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Cross Border Interaction

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Title: Cross Border Interaction


1
Cross Border Interaction Issues of Privay and
Secure Transactions
Tim Scerba Publisher, Latin Trade
Solving the b2b Puzzle Sao Paulo April 19, 2001
2
Topics
  • Landscape
  • Top Obstacles to B2B in Latin America
  • Lessons learned at Latin Trade

3
Landscape
4
Market Size and Opportunities
US900 billion in goods flowed in or out of the
United States from Latin America during
1999.
Leading Trade Sectors Telecom Computers
Peripherals Building Equipment
Supplies Homewares/Sporting Goods Food
Processing Packaging
Leading Exporters USA European Union
5
Global Online Business Marketplace
  • Sales of 7.29 trillion worldwide by 2004
  • Latin America 70 Billion
  • Business buying 5x greater than retail
  • Source Dataquest-Garner Group, 2/00.

6
Latin America Ready to Adopt New Ways
65-90 of mid-size company purchasing
departments have a computer 50-70 of mid-size
company purchasing departments have Internet
access Source Infoamericas Latin American
Market Report  10 of companies sell
online 26 of companies buy online S
ource IDC
7
Ready to Adopt New Ways
200,000 small and medium businesses are
expected to implement e- procurement solutions in
Mexico this year Source Booz
Allen Currently, 95 of supply chain
management is conducted using traditional,
offline methods. By 2005, 80 of this is
expected to be conducted online. Source
GartnerGroup              
8
Internet Growth Rates
52 Latin America 34 Asia Pacific 24
Western Europe 14 North America
(2000-2005)
Source Jupiter Communications, May 2000
9
Active Players
Purchase Dedicated Online? Connection?
Sector Finance 18 61 Manufacturing 25 37
Communications/Utilities 25 67 Commerce/Servic
es 26 34 Company Size 10-99 25 28 100-4
99 26 35 500 26 54
10
Top Obstacles to B2B in Latin America
11
Top Obstacles to B2B in LatAm
  • B2B still in early to mid adopter phase
  • 50 differerent marekts across the region
  • Linguistic and idiomatic differences

12
Top Obstacles to B2B
  • Unfamiliarity with technology
  • Distrust of technology
  • Security
  • Privacy
  • International credit access versus domestic
    credit access

13
Top Obstacles to B2B
  • Inconsistent legal structures
  • Inconsistent tarriff structures
  • Lack of transborder delivery infrastucture
  • Customs differences

14
Lessons learned at Latin Trade
15
Build it and they will come
after much education and marketing
16
Target Small(er) Businesses
  • Many of the largest Latin American companies are
    not so large compared to U.S. standards
  • Internet provides low cost tool to reach new
    players
  • Also, small to medium enterprises have the most
    to gain by adapting efficiencies of the Internet

17
Relationships. Trust.
Community building Content, news, chats and
discussion groups on a website create
expertise Piggybacking Consider working
through established player Human touch No
substitute for personal contact
How will you establish them in Latin America?
18
Language and Locality.
62 of Latin Americans buy from familiar brands
only. 75 prefer to access the Web in their
native language.
Solution Partner with well-known local sources
and players. Customize or localize your site to
the greatest degree possible.
19
Legalities.
E-commerce has little legal precedent in Latin
America. Solution Paper
Contracts Secure Payments
20
Thank You!
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