Critical thinking problem solving and independent learning Harvard Case Solution & Analysis

Critical thinking problem solving and independent learning Case Study Help

Strengths

As a member of the quartet of BRIC, Brazil has garnered huge attention on the global foot ware and apparel retailing stage. Theretail market of Brazilis swiftly modernizing on the back of the urban & young population, a minimum wage rising at double digit rate of growth and a fastexperiencing middle class. The market of retail continues to be highly fragmented. A fast spread of the online retaining in Brazil is favored by highly urbanized and young population of the country, with an inclusion ofrapid expansion in the middle class & the fast enthusiasm and adoption for the new & advanced technologies and innovative solutions. As the retail environment matures in the first tier cities, the development of retail is moving to low saturated second and third tier markets, where rising the income of people isfulfillingthe demands.

Weaknesses

The profit erosion of the retailers in Brazil is mainly because of the low demand combined with the high astronomical electricity cost and rents. A swift deterioration of the labor market with the tough business environment is impacting the business and customers’confidence. Although, the success of e-commerce has immensely grownat the faster pace but relatively remains smaller than the entire market. The success of e-commerce requires e-retailers to keep focusing on the particular categories, which are relevant to the market and navigate some operational business challenges including language barriers, payment method limitation, taxes and shipping delays.

Opportunities

The retail players have the opportunities to fulfil the needs of the high end customers making demandsfor other aspects of products, including: new trends, status, packaging and innovation. Additionally, the customers in Brazil spend considerable amount of time online, representing the exciting opportunities for the retailers in the rapidly developing online market.The majority of the people in Brazil are accessing the internet via smartphones & driving the innovative opportunities foranonlinepaymentsolution and mobile friendly shopping.(Lustig, 2017).    The reason behind the online retail growth is that the people in Brazil have become cash-strapped amidst frail conditions of economy, which in turn has squeezed money out of the market, hence bringing a prominent change in purchasing pattern & behavior of the customers, where customers are driven by promotion & are price-conscious. In a result, e-commerce could emerge as a clear winner by offering good deals at lower prices than the offline channels. Additionally, the retailers could exploit the opportunity of identifying allure value proposition, refreshingtheir product portfolio, optimizing investment and rationalizing cost to excite the customers to restart their spending.

Threats

The retail industry is highly threatened by the rigorous market competition between the retail players, as they are building local workforce, rethinking operations, creating a multichannel strategy, developing new formats of store and mapping the landscape.(The retail and consumer industry in Brazil – Navigating the downturn, 2015).

Comparisons

Similarities

In both India and Brazil, the spending power of the customer israpidly changing, which in turn represents the potential opportunities and prospects for the retailers to maximize the market share. Additionally, the strong economic growth and large populations have made the retailers of both the countries irresistible. Due to having a greater disposable income, the customers could increasingly spend their money on items beyond the basic necessities.

In addition to this, both the countries have relatively youthful demographics demonstrating that the working age of the population in Brazil and India would strongly grow and contribute to the wage restraint, economic growth and growth in number of households.  Both countries are hampered by the lack of technology, which calls for them to deploy the key baseline technology strategies i.e. internet of things (IoT) to drive the future of the retail. Both countries are similar when it comes to facing some challenges regarding undeveloped consumer credit market, unique combination of widespread use of consumer credit, strong preferences for local products etc.(How half the world shops: Apparel in Brazil, China, and India, 2007). Lastly, Brazil and India have been witnessing significant improvement in the income distribution, which has boosted the middle class and benefited the modern retailing evolution.

Differences

Brazil is more exposed to the regulatory concerns, inefficient infrastructure and supply chain complications, whereas India is more exposed to the significant threats of an intense market competition, heavily focusing on the formalizing the multichannel strategy, building local workforce, mapping the landscape and building new store formats. If Brazil fails to fight against corruption, liberalizes the labor markets and addresses the infrastructure deficiencies, then it would lead to a steady economic growth. In contradiction, Indianeeds to put major emphasis on navigating some operational business challenges, such as: payment method limitation, and shipping delays.

Conclusion

India and Brazil both countries are witnessing the income dynamics with favorabledemographic and spending patterns, which drives the demand in retail market. Both countries are similar in terms of facing some challenges regarding the unique combination of widespread use of consumer credit, strong preferences for local products, undeveloped consumer credit market etc. In addition, both the countries are striving hard to meet the changes in the retail market, including attitudinal consumer shift in means of value for money, emergence of organized formats of retail and choice preferences..............................

 

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