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 merchandise Books, CDs, MP3s, Video and DVDs, Toys and Games, Software and computing device Supplies, Cell Phones and Consumer Electronics (TVs, DVD Players, etc.). The association is headquartered in Brazil with graphic 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 family 2000, Submarino.com launched online stores in Brazil, Argentina, Mexico, Spain and Portugal. Submarino.com is challenged with achieving aggressive pull in revenue tar relieve oneselfs set by investors in 2001 and profitability in 2002. KEY POINTS: 1. prudence in 2000 - NASDAQ unrelenting 50% from mid-March through the mop up of 2000. Investment banks and other institutions started reappraising profits Business Models. They realized that the aforesaid(prenominal) rules apply to e-commerce as to brick-and-mortar companies and that financial statements and attribute ratings of most network companies looked dreadful. 2. Challenges of the Latin American market place - Although the Internet sector in Latin America was growing, Latin America presented several challenges for keep result; the average income per capita was low, PC and Internet access was low, credit brain usage was low, pompousness was high and capital was scarce.

In addition, scotch and cultural differences prevented standardizations inside the market. 3. Business Model - paint 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 commutation merchandise purchased from suppliers, held in schedule and shipped to consumers. Financial support from investors equaling US$108.1 million, including seed capitol... If you want to get a full essay, turn it on our website: Ordercustompaper.com

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