Institutional analysis of the political, economic and socio-cultural environment of Brazil as an Emerging Market for processed foods
Justification for the selection of Brazil as a potential market for a Mexican based canned/processed foods manufacturing company
Overview
Brazil has a population of approximately 200 million persons (UN Data 2018), thus it is a rich market for products and services. Over the years, the processed foods industry in the country has been on a steady increase, from 2009 to 2017 (Machado et al. 2018). However, this progressive and continued growth was interrupted by the political and financial challenges that hit the country in 2017. Even in the face of the 2017 challenges, the country was able to post a reasonable performance of processed foods except for some categories e.g. dairy products and snacks. The primary reason for the decline in the performance of these products, specifically yogurt, ice cream, and confectionaries being that consumers considered them non-essential, particularly at the height of the financial challenges (Valdes 2006). However, at the moment, the processed foods industry in Brazil has picked and it is resumed the increasingly increasing growth (Euromonitor International, 2017). This section of the paper seeks to justify why Brazil would be a potential market for a Mexican based canned/processed foods manufacturing company by critically analyzing the institutional environment, identifying opportunities and institutional voids.
Political
Brazil is a very mature democracy that has a federal government and state governments. It has three...
References
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