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JUNE 2000 |
INDUSTRY ANALYSIS: E-commerce &
Logistics - A reluctant marriage takes hold GUEST ARTICLE: Online Education in Brazil REGIONAL TRENDS: The Future of B2B - Small and Medium Sized Enterprises ECONOMIC OUTLOOK: The Caribbean . |
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MEXICO
CITY OFFICE SAO
PAULO OFFICE |
 INDUSTRY
ANALYSISE-commerce & Logistics - A reluctant marriage takes hold No business has been thrown on its head by e-commerce more than the international logistics industry. In a recent KPMG survey of 400 leading global logistics firms, 28% predicted that they would be out of business within 24 months. They expect to be replaced by large consolidators and the dot-com logistics rivals that have muscled their way into privileged partnerships with e-commerce portals. In Latin America, where fixed expenses add substantially to typical transaction costs, and where other logistics obstacles abound, the market is particularly volatile. For now, the major courier companies are focusing on B2B e-commerce where larger sales values dilute the influence of fixed costs. In the longer term, innovative providers will inevitably develop unique solutions, custom made to deal with the region's idiosyncrasies. The major areas for competitive innovation include increased geographical coverage, continued development of IT-based value added services, partnerships with online B2B marketplaces, privatized mail services, and "International P.O. Boxes". to view full story, please register |
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The influx of foreign investment into Brazil has driven strong demand for more educated workers. The education system has responded with sharply increased secondary and tertiary enrollments. But these growing public efforts still fall short of demand, and private sector training providers have filled the gap. In particular, the demand for private language and computer courses grew by 15% annually between 1995 and 1998. More recently, on-line training solutions have entered the mainstream. The educational authorities accepted distance education as an approved form of formal education in 1998. Since then, educational IT investment has doubled. This trend has been supported by a rapid increase in Internet access, especially among young Brazilian professionals, who are key customers for training products.
Language training is a particularly interesting niche market, since Brazilians need both Spanish and English to succeed in international markets. Global English, a worldwide provider of on-line English training solutions, began offering its products in Brazil in 1999, and it has seen outstanding success. Students have responded enthusiastically to the sharply reduced costs and much greater convenience that state-of-the-art distance education offers. As a result, Brazil is already the second largest market out of more than 100 countries where Global English operates. |
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  MARKET RESEARCH market profile benchmarking market entry viability market trend analysis new product testing customer satisfaction studies MARKET
INTELLIGENCE MARKET
ENTRY |
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As large corporations continue to consolidate and streamline their operations, attention is shifting to SMEs as the engine of growth for B2B e-commerce in Latin America. Outsourcing of non-vital operations by larger corporations to competent niche players is a key factor driving this trend. In response, SMEs are investing heavily in technology, training and other services to meet the demanding quality standards of their big-league customers. Increasingly, they're buying those inputs on-line. Improvements in communications and information technology, combined with reduced government red tape has helped to level the playing field for the smaller players. The Internet is helping them to to access Spanish-speaking markets across the region at a small fraction of the cost just five years ago. SMEs are also going on-line to buy products and services, because they desperately need access to sophisticated offerings from a wide range of suppliers. The biggest obstacle to the growth of SME e-commerce is the failure of Latin American banks to provide smaller companies with adequate credit. The most successful B2B suppliers to this market will be those with deep pockets and the appetite for risk needed to provide credit. The SME market is large and viable. Capturing it, however, requires research, strategy and some gutsy investments. |
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 ECONOMIC
OUTLOOKThe Caribbean In this issue, we highlight the economic outlook in several key Caribbean markets, including Jamaica, the Dominican Republic, Trinidad and Tobago, and Cuba. In spite of ongoing economic and political problems throughout the Caribbean region, real economic growth is expected in all of these markets during 2001, ranging from 2.0% in Jamaica to 6.8% in the Dominican Republic. Modest increases in imports over current levels are also anticipated over the next two years. In general, business opportunities are confined to specific sectors. |
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 AMEX Avery Dennison BBDO Booz, Allen & Hamilton Citicorp International Computer Sciences Corp. Conagra |
 INFOAMERICAS
PROJECTSfor JUNE 2000
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tendencias |
With offices in
Miami,
Mexico City,
Sao Paulo |
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GUEST
ARTICLE
