Winning Strategies for the New Latin Markets
Author: Fernando Robles
Table of Contents
Table of Contents
I. THE NEW ENVIRONMENT. 1. Latin Business in the New Economy.
Macro Outlook: Economics of Uncertainty. Regional Integration Scenarios. Technology Trends. Company
Strategies. 2. The Latin Consumer Markets: Convergence or Fragmentation?
Size of the Latin Market. Drivers of Buying Power in Latin Markets. Latin Market Consumption Patterns.
Segmenting the Latin Market. Connectivity in Latin America. Latin Markets in the Twenty-first Century. 3.
The Latin Market Competitive Landscape.
The Structure of Competition in Latin America. Multinational Firms and Corporate Strategies. II. SECTOR-
SPECIFIC STRATEGIES. 4. Building the Infrastructure Network.
Massive Infrastructure Investment Needs. Infrastructure Reforms. Investors' Expectations for Reformed
Infrastructure Markets. Regional Network Strategies in Reformed Latin American Infrastructure. Telecom
Argentina: A Narrow Regional Integrator. Integrator or Specialist? 5. Reaching the New Latin Consumers.
Consumer Value in Uncertain Times. Positioning to Meet Consumer Value in Latin Markets. Building
Brands in Volatile and Uncertain Markets. Level of Market Aggregation. Unilever: Blending Global,
Regional, and Local Strategies in Latin Consumer Food Markets. Retail Metamorphosis in Latin Markets.
Integrators and Specialists in Consumer Markets. 6. Funding the Latin Market Growth.
Trends in the Financial Services Sector. Strategic Responses of Financial Institutions. Financial Firm
Strategies: From Diversified Competitors to Niche Players. Grouping Strategic Responses. 7. Improving
Health Services and Products.
Regional Health Profile. Health Reform. Pharmaceutical Markets: Scope and Growth. Conclusion. III.
CONCLUSION. 8. Windows of Opportunity and Winning Strategies for Latin Markets.
The New Latin Market: Latin American or American Latin? Strategy in Uncertain and Volatile Markets.
Drivers of Opportunities. Windows of Opportunities. Links to the Global Economy. Strategies for Latin
Markets. Winning Strategies. Brand Relevance: Key to Implementing Winning Strategies. Conclusion.
Global corporations are rapidly discovering an emerging market of nearly 600 million Latin consumers in
the United States and Latin America. In Winning Strategies for the New Latin Markets, three experts
analyze the Latin market's unique dynamics and offer end-to-end strategies for success. They illuminate
dramatic transformations in demographics, economics, local competition, regulation, technology, and
culture. Then, through executive interviews and case studies, they offer insights into key strategies for
every aspect of doing business: regional market expansion, market segmentation, branding, distribution,
financing, and corporate structure.
Globalization is transforming profoundly the business landscape of the Latin world. Firms competing in
this region are reacting not only to new trends in technology but also to the impact of fundamental
changes that have transformed the economic landscape of the Americas. Several international financial
crises have affected the fragile Latin American economies with devastating cycles of growth and
contraction. This is the first book to analyze the dynamics of the Latin world and to define key success
factors for Latin markets. Based on over 100 executive interviews and in-depth case studies, the book
offers managers and analysts engaged in global business a fresh perspective on a dynamic but volatile
market. It will be a trendsetter for future strategic studies of emerging markets.Although Latin America is
a challenging region in which to do business, it offers rich rewards. Whereas first-movers had time to
adjust to the varying conditions and changing regulations, newcomers to the region do not have that
luxury. Cycles of economic upturns and downturns have intensified. Multiple drivers affect Latin American
markets in many different ways at different times. The essence of strategy in Latin America is to identify
the windows of opportunity, timing of entry, resource commitments, and creative response necessary to
succeed. Early-movers have built different business architectures based on their geographic and business
scope. National champions have emerged to contest the challenge of integrators and specialists. In this
struggle, success will be determined in the two largest markets, Brazil and Mexico. These two countries
offer different platforms for success, and some firms may have to choose the focus of their Latin
American success. For global firms, Brazil and Mexico are essential components of the global value
chain. The future of the region may not be decided in the marketplace but in the political arena. The
pressure to minimize the region's vulnerability to global shocks and market-driven economies is
increasing. This certainly creates an additional source of uncertainty for investors. In the long term, the
region's potential should offer many rewards.Any strategy for Latin markets must recognize the
importance of the U.S. Latin market. The 34 million people of Latin American descent in the United
States represent the fourth largest Latin American nation and the third largest in buying power. The future
of any large multinational firm in Latin America will be decided by its ability to command enough market
power in the three largest markets of Brazil, Mexico, and the U.S. Latin market. A strategy that focuses
on market dominance in only one or two of these three large Latin markets will not be enough to achieve
regional market predominance.A Roadmap to the ReaderLatin Business in the New EconomyIn the first
chapter we analyze the transformation of Latin American corporate strategy from the old and traditional
brick and mortar model to one in which information technology and the Internet play an increasingly
important role in planning, production, control, marketing and distribution, and customer service. In the
first part of the chapter we provide an overview of the drivers and barriers to corporate development,
growth, and expansion in the region. In the second part of the chapter we summarize the emergence of
the "new economy," focusing on both business-to-consumer and business-to-business Internet firms,
including hardware and software incumbents and startups, vis-a-vis Latin America. In the third part we
examine some of the key ways in which Latin American corporations are beginning to...
DR. FERNANDO ROBLES is Professor of International Business at the School of Business and Public
Management at George Washington University. His areas of research and consulting are global
marketing and regional marketing strategies. Dr. Robles was President of the Business Association of
Latin American Studies from 1989-1990 and served as its Chairman of the Board of Trustees. He has
given seminars and participated in executive management programs in Brazil, Chile, Colombia, Costa
Rica, Dominican Republic, Mexico, and Peru. His work has appeared in The Journal of International
Business Studies, International Marketing Review, The International Executive, Thunderbird International
Business Review, Latin American Business Review, and many other publications. A native of Peru, Dr.
Robles holds an M.B.A. from Georgia State University and a Ph.D. from Pennsylvania State University.