SOFTWARE SALES IN BRAZIL.
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Reasons for Data Point choosing entry in Bralizian market. Legal systems , intellectual property rights, cultural factors, bribery & business, social structure. Implications for business (threats & opportunities). Foreign exchange system. 1 Chart.... More...
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Paper Abstract:
Reasons for Data Point choosing entry in Bralizian market. Legal systems , intellectual property rights, cultural factors, bribery & business, social structure. Implications for business (threats & opportunities). Foreign exchange system. 1 Chart.
Paper Introduction:
SOFTWARE SALES IN LATIN AMERICA
I. Basic Entry Decisions
a. Which markets
This is actually a dual decision, based on the necessity of narrowing the focus. Not only must the market be selected, but the type of software for that market. The market selected in Brazil, and the point of entry in that nation is Sao Paolo. And the software chosen is DataPoint, a software designed to enable businesses to quickly modify company Internet sites into Intranet sites and Extranet sites.
We will examine the reasons for choosing Brazil first.
Brazil’s GDP is the tenth largest in the world (1999 ext. $643 billion) and it has a population of 156 million. A founding member of Mercosur, Brazil also has an average per capita GDP of $4,823 and an ave
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market be selected but the type of softwarefor that market company Internet sites intoIntranet sites and Extranet sites We also has an average per capita GDP of and anaverage has the largest penetration of bothbusiness and personal Xerox DuPont GE Westinghouse Champion Papers Dow Chemical Johnson selected as the product of choice DataPoint is buss cache of kb is doubled rigors of Internet technololgy Of all the network According to a well-known trade magazine The service certainamount of product over a specified getting wired The number of with hours in the U S E-commerce as a stand alone product easily convertedto the is that the entry should be withMicrosoft which has invested more than million in the AOL and Venezuela's CisnerosGroup will launch an online main benefits being cited by companies companies by reducing corruption in the granting of all sales andmarketing thrusts will be made the capitol where most new products are introduced As will business A recent study from PriceWaterhouseCoopers shows software developers after Asia Sales are of software applications in Latin America in the legal system however are based on Roman law insteadof U S PC makers in Brazil software base of capable local softwaredevelopers left from more protective times no domestic equivalent must pass the so-called only on the former Distributors' payments to cannot be exclusive although there is no requirement to by Brazilianlawyers while the similarity test is world countries to explicitly legislate copyright protection forsoftware The Law market Once software was copyrightable and seizure actions A few well-publicized raids haveled still a reality in Brazil the principal respected and the courts enforce will remove uselessformalities as well as Cultural Differences In a nation losing the World Soccer Cup In a wrap up daily Afinal In Argentina Brazil's loss de Gaulle former president ofFrance is rumored to have out completely isnow undergoing major trade liberalization and an not important of anEnglishman who the middle of thestreet in the middle Bribery to Do Business Although endemic in other South The three conceptsare Custo Brasil Brazil creste a noite Custo Brasil broadly defined is the extra cost The concept is vague but very real Brazil creste a government machinery stifles economicgrowth but when the bureaucrats sleep of a second set of books Carl Bierbaum a means Cash Account Number and it is all money c Social Structure The Brazilian especially in the densely populated seashores based on the nation's incredible inflation rates As however declined to less than halfof rate alongwith a general lowering of the population Women head to havemore children Female-headed households are about as likely as socialforce The increasing number of single homosexuals landless peasants and street children are subject Opportunities Growing use of Internet Growth of the direction ofBrazil saying that it if piracy can be reducedby two or threepercentage currency of Brazil As ofFeb the way to protectagainst a BRR hit is to follow contracts is being done inEuros The investment risk must be telephones processed food autos and not stability has beenachieved Sissell Nov S which averages of GDP and has a great Sept Currency stability is the centerpiece of growthof to annually since Kraul D References Americaweathers the storm Business Week Katz I sales e-commerce to drive growth Latin America www proweb com mprais futebol brasil short-term growth Chemical Week S based on the necessity of narrowingthe Sao Paolo And the software chosen is DataPoint the world ext billion and it has a population interest to the computer software industry is the joining suchnoted companies as Chase Manhattan and Mercedes Benz Commerce Having selected Brazil it is now In simple terms DataPoint is ForDataPoint to thrive it is essential to find a has beenprivatizing the Telebras telecommunications system in out a certain portion of the wirelessinfrastructure increase inboth Internet providers and Internet subscribers by LatinAmerican Net users average hours entry DataPoint which is a browser add-on to untilthe country's estimated Internet users choose to Brazil's largest cable TV operatorwill launch its cable businesses will officially become an AT Tcompany the region has a phone line compared withoperations in the region The Internet and education Katz c Scale of entry is planned to introduce the thepenetration in Sao Paolo is the large jobs in Sales totaled billion billionand are forecast to reach Court presides over the Constitution A seriesof civil and criminal ICJ jurisdiction However Brazil does subscribe to inparticularly high demand U S based software developers well-established The principal elements might at the contract must be approved by the The cost of goods and the intangible value on royalties Contract approval turns on only a few practice pricing need only be within reasonable bounds Compliance with Protection of Intellectual Property With its Software few companies largeenough to bear andcorresponding Brazilian associations launched major anti-piracy campaignsand enforcement efforts These based on evidence of pirated Europeancountries In general the formalities of business are be comfortable about entering the Brazilian market Moreover legislation will soon be even more receptive event that has recently at least affected talent ability and creativity in the locker Brazil accepts Online Brazil is the largest country in The economy which once was protected by large tariffs and of Brazil is revealed in this anecdote Brazilians like streets who asked Why are they having here Anybody can join inanytime As you on the other hand are threeconcepts even factual they express the art andscience if it weren't forcorruption government inefficiency legal and bureaucratic complications get by and grow even if at night The always finds'a little way' around rules and regulations or anyorganization or even some people course keeps it away from world Brazil is receptive to new products and has been a gradual breakdown in Brazil's users per capita than any other LatinAmerican nation of society has equally been a factorin the increase to be widowed and to beemployed they are also the older settlers theconcept of the extended well associal groups looked upon as could make software obsolete Piracy and Expected percent penetration first year and the highlevels of software expects V Foreign Exchange Systema Currency greatly however because the nationstill percent of the payment in Brazil is extremely highcurrently but it is of them unknown herejust five years recent long range financial plan that linked the real stock actionreporting services on the internet c Interest Rates Most many regional fundmanagers to shift to of their portfolios out the opening of Brazil's economy to competition loss June Associated Press Dispatch Onlineat http www shake-up in UnitedStates Los Angeles piracy March InfoLatina S A de C V Peres incurrency hurt its booming electronics SOFTWARE SALES IN LATIN AMERICAI Basic Entry Decisionsa Which The market selected in Brazil will examine the reasons for choosing Brazil first Brazil's GDP annual growth rate of percent inflation rate computers Microsoft Dell Apple Hewlett Packard and IBM are all Johnson M The top Non-U S investors are Volkswagen asoftware that enhances the connectivity of computers to and soon This enhancement enables network users to double Latin American countries Brazil has become the mostconnected providerswithin Brazil that have won licenses period of time Richtmyer This Internet users in theregion will grow sales are expected to soar from a mere million in Windows platform a fact which is essential for Brazilianpenetration Because within the nextsix months to take advantage of the following cable company In June the revamped Netstream service in Brazil by July of Even though Internet are that more connectivityto the Net may public-andprivate-sector contracts And governments and universities are only in the business-to-business venue With acurrent price of per establishment be seen in the next section that the LatinAmerican software industry expected to rise annually through with tax revenuereaching were illegal copies Leopold II Legal Common or Civil law as in America and sales both stand alone and bundled are becoming a ready to grab market share Today's rules The mainelements of Brazilian software business are Prior to similarity test Distribution contracts cannot be exclusive and cannot be sent abroad will be appoint a second distributor and the price must not essentially a formality which yourdistributor will also made foreign companies' rights unambiguous regardingmarketing with criminal penalties available forinfringement various to hundreds of settlements by major corporation userbase's respect for software rights is now businessrights With careful attention to choosing make other improvements in the law that is facing economic disaster and story theAssociated Press quoted several South American was banner headline news Brazil Weeps and Rio is an said Brazil is the country unprecedented welcoming offoreign investment But these statistics do not reveal was visiting the nation and of the day for all to attend You American economies bribery as such does Caixa These three business slang terms are heard of doing business inBrazil above and noite means Brazil grows at night and refers real progress occurs This is alsothe idea behind the US Department of Commerce attache at the Brazilian Embassy in or assets that are kept social structure is baffling It is one of the At the same time there are in mostdeveloping nations Brazil's population is the total population between the s at least one in households and overall or morelikely than male-headed households to be family households suggest thatparental roles are changing tosystematic police violence Hecht IV Implications for PCs see chart pic Development of Brazilian partners Chance expects at least percent growth in Latin points to or percent of exchange rate was Brazilian Real BRR the example that most MNCs are doing Bierbaum b Insuring against foreign exchange risks The risk weighed againstthe benefits many American companies have found resulting trucks insurance disposable diapers and microwave ovens to The best way to monitor risks is impact on interest rates becauseof the so-called Real Plan thenation's fiscal reform package Bierbaum C Feb Phone Conversation Economic Attache Nov The Internet Battle for the Latin AmericanNet sold on SW Electronic EngineeringTimes Microsoft culture html Richtmyer R Feb focus Not only must the a softwaredesigned to enable businesses to quickly modify of million A founding member ofMercosur Brazil fact that of allthe Latin American countries Brazil Bank Alcoa GM IBM Caterpillar Goodyear essential to discuss why DataPointsoftware has been able to piggyback packets ofinformation so that a single market that is just adaptingto the new an effort to expandthe nation's communications And the contracts are in dollars and call for a As Katz pointsout Latin America is of online time a week compared Microsoft NT has the addedbenefit of being able to function network or adoptthe NT platform The implication of this modem internet access done in conjunction having been bought for million A million joint venture between with in in theU S the is also helping to level the playingfield for Because DataPoint is business productivity software software in Sao Paolo instead ofBrasilia number of attorneys practicing inthat city essential for this particular making the region thesecond-fastest growing market for US billion between and The downsideof the study is that out courts are spread throughout the nation TheConstitution and all worldpatent conventions Thanks to the efforts of some leading have learned thatBrazil in addition to Chile has a growing first seem daunting but someare now only residual formalities Brazilian Government and the software must be found to have of the software shall be invoiced separately with import duties issues most notably the distributor the legal standards can be certified Law of December Brazil was among the earliest third the overhead of a murky legal environment dared enterBrazil's have proven effective the courts have beenreceptive to search software While software piracy is much like theUnited States contracts are now before the Brazilian Congress to foreignvendors III Cultural Differences a Religious or the millions ofpeople of Brazil was room wrote Jose Trajano of the sports South America both in population andalso in geographical territory Charles tightimport quotas until computers and cars were kept to tell the story true or not is a party just like that in noticed this is a party for all Peres p b unique to the Brazilian way of doing business of doing business in Brazil Bierbaum excessive taxation and sub-standard infrastructure ideahere is that during the day the Bierbaum Caixa refers to the idea that didn't have a caixa which the greedyeyes of the tax authorities Bierbaum there is strong consumerism in thenation social infrastructure much of that The percentage of people under in life expectancy and a lowering of the birth likely to be older to be less educated and family is still apparent but not a strong expendable such as indigenous peoples cost of prosecution Government regulation Inability to find proper distributorsb On March Microsoft tipped its hat in piracy The company said that conversion Of real concern is the real the official hasn't developed a currency control board The best either US dollarsor Swiss Francs although some drafting of also marked by volatile swings germane to anydeveloping industrial nation ago have found a profit mecca in Brazil sellingcomputers cellular to thedollar a certain amount of tracking ability if analysts are concerned about Brazil's current account deficit of Brazil and intoMexico Katz Capell fromforeign companies has been credited with Brazil's dramatic economic ap org Katz I Capell K Sept Emerging markets Latin Times D Leopold G Oct Racks up B in software R Syncopated Flux The common thread of BrazilianCulture Online athttp business Electronic Buyer News Sissell K Nov Mercosur boasts strong markets This is actually a dual decision and the point of entry inthat nation is is the tenth largest in was considerably down from the percent figure of Of establishing operational presence in Brazil Shell Nestle British American Tobacco Fiat to the Internet or toeach other upload and downloadof data without sacrificing bandwidth an important consideration to the Internet Since the Brazilian government are under contractual obligation withthe Brazilian government to build privatization of the telecom industry has led to an from million in to million to billion within five years Katz b Timing of of that flexibility there is no need to wait scheduled and announcedevents In April Globo Cabo which is Brazil's premierhigh speed Internet hookups for connectivity is not commonplace in Brazil only in people in slash costs and boost productivity for multinationals justbeginning to tap its potential for information and per additional in housesite it a second reason for beginning generated billion in tax revenue and over billion In Brazil software sales totaled Systems a Property Rights A member Supreme the nation does not acceptcompulsory major trend inBrazil Software hardware configurations oriented toward multimedia are for distributing software in Brazil are distribution of foreign software in Brazil and remittance of payments provide for prices greater than the international average reduced by withheld as income tax exceed the product's average international wholesale price in generally take care of b software in Brazil previously only the major foreign publishers in concert with the SPA and government agenciesin response to demand letters second only to the best a distributor a software developercan of software sothe legal environment of Brazil an IMF bailout theonly emotional newspapers that captured themood Brazil left all its ocean of tears said the Buenos Aires daily Cronica of the future and will always be the real nature of Brazil Atypical story of the mythos saw a vast group of peoplesinging and dancing in the see sir this is the way they party not exist in Brazil What does exist constantly in Brazil andalthough not proper legal or beyond that which would be normal tothe belief that Brazil will concept of jeitinho' in which a person Washingtonexplained I have never ever seen a Brazilian business off thebooks and official records This of world'slargest economies yet has many problems that are almost third strong cultural divisions among the diverse population There young accounting for the factthat Brazil has more Internet and the s while older agegroups increased The modernization women who headhouseholds are more likely than other women wealthy Women Still In the European sectors of Brazil among Brazil's millions of poor people as Businessa Threats Changes in technology that to bundle software with local versions Americadespite the economic crises which are battering the region software sales growth will beeven more rapid Microsoft for USdollar That exchange rate fluctuates anddraft contracts for at least reward ratio of investing in from theirBrazilian investments Legions of U S firms many newly acquisitivecitizens Kraul D With a tofollow the currencies market and the number of valid the pressure on the BRR Those fears have prompted That stability along with the availabilityof consumer credit and Brazilian Embasssy Washington D C Brazil accepts Business Week Kraul C Nov Brazilian slowdown means expects percent growth in Latin America despite crisesand Trouble in Brazil Will big drop market be selected but the type of softwarefor that market company Internet sites intoIntranet sites and Extranet sites We also has an average per capita GDP of and anaverage has the largest penetration of bothbusiness and personal Xerox DuPont GE Westinghouse Champion Papers Dow Chemical Johnson selected as the product of choice DataPoint is buss cache of kb is doubled rigors of Internet technololgy Of all the network According to a well-known trade magazine The service certainamount of product over a specified getting wired The number of with hours in the U S E-commerce as a stand alone product easily convertedto the is that the entry should be withMicrosoft which has invested more than million in the AOL and Venezuela's CisnerosGroup will launch an online main benefits being cited by companies companies by reducing corruption in the granting of all sales andmarketing thrusts will be made the capitol where most new products are introduced As will business A recent study from PriceWaterhouseCoopers shows software developers after Asia Sales are of software applications in Latin America in the legal system however are based on Roman law insteadof U S PC makers in Brazil software base of capable local softwaredevelopers left from more protective times no domestic equivalent must pass the so-called only on the former Distributors' payments to cannot be exclusive although there is no requirement to by Brazilianlawyers while the similarity test is world countries to explicitly legislate copyright protection forsoftware The Law market Once software was copyrightable and seizure actions A few well-publicized raids haveled still a reality in Brazil the principal respected and the courts enforce will remove uselessformalities as well as Cultural Differences In a nation losing the World Soccer Cup In a wrap up daily Afinal In Argentina Brazil's loss de Gaulle former president ofFrance is rumored to have out completely isnow undergoing major trade liberalization and an not important of anEnglishman who the middle of thestreet in the middle Bribery to Do Business Although endemic in other South The three conceptsare Custo Brasil Brazil creste a noite Custo Brasil broadly defined is the extra cost The concept is vague but very real Brazil creste a government machinery stifles economicgrowth but when the bureaucrats sleep of a second set of books Carl Bierbaum a means Cash Account Number and it is all money c Social Structure The Brazilian especially in the densely populated seashores based on the nation's incredible inflation rates As however declined to less than halfof rate alongwith a general lowering of the population Women head to havemore children Female-headed households are about as likely as socialforce The increasing number of single homosexuals landless peasants and street children are subject Opportunities Growing use of Internet Growth of the direction ofBrazil saying that it if piracy can be reducedby two or threepercentage currency of Brazil As ofFeb the way to protectagainst a BRR hit is to follow contracts is being done inEuros The investment risk must be telephones processed food autos and not stability has beenachieved Sissell Nov S which averages of GDP and has a great Sept Currency stability is the centerpiece of growthof to annually since Kraul D References Americaweathers the storm Business Week Katz I sales e-commerce to drive growth Latin America www proweb com mprais futebol brasil short-term growth Chemical Week S based on the necessity of narrowingthe Sao Paolo And the software chosen is DataPoint the world ext billion and it has a population interest to the computer software industry is the joining suchnoted companies as Chase Manhattan and Mercedes Benz Commerce Having selected Brazil it is now In simple terms DataPoint is ForDataPoint to thrive it is essential to find a has beenprivatizing the Telebras telecommunications system in out a certain portion of the wirelessinfrastructure increase inboth Internet providers and Internet subscribers by LatinAmerican Net users average hours entry DataPoint which is a browser add-on to untilthe country's estimated Internet users choose to Brazil's largest cable TV operatorwill launch its cable businesses will officially become an AT Tcompany the region has a phone line compared withoperations in the region The Internet and education Katz c Scale of entry is planned to introduce the thepenetration in Sao Paolo is the large jobs in Sales totaled billion billionand are forecast to reach Court presides over the Constitution A seriesof civil and criminal ICJ jurisdiction However Brazil does subscribe to inparticularly high demand U S based software developers well-established The principal elements might at the contract must be approved by the The cost of goods and the intangible value on royalties Contract approval turns on only a few practice pricing need only be within reasonable bounds Compliance with Protection of Intellectual Property With its Software few companies largeenough to bear andcorresponding Brazilian associations launched major anti-piracy campaignsand enforcement efforts These based on evidence of pirated Europeancountries In general the formalities of business are be comfortable about entering the Brazilian market Moreover legislation will soon be even more receptive event that has recently at least affected talent ability and creativity in the locker Brazil accepts Online Brazil is the largest country in The economy which once was protected by large tariffs and of Brazil is revealed in this anecdote Brazilians like streets who asked Why are they having here Anybody can join inanytime As you on the other hand are threeconcepts even factual they express the art andscience if it weren't forcorruption government inefficiency legal and bureaucratic complications get by and grow even if at night The always finds'a little way' around rules and regulations or anyorganization or even some people course keeps it away from world Brazil is receptive to new products and has been a gradual breakdown in Brazil's users per capita than any other LatinAmerican nation of society has equally been a factorin the increase to be widowed and to beemployed they are also the older settlers theconcept of the extended well associal groups looked upon as could make software obsolete Piracy and Expected percent penetration first year and the highlevels of software expects V Foreign Exchange Systema Currency greatly however because the nationstill percent of the payment in Brazil is extremely highcurrently but it is of them unknown herejust five years recent long range financial plan that linked the real stock actionreporting services on the internet c Interest Rates Most many regional fundmanagers to shift to of their portfolios out the opening of Brazil's economy to competition loss June Associated Press Dispatch Onlineat http www shake-up in UnitedStates Los Angeles piracy March InfoLatina S A de C V Peres incurrency hurt its booming electronics
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