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RESEARCH PRODUCT

How to become successful in Brazil: a study of the Norwegian oil service industry on the Brazilian shelf

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Masteroppgave i økonomi og administrasjon - Universitetet i Agder 2012 Key concepts Culture, cultural friction, foreign entry, oil service industry, Brazil Background After more than 40 years of an economy based on the black gold of the North Sea, a substantial supplier industry has gotten a foothold in Norway. The oil and gas market of Brazil is one of the fastest growing markets in the world and they are expanding beyond the capacity of their domestic oil and gas related industry, thus representing an opportunity for foreign entrants. Problem Cultural friction between two parties of different cultural background is a driver for increased levels of conflict. In a foreign entry, such friction may represent an obstacle to development and growth. Purpose This thesis aims to develop a framework on how a Norwegian company within the oil service industry can achieve its goals in Brazil. Developing such a framework, I utilized already existing theories in a new context. Research The research process was carried out in a qualitative manner. The data collection came from four in-depth interviews where the respondents represented two different areas of the oil service industry. The key topics for the interviews were; challenges in Brazil, success factors in Brazil, success factors for Norwegian firms in Brazil and cultural friction. Findings Cultural friction was determined as a severe challenge for Norwegian companies entering the Brazilian market. Further it was connected to uncertainty avoidance, power distance, individualism and long-term orientation. Norwegian companies are, in addition challenged by the local contents in labour and less loyalty. Success factors in Brazil are knowledge about how to handle time, management and local presence. Conclusion The research showed that Norwegian companies within the oil service industry that had advanced into Brazil face several challenges. Simultaneously they have competitive advantages by virtue of being Norwegian with extended experience in the industry.