Case Study 8.1 – GOL: Evaluating the Entry of a Brazilian Airline in the Mexican Market

The conventional low cost model worked in different nations. In any case, it’s imperative to include that the Mexican business sector is altogether different. Initially, Mexico is the second biggest business sector behind Brazil and inside Mexico the opposition is hard. Second in other Latin American nations there were no other ease nearby contenders. In Mexico, there were neighborhood minimal effort contenders with the solid expectation to be global. So this model could have some kind of dangers later on. It is not the same to attempt to grow just the global Latin American courses or the Mexican domestic courses or both.

The passage in the domestic market with a nearby accomplice was another choice that could be considered. To begin with, there was some sort of limitations about remote venture. The positive side is the nearby market information, principle trademark and the hall required business arrangement. All the administration issues would stay in hands of GOL directors.

There is some danger. To begin with there is exceptionally solid Mexican aggressive environment. Second, the plan of action could be replicated in part by different players. Third, there is some sort of dangers about the choice of these players to enter the universal Latin American courses.

Gol had purchased Varig in Brazil. It was a conceivable choice. Perhaps Mexicana could be the objective. This organization was losing piece of the overall industry and possibly cash. In any case, here there is additionally the same inquiry than in Brazil. Why purchase a customary company? This is not GOL’s business. It’s likewise a critical venture. The positive side might be to have some sort of nearness in the neighborhood market. A superior way could be to get a minimal effort aircraft or a portion of one.

GOL could hold up and take a gander at what will happen with the minimal effort carriers’ execution. With this kind of data possibly the choice will be clearer. This is the positive side. The other side is that perhaps GOL cannot hold up if the Mexican or US bearers are attempting to enter the worldwide Latin American courses. 9 Another alternative is to search for an organization with a US player. This choice diminishes the danger of US section in the universal Latin American courses, perhaps through the making of another organization.

Reference

Dale, C., Robinson, P., Fallon, P., Cameron, H., & Crotts, J. (2016). Business planning and strategy. Operations Management in the Travel Industry, 21.