SWOT Analysis Report

Electronic Commerce Adoption

Brazil-Mexico








Brazil
Is the fifth largest economy in the world and its e-commerce market grew 28% in 2013.
Most of its online orders categories are fashion, accessories, cosmetics and appliances. Brazil
knows how address potential customers with the right product at the right time. The Brazilian
chamber of e-commerce was found in 2011. One of its missions is to empower people and
organizations to practice safe e-business, and to encourage the benefits of information
technology.
Strengths:
Brazil represents the largest e-commerce market in Latin America.
Brazil uses innovative technology to sell clothes and accessories. OLOOK builds up the
profile of a client that chooses her favorite color and styles preferences from pictures,
followed by a personalized shopping list.
Brazil has competitive prices and proliferation of payments methods which has helped
the growing of e-commerce.
Weakness:
Brazil has a cultural need to try before buying and this affects the rate of e-commerce.
Most of the products and services offered are attractive to females only.
Smartphones are still underutilized. According to Comscore, the total online traffic that is
generated from mobiles and tablets represent only 1.5%.
Brazil was ranked as the worst prepared nation to adopt cloud technology because of its
weak legislation against cybercrime.
Opportunities:
U.S economy recovery may generate some negative effect on Brazils retails sectors, but
the government incentives like reducing taxes will help to overcome this problem.
Brazils federal government is creating a national plan to provide cheap broadband
internet access.
According to Comscore, by 2015 at least half of Brazils population will have a mobile
phone with internet access.
E-bit is going to contribute to enhance trust in internet shopping by publishing on its
website the results of evaluations of people who is buying online.
Threats:
The growth in e-commerce is slowing and declining.
E-commerce shopper penetration is lower than developed nations.
Increased fraudulent activity.

Mexico:
Mexico is one of the leaders in Latin American due to its development of science and technology
programs. Most of this growth has been fueled by demand from the United States. In the last
decade Mexico has been the Latin Americas largest exporter of high-technology goods

Strengths:
Mexico is among the fastest-growing markets in Latin Americans e-commerce sales.
Softtek is the Mexicos biggest tech services company that provides service support to at
least 500 companies.

Weakness:
B2C (Business to Consumer) sales are weaker than other nations.
Digital purchasing is restricted by internet adoption.
There is a lack of experience with mobile devices.

Opportunities:
The internet access is growing overall,
Mexico is expected to have an annual growth rate in retail e-commerce sales.
Digital sales are expected to expand.
Builds trust by improving security and authentication measures.

Threats:
Lack of demand-driven technological support institutions.
There is no human capital and engineers to overcome foreign rivals.
4.4 millions of Mexican people use technology vs 114 million of Brazil consumers.



References
Central Intelligence Agency. (2010, April 1). CIA - The World Factbook -- Brazil. Retrieved
from: https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
Infoplease.com. (n.d.). Brazil: History, Geography, Government, and Culture - Infoplease.com.
Retrieved from: http://www.infoplease.com/ipa/A0107357.html
United States Department of State. (2010, February). Brazil (02/10). Retrieved from:
http://www.state.gov/r/pa/ei/bgn/35640.htm
Wikipedia. (2010, April 22). Brazil - Wikipedia, the Free Encyclopedia. Retrieved from:
http://en.wikipedia.org/wiki/Brazil
http://pulsosocial.com/en/2014/03/13/5-things-know-e-commerce-brazil/
http://www.forbes.com/sites/ricardogeromel/2012/03/23/brazils-e-commerce-is-booming-record-
breaking-figures-in-2011-growth-of-26-earnings-of-11-bi/
http://www.emarketer.com/Article/Retail-Ecommerce-Sales-Struggle-Mexico/1010605
http://www.latinpost.com/articles/10913/20140421/digital-buys-mexico-grow-2014-business-
consumer-ecommerce-sales-increasing.htm