Challenges New Zealand companies face when entering the Brazilian market

Schoen, Marie
Enderwick, Peter
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Master of Business
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Auckland University of Technology

New Zealand has a relatively small economy and therefore provides limited growth opportunities for local companies in the domestic market. New Zealand companies thus need to internationalise if they are to expand. Brazil is one of the four biggest emerging economies and in recent years has developed into an economically and politically stable business environment. It might therefore be a highly promising market for New Zealand companies who are seeking to expand. However, entering the Brazilian market implies barriers which are not easy to overcome. An existing body of research has investigated the internationalisation of New Zealand companies in general. Furthermore, research has also been undertaken on New Zealand companies exporting to Latin America and entering Latin America within the framework of joint ventures. However, what seems to be lacking is a study on the barriers that New Zealand companies experience when entering Brazil and a study on factors that could enable a New Zealand company to successfully overcome these challenges. Therefore, the aim of the present study was to indentify these barriers and to define factors which might facilitate the successful entry into the Brazilian market. The dissertation is based on an in-depth case study of a New Zealand manufacturing company that is at present establishing if Brazil would hold potential for the company. Semi-structured interviews were conducted with four participants internal to the company and three participants external to the company who are engaged in business with Brazil. The findings of the research are the barriers that New Zealand companies face when entering the Brazilian market as well as factors that might facilitate the successful entry into the market. The findings might be useful for managers of small and medium-sized enterprises (SMEs) which are considering entering the Brazilian market as well as for policy makers and researchers who have an interest in the BRIC countries and especially Brazil.

SME , Internationalization , In-depth case study , Barriers to internationalisation , Brazil , Internationalisation models
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