Unicistes versus pluralistes : l’homéopathie brésilienne à l’ère de la globalisation

doi:10.4000/anthropologiesante.767

Study

Innovation & MarketsHigh ImpactStrong effect

Global Market Entry Triggers Local Industry Adaptation

The introduction of a foreign market leader can force domestic industries to innovate and adapt their strategies to remain competitive.

Anthropologie et santé · 2011

01

Key Findings

01The presence of a major international competitor disrupted the existing landscape of the Brazilian homeopathic market.
02Domestic homeopathic companies were compelled to adjust their strategies and potentially their product development in response to the new market entrant.
03The foreign company also had to adapt its approach to product distribution and market positioning to suit local conditions.

02

Application

Design takeaway

When entering a new market, anticipate that your presence will necessitate strategic adaptations from both your own organization and existing local players.

How to apply

Before launching a product in a new market, conduct thorough research on existing players and anticipate how your entry might trigger competitive responses and necessitate your own adaptations.

Project actions

01When researching a market, look not just at the customers but also at the existing competitors and how they might react to a new product.
02Consider how a new product might force changes in manufacturing, marketing, or even the product itself for existing companies.

03

Method & Evidence

AimHow does the entry of a global pharmaceutical company impact the strategies and product offerings of the existing domestic homeopathic industry?

MethodQualitative research, Case study

ProcedureThe research involved fieldwork in São Paulo to observe and document the reactions, strategies, and changes within the Brazilian homeopathic sector following the establishment of a subsidiary by a French pharmaceutical laboratory. It also examined the adaptations the foreign company had to make to distribute its products locally.

ContextPharmaceutical industry, Homeopathy market, Brazil

Variables

IVEntry of a global competitor

DVAdaptation of local industry strategies and product offerings

CV["Specific market (homeopathy)","Geographical location (Brazil)","Time period"]

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Strengths & Limitations

Strengths

+Provides a real-world example of market dynamics.
+Highlights the adaptive capacity of industries.

Limitations

The specific market dynamics of the homeopathic industry might not directly translate to other product categories.

Reliability & validity

The findings are based on qualitative fieldwork, which can be subject to interpretation. Triangulation with quantitative market data would strengthen validity.

Think critically

To what extent does the 'globalization' effect observed in this study apply to niche markets versus mass markets?

05

Design Principles

"Market disruption necessitates strategic adaptation for all stakeholders."

Understanding how established markets react to new global players is crucial for developing effective market entry strategies and for domestic companies seeking to defend their position. This dynamic highlights the importance of agility and strategic foresight in a globalized economy.

06

What This Means for Your Design

When a big, new company enters a market, the smaller, existing companies have to change how they do things to keep up, and the new company might have to change its plans too because of local rules or customer preferences.

How to use in your project

1.Use this research to justify why you need to analyze the competitive landscape and potential market reactions in your design project.

07

Add to My Project

08

Quick Cite

(2011). Unicistes versus pluralistes : l’homéopathie brésilienne à l’ère de la globalisation. Anthropologie et santé. https://doi.org/10.4000/anthropologiesante.767 Retrieved from https://designdex.org/study/f9f97748-5a3c-4d12-8316-fb74027ae013/global-market-entry-triggers-local-industry-adaptation

Paragraph starter

The introduction of a foreign market leader can act as a catalyst for innovation and strategic adaptation within a domestic industry, as observed in the Brazilian homeopathic market where the entry of a global firm prompted changes in local players' strategies and the foreign firm's own market approach.

09

Source

Anthropologie et santé

Unicistes versus pluralistes : l’homéopathie brésilienne à l’ère de la globalisation

journal · 2011

View source

Questions about this research

What does the research say about global market entry triggers local industry adaptation?: When entering a new market, anticipate that your presence will necessitate strategic adaptations from both your own organization and existing local players. Evidence: Anthropologie et santé (2011).
Why does "Global Market Entry Triggers Local Industry Adaptation" matter for design?: Understanding how established markets react to new global players is crucial for developing effective market entry strategies and for domestic companies seeking to defend their position. This dynamic highlights the importance of agility and strategic foresight in a globalized economy.
How can designers apply this research?: When entering a new market, anticipate that your presence will necessitate strategic adaptations from both your own organization and existing local players.
What were the main findings?: The presence of a major international competitor disrupted the existing landscape of the Brazilian homeopathic market.. Domestic homeopathic companies were compelled to adjust their strategies and potentially their product development in response to the new market entrant.. The foreign company also had to adapt its approach to product distribution and market positioning to suit local conditions.
What research method was used?: Qualitative research, Case study.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2011 journal from Anthropologie et santé.
What should I do differently in my next project?: Before launching a product in a new market, conduct thorough research on existing players and anticipate how your entry might trigger competitive responses and necessitate your own adaptations.
What are the limitations?: The study is focused on a specific industry (homeopathy) and geographical location (São Paulo, Brazil), which may limit the generalizability of findings to other sectors or regions.
Is there evidence that market entry affects design outcomes?: A large foreign company entering the Brazilian homeopathy market forced both local competitors to adapt their strategies and the foreign company itself to make local adjustments. Understanding how established markets react to new global players is crucial for developing effective market entry strategies and for domesti Source: Anthropologie et santé (2011).
Where does this foreign company research apply?: Pharmaceutical industry, Homeopathy market, Brazil It sits within innovation & markets research on designdex.org.