Pao de Acucar
Doing Business in Brazil
Contents
Section A: Pão de Açúcar Overview 3 Market Situation 3 Company Overview 3 Architecture of the Brazilian Retail Industry 3
Section B: Pão de Açúcar SWOT analysis 5 Electronics and Appliances Companies 5 Strengths & Weaknesses - Internal to the Electronics and Appliances Companies 5 Opportunities & Threats - External to the Electronics and Appliances Companies 6
Section D: Pão de Açúcar’s success in Brazil 6 Political 7 Economic 7 Social 8 Technological 9 Environmental 9 Legal factors 10
Section E: Recommendationsfor Pão de Açúcar’sOther Retail Formats 10
Pão de Açúcar against Walmart 10 Four key Criteria in Identifying Recommendations 10 Recommendation 1: The Boutique Experience 11 Recommendation 2: Department store specialized for Electronic goods and home appliances 13 Recommendation 3: Event marketing 14
Exhibits 15
References 18
Section A: Pão de Açúcar Overview
In this paper we will review GPA’s strengths, weaknesses, opportunities and threats as it relates to their “Other Retail Formats”. Using the PESTEL frame work, we will review the key factors that have contributed to their past successes and propose three strategic recommendations in order to increase market share against Walmart.
Market Situation
The Federal Republic of Brazil is not only the largest country in South America (fifth largest in the world) but it’s also positioned as the world's seventh largest economy by nominal GDP and eighth largest by purchasing power parity. With over 192 million people fused by a rich diverse heritage, it is no wonder that an innovative and highly profitable company such as Pão de Açúcar (GPA) could remain mono-national in its business initiatives. As a founding member of the United Nations, the G20, CPLP, Latin Union and as a member of the BRICS countries, Brazil is recognized as a strong economy, attracting numerous investors and hosting opportunities (such as FIFA 2014 and
Contents
Section A: Pão de Açúcar Overview 3 Market Situation 3 Company Overview 3 Architecture of the Brazilian Retail Industry 3
Section B: Pão de Açúcar SWOT analysis 5 Electronics and Appliances Companies 5 Strengths & Weaknesses - Internal to the Electronics and Appliances Companies 5 Opportunities & Threats - External to the Electronics and Appliances Companies 6
Section D: Pão de Açúcar’s success in Brazil 6 Political 7 Economic 7 Social 8 Technological 9 Environmental 9 Legal factors 10
Section E: Recommendationsfor Pão de Açúcar’sOther Retail Formats 10
Pão de Açúcar against Walmart 10 Four key Criteria in Identifying Recommendations 10 Recommendation 1: The Boutique Experience 11 Recommendation 2: Department store specialized for Electronic goods and home appliances 13 Recommendation 3: Event marketing 14
Exhibits 15
References 18
Section A: Pão de Açúcar Overview
In this paper we will review GPA’s strengths, weaknesses, opportunities and threats as it relates to their “Other Retail Formats”. Using the PESTEL frame work, we will review the key factors that have contributed to their past successes and propose three strategic recommendations in order to increase market share against Walmart.
Market Situation
The Federal Republic of Brazil is not only the largest country in South America (fifth largest in the world) but it’s also positioned as the world's seventh largest economy by nominal GDP and eighth largest by purchasing power parity. With over 192 million people fused by a rich diverse heritage, it is no wonder that an innovative and highly profitable company such as Pão de Açúcar (GPA) could remain mono-national in its business initiatives. As a founding member of the United Nations, the G20, CPLP, Latin Union and as a member of the BRICS countries, Brazil is recognized as a strong economy, attracting numerous investors and hosting opportunities (such as FIFA 2014 and