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

Situation: Submarino.com is a leading e-retailer in Latin the States that offers products in multiple categories; Books, Rare and Imported Books, CDs, MP3s, Video and DVDs, Toys and Games, software package and calculator Supplies, Cell Phones and Consumer Electronics (TVs, DVD Players, etc.). The company is headquartered in brazil nut with realistic 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 imagination 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 ravening gross revenue targets set by investors in 2001 and profitableness in 2002. KEY POINTS: 1. prudence in 2000 - NASDAQ fell 50% from mid-March through the end of 2000. Investment banks and other instit utions started reappraising mesh duty posers. They realized that the same rules apply to e-commerce as to brick-and-mortar companies and that financial statements and accredit ratings of most lucre companies looked dreadful. 2. Challenges of the Latin the Statesn Market - Although the Internet sector in Latin America was growing, Latin America presented several challenges for continued result; the average income per capita was low, PC and Internet access was low, credit brain usage was low, inflation was graduate(prenominal) and capital was scarce.

In addition, scotch and cultural differences prevented standardizations within the market. 3. communication channel Model - Key capa bilities and assets overwhelm the managemen! t team, blue-chip investors and strategical partners, warehouse and fulfillment operations, and technology infrastructure. There was a argillaceous emphasis on the cooperation among local countries, country managers and headquarters. 4. monetary Model - Revenues are generated from exchange merchandise purchased from suppliers, held in inventory and shipped to consumers. Financial support from investors equaling US$108.1 million, including seed capitol... If you want to get a full essay, mold it on our website: OrderEssay.net

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