Havaianas: A Brazilian Brand Goes Global Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Company Profile

Sao Paulo Alpargatas S.A is the leading and well known company in Brazil that provides high quality footwear and sportswear to its customers in order to satisfy their needs. Alpargatas is the publicly traded company that consists of four different businesses. These business units include the Sandals, Sporting goods, Industrial textiles and retail. Furthermore, the main product of the company is Havaianas (slippers made from rubber) for which Alpargatas is famous throughout the Brazil as well as around the world.

In addition to this, the controlling shareholder of the company is Camargo Correa Group their major business operatiincludeudes engineering, cement, steel, construction, real estate, textile and footwear. The Camargo Correa Group is holding 67% common shares of the Sao Paulo Alpargatas S.A. and company becomes the part of Camargo Correa’s different divisions that include footwear, textiles and steel in 2002. During the year 2007, the company sells 184 million pairs of footwear showing a 5.3 % volume increase in comparison with the year 2006.

The products that are manufactured by the company includes Topper, Rainha, Conga, Bamba, Sete Leguas, Mizuno and Timberland. The company has continuously made innovations in its product lines in order to expand its business internationally as well as satisfy the changing demands of the customers. Moreover, the company has also introduced around 509 different and new types of sandal and sport footwear during the year 2007.

Additionally, by connecting its product offerings to brand quality and innovation, the company has effectively identified the customer needs and demands that play a vital role in the achievements and growth of the company. However, the company has performed tremendously in the market segments where it operates to attract the audience.

Problems

The problems that the company is facing include:

Sao Paulo Alpargatas wants to increase the Havaianas awareness and recognition into a global brand.
The company also wants to develop and execute a new international marketing strategy in order to expand the growth of their brand Havaianas in the global market.
The competition around the globe is increasing day by day making it difficult to gain sustainable competitive advantages. So, the company is facing a challenge of how to expand its Brazil market, and how to introduce the brand globally, with the rising competition while differentiating its product offerings.
There is a disagreement among the executives of the Alpargatas in order to outsource its production for manufacturing Havaianas products outside the Brazil.

SWOT Analysis

This strategic method analyzes the internal and external factors for the Sao Paulo Alpargatas in order to conduct business nationally and internationally successfully by assessing the current position of the company.

Strengths

Strengths of the Sao Paulo Alpargatas include:

The key strength of the company is its high value product offerings. This helps the Alpargatas to increase its business across various countries around the world.
Sao Paulo Alpargatas is a well-known and hugely recognized worldwide company, especially in Brazil. As, this result in the increase in the growth and profitability of the company.
Another strength of the company is the continuous innovation in its brand offerings in order to attract the large number of customers’. This allows the company to satisfy the needs as well as meet the expectations of the customers.
Environmental friendly is another important strength of the company as it recycled material.
Sao Paulo Alpargatas has100 years of existence that is an evidence of the success of the company.
The success of Havaianas products is worldwide, mainly in Brazil. As, the Havaianas products are hugely accepting by the large amount of customers due to its durability, comfort and affordability.

Weaknesses

Weaknesses of the Sao Paulo Alpargatas include:

Imitation is the main weakness of the company as competitors in the industry are able to quickly copy the products.
The company has mainly focused Havaianas products in comparison with the other products of the company.
Lack of international awareness is another weakness of the company as Sao Paulo Alpargatas is mostly famous in the Brazil and there is less brand awareness across the world of product offerings.
Another weakness of the company is its dependence over distributors worldwide.

Opportunities

Opportunities of the Sao Paulo Alpargatas include:

Changing trends and fashion is the most important factor that creates the opportunity for the company to target customers in order to increase the performance of the company.

Another opportunity for the company is increasing the global demand that would allow the company to attract different customer groups towards their brand offerings........................

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