Global Business

Table of Contents

Executive Summary 1

Introduction 2

Business Opportunity 2

Country Analysis 3

SWOT Analysis 10

Product Concept 10

Competition 12

Financial Sources 14

Information Sources 16

Business and Political Risks 16

Entry Strategy 17

Marketing Strategy 18

Financial Results 20

Business Success 21

Exit Strategy 22

Conclusion 23

Executive Summary

Global Connections' mission is to be known for connecting the world to the Internet. Brazil needs to be connected and Global Connections is the company to facilitate that move forward. In conjunction with the government, Global Connections will alleviate digital divide.

Global Connections plan is to provide expert direction to the Brazilian government in the development of local and regional Internet telecenters, oversee management of the local operations at these sites, and recruit and train local employees to for continued management. Our product is designed to provide management support in every stage of the project then provide ongoing consultation and support.

These telecenters can also provide range of services from telemedicine for remote areas of the Amazon to e-government services. Our telecenters will benefit from being part of a large network under a single management system that can share experience and best practices. This will provide the Brazilian population with a chance to become integrated in the digital age.

Global Connections will connect the people of Brazil to the world through Internet techonology. We will succeed where others have not. Together with the progressive mandate from the Brazilian government, Global Connections will facilitate the integration of nearly every corner of Brazil into the global digital community while offering some relief from high unemployment and low school attendance rates.

Introduction

The Internet as a means of communication and acquiring information is a fundamental right and should be accessible to all. There is so much value to be found on the Internet and access networks millions of people around the world. In addition to research and data collection, many people see the Internet as having the potential to alleviate the problems of faulty healthcare, education, social problems, hygiene, etc, all which result from poverty. With the Internet, even the poor will become connected to the world.

Business Opportunity

The Internet in Brazil has a very short history and not until 1995 did the government of Brazil pass a law that made it legal to use the computer for personal use1. Despite that, less than 10 percent of Brazil's population has access to the Internet

Digital divide is the gap that exists between individuals advantaged by the Internet and those disadvantaged by the lack of Internet. This lack of access has increased barriers to economic development, which has made poor countries even poorer. Even with Brazil having 170 million people and one of the 10 largest economies in the world, only China has a greater digital divide2.

Digital Inclusion has become a catch phrase for the new millennium among developing countries. Loosely defined as social integration that helps people find ways to integrate into the current information and technical space, it makes technology physically accessible to as many people as possible and makes user-friendly3.

Federal and state governments in Brazil understand that one of the problems of increasing Internet access requires state and private action. In 1992 Brazil started working toward digital inclusion. The first project was the opening of 13,000 telecenters projected for 2000 in areas that were rated low on the Human Development Index4. At that time Telebras, the state owned telecommunications provider, was privatized and the new management terminated the project. Today Brazil is committing tremendous resources to the construction of a national telecenter network that will democratize access to technology and reduce the digital divide. Brazil's digital inclusion plan includes:

* Porta Aberta Plan - This plan gives free email addresses and provides public access to their citizens at strategically placed kiosks in selected cities.

* FUST - This act requires all telecommunications companies to give one percent of revenues to the fund. Half of the funds will allow for free public Internet access and help pay for computers, printers, and scanners in health centers, culture centers and telecenters. The other half will help connect schools to the Internet.

* A parallel agreement between Anatle and the Brazilian telephone companies for installation of high-quality Internet access to all of the country's municipalities having at least 50 residents.

* Reservation of $100 million dollars for the creation of 6000 telecenters by 2007.

Country Analysis

The official name of Brazil is the Federative Republic of Brazil (Republica Fede-rativa do Brasil) and the capital is Brasilia. Brazil celebrated its independence from Portugal on September 7, 1822. The largest and most populous country in South America, Brazil offers countless opportunities for prospective foreign investors, in light of its enormous economic potential, its diversified economy, and its huge domestic market. The current governmental policies, targeting modernization of the economy to bring Brazil back into the international economy, have been most successful. Brazil's political and financial stability, together with its progressively open economy, the noteworthy reduction of inflation, privatization, and economic growth have attracted ever-increasing offshore investments6.

Geography

Brazil