Product – Wind Power1
Political and Legal Factor2
Social and Culture Factor3
Entry Mode Selection5
Future International Strategy5
Word Count: 20066
The purpose of this essay is that offering the whole picture of overall business environment and its attractiveness and several negative points in Brazil by analyzing wind power, company, economic factor, political and legal factor, technological factor, social and culture factor, infrastructure factor, markets and competitors, then selecting the best mode for entering the Brazil wind power generation market and choosing the relevant future strategy. Product – Wind Power
The wind is no pollution energy sources and it is inexhaustible. For those lack of water, lack of fuel and inaccessible coastal islands, grassland pastoral, mountainous and highlands, according to local conditions, wind power can be extraordinary fit and promising. With the development of the global of economy, people pay more and more attention to the environment they live. As one kind of clean energy, wind power is able to meet the need of beautifying the environment. In fact, the amount of wind power reserves is incredibly huge. The global wind energy is about 2.74×109 MW, which can make use of wind energy for 2×107 MW. It’s hard to image that wind energy is 10 times larger than the total development and utilization of water energy on earth (Wind Power Generation 2013). Company Introduction
Repower is the leading supplier of electricity in southeastern Switzerland, and it has been a pioneering force in the Swiss green power business (Repower 2013). Only in 2011, Repower sold 18.9 terawatt hours of electricity. Due to its successful business mode in Switzerland, Repower has already opened up its own foreign European markets such as France, Belgium, the UK, Sweden, Poland, Italy, Portugal and Spain as well as on promising overseas markets such as China, Canada, the USA or Australia (Repower Systems 2012). Repower Systems SE, a Suzlon group company, is one of the most famous international manufacturers of offshore and onshore wind turbines. In addition, Repower offers client oriented solutions in the areas of wind farm engineering, service and maintenance, transport and installation as well as foundation (Repower Systems 2012). As can be seen that international businesses are a major part of Repower’s growth strategy, it is a wise choice of using the wind turbines in the untapped South America country of Brazil.
The global crisis happened in 2008 and 2012 affected the world’s economic environment, comparing to those in advanced economies, as an emerging economy entity, Brazil suffered lower intensity from these economic disasters (Brazilian Government 2012). By the end of 2011, Brazil had become the sixth largest economy entity in the world. Brazil’s economy is the largest in Latin American nations and the second largest in the western hemisphere (Forbes 2010). Besides, Brazil is a member of diverse economic organizations, such as Mercosur, Unasul, G8+5, G20, WTO, and the Cairns Group. Moreover, Brazil has hundreds of trade partners, with 60 percent of manufactured or semi-manufactured goods (Brazilian Government 2010). All of the above advantages illustrate that Brazil has the enormous investment potential and attraction, and the industry they mainly focus on shows the need to electricity is huge. In Brazil, the middle class has an expansion trend, from 45.6 millions of people in 1993 to 105.5 millions of people in 2011, accounts for 55 percent of the population (Chart 1). It can be seen from the chart 2 that the unemployment rate in Brazil labour market is extremely low, only 5% in the economy crisis year of 2012. Furthermore, Brazil’s...