e Bay com Latin Market Expansion Analysis
SWOT ANALYSIS · Strengths o Controls 90% of the worldwide e-commerce market o Consistent tracking toward growth goals (25 countries by 2005) o Resources experienced in the technology lifecycle required to launch an international site (e. ... , analysis, design, development, test, implement). ... o Worldwide market position · Weakness o No experience with Latin American markets o Limited internal bandwidth to pursue additional expansion until iBazar is completed. o Insufficient internal resources to address code internationalization requirements likely required addressing variances between Latin American countries. o Limited experience with Latin American suppliers, distributors, and partners. o No Latin American specific content · Opportunities o Contemplated expansion into Latin American markets is consistent with global expansion strategy and provides greater trading resources (buyers/sellers/goods) in support of eBay’s overall mission) o Leverage presence in Brazil to expand into Latin America o Leverage lessons learned in Korea regarding “trust” issues and use of escrow trading to overcome potential trust issues in Latin American countries. o Provide greater content to US users that used to reside or have family/friends residing in a Latin American country. ... com’s failure in Mexico · Threats o Latin American Internet penetration will not be sufficient to quickly generate the required cash flow to establish a trading community. (Technology) o Absent acquisition, significant heterogeneity of the market will increase technology cost (internationalize the code base) and bandwidth requirements (management support) to make sites country specific. Existing Brazil (Portuguese) and Spain (Castilian Spanish) are not readily transferable to other Latin American countries.