Havaianas: A Brazilian Brand Goes Global Harvard Case Solution & Analysis

Analysis of the alternatives

The alternative solutions for the company includes:

Alternative 1:

Polycentric Marketing strategy is the first alternative solution for the Sao Paulo Alpargatas in order to expand its Brand offerings further into other global locations. As, this would allow the company to satisfy the changing needs and requirements of customers around the world by targeting different groups of customers. The main benefitof applyingthis strategy is that it would help the company to develop the separate and unique products for each foreign country market. This would also allow the company to overcome the difficulties of cultural differences, threat of competitors as well as other external environmental factors that may include political, economic, social and technological factors. But there is also disadvantage of using this strategy, it may raise conflict among the employees of the company while adopting and understanding the values of different foreign countries in order to conduct the business around the globe.

Alternative 2

Ethnocentric marketing Strategy is the second alternative solution for the Sao Paulo Alpargatas in order to expand its brand offerings further into other global locations as well as increase the Havaianas products awareness worldwide. If a companyadopts this strategy, it would allow Alpargatas to develop and create the same strategy at every location around the globe that it is following in the home country (Brazil). The main advantage of using this strategy is that it would allow the company to utilize its local unique capabilities and skills effectively to meet the demands of the foreigncustomers. But the main disadvantage of using this strategy is that it would create cultural differencesbetween the values of the company and foreign countries. Moreover,the company would depend on its foreign representatives for its products, sales which is another disadvantage for using Ethnocentric marketing Strategy.

Alternative 3

Geocentric marketing Strategy is the third alternative solution for the company to increase the Havaianas awareness and recognition into a global brand. Furthermore, if the company develops this strategy for its international expansion, this would allow the company to develop the single strategy for all the target countries around the globe in order to meet the requirement as well as enhance the growth of the brand offerings.The main advantage of this strategy is that it would reducethe resource expenses as well as allowing the company to create manufacturing and distributing facilities in order to severe the needs of worldwide markets. But there is also disadvantage of using this strategy, cultural differences may impact the operations of the company as well as other significant barriers by adopting the same strategy for all the foreign location.

Recommendations

Following are the recommendations for the Sao Paulo Alpargatas:

The first alternative would be most suitable and applicable choice for the Sao Paulo Alpargatas in order to expand the growth of their brand Havaianas in the global market as well as   to increase the Havaianas awareness and recognition into a global brand. As adoption of the Polycentric Marketing strategy would allow the company to satisfy the increasing dissimilar demands of the different customer group around the world. Furthermore, this   strategy would also help the company to differentiate itself from those of the competitor offerings and   give the Alpargatas competitive advantage over its rivals in the industry.

Additionally, in order to make market expansion decision Alpargatas must consider several factors that may impact the profitability and productivity of the company. These factors include knowledge of the market, expected sales, strategic importance and other restrictions in the foreign countries.

The first step for the execution of the strategy may require the company to create the awareness about the brand among the customer by using the social media marketing tools. Furthermore, the appropriate allocation of resources and cost is vital for the company in order to implement the strategy successfully.

It is essential for the company to gather information about the competitors’ activities in the target market by investigating their brand offerings and actions. This would help the company to successfully implement the strategy while differentiating itself from its competitors.

Lastly, the implementation of the strategy should include the measurement of the performance in order to make the timely and accurate changes in the expansion strategy...................................

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