Transcript Brazil - bYTEBoss

Brazil
Country Report
MIS480 OU Fall 2004
Jawan Brooks
Gene Lopinski
Igor Pertrovski
Nick Zeigler
Karen Zezula
Agenda
GENERAL INFORMATION
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Physical Area
Demographics
Socio-Cultural Atmosphere
Economy
Business climate of country and region
Jawan Brooks
Jawan Brooks
Gene Lopinski
Igor Petrovski
Igor Petrovski
TECHNOLOGY
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IT Possibilities in Brazil
IT industry strengths and weaknesses
IT industry Producer Characteristics
IT industry Consumer Characteristics
E-Commerce
Sample of IT industries
Websites
Nick Zeigler
Nick Zeigler
Gene Lopinski
Gene Lopinski
Igor Petrovski
Jawan Brooks
Karen Zezula
REGIONAL COMPARISON
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French Guiana
Nick Zeigler
GENERAL INFORMATION
Physical Picture
Basic Demographics
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Brazil is populous along the coast, less in the interior. The inhabitants are very
diverse with many races and cultures represented.
Population
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Ethnic groups
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White (includes Portuguese, German, Italian, Spanish, Polish) 55%
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Mixed white and black 38%
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Black 6%
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Other (includes Japanese, Arab, Amerindian) 1%
Religions
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Portuguese (official), Spanish, English, French
Exchange rate
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Roman Catholic (nominal) 80%
Languages
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177.062.044 (2003).
Reals per US dollar - 1.954
Labor force
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79 million
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By occupation: services 53.2%, agriculture 23.1%, industry 23.7%
Unemployment rate: 7.1%
Industries
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textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and
parts, other machinery and equipment
Socio – Cultural Picture
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Brazilians like to create relationships
Brazilians, being extremely cordial
Business and social circumstances you may hear
this word - jeitinho (pronounced jay-chi-nyo)
In Brazil, basic business networking is based on
the family
Sense of Camaraderie
Dressing up for Business
Economic Picture
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Brazil is advanced in agricultural, mining,
manufacturing, and the service sectors.
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The beginning of September Brazil’s
government reported that the nations GDP
grew 5.7% beating all median forecasts of
4.5%.
Economic Picture
The three pillars of the economic program
 Floating exchange rate
A floating exchange rate is when a nation's government is
NOT trying to manipulate currency prices to achieve
some change in the exports or imports
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Inflation-targeting regime
The central bank is responsible for achieving a publicly
announced target for the inflation rate
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Tight fiscal policy
Tight Use of the federal government's powers of
spending and taxation to stabilize the business cycle
Business Climate of
Country and Region
Economy in South America
 Brazil's economy is greater then all other South
American countries and is expanding its foothold in the
world markets
Human Resources
 Brazilian has high quality managers and a excellent
local labor force that contributes to the success of
companies operating there.
 Nokia had such confidences in the quality and
production of the Brazilian workforce that they adding
more than 1,000 workers to its Manaus cell phone
assembly facility.
Business Climate of
Country and Region
Drawbacks
 One of the main problems in Brazil is high
duties and taxes. In 2002 import duties
averaged over 11%.
 Freight hijacking organizations are known for
their success in getting goods to market
quickly. Hijackers, along with smugglers and
counterfeiters supply Brazil's Black market
which is equivalent to 40% to 50% of the
country's gross national income.
TECHNOLOGY
IT Possibilities in Brazil
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Possible industries for investment:
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Outsourced Technical Support Services
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Outsourced Manufacturing
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Corporate Help Desk
Customer Service/Support
Example: Volkswagen Call Center
Lower labor costs (but not lowest)
Labor skill level higher than less-developed nations
Example: Nokia Assembly plant
Not a viable target market for imports:
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High import tariffs
20% of imports can take up to 30 days to clear customs
IT Industry Strengths and
Weaknesses
Strengths:
 Brazil’s telecom infrastructure used to be considered a barrier
to growth. The aging telecom infrastructure was privatized in
1998. This lead to an influx of telecom-related investment,
and Brazil now has a modern infrastructure.
 Educated, skilled workforce
 Central location in South America
 Many sea ports
Weaknesses:
 Business laws not supportive of e-commerce
 Inadequate legal protection for e-commerce transactions
 Language Barrier
IT Industry Producer
Characteristics
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Brazil is the leading IT market in Latin America
Long-term outlook IT sales is extremely good -economic expected growth 3.5% annually, next few
years
Hardware Market should increase due to private sector’s
ongoing modernization of it’s operations
Brazilian governments commitment to providing
Brazilians with electronic government, plus expanding
computer and Internet use throughout the country
Brazilian government commitment should increase sales
and opportunities for suppliers of Servers, Desktop,
Notebook, PDA’s and used PC’s in the future
Peripheral Firms should benefit
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Scanners, Printers, Disk Drives
Demand for High-end data storage should be strong
IT Industry Producer
Characteristics
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Software market has enormous potential
Brazilian Manufacturing & Services need for software
solutions
Brazilian Corporate Security concerns result in heavy IT
spending
Excellent Market for networking equipment-continuing
expansion
International Data Corporation predicts IT Services
overtake investment in computer equipment
Brazils acute shortage of qualified IT personnel-Great
need for consultants and system integrators
Corporate execs consider data warehousing and IT
security part of their budgets
IT Industry Consumer
Characteristics
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Brazil has most the PC’s installed and Largest internet population
in Latin America
PC use still confined to the Wealthy
US market research forecasts Brazilian Internet users will triple
to 42 million by 2006, Yankee Group
Brazil was the 11th largest computer market in 1997, could reach
5th in the near future
Most PC consumers are in Industrial commercial and financial
establishments
Small Office/Home Office Market to continue to increase
Growth in Government Market & Educational Market
E-Commerce
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E-commerce in Brazil has a firm hold in
information intensive sectors with little
affection by foreign business
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The growth of e-commerce in Brazil has been
rapid in the last two years; electronic trade
grew from 100 million US dollars to nearly 2
billion dollars a year
IT Industries
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Variety of IT Industries in which to work:
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Computer Analysts
Programmers
Systems Administrators
Web Developers
Telecommunications
Education
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Certifications are not mandatory
Preference given to college education and relevant work
experience
Graduate level degrees preferred by employers for higher
level positions
Brazil Websites
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Portugese
 MSN
 Mercado Livre = free market
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Sandisk SD 256MB
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$175.00 Reals
Exchange rate
US Comparison -- EBay
General Motors Brazil
Extra.com
English
 Braslink
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In translating its 'Got Milk?' slogan into Hispanic, the US Milk Board would
have been best to know that it actually asked people if they were
breastfeeding. Ford had a similar problem in Brazil when the Pinto flopped.
The company found out that Pinto was Brazilian slang for "tiny male genitals".
Ford prised all the nameplates off and substituted Corcel, which means horse.
These, and dozens of other blunders, highlight how linguistic nuances can
change the whole meaning of marketing slogans and would have been
avoided by using native linguists in marketing translations
REGIONAL COMPARISON
French Guiana v. Brazil
French Guiana
Brazil
General Geography/Information
Population
Literacy Rate:
GDP per Capita
Mean IQ
$
191,309
184,101,109
83.0%
86.4%
8,300.00
$
7,600.00
87
88
89,150
8,456,510
378
7,491
tropical; hot, humid; little seasonal
temperature variation
mostly tropical, but temperate in south
bauxite, timber, gold (widely scattered),
petroleum, kaolin, fish, niobium,
tantalum, clay
bauxite, gold, iron ore, manganese, nickel,
phosphates, platinum, tin, uranium, petroleum,
hydropower, timber
arable land: 0.14%
0.14%
6.96%
permanent crops: 0.05%
0.05%
0.90%
99.81%
92.15%
20
26,560
high frequency of heavy showers and
severe thunderstorms; flooding
recurring droughts in northeast; floods and
occasional frost in south
mostly an unsettled wilderness; the only
non-independent portion of the South
American continent
largest country in South America; shares common
boundaries with every South American
country except Chile and Ecuador
Land Area (sq. km)
Coastline (km)
Climate
Natural resources:
Land use:
other: 99.81% (90% forest, 10% other) (2001)
Irrigated land (sq. km.):
Natural hazards:
Of Note:
French Guiana v. Brazil
French Guiana
Brazil
Technology Infrastructure
Telephones - main lines in use:
Percentage of population
Telephones - mobile cellular:
Percentage of population
Internet users:
Percentage of population
Internet TLD
51,000
38,810,000
26.66%
21.08%
138,200
46,373,300
72.24%
25.19%
3,200
14,300,000
1.67%
7.77%
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