PART 4C

Competitive Advantage of the Company

Porter's Diamond Model

1. Factor Endowments
 Labor Costs
In comparison to the U.S. wherein the average monthly labor cost is
$1000, Brazil offers cheap labor with labor cost of just around $450/month. Brazil
also has abundant land for agricultural use. Besides, the cost of these lands is
much less than the cost of land in the U.S. It also boasts of a perfect weather
condition with year-round sunshine in the middle and Northern regions. Brazil
has well-developed agricultural technology from EMBRAPA, which is a
partnership between the government and university, for the distribution of farming
knowledge. It also has a well-built transport infrastructure to facilitate the
transportation of farm products.

 Agriculture
Brazil is the world’s leading producer of coffee; it was the country’s most
important single export in the early and mid-20th century. Minas Geraisand
Espírito Santo are the principal coffee-producing states, followed by São Paulo
and Paraná. In the 1990s soybeans and their derivative products, particularly
animal feeds, became a more valuable source of revenue than coffee. Most of
the country’s soybeans are grown in Paraná and Rio Grande do Sul; Mato
Grosso do Sul state has also become a leading producer, because farmers there
have increasingly used machinery and fertilizers to work the savanna soils.
About one-third of the world’s oranges are grown in Brazil—more than
twice the amount produced in the United States, which is the world’s second
major supplier. Brazil is also the world’s main producer of cassava and a leading
grower of beans, corn(maize), cacao, bananas, and rice.

 Climate
 Southern Brazil. About one-third of the world’s oranges are grown in
Brazil—more than twice the amount produced in the United States, which is the
world’s second major supplier. Brazil is also the world’s main producer of
cassavaand a leading grower of beans, corn(maize), cacao, bananas, and rice.
The soils here are fertile and the higher rainfall levels ensure that crops are well
irrigated and fed. In addition to the natural resources of Southern Brazil, this area
is also home to more advanced farming technology and farmers with extensive
experience. Therefore, this region produces most of the country’s grains, export
crops and oilseeds
Northeast Brazil (including some of the Amazon Basin). This agricultural
area is far drier and less equipped. It often succumbs to droughts, and lacks
infrastructure, capital and good soil, due to minimal rainfall. This area is occupied
mainly by subsistence farmers (who survive off of their produce). However, there
are certain crops from this region that are essential for export; such as cocoa,
tropical fruits and forest products.
Central Brazil has, for generations, been considered to be unsuitable for
farming. Livestock farming began in the area and was thought to be the only
viable type of agriculture, since the soils were poor in quality and unable to
sustain crops. However, it was discovered that soybeans actually thrived in these
conditions, particularly with the ever-developing means of cultivating these tough
soils. Today, a number of crops are grown here.

2. Demand Conditions
-Beans are sacred for Brazilians, in which it is also one of the recipes of
Eng Bee Tin. In Brazil they eat beans at least once a day, sometimes more. A
typical lunch consists of rice, beans (they usually use carioca beans, but there
are also other kinds of beans, like black beans for example), beef or chicken,
salad and fries.
There are many types of beans in Brazil - the largest consumer and
producer of the legume in the world, with approximately 3.5 million tons
harvested every year. The most popular beans are “feijão carioca / carioquinha”
(similar to pinto beans), with 85% of the market, followed by black beans, with
 10% (more common in Rio de Janeiro state, but mandatory in the preparation of
the Brazilian national dish, “feijoada” - more soon!). The remaining 5% of sales
are specialty beans, such as “jalo”, “fradinho”, “rosinha”, “bolinha”, “branco”,
“verde”, “azuki” and “roxinho”.
Therefore, Eng Bee Tin would have a variety of choices to combine with
their recipes. Brazil is a great country for Eng Bee Tin because it would be easy
for them to have ingredients for the foods that they are offering in the proposed
country.

3. Relating and Supporting Industries

4. Firm strategy, structure, and rivalry

Eng Bee Tin was the first company to introduce ube flavored hopia. Combining Filipino
flavors with Chinese tradition made it as their competitive advantage among other companies.
They are known for incorporating the flavor ube into their hopia that led to the spiraling
popularity of their product. They were able to adapt with the time and at the same time they
were able to embrace the heritage which made them to become one of the biggest international
exporters of hopia across Asia, the Middle East, Europe and the United States with shops in all
corners of the Philippines.

Capitalizing on changing consumer preferences has also been a focus of the company.
Their line has expanded to number of Filipino, as well as Chinese, products such as breads,
cakes, processed seafood and frozen food products. "The majority of products are Chinese
delicacies fit into the Filipino taste" Chua said.

The company’s trend of innovation continues to this day, from its fully automated hopia
manufacturing processes to its strict hygienic standards of quality control (running the final
product through metal detectors and packaging it in a hygienic pillow pack) one is assured good
food that is both delicious and safe.

There are PH's two most well-known hopia makers. One is Eng Bee Tin and the other is
Polland. While Polland doesn’t enjoy the same widespread recognition, it can claim to be a
multimillion-peso company. Its manufacturer, D’ Famous Red Box Corp., reported revenues of
Php11.8 million in 2015, a 35.4-percent increase from the year before. Founded by an
enterprising businesswoman named Mrs. Go So Po, it is best known for its monggo (mung
bean) and pork-flavored hopia. The brand combines Mrs. Po’s surname and “land”, which, for
her and her family, signifies “land of precious things.” Eng Bee Tin is perhaps more popularly
known because it has more branches and has been around far longer. As well, its current
manager, Gerry Chua, has been featured in dozens of television programs. Eng Bee Tin has
also been previously recognized by international brand rating group Superbrands in 2011 and
2012.

Investor-friendly policies:
To conduct business in Brazil, an investor needs to have approx. $85,000 on deposit in a
Brazilian bank. In addition, the investor also needs to have a natural Brazilian citizen as partner.
By following these simple procedures, the investor can conduct a business in the same way as
a native Brazilian would. Thus, the investment criteria of Brazil are much simpler than the
countries that don’t allow a foreign national to start a land or open business without making a
national of that country a 50% partner in the business.