RISE Technologies in Brazil
RISE Technologies is a leading developer, manufacturer, and distributor of technologically advanced products for the agricultural market. Through continuous research and development RISE produces products to meet the needs of a variety of customers including: researchers, farmers, ranchers, universities, municipalities, fertilizer companies, golf courses, nurseries, and many other businesses related to agriculture. ... RISE Technologies is proposing to expand upon the success enjoyed in the United States by moving into the global marketplace, starting with Brazil. ... The following is a global expansion plan for RISE Technologies. Global Business Opportunities RISE feels that there are several similarities between the agricultural market of Brazil and that of the U. ... With the proper research and planning RISE can sell product into Brazilian markets and continue to realize profit and revenue goals. ... The assistance of host country nationals who are intertwined in the agricultural landscape of Brazil will be key to our development in this country. The decision to approach global opportunities at RISE Technologies meant that an analysis of potential countries would have to occur to identify the most attractive market. ... For our purposes, after researching potential markets, Argentina and Brazil were chosen for comparison. Comparatively speaking Brazil offers the greatest potential for growth in the future. ... For all of these reasons we feel that Brazil will be the perfect environment to sell our product in. The push for increased agricultural exports is on in South America and Brazil is positioned nicely to meet the demands of the future. Competitive Analysis Competition is limited for the type of products that RISE Technologies offers. ... Davis Weather Equipment, Minolta, and Cardy are current suppliers to RISE Technologies, could be potential competitors. There are no exclusive rights agreements with these suppliers and they potentially could offer similar product in Brazil. ... Lastly, our strong relationship with the Brazilian government, specifically Embrapa, will solidify us as the technological leader in the agricultural market of Brazil. Economic & Geographic Environment Several economic factors will aid the efforts of RISE Technologies to sell product in Brazil, the worlds ninth largest economy. For Brazil, the Asian financial crisis temporarily reduced economic growth rates in the late 1990’s. ... Increased demand means more income for our customers, who in turn will demand more products from RISE to efficiently run their businesses. From a geographic standpoint Brazil has substantial undeveloped, but highly valuable land. Brazil’s favorable climate and fertile soils gives them an advantage in the agricultural sector (Country Profile). For RISE this means that the potential for increased agriculture is also high. When more focus is placed on agriculture, there are more opportunities for RISE to sell product. ... Brazil lacks the transportation infrastructure to fully reach potential customers of RISE. RISE will rely on established sales and marketing channels to overcome this obstacle. RISE will also rely heavily on the Brazilian government to reach potential customers. Social & Cultural Environnent Brazil has several positive social aspects that RISE has taken notice of regarding their expansion plan. First, Brazil is home to a large, increasingly urbanized population. Projections for per capita income growth are on the rise, causing a strong domestic demand for agricultural products (www. ... The native language is Portuguese, which is where RISE would be at a disadvantage. RISE will use local employees to help understand and interpret the local language. ... Next, there has been an increased focus on technology in the agricultural sector, which plays right into RISE’s Brazilian strategy. ... An entrepreneurial spirit has emerged and RISE will capitalize on this phenomenon. Political & Legal Environment The primary concern for RISE Technologies is the removal of trade barriers by the Brazilian government. This has occurred over the past two decades in Brazil and the elected officials have also supported the movement towards privatization. For RISE, it is important that this trend continues so that our customer base can continue to grow and prosper in Brazil. The political scene in Brazil is highly segmented. ... President Cardoso has been credited with an economic resurgence in Brazil and with the positive outlook for the future (brazilianchamber. ... Global Company Structure RISE Technologies maintains a commitment to its clients to provide top-rated soil and weather monitoring equipment. Our objective is to improve the quality of agricultural product by supplying the products necessary for the advancement of agriculture in Brazil. ... When considering the structure of business in Brazil, RISE management, in conjunction with the Board of Directors, determined a joint venture would be the most advantageous to the desired outcome of entering the Brazilian market. It was determined that RISE would form a 51% ownership with a local warehouse facility to form a warehouse distributorship. ... McLane is a food and consumer packaged goods Distribution Company that maintains a multi-user distribution center in Brazil.