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Internationalization strategy and foreign distribution channels: analysis of the brazilian cosmetics company Natura

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Author Info

  • Silvia Novaes Zilber

    (Nove de Julho University - UNINOVE)

  • Carlos Henrique Mora Júnior

    (Contax Contact Center)

  • Francisco Lourenço da Silva

    (Paulista University - UNIP)

Registered author(s):

    Abstract

    This paper describes the internationalization process of the Brazilian company Natura Cosméticos S.A., whose competitive differential is the development of products based on the biodiversity of Brazilian flora. We specifically focus on the company’s different choices of distribution channels in foreign markets. The study is exploratory, relying on content analysis of secondary data. The results indicate that the company’s internationalization process has followed the model of the Uppsala school (learning) and that the company has maintained the same distribution strategy (direct sales) in markets with similar cultures (Latin America), but for the European market (Paris) it preferred to establish a physical store because of the cultural differences of that market. The change of the distribution channel model in the European market led the company to develop new organizational competencies.

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    File URL: http://www.bbronline.com.br/public/edicoes/7_3/artigos/07mr7@0u5513122010103842.pdf
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    Bibliographic Info

    Article provided by Fucape Business School in its journal Brazilian Business Review.

    Volume (Year): 7 (2010)
    Issue (Month): 3 (September)
    Pages: 64-86

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    Handle: RePEc:bbz:fcpbbr:v:7:y:2010:i:3:p:64-86

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    Postal: Fucape Business School Brazilian Business Review Av. Fernando Ferrari, 1358, Boa Vista CEP 29075-505 Vitória-ES
    Phone: +55 27 4009-4423
    Fax: +55 27 4009-4422
    Web page: http://www.bbronline.com.br/
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    Related research

    Keywords: Internationalization; distribution channels; biodiversity.;

    References

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    1. Peter J Buckley & Mark C Casson, 1998. "Analyzing Foreign Market Entry Strategies: Extending the Internalization Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 29(3), pages 539-561, September.
    2. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 29-53, March.
    3. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
    4. Otto Andersen, 1993. "On the Internationalization Process of Firms: A Critical Analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 24(2), pages 209-231, June.
    5. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
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