Analysis of the strategic elements in internationalization processes: Brazilian real estate companies targeting the residential market of Costa Rica

Abstract This paper presents a methodology of analysis of external and internal factors that Brazilian residential real estate companies may consider at a strategic level in their decision-making process in order to be able to determine their scope of action. This article presents a SWOT analysis evaluating the elements to be considered in an internationalization process, using the specific case of Brazilian real estate companies targeting the Costa Rican residential market. The analysis led to the identification of 12 strengths and 10 weaknesses in the internal environment of companies, as well as 24 opportunities and 20 risks in the Costa Rican real estate market. The study was complemented by the appraisal if those elements by 11 important companies acting the Brazilian residential sector. The study concluded that a mapping of the generalities and particularities of the potential market to be explored, as well as of the economic factors, and the social-political and cultural characteristics of the country can guide residential real estate companies in their decision-making process, evaluating these conditions according to their strengths (skills and abilities) and weaknesses. In this study, the Brazilian companies interviewed were disinclined to a possible move to the target market due to its size, barriers in the financial system, the lack of any knowledge about this specific market and a lack of internal skills to expand their usual target markets.