Business in Latin & Hispanic Spanish language areas

Competing Internationally In the water purification industry there are several key players who utilize various business strategies in order to enter the Brazilian market. Most of these companies use a Global Strategy because of the high cost pressures and the standardization of water. This helps them to increase profits by reducing costs. Location is also a key factor as most of the companies are located near Sao Paulo (do we then want to move away from Sao Paulo and into a new, northern market, or stay where it is obviously successful?), with the exception of Coca-Cola FEMSA, who distributes from Buenos Aires Argentina (I want to put a map here showing where the locations are.) Although the companies try to differentiate themselves from each other, in the public eye, their main objective is going to be to reduce costs. Many of the companies do strive to create new filtration technology, but they always try to do so at a low cost. Here are some key points for each major competitor, as well as our company, Culligan: Culligan: . Focuses on increasing product attractiveness . Utilizes name familiarity - Culligan Man . Franchises . Main headquarters with regional branches - Asia, Europe, The Americas, Africa ? Need - How does Culligan usually go international, besides franchises? How is the company organized in terms of headquarters, etc.? Cuno Latina: . Owns largest Industrial Park in South America (60,000 sq. m, 100 km outside Sao Paulo) . Goal to improve product quality and lower production costs - benefits to customers . Tradition of innovation o Complete production process . Moved away from exports to local production in order to reduce costs . Good communication with supporting industries ? Need - Who is Cuno's Mother Company? What exact innovations does Cuno have? Lindoya Vida: . Differentiation through mineral water . Introduction of polypropylene in bottles instead of PVC - innovative . Many partnerships . Focus on quality of products and services ? Need - What is polypropylene and how is it different from PVC? Who are Lindoya's partners? Coca-Cola: . Fomento Economico Mexicano S.A. (FEMSA), Coca-Cola FEMSA bought Panamerican Beverages (Panamco) at the end of 2002 . Panamco will allow Coca-Cola FEMSA to extend its systems/practices to Panamco markets o Serve consumers more effectively o Quick market entry . Strength, especially in Coca-Cola name, and flexibility . Franchise territories in Brazil . Bottling facility in Argentina ? Need - What is the acquisition status for Coca-Cola FEMSA/Panamco? Are there any other Brazilian operations besides franchises? Strategic Alliances In order to establish a permanent presence in the Brazilian market it is recommended that we do so "by way of an agency, joint venture partnership, technology transfer agreement or acquisition." Thus, I recommend that Culligan seek out and screen a potential partner with whom to make an agreement with regarding the Brazilian market. However, due to the difficult competition and the standardization in the industry, this could be a difficult endeavor. Therefore, it is my suggestion that Culligan take part in the Brazilian government's decision to privatize SABESP (Companhia de Saneamento Basico do Estado do Sao Paulo. This would provide Culligan with a strong customer base and will facilitate entry into the foreign market. Working with the government could be risky, but if they are as committed, as Culligan would be in providing clean water to the Brazilian community, and an extensive contract was formed, then the possibilities could be substantial. ? Need - What attributes would be mutually beneficial to Culligan and SABESP? What is the Brazilian attitude toward SABESP? How far has SABESP come in being privatized and how is it working? Sites Used: . www.hoovers.com . www.culligan.com . www.cunolatina.com.br . panamco.acquisitioninformation.com . www.lindoyavida.com.br . www.tradepartners.gov.uk/brazil/opportunities/12_opportunities/introduction.shtml