$\frac{cc}{Af}$ Answer all questions by using the main concepts related to the topics.

$1-$ Based on the Manebi Shoes case

a$-$Identify and briefly explain the environmental factors that led the company to expand in the Brazilian

market. $(20$ points$)$

b$-$Identify and briefly describe the initial entry mode and the further operating mode$($s$)$ in the Brazilian

market. $(20$ points$)$

c$-$ Devise a product strategy and a communication strategy for the company in Brazil. $(20$ points$)$

In January $2018,$ the parent company of Manebi Shoes announced plans to invest more to its brand.

Manebi has $80$ stores and $20$ corners in department stores in Spain. It has $120$ stores spread across $8$

European markets. As sales were declining in Spain, Manebi was looking to international markets to

fuel its growth and decided to build its international presence with growth expected in Latin America.

Research firm Euromonitor estimated that global sales of shoe retailers increased $20\%$ over the past

years and Brazil, where sales have more than doubled over the same period, was one of the hottest

markets.

Despite opening stores in Rio de Janerio, Manebi did not establish a highly profitable operation in the

country. It bought out its joint venture partner, taking full control of the business. The Brazilian market

is vast enough for a number of international brands. Manebi Shoes company has a long way to go

before it can compete with local competitors. Global sales of the local competior company Zazos hit $$5$

billion in $2020,$ compared to $$1$ billion for Manebi. Zazos has $400$ locations in Brazil alone and is opening

a new shop in the country every three months.

Manebi entered the market with opening its first Rio de Janerio store, then opened new stores in Sac

Paulo. Manebi company was looking to foreign markets as sales decreased at its stores in his hom

country. The number of customers visiting its stores declined as shopping shifted to online. Risin

prices due to inflation affected the company badly as well.