Creation And Implementation Of Innovation Law: Analysis Of Brazil’s Digital Industry

Political and Social Environment of Brazil

The demand of the digital cameras is hastily shifting from the developed nations to the developed countries. The chief cause behind the shift in demand is that in developed countries, demand for digital camera is reaching maturity stage due to high ownership level of digital cameras among the consumers. On Contrary, the penetration level of digital camera is low in emerging nations like Brazil which in turn results in growing demand from the 1^st time buyers. In this report, detailed analysis of Brazil as the chosen country for new entrance will be performed.

Considering the fact that the political system of a country affects its labor, product and capital market, it posses the potential to highly influence the revenue of any emerging organization. In order to establish successful business in the digital industry of a foreign land, the management of the company must assess the political environment of Brazil. The social environment of Brazil also posses the potential to impose vital impact on the business of digital camera in the nation. Currently the political environment of Brazil is stable. However, as per the researchers, the nation posses the history of rapid changes in the political system. Moreover, corruption is still considered to be a big issue in Brazil (Menezes et al. 2016). As a result of that emerging businesses needs to pay additional payments to government official which can be considered as a major obstacle for emerging market. However, recently the government is working on globalizing the digital industry of the nation and as the result of this the corruption level in the mentioned industry is low.

When it comes to social environment of Brazil, Class distribution in the nation is comprised of a huge portion of individuals with low or moderate income rate. As a result of this, Brazil lacks technological advancement. This will be beneficial for the company since lack of technological advancement mean that majority of the middle class people in Brazil uses mobile that lacks high quality camera. Thus the company will be able to establish a successful business in Brazil.

The degree of openness of the economies of a country is highly crucial since it determine whether international investors are welcomed to the nation or not. According to researchers, a country where globalization is highly acceptable tends to have lower barrier to entrance which in turn impose positive impact on the revenue of the international business (Prado Jr et al. 2016). Considering the fact that, with the emergence of middle class in the Brazilian society, the demand for technological goods are increasing, the government of Brazil is getting incline to globalize the digital industry (Low 2016). Thus, the openness of the government towards foreign investors has got increased over time. This will positively affect the company since lower barrier to market means lower investment costs, lower tax rates and higher cooperation of the government.

Economic Environment of Brazil

As per a survey conducted in the year 2018, almost 78 percent of the population falls under the age group of 17-51 years (Fujiwara 2015). Thus it can be clearly understood that unlike majority of the developed nation, the population in Brazil is not an aging population. This in turn has imposed a positive impact on the labor market of the nation. Moreover, being a developed country, there prevails lack of job opportunity in the mentioned nation. High demand for job along with lack of job opportunities has resulted in a cheap labor market. This factor will impose positive impact on the company since cheap labor will ensure lower investment costs and higher revenue (Kavanagh et al. 2018). Moreover, the literacy rate of Brazil is 92.3 percent which indicate that the organization will be able to recruit higher officials from the nation itself. This in turn will save the costs of travelling for the country and ensure a further enhancement in the revenue.

Brazil is continuously increasing. However with the emerging demand for technology, the demand for mobile phones with high quality camera has also got enhanced. Moreover, due to globalization, several popular international Smartphone manufacturing companies have established their market in the nation. Thus the threat from substitute is high in the digital market of Brazil (Schmandt and Wilson 2018). Along with that, the competition between the competitors is also high in the nation. Along with international brands like Nikon and Sony several local brands are offering Digital camera to the consumers within a similar price range. Considering the fact that a good number of local as well as international Smartphone brands in Brazil are offering the consumers with smartphone with high quality camera at a price range lower than that of the digital camera, the target consumer of the organization selling digital camera is slowly shifting their choices (Haberli Jr, Oliveira and Yanaze 2017). This in turn is imposing highly negative impact on the existing digital camera manufacturing companies thus in order to deal with that, our company needs to develop effective marketing strategy.

Effective marketing strategy posses the potential to effectively establish a company in a foreign market and enhance the revenue of the same to a great extent. As per the information of the market obtained from the above research the following marketing strategy will help the company to successfully establish its business in the digital industry of Brazil.

Competition Analysis

Strengths and weaknesses of Brazil

Table 1: Strengths and Weakness of Brazil

Source (Created by author)

In order to develop consumer base as well as gain loyalty of the consumers, it is highly crucial to enhance the awareness of the same about the company and the product that is being offered to the consumers. The company should use social media for online promotion since more than 93.4 percent of the Brazilians are available in popular social media platforms like Facebook and Twitter (Tavares 2016). Communication through social media is not only cost effective but it will also help the management to understand the specific requirements of the consumers and provide them with effective products. Moreover direct consumer to management communication will enhance the bonding of the same and thus will facilitate consumer loyalty. In order to promote the brand offline, celebrity endorsement can be considered as an effective way.

The company should offer the product to the consumer at a lower price range compared to that of its competitors and substitute. Not only those unique and exceptional features can be included in the mentioned item in order to gain competitive advantages over the substitutes.

Considering the fact that the threat from the substitute along with the threat from the competitors is high, the management should develop high quality digital cameras at lower price range from the competitors. Unique features like Bluetooth system, removable memory card, anti shake and burst mode facilities can be incorporated in order to attract the attention of the consumers.

In order to establish excellent availability, the company needs to show strong distribution strategy. Considering the fact that the internet is available to the consumers of Brazil, the company can make it s products available at Flipkart and Amazon exclusive. Collaboration with efficient suppliers and strong distribution channel is also required.

Conclusion

From the above discussion, it can be concluded that Brazil has the capability to provide the organization within an effective digital industry. The emerging demand for technology in the nation along with the low cost of labor in the mentioned market will impose highly positive impact in the revenue of the company. However, it has been found that the mentioned industry posses high risk of threat from substitute and competition between the existing companies. Hence in order to deal with this, the company has been suggested to promote it business through online and offline Medias and offer the product to the consumers at a lower prize compared to the competitors.

Reference list

Fujiwara, T., 2015. Voting technology, political responsiveness, and infant health: Evidence from Brazil. Econometrica, 83(2), pp.423-464.

Menezes, E.T.N., Santos, R.E.A., da Silva, G.F. and Russo, S.L., 2016. Science and Technology Growth in Universities of Brazil after the Creation and Implementation of Innovation Law. Razón y palabra, (92), pp.39-14.

Prado Jr, F.A., Athayde, S., Mossa, J., Bohlman, S., Leite, F. and Oliver-Smith, A., 2016. How much is enough? An integrated examination of energy security, economic growth and climate change related to hydropower expansion in Brazil. Renewable and Sustainable Energy Reviews, 53, pp.1132-1136.

Schmandt, J. and Wilson, R. eds., 2018. Growth Policy in the Age of High Technology (Vol. 46). Routledge.

Tavares, M.D.C., 2016. The growth and decline of import substitution in Brazil. ECLAC Thinking, Selected Texts (1948-1998). Santiago: ECLAC, 2016. pp. 129-140.

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