Case Analysis Lost in Translations Aol

Case analysis—Lost in Translation AOL

1. Identify the controllable and uncontrollable elements that AOL encountered in entering the Brazilian market.

The controllable factors of AOL when entering the Brazilian market are product, price, promotion and the channels of distribution. These elements have to be adapted to the new market; while the uncontrollable factors include economic forces, legal forces, social-cultural conditions and local competitions in the target market. Both the controllable and uncontrollable factors play important roles that the AOL should take into consideration before entering the Brazilian market.

2. Describe how the problems encountered may have been avoided or compensated for had the element been recognized in the planning stage.

The main issue that AOL had when entering the Brazilian market was using the same strategy that led to domestic success in the US. Since major differences exist between the domestic and foreign markets, the same ways of implementing the AOL product and service may not be as effective as they were. For example, with local competitors that provide free service, the AOL has to adapt their product price to the Brazilian market environment and prove that their product and service are worth the price, so that the new consumers are willing to pay. Also, AOL needs a new marketing strategy that optimizes the process of distribution in the target market

3. Identify other problems the firm may encounter in the future and discuss potential solutions.

First of all, the AOL faces Brazilian user complaints regarding the technical issues when using the product and the services; in addition, problem such as conflicts among “management style differences” inside the company; lack of brand awareness in the target market; company domain name court fight with an local startup; potential joint venture issues and so forth. Meanwhile, with a few local competitors launching free Internet access to attract users, AOL may need to take actions. The company needs to solve the issues mentioned above, changing the marketing strategies to raise brand awareness and increase users, and seek for ways of collaborating with the local ventures to expand their business.