Product details

In 2002, Brazilian-based Petrobras joined the Argentine fuel retail (gas stations) market. The venture faced several challenges. On the one hand, Argentina was undergoing one of the most severe economic and social crises in history. On the other, the local fuel market was dominated by a few players with brands that held significant consumer mindshare over many years. Additionally, employee morale at Eg3, the company acquired by Petrobras to enter the local market, was besieged by uncertainty and disillusionment as a result of a string of mergers and acquisitions and underlying human resource management remoteness. Finally, the company''s Brazilian origin could jeopardize its appeal for Argentine consumers, given the cultural and sports-based (soccer) rivalry between these neighboring countries. The case presents this scenario and calls for decisions associated with service branding definition and development for this company across its national borders.