Ashton College International

Luiz Valério P. Trindade

Vancouver, 10th

February, 2011

Term Paper

The focus of the project is the opening of

Ashton College first international operation in

São Paulo, Brazil offering a selection of short

term professional courses taught entirely in

English.

Aim of the Project

Brazil – General Data

Total population: 190,732,694

Density: 22 inhabitants/km²

Annual growth rate: 4.0%

Urban Population: 84%

Population of main cities: 1) São Paulo: 11,244,369

2) Rio de Janeiro: 6,323,037

3) Salvador: 2,676,606

4) Brasília: 2,562,963

5) Fortaleza: 2,447,409

Official language: Portuguese

Official 2nd language: None

Dialects: None

Religion: Roman Catholic (73.8%)

Literacy Rate: 90.3%

City of São Paulo – General Data

City of São Paulo – General Data

Foundation: 1554

Total population: 11,244,369

Largest Brazil’s GDP: 12.26%

Largest estate’s GDP: 57.3%

Urban Population: 98.9%

Literacy rate: 95.3%

The city’s average GDP per head is 2.4 superior of the national average (US$ 25,690 in

contrast to US$ 10,530).

Most important financial centre in South America.

63% of all international corporations with operations in the country have head office in

São Paulo.

According to a 2008 report by PricewaterhouseCoopers, São Paulo is among the world’s

top 10 richest cities and by 2025 it may be among the top 6 after Tokyo, New York, Los

Angeles, London and Chicago.

Market Overview

Tu

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Brand Awareness (Prestige)

Low Intermediate High

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Av

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OPPORTUNITY WINDOW

SWOT Analysis

STRENGTHS

1 – Acquired expertise on the business of Career College;

2 – Course taught entirely in English;

3 – Its true international focus;

4 – The Canadian and Brazilian faculty;

5 – Faculty formed by Canadian and Brazilian executives;

6 – Accredited school (conveys the image of seriuosness);

7 – Partnership with Canadian companies;

8 – Partnership with Canadian Educational Council local office.

WEAKNESSES

1 – Low or almost no brand awareness;

2 – Risk of starting a new venture in a new market;

3 – High initial costs and low profits;

4 – Higher costs of brand awareness construction;

5 – Students must have a good command of English.

O PPO RTUNITIES

1 – There’s nothing like that on this teaching level in the country;

2 – The country’s economy is booming;

3 – Companies are in quest of qualified professionals;

4 – São Paulo is the country's most dinamic city;

5 - The coming of FIFA Wordl Cup 2014;

6 - The coming of Summer Olympic Games in Rio de Janeiro 2016;

7 – University of Pittisburgh have already gone there;

8 – People are in search of good and differentiated qualification.

THREATS

1 – New entrants from Canada;

2 – Brazilian new entrants: larger knowledge of the market;

3 – International new entrants: higher brand awareness;

4 – Indirect competitors;

5 - Online courses (either paid or free of charge).

Positioning

50,00

46,30

41,67

32,41

30,00

25,00 25,00

18,42

13,89

0,00

Low High

Differentiation Based on Brand Recognition

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Intermediate

Hig

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Projected Move

BSP

ASH

SEN

MAK

ASH

FGV

FIA

The proposition is that Ashton College Brazil

offers the following courses:

1) Certificate in Business;

2) Certificate in International Legal English;

3) Certificate in International Trade;

4) Certificate in Sales & Marketing;

5) Certificate in Customer Service Representative;

6) Certificate in Hotel Management.

Service Description

The recommended model for market entry is through

Foreign Direct Investment (FDI) opening a branch in

São Paulo.

Some of the strategies to establish the right

positioning in the market are the following:

Establish associations into the target customer’s mind;

Key partnerships with CEC and Chamber of Commerce;

Promotion (Advertisment campaign).

Market Entry Strategies

The report has shown that there is a strategic

opportunity window in the market and that Ashton has

got the necessary capabilities to implement the

operation in the country;

Contrary to what happens in Canada, where the

competition is higher for career colleges, Ashton

College in Brazil could be positioned as a premium

and differentiated service;

It is necessary to develop a more detailed and indepth

financial analysis.

Conclusion and Action Plan

Thank you

for your attention!!

Luiz Valério P. Trindade