Analysis of Disney Expansion in Brazil

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Brazil is the largest country in South America with a population of approximately 198.7 million in 2012, according to World Bank. It is also the world’s fifth largest country, by geographical area and by population (FIND SOURCE). Brazil’s capital, Brasilia, stands southeast of the country and their official language is Portuguese. Brazil is currently using Brazilian real as their currency.

Brazil is a federal republic government with 26 states and 1 federal district. Much like the United States, Brazil’s government is divided up into an executive, legislative, and judicial branch. The president is elected for a 4-year term with the opportunity to be re-elected for an additional four years. Their government system senators and deputies that represents each state in an upper and a lower house of Congress. (http://globaledge.msu.edu)

Brazil is quickly gaining international attention when it secured itself as a host country for the World Cup 2014 and the Summer Olympics 2016. Brazil is a member of BRICS, which means that the country has recently been industrializing and experiencing a rapid growth in it’s economy. Now that the country will act as host to both the World Cup and the Summer Olympics, an additional boost in the already growing economy is expected.

In 2008, Disney teamed up with Orlando Universal Studios and Sea World to begin marketing heavily to wealthy Brazilians that can afford vacations. They were right to market to Brazil because they have an opportunity in this country to encourage family vacations. In fact, Brazil is one of many Latin countries that is very family-oriented. Children are raised and encouraged to stay physically and emotionally close to family. They place a high emphasis on being loyal and acting...

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...nsive for this demographic. Currently, 1 U.S. dollar equals 2.38 Brazilian reals. That means a regular $92 day pass to Disneyland will cost locals almost 200 Brazilian reals. Aside from the wealthy few, Disney’s expensive prices will not accommodate and attract the rest of Brazil’s growing population. If they do not amend their prices, Disney will be greatly threatened by other free attractions such as beaches, museums, and parks. (http://www.gadling.com/2012/04/16/10-free-things-to-do-in-rio-de-janeiro-brazil/). There are also implications with the language. Disney will have to spend a lot of time translating everything to Portuguese. Since languages are so different, it will be hard to retain the same meaning. Disney will have to incorporate backwards or parallel translation into their implementation plan, which could be costly in terms of money as well as time.

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