AFP Provida

Describes the development of AFP Provida, one of the first established in the Chilean pension fund system in 1981. By 1999, AFP Provida was not only the largest pension fund administrator in Chile, but also the largest in Latin America in terms of the number of subsidiaries and the second largest in terms of assets under management by the Brazilian company Previ. Provida was also the most international companies in the industry. At the turn of the 20th Century, Provida was a senior management … Read more »

Describes the development of AFP Provida, one of the first established in the Chilean pension fund system in 1981. By 1999, AFP Provida was not only the largest pension fund administrator in Chile, but also the largest in Latin America in terms of the number of subsidiaries and the second largest in terms of assets under management by the Brazilian company Previ. Provida was also the most international companies in the industry. At the turn of the 20th Century, Provida was superior to the senior management on how to expand the company’s position in a rapidly growing international market. Describes the company’s internationalization in terms of time, geographical decisions and modes of entry. Also discussed Chilean special conditions for the pension fund industry, including local factors, context for strategy and rivalry, demand, and related and supporting industries. Allows for the discussion of the origins of the clusters in the developing countries and the sources of international competitive advantage. Also provides an interesting analysis of strategic decisions of Provida and the sustainability of international leadership.
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from
Michael E. Porter,
Andrea Prado,
Arturo Condo
Source: Harvard Business School
13 pages.
Publication Date: Feb 10, 2003. Prod #: 703424-PDF-ENG
AFP Provida HBR case solution