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Saturday
- August 19, 2000
Big Media Failing Online
According to The Economist:
"The media business has
invested a lot of money and hope in the Internet over the
past three years. So far, it has been a disappointment.
Last year, NBC's Internet strategy
was the envy of the media world. The American broadcasting
network had started investing early and amassed a portfolio
of assets while Internet share prices rocketed. In November,
it rolled them together and floated them as NBC Internet.
There the celebrations ended.
This year, the stock has fallen by 89%. Earlier this month,
NBC Internet said it plans to shed one in five of its employees.
The company lost $152m on sales of $31m in the second quarter,
advertising revenue was slowing, and break-even, which
was expected in 2002, has been delayed indefinitely..."
Click
here for the full story. [Link no longer active]
eMarketplaces Will Create Ample Opportunities for
Latin America
The explosion of business-to-business Internet commerce
has reached Latin America in the form of emarketplaces.
Latin American start-ups and traditional brick and mortars
are in the process of launching numerous initiatives
to seize the opportunity presented by emarketplaces.
"IDC views the emergence
of emarketplaces as a strategic trend that will dramatically
transform the competitive landscape in the region and accelerate
ecommerce activity," said Anna Giraldo Kerr, research
manager for IDC.
Although IDC is optimistic about
the future of emarketplaces in the region, the technology
market research firm warns many obstacles must be overcome
before rewards can be reaped from this revolutionary concept.
"eMarketplaces are in an
embryonic stage" said Annika Alford, research director
for IDC. "They will have to overcome several challenges
to become the key dis-intermediary agents we believe the
market needs."
According to IDC, one challenge
emanates from the strong looming competition emerging from
within the region. "Latin America-specific emarketplaces
of similar vertical or horizontal specializations are popping
up throughout the region and will pose significant competition
to each other," Alford said. "The resulting battle
to bring in the Latin enterprise and establish a strong
client base, and the growing focus on the region among
U.S.-based players will help to usher in a period of acquisition
and consolidation within the region similar to that seen
in the region's ISP market in 1999."
This competition will also bring
about a strong need to localize services. "The absence
of localization will result in lower perceived value-add
among prospective emarketplace participants," Kerr
said. "However, the need to focus on localized services
may prove too costly in a market that spans multiple small
country markets and where capital is tight."
Once the market does overcome
the hurdles it faces, however, the rewards will be plentiful.
"The greatest benefit and
opportunity of emarketplaces is their ability to bring
ecommerce to the slower technology adopters in each country
throughout Latin America, " Kerr said. "By doing
this, emarketplaces will play a significant role in driving
Latin America into the new economy."
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