Global business program
Pluchart
Aline

International strategic management

Questions on Natura:

1. The geographical location of Natura has potencial advantages. Indeed the brazilian natural ressources are innumerable especially in the amazone region. the use of brazilian huge biodiversity and the "know how" of local communities offer large opportunities to benefit from this nature. Scientist studies on ingredients found in plants, demonstrate the ability for an industrial utilization, and also means that there are still a enormous parts of unknown active ingredients in this country (22% of the earth’s species were in Brazil, only 1% had been catalogued,only 8% of the few catalogued had been studied for phytotherapeutic use). With an investment on the research and the development the firm could be creativ, innovativ and anticipate the needs,even find a "niche" which is a performance lever and leads to profits.So this is a return on investment because as the author of the innovation, natura could have a "monopoly", advantages on others firms which are not creativ and on a specific type of customer. Futhermore this type of market is very competitiv, and by developing a product with biologic properties gives a competitiv differenciation, by creating his own market in a context were the demand is becoming more and more specific.In this situation you can choose you price policy, and make a lot of profits.
Another source of profit is the "internationalization" of natura's product in Europe and in the United State.First the infactuation for the sustainable product is a criteria for the buyer in these type of country, second Brazil's biodiversity is recognise as high quality, high performance product and has a marketing attractivness through this ethical propaganda. So because of the origin of the product, European will buy natura product rather than