P
ProHub
English 简体中文 繁體中文
McKinsey Medium International Expansion Market Entry M&A Quantitative Analysis Graphical Interpretation

Brazilian Highway Concessions

#Infrastructure #Transportation
ProHub Comment

This case provides a comprehensive approach to international market entry, integrating qualitative screening with quantitative analysis. It effectively demonstrates how to use graphical data for initial market selection and then dive into detailed financial comparisons of different entry strategies. The structure encourages a logical flow from broad considerations to specific recommendations.

Estimated Time 15 minutes
Difficulty Medium
Source Wharton
50 / 100
A leading Brazilian highway concessions company is looking to expand internationally. Economic growth in Brazil has stalled, and in order to continue to grow both top-line revenues and bottom-line profitability, the client wants to diversify its portfolio and decrease its exposure to the Brazilian economy. What factors should the client consider as it thinks through its international expansion options?

Clarifying Information

  1. The client operates only in Brazil, has scoped opportunities in South America. Their staff speaks primarily Portuguese.
  2. No, the client currently only focusses on road concessions (building and operating public roadways).
  3. The clients’ customers are always municipal, state, or national governments. They bid, usually through competitive RFPs.
  4. The client wants to consider all geographies, with a bias towards opportunities in South America.