Pinto Basto, Trying to succeed in the Angolan Market : a case on internationalization in emerging markets

Abstract

The logistic industry is an important sector for the well development of a country. Nowadays, due to the crescent globalization, it is getting a preponderant role. The companies operating in the sector are pressured by demanding clients and an increasing flow of goods. It is not only difficult to keep up with the whole scenario of a changing industry but it gets harder when a SME has to internationalize to a strategic and complex country. Pinto Basto (PB) is one example operating in that industry and struggling with all the difficulties that SME have. Moreover, the company decided at some point to expand to Angola, a Portuguese speaking country. This internationalization could seem easy and clean as the cultures are not that different, but along the way, the company dealt with serious difficulties in the market. After all, Angola is an under developed country and there is still a lack of stability for SME´s to prosper. Mr. Carvalho-Neto is called into the company with the objective of turnaround the increasing losses that the Angolan subsidiary was having. The complexities of the market lead the new executive director to make a strategic decision of the way that the company should heading. Integrated logistic services were the answer to some of the problems. He came up with two solutions to enter that new business that they needed to implement in order to integrate the services. The board would surely agree with the most traditional and risk averse, a local partnership. However, Mr. Carvalho- Neto was pushing to a more bolt and risky idea, the creation of a new company. Pinto Basto was depending on the decision and, due to the particularities of African markets, either one could lead to a fatal destiny for the company. This is a case about a SME operating in a very complex African market, were decisions would have a determinant impact in the survival of the company.