Doing Business In Peru Essay

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Depending on the kind of banking operations, different laws and rules apply. A general view of the laws that apply to business in general are provided in the government published Doing Business in Peru(Ministerio de Relaciones Exteriores, 2013).
The Central Reserve Bank of Peru regulates the country’s banking and financial industry. The rules and regulations are outlined in the General Law of the Financial and
Insurance Systems which was adopted in 1996. Because of the presence of many global banks, many changes were incorporated into the law to allow local companies and residents to deal with international banks. The industry has available a range of services comparable to other countries. (Beverly, 2011) Laws have also allowed retail internet …show more content…

This may pose some difficulty in building up the bank’s name in the country.
Although the bank is present in some other Latin American countries (BNP Paribas
US, 2015), it may still not be familiar with the market. Every country would have its unique and distinct characteristics. Understanding these uniqueness and differences could sometimes determine the success of company’s market penetration strategy.
About 60% of the working population are considered in the gray area (Coface, 2015).
These people are said to be untrainable. This could pose some problems in the bank’s employee recruitment and customer communication processes. The vast majority of the people do not speak English, only Spanish and some native languages (CIA, 2015). This
I n v e s t i n g i n P e r u | 9 could pose some problems again. However, the bank has successfully penetrated …show more content…

In doing so, the bank aims to strong—perhaps even leadership later—global positioning retail banking and international financial services.
In entering Peru, it should aim to gain a respectable market and presence or recognition within first year of operations. It should be able to offer and provide services like online retail banking services to ordinary consumers and financial services to small and medium enterprises in the target territory. It must target to at least break even and profit reasonably within first three years of operations.
Essentially, the bank is following a mix of market expansion and market penetration strategy. The strategy is part of the global geographic expansion plans. The bank is not offering additional services in an existing territory. Instead, it is entering a completely new market and offering its existing services at the same time. Thus, the strategy is a mix.
To facilitate its entry in Peru and as it had done in the past with other territories like
China (BNP Parabas, 2015), the bank will have to acquire or merge with an existing bank in
Peru.
BNP Paribas would use mainly the acquired to reach target consumers in Peru. It

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