Internationalization in the media out-of-home industry: the case of JCDecaux in the Brazilian market

Authors

  • Antonio Ricardo Ardito Garrido Fundação Instituto de Administração – FIA
  • Ricardo Fernandes Santos Universidade de São Paulo
  • Marcelo Henrique Gomes Couto Universidade de São Paulo
  • Fábio Lotti Oliva Universidade de São Paulo
  • Celso Cláudio de Hildebrand e Grisi Universidade de São Paulo

DOI:

https://doi.org/10.5902/1983465930071

Abstract

Purpose - This case study aims to understand the motivations for the expansion of the French multinational JCDecaux to Brazil, in the light of relevant theories about the internationalization of companies. JCDecaux is the world's largest outdoor media company (out of home), a fast-growing industry of the advertising market in Brazil.

Design/methodology - This study explain the case based on the internationalization of companies theories, in the economic (Eclectic Paradigm of International Production) and behavioral (Uppsala School and Business Networks Model) strands. In addition to secondary sources, the research was supported by interviews with experts and executives from the outdoor media industry in Brazil.

Findings - The main determining drivers for the entry of JCDecaux in the Brazilian market were identified. The analysis based on the theoretical models of internationalization concluded that the economic approach determined in a more significant way the company's entry into the Brazilian media out of home market. Economic advantages outweighed the costs and risks of Brazil's business environment, making the country attractive to the company's foreign investment.

Research limitations - The scarcity of data about the media outdoor was reported by a professional interviewed as a negative feature. Another important limitation is the lack of scientific production about the out-of-home media in Brazil.

Originality - This paper contributed to generate important information about the Brazilian outdoor media industry, especially on the phenomenon of internationalization of companies in this industry.

Downloads

Download data is not yet available.

Author Biographies

Ricardo Fernandes Santos, Universidade de São Paulo

FACULDADE DE ECONOMIA, ADMINISTRAÇÃO E CONTABILIDADE DA UNIVERSIDADE DE SÃO PAULO

Marcelo Henrique Gomes Couto, Universidade de São Paulo

FACULDADE DE ECONOMIA, ADMINISTRAÇÃO E CONTABILIDADE DA UNIVERSIDADE DE SÃO PAULO

Fábio Lotti Oliva, Universidade de São Paulo

FACULDADE DE ECONOMIA, ADMINISTRAÇÃO E CONTABILIDADE DA UNIVERSIDADE DE SÃO PAULO

Celso Cláudio de Hildebrand e Grisi, Universidade de São Paulo

FACULDADE DE ECONOMIA, ADMINISTRAÇÃO E CONTABILIDADE DA UNIVERSIDADE DE SÃO PAULO

References

Bemvindo, B.S.T. (2014). O Processo de Internacionalização de uma Multinacional Brasileira: Estudo do Caso Vale. Rio de Janeiro. 2014. Dissertação (Mestrado em Administração) – Instituto COPPEAD de Administração, Universidade Federal do Rio de Janeiro, Rio de Janeiro.

Coelho, D. B., Oliveira Junior, M. M. (2012). As multinacionais brasileiras e os desafios do Brasil no século XXI. Revista Brasileira de Comércio Exterior, n.11º, pp.44-57.

Coviello, N., Kano, L., Liesch, P. W. (2017). Adapting the Uppsala model to a modern world: Macro-context and microfoundations. Journal of International Business Studies. V. 48, N. 9, p. 1151-1164.

Dunning, J. H. (2001). The Eclectic (OLI) Paradigm of International Production: past, present and future. International Journal of Economics and Business (online), v. 8, n. 2, p. 173-190.

Dunning, J. H. (1980). Toward an eclectic theory of international production: some empirical

tests. Journal of international business studies, v.11, n.1.

Giakoulas, D., Kottaridi, C. (2020). Internationalization Strategies of the Greek MNEs during the Pre-Crisis Period: An Econometric Research Based on the OLI Model. SPOUDAI Journal of Economics and Business, Vol. 70, Issue 1-2, pp. 128-150 https://grafis.unipi.gr/index.php/spoudai/article/view/2798/2709

Guimon, J. (2016). Universities as multinational enterprises? The multinational university analyzed through the eclectic paradigm. Multinational Business Review. V.24, n. 3, p. 212-229.

Hill, C. W. L. (2002). International Business: competing in the Global Marketplace: Postscript 2002. New York: McGraw-Hill.

JCDecaux. (2015a). JCDecaux has completed the acquisition of Continental Outdoor Media.

Retrieved from: http://www.jcdecaux.com/press-releases/jcdecaux-has-completed-acquisition-continental-outdoor-media. Access on: 08 Dez. 2016

JCDecaux. (2015b). Reference Document. Retrieved from:

http://www.jcdecaux.com/sites/default/files/assets/document/2016/08/jcdecaux-reference-document-2015.pdf. Access on: 10 Jan. 2017

JCDecaux. (2012). JCDecaux wins 25-year advertising clock contract in São Paulo. Retrieved from: http://cloud.presspage.com/files/723/jcdecauxwins25-yearadvertisingclockcontractinsaopaulo.pdf . Access on: 15 Jan. 2017

Johanson, J., Vahlne, J. E. (1977). The internationalization process of the firm: a model of knowledge development and increasing foreign market commitment. Journal of International Business Studies (online), v. 8, n. 1, p. 23-32.

Johanson, J., Vahlne, J. E. (2003). Business Relationship Learning and Commitment in the Internationalization Process. Journal of International Entrepreneurship, Kluwer Academic Publishers, The Netherlands, v. 1, n. 1, p. 83-101.

Lakatos, M., Marconi, M. A. (2003). Fundamentos de metodologia científica. São Paulo: Atlas.

Meio&Mensagem. (2012a). JCDecaux irá operar relógios de São Paulo. Retrieved from: http://www.meioemensagem.com.br/home/midia/2012/08/28/jc-decaux-ira-operar-relogios-de-sao-paulo.html. Access on: 15 Jan. 2017

Meio&Mensagem. (2012b). Copa desafia mobiliário urbano em SP. Retrieved from: http://www.meioemensagem.com.br/home/midia/2012/11/12/copa-desafia-mobiliario-urbano-em-sp.html. Access on: 15 Jan. 2017

Meio&Mensagem. (2015). Entidades interrompem Projeto Inter-Meios. Retrieved from: http://www.meioemensagem.com.br/home/midia/2015/08/04/entidades-interrompem-projeto-inter-meios.html. Access on: 28 Jan. 2017

Miles, M. Huberman, M. Saldana, J. (2014). Qualitative Data Analysis. Thousand Oaks: SAGE Publications, v. 1.

Morrish, S.C. and Earl, A. (2020), "Networks, institutional environment and firm internationalization", Journal of Business & Industrial Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JBIM-05-2019-0230

Oliva, F. L. (2015). A Maturity Model for Enterprise Risk Management. International Journal of Production Economics, v. 173, p. 66–79.

Portal Brasil. (2016). Em 2030, 90% da população brasileira viverá em cidades. Retrieved from: http://www.brasil.gov.br/cidadania-e-justica/2016/10/em-2030-90-da-populacao-brasileira-vivera-em-cidades. Access in: 5 Fev. 2017

Porter, M. E. (1996). What Is Strategy?" Harvard Business Review. 74, no. 6, nov-dec. Pgs 61–78.

Rahman, A., Brisdge, A. J., Rowlinson, S., Hubbard, B., Xia, B. (2018). Multinational contracting and the eclectic paradigm of internationalization. Engineering, Construction and Architectural Management. V. 25, n. 11, p. 1418-1435.

São Paulo. (2006). Lei Nº 14.223. Dispõe sobre a ordenação dos elementos que compõem a paisagem urbana do Município de São Paulo. 26 de Dezembro de 2006. Diário Oficial da Cidade de São Paulo.

Souza, E.D.L. de, Fenili, R.R. (2012). Internacionalização de Empresas: perspectivas teóricas e agendas de pesquisa. Revista de Ciências da Administração, v. 14, n. 33, p. 103-118, Aug.

Vahlne, J‐E. (2020). Development of the Uppsala model of internationalization process: From internationalization to evolution. Global Strategy Journal. 10: 239– 250. https://doi.org/10.1002/gsj.1375

Vahlne, J. E., Johanson, J. (2017). From internationalization to evolution: The Uppsala model at 40 years. Journal of International Business Studies. V. 48, n. 9, p. 1087-1102.

Veiga, P. da M., Iglesias, R. M. (2002). A institucionalidade da Política Brasileira de Comércio Exterior In: PINHEIRO, A. C.; MARKWALD, R.; PEREIRA, L. V. (org.). O Desafio das Exportações. Rio de Janeiro: BNDES. Retrieved from: https://web.bndes.gov.br/bib/jspui/bitstream/1408/2064/1/Livro%20completo_O%20desafio%20das%20exporta%C3%A7%C3%B5es_P.pdf. Access in: 10 Oct. 2014.

World Bank. (2016). Ranking Doing Business. Retrieved from: http://portugues.doingbusiness.org/rankings Access on: 10 Feb. 2017

Yamin, M., Kurt, Y. (2017). Revisiting the Uppsala internationalization model. International Marketing Review, v. 35, n. 1, p. 1151-1164.

Yin, R. K. (1994). Case study research: design and methods. London: Sage Publications.

Downloads

Published

2020-12-22

How to Cite

Garrido, A. R. A., Santos, R. F., Couto, M. H. G., Oliva, F. L., & Grisi, C. C. de H. e. (2020). Internationalization in the media out-of-home industry: the case of JCDecaux in the Brazilian market. Revista De Administração Da UFSM, 13, 1235–1254. https://doi.org/10.5902/1983465930071