Ikea to Brazil

Ikea in Brazil

Description of the market:

Population

209,489,718

In Sao Paola → 11,895,893 (largest city in brazil)

Within the next 3-5 years we will plan to go into Rio de Janeiro (population is 6,453,682) and then Salvador (population 2,902,927)

[http://www.worldometers.info/world-population/brazil-population/]

^^ that page has some good numbers and graphs for population and size/ growth rates for Brazil that we could use in our powerpoint slides)

Culture

[http://www.brazil.org.za/brazil-culture.html]

Focus on family and are extremely hard working. Families are normally large and extended family is usually very close to the rest of the family.

80% is Roman Catholic

Main language is portuguese

For establishing a business, they want to form a close relationship with you. *this is extremely important

Brazil is primarily Western, but presents a very diverse nature showing that an ethnic and cultural mixing occurred in the colonial period involving mostly Indigenous peoples of the coastal and most accessible riverine areas (Portuguese, African)

Political Climate/ environment

Entrance Barriers?

Competitors

*John Mike listed these in class earlier (two top furniture companies)

Human Capital http://www.ikea.com/ms/en_US/pdf/yearly_summary/ikea-group-yearly-summary-fy14.pdf

Money

Political Environment

https://en.wikipedia.org/wiki/Federal_government_of_Brazil

http://www.brazil.org.za/politics-intro.html

Corruption?

http://www.bbc.com/news/world-latin-america-35810578

http://time.com/4327408/brazil-senate-dilma-rousseff-suspended/

http://time.com/4261712/lula-brazil-petrobras-scandal/

Describe the product itself

IKEA → Furniture retailer/ warehouse. Sells low-price self-assembled products. Wide variety of products as well ( bathroom, outdoors, bedroom, etc.)

Company size :

IKEA stores Worldwide→