Expansion Recommendation

Based on the data presented in the previous articles, there is a lot of gain to be had in expanding into the Brazilian market. The ROI on a 2-month advertising campaign is phenomenal, and the foundation of capturing market share of the fast-growing Brazilian gaming market would be well-laid. The South American gaming market continues to explode and rise at a meteoric rate, with Brazil leading the charge. It is strongly recommended that SIE expand into this market in order to build trust, rapport, and good will with its Brazilian community. They are known to be dedicated fans of the industry, and as such, winning loyalty will go a long way. Building a regional office in Sao Paulo would be a good strategic move in order to eventually pave the way for building factories, in order to circumvent the high tax costs of exporting the games from outside of Brazil to Brazilian game stores. This ease on taxes would translate into lower game and console prices, lowering the bar to entry for many individuals, especially who are in lower social classes. All of this will further serve to build the trust and goodwill that creates fiercely loyal fans who will continue to buy SIE’s products for years to come.

Next: Growth Analysis
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