1. Guest Speaker: Azul Casares Class 26. April 19 - Thursday
MBAT6150/INSF 6150
SPRING 2001
FINAL SESSIONS
Class 25. April 17 - Tuesday
Prepare: Patagon.com
Guest Speaker: Azul Casares
Class 26. April 19 - Thursday
Guest Speaker: Dede Willis, CIO Proligo LLC
Classes April 24 and 26 and May 1
Group presentations
Class 30. May 3 - Thursday
Final Review. Final Project is due.

2. TODAY’S CLASS Discussion: EC in other parts of the world.
“The StorageTek e-Business”
Marissa Head
Project Manager (Website Mexico, Brazil & China)
Barry Bradford
Global Program Manager, E-Business

3. Europe generates more than 20% The rest accounts for less than 5%.”
“More than 75% of all EC takes place in U.S.
Europe generates more than 20%
The rest accounts for less than 5%.”
Inter-American Development Bank, July 1999

6. Distribution of Language

7. Internet Market Potential in Latin America
(Est).
% of citizens on the Net (1) % 12%
Online users (1) million million
% that are online shoppers (1) % %
… but:
E-commerce market(1) $537 million $8.3 billion
Online advertising (2) $51 million $1.6 billion
Internet services (3) $1.4 billion $8.1 billion
Sources:
(1) Jupiter Communications, (2) Forrester Research, (3) International Data Corporation

8. Internet Market Potential in Latin America
Expected Internet Growth
Latin America
Asia-Pacific
Western Europe
North America
52%
34%
24%
19%
0% % % %
Percentage of yearly growth
Source: Jupiter Communications

9. Internet Market Potential in Latin America
Increase in IT investment
Reduction in telecommunication costs
90% of users come from the upper-middle class strata of society
90% of users between 16 and 45 years old
60% of the users have a high school diploma
On average a Latin American user spend 8 hours/week online
Source: Nazca Study 1999.

10. The potential for [the Latin American] market is mind-boggling.
It is a market that knows brand names and wants to buy brand
names…. For better or worse, only a small percentage of the
population there can afford multiple phone lines and computers.
This is a market that finds it cheaper to buy online than to fly
to Miami or New York to buy.
Betsy Scolnik
Vice President of Business Development
StarMedia

11. Latin American B2B Projections
Source: Busines 2.0, October 18, 2000

12. Barriers to E-Commerce
Low PC penetration
High access cost
Low credit card usage
Inadequate fulfillment systems
Not enough locally relevant content or services

13. Preferred Destination of U. S
Preferred Destination of U.S. Multinational among Developing Nations in the 1990s
COUNTRY $ Billion % of Total
1. Brazil $ %
2. Mexico $ %
3. Singapore $ %
4. Hong Kong $ %
5. Panama $ %
6. Argentina $ %
Source: U.S. Bureau of Economic Analysis

14. Key Drivers to Grow EC in Latin America
- Innovators have had access to knowledge, technology,
and resources
- Every country in Latin America has now access to
the Internet
- Major investments in telecommunication infrastructure
- As the Internet technologies have been assimilated,
this medium have come to be recognized as an
important competitive market

15. Key Barriers to Grow EC in Latin America
- Near passive-receiver role of most countries
- Variations reflect each country’s available technology,
existing infrastructure, and perceived importance
- Efforts to gain access to the Internet, but not to
understand how to use it for competitive advantage
- Presence still driven mainly by fashion
- Lack of adequate network linking them to each other
and to users who could benefit from their experience

16. Interesting Web Sites on the Topic
Global technology, media, and telecom:
The Internet in Europe:
The Internet in Japan:
Scientific Networks in Latin American and the Caribbean:
Institute of Latin American Studies (UT Austin)