Competitive threats, strategic responses and performance of Brazilian B2B firms

Abstract

Purpose – The economic realignment in Latin America has created two clusters, one stagnant in the north and the other growth-bound in the south. This study aims to focus on Brazil, the key player in the growth-bound southern cluster, and address three fundamental questions: how Brazilian executives in four B2B sectors (telecommunications, business equipment, steel, and transportation) viewed the internal competitive developments, how they strategically responded to these developments, and what were the marketing and financial outcomes of these strategies. Design/methodology/approach – Data were obtained by interviewing top decision makers such as president, chief executive officer, and director of the companies. Findings – Findings show that the intensity of competitive pressures due to globalization varied by sector and so did strategic responses of firms. Marketing and financial performance outcomes also varied by sectors. Originality/value – The study adds to the growing literature on competitive market developments, strategic responses and performance outcomes of firms in Brazil, an important emerging economy and the key player in the southern Latin America cluster.