Submarino.Com: The Challenges of B2C E-Commerce in Latin America.

Situation: Submarino.com is a leading e-retailer in Latin America that offers products in multiple categories; Books, Rare and trade Books, CDs, MP3s, Video and DVDs, Toys and Games, Software and information processing system Supplies, Cell Phones and Consumer Electronics (TVs, DVD Players, etc.). The community is headquartered in Brazil with true-to-life(prenominal) stores in Argentina, Mexico, Spain and Portugal. Submarino.com was launched in June 1999 by Antonio Bonchristiano. Bonchristiano obtained backing from GP coronations and acquired BookNet with the vision of replicating the Amazon.com business model. Between November 1999 and kinfolk 2000, Submarino.com launched online stores in Brazil, Argentina, Mexico, Spain and Portugal. Submarino.com is challenged with achieving aggressive glaring revenue tar attracts set by investors in 2001 and profitability in 2002. KEY POINTS: 1. prudence in 2000 - NASDAQ omit 50% from mid-March through the depot of 2000. Investment banks and other institutions started reappraising mesh Business Models. They realized that the akin rules apply to e-commerce as to brick-and-mortar companies and that pecuniary statements and citation ratings of most net income companies looked dreadful. 2. Challenges of the Latin American securities industry - Although the Internet sector in Latin America was growing, Latin America presented several challenges for act result; the average income per capita was low, PC and Internet access was low, credit brain usage was low, inflation was high and capital was scarce.

In addition, scotch and cultural differences prevented standardizations at heart the market. 3. Business Model - notice capabilities and assets overwhelm the management team, valuable investors and strategic partners, warehouse and fulfilment operations, and technology infrastructure. There was a heavy emphasis on the cooperation among local countries, country managers and headquarters. 4. financial Model - Revenues are generated from step in merchandise purchased from suppliers, held in chronicle and shipped to consumers. Financial support from investors equaling US$108.1 million, including seed capitol... If you want to get a full essay, stoop it on our website: Ordercustompaper.com

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