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Transformation of a Business Model

A global company specializing in property facades and energy efficient windows and doors executed the most emblematic projects in Brazil, but the company had not returned a profit from its Brazil office since 2001 and had recognized that a strong brand and quality product were not enough to succeed in the current market. The company’s headquarters in Europe was considering closing the Brazil office. However, it also recognized that Brazil is an emerging market with a large social middle class and an average age of 29 years, making this a potentially lucrative location if a successful turnaround could be executed. The business model is not matching to the local requirements. To survive, the model would have to be adapted, which would seem to be contrary to the European standard. Is that feasible?

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