This website uses cookies to ensure you have the best experience. Learn more

Submarino.Com: The Challenges Of B2 C E Commerce In Latin America.

636 words - 3 pages

Situation:Submarino.com is a leading e-retailer in Latin America that offers products in multiple categories; Books, Rare and Imported Books, CDs, MP3s, Video and DVD's, Toys and Games, Software and Computer Supplies, Cell Phones and Consumer Electronics (TVs, DVD Players, etc.). The company is headquartered in Brazil with virtual stores in Argentina, Mexico, Spain and Portugal. Submarino.com was launched in June 1999 by Antonio Bonchristiano. Bonchristiano obtained backing from GP Investments and acquired BookNet with the concept of replicating the Amazon.com business model. Between November 1999 and September 2000, Submarino.com launched online stores in Brazil, Argentina, Mexico, Spain and Portugal.Submarino.com is challenged with achieving aggressive sales targets set by investors in 2001 and profitability in 2002.KEY POINTS:1. Economy in 2000 - NASDAQ fell 50% from mid-March through the end of 2000. Investment banks and other institutions started reappraising Internet Business Models. They realized that the same rules applied to e-commerce as to brick-and-mortar companies and that financial statements and credit ratings of most Internet companies looked dreadful.2. Challenges of the Latin American Market - Although the Internet sector in Latin America was growing, Latin America presented several challenges for continued growth; the average income per capita was low, PC and Internet access was low, credit card usage was low, inflation was high and capital was scarce. In addition, economic and cultural differences prevented standardizations within the market.3. Business Model - Key capabilities and assets include the management team, blue-chip investors and strategic partners, warehouse and fulfillment operations, and technology infrastructure. There was a heavy emphasis on the cooperation between local countries, country managers and headquarters.4. Financial Model - Revenues are generated from selling merchandise purchased from suppliers, held in inventory and shipped to consumers. Financial support from investors equaling US$108.1 million, including "seed capitol" provided by GP Investments, was generated from June 1999 through February 2001.5. Marketing Strategy - Submarino's mission is "to be...

Find Another Essay On Submarino.Com: The Challenges of B2C E-Commerce in Latin America.

The Growth of E-commerce in India

3203 words - 13 pages % Priceindia.com 2,047 4.4% Alibaba.com corporation 1,973 4.3% E-Commerce has become very popular. Every retailer wants to become an E-retailer and want to be a part of the E-world. Earlier, there were no such concepts of retailing. Michael Aldrich invented online shopping in 1979. Now many brick retailers are also moving towards the online shopping because of the immense scope in the virtual world. According to Google, India have more

Base of the Pyramid in Latin America

4102 words - 16 pages Procedia Social and Behavioral Sciences Procedia - Social and Behavioral Sciences 00 (2012) 000-000 www.elsevier.com/locate/procedia Available online at www.sciencedirect.com The 2012 International Conference on Asia Pacific Business Innovation & Technology Management The Role of Innovation at the Bottom of The Pyramid in Latin America: Eight Case Studies César Antúnez-de-Mayolo PAD School of Management, Aldebarán 160

The future of e-commerce

649 words - 3 pages THE FUTURE OF E-COMMERCE Student University Date Introduction In the current business environment, the use of technology to provide solutions and more opportunities is an inevitable undertaking. This can be attributed to the proliferation of the internet and internet enabled services to most consumers. The e-commerce platform for already established corporations and business is considered an option for the online clients who

The Prevalence of E-Commerce

5297 words - 21 pages traditional offline rules apply to online contracts, that is to say, e-commerce is applied by the same principle as traditional paper-based transaction[3], and only the way in which they apply may be different. Under common law, an offer is a statement by one party of a willingness to enter into a contract with the other party on stated terms, and in turn, if the other party accepts it, the agreement will be legally binding

The Conveniences of E-Commerce

1072 words - 4 pages The Conveniences of E-Commerce As a child, going shopping consisted of packing the family into our station wagon and driving an hour to a decent sized mall in another town. We would go from store to store, looking for deals in each store and the flyers at the door. I would play the store’s video game consoles while my sisters tried on countless amounts of clothing. After hours of this, we would grab food and drive the hour back

Advantages of Amazon.com being the first mover in E-commerce

1301 words - 5 pages such as economies of scale are no longer enough to make a firm secure in the e-commerce marketplace. According to McCrohan (2003), the e-commerce market has raised the level of market dynamics such that firms face constant challenges, disequilibrium and change. This also means that firms must adapt accordingly by providing superior customer satisfaction and shifting the rules of the game constantly.Amazon.com was the first company to move book

The Independence of Latin America

1196 words - 5 pages The Independence of Latin America The Independence of Latin America was a process caused by years of injustices, discriminations, and abuse, from the Spanish Crown upon the inhabitants of Latin America. Since the beginning the Spanish Crown used the Americas as a way to gain riches and become greater in power internationally. Three of the distinct causes leading Latin America to seek independence from Spain, were that Spain was

The Colonization of Latin America

1562 words - 6 pages A new conquest, a new era, and a new frontier are some of the many elements human civilization is no stranger to. Throughout mankind's existence on earth it has dealt with these complex and dynamic issues before, but what was about to take place was unprecedented and would in innumerable ways forever change the face of the planet. During the early 1400's three dominating societies, the Spanish, Aztec, and Inca empires conquered and quickly

The Power of Baseball and Role Models in Latin America

1983 words - 8 pages The Power of Baseball and Role Models in Latin America In many countries around the world, the socioeconomic problem is so bad that they are granted the title of a Third World country. Countries that are not quite as bad, such as most Latin American countries like Cuba, the Dominican Republic and Puerto Rico, often have trouble, on a smaller level, of creating jobs and job security for its people to inspire work ethic and incentive to raise

The Native Indian Awakening in Latin America

1414 words - 6 pages The Indian Awakening in Latin America                  This book describes difficulties of the Indians who inhabit the following countries: Bolivia, Venezuela, Colombia, Mexico, Paraguay, Panama, and Brazil. This book is a compilation of the various struggles of indians living in these countries of Latin America. For over four centuries, these people have been taken advantage of by the Europeans who invaded their lands. Many of the

Poverty in Latin America and the Caribbean

1696 words - 7 pages . It seen as the old story being rewritten, the dynamics surrounding this issue by might be different. It can be said that poverty is not caused by one sole issue, when looking at the as a whole. But in everyday life economic problems of Latin America and the Caribbean can be seen as issues that can be solved separately. Although these issues can be examined separately and do affect individuals differently, these issues can be traced back to one

Similar Essays

Emerging Trends Of E Commerce & The Challenges To The Consumer Protection Act, 1986

1180 words - 5 pages PROLOGUE What is E-commerce? The world is moving from the traditional economy that stressed on physical manufacturing of goods to the new economy which concentrates more on knowledge and information than anything. Electronic commerce or e-commerce is an important facet in this regard. E-commerce brings forth a tougher business competition, creation of new marketplaces, faster speed of transactions, and rapid growth in technologies. E-commerce

Emerging Trends Of E Commerce & The Challenges To The Consumer Protection Act, 1986

1868 words - 8 pages contracting with. These are some typical/ relevant unconscionable conduct in e-commerce context. Thus there is the need for an adequate regulation of unconscionable conduct. 4. Adequate Regulation of Product Quality and Suitability: The sold products must meet an adequate quality and safety standards. If the purpose for which a product will be used has been mentioned by the consumer then, the law must ensure that the e-retailer may only deliver

E Commerce Levi Strauss: Key Reasons For The Failure Of Its B2 C Site, Consider And Explain How The Company Might Have Utilised Its Existing B2 B E Commerce To Expand Successfully To B2 C

2211 words - 9 pages (Kirsner, 2000).In addition to all this, at the time Levi's launched its B2C web site, ecommerce had not reached critical mass. Although there were 62 million people on the Internet (Intelliquest, Feb 1998), that's only 2.4% of the worldwide adult population. And only 30% of those were making online purchases (White Paper, Building an E-commerce Network).4.0 Utilising Business to Business (B2B) To Expand Successfully To Business to Consumer (B2C

Assignment: Outline The Potential Problems Facing Organizations Who Wish To Develop A Revenue Stream From B2 C E Commerce

2989 words - 12 pages -commerce development show the fact that the B2C transaction is a growing and highly publicized category of the e-commerce, even if many consumer-oriented e-business have been started only since 1996. However, things do not look so optimistic. According to the United Nations Conference on Trade and Development on E-commerce, it says the European market in several B2C sectors remains fragmented because of cultural and/or linguistic barriers and