments.

6. In the future, the rising and predominant middle class will be educated, aware of market’s
brands (due to a higher education and access to multi- forms of information) attracted to
value, quality and more sophisticated consumer of non-food items.
The Brazilian aging population will determine also investor’s choices as younger generations
have different taste than those belonging to an older society.
Large part of the population still live in a state of semi-illiteracy which lead to massive
migration-flow to the country’s biggest cities along the coast and the formation of the slums
(favelas), violence, criminality and further social tensions.
ECONOMIC
The regressive taxation is the main fiscal burden for the poorest class, which has to pay the
same taxes as the wealthiest class.
From an investor perspective, it also frightens potential companies to penetrate the market,
as they would suffer major sunk cost.
Brazilian banks have a very high interest rate, which does not allow the majority of the
population to request a mortgage and increase the money flow in the Brazilian economy.
POLITICS
The general lack of faith in the institutions and trustworthy governance has lead to a thick
bureaucracy and corruption.
The waste money in the construction of ‘White Elephants’ arose a state of discontent
among the population that broke out with the protests occurred during the FIFA World Cup.
Conclusion
The imperative need of a fiscal reform, bureaucracy annihilation and the social inequality
curbing and a wiser administration of public money spent on useless infrastructure are a
government priority. By doing so, the government corruption and banks’ rate will decrease
as well as government faith and social stability will inevitably rise dramatically.

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