Natura Case Study
International Marketing Management
Case Study by Andy Lalinde, Michal Berka & Claudia Baumgart
Case Study – Natura: Global Beauty Made in Brazil
1. The benefits and obstacles of globalization for Natura Globalization can be described as the process of the increasing worldwide interconnectedness in many areas such as economics, politics, culture, communication, environment, etc. The consolidation of the global relations occurs on the level of individuals, societies, institutions and countries. The digital revolution, the technical advance in general and especially in regard to communication- and transport technologies as well as the political decisions to promote liberalization of world trade can be mentioned as main drivers accelerating globalization. It is undeniable that it has become one of the principal characteristics of our modern age and determines nowadays society and businesses to a large extent. From the business perspective the phenomenon of globalization offers great expansion opportunities on the one hand, but on the other hand it also comes along with certain obstacles which are additional competitors and systemic risk for example. WTO agreements facilitated market entries for foreign companies and allowed them to gain significant market share outside of their home market which lead to rise of their overall profitability. Nonetheless, the vastly increasing amount of international competition has had a negative impact on many original local businesses and even resulted in their extrusion. Also crucial to mention is systemic risk which has gained overall importance in particular during the global financial crisis since risks nowadays transmit much further and faster, bouncing from one country or industry into several countries or sectors. Although the cosmetics industry is regarded as relatively crisis-proof, the cosmetics companies have to deal with the above mentioned challenges and need to develop optimal strategies with competitive advantages
Case Study by Andy Lalinde, Michal Berka & Claudia Baumgart
Case Study – Natura: Global Beauty Made in Brazil
1. The benefits and obstacles of globalization for Natura Globalization can be described as the process of the increasing worldwide interconnectedness in many areas such as economics, politics, culture, communication, environment, etc. The consolidation of the global relations occurs on the level of individuals, societies, institutions and countries. The digital revolution, the technical advance in general and especially in regard to communication- and transport technologies as well as the political decisions to promote liberalization of world trade can be mentioned as main drivers accelerating globalization. It is undeniable that it has become one of the principal characteristics of our modern age and determines nowadays society and businesses to a large extent. From the business perspective the phenomenon of globalization offers great expansion opportunities on the one hand, but on the other hand it also comes along with certain obstacles which are additional competitors and systemic risk for example. WTO agreements facilitated market entries for foreign companies and allowed them to gain significant market share outside of their home market which lead to rise of their overall profitability. Nonetheless, the vastly increasing amount of international competition has had a negative impact on many original local businesses and even resulted in their extrusion. Also crucial to mention is systemic risk which has gained overall importance in particular during the global financial crisis since risks nowadays transmit much further and faster, bouncing from one country or industry into several countries or sectors. Although the cosmetics industry is regarded as relatively crisis-proof, the cosmetics companies have to deal with the above mentioned challenges and need to develop optimal strategies with competitive advantages