WBS First Project Eniac is an online marketplace specializing in Apple-compatible accessories and is exploring an expansion to the Brazilian market.

Data shows that:

• Brazil has an eCommerce revenue similar to that of Spain and Italy

• an already huge market with an even bigger potential for growth

The problem for Eniacs to expand to the Brazilian market is:

• The lack of knowledge of such a market.

• No connection with local providers, package delivery services, or customer service agencies.

• It takes time to create these ties and know the market

For these reasons, Eniac is considering signing a 3-year contract with Magist in Brazil and operating through external marketplaces as an intermediate step, while it tests the market, creates brand awareness, and explores the option of opening its own Brazilian marketplace.

Magist is a Brazilian Software as a Service company that offers a centralized order management system to connect small and medium-sized stores with the biggest Brazilian marketplaces and has signed advantageous contracts with the marketplaces and with the Post Office, thus reducing the cost of fees and, most importantly, the bureaucracy involved to get things started.

Eniac’s catalogue is 100% tech products and heavily based on Apple-compatible accessories. It is unclear whether the markets that Magist works with are a good place for these high-tech products.

Among Eniac’s efforts to have happy customers, fast deliveries are key. The delivery fees resulting from Magist’s deal with the public Post Office might be cheap, but at what cost? Are deliveries fast enough?

Thankfully, Magist has allowed Eniac to access a snapshot of their database. The data might have the answer to these concerns. Here’s where you come in: you will be the one exploring Magist’s database. On day 5 of your first week, you will meet the board of directors and expose your recommendations.

Here are some numbers that will help you understand Eniac’s scope (data from April 2017 – March 2018):

Revenue: 14 million €

Avg monthly revenue: 1,17million €

Avg order price: 710 €

Avg item price: 540 €

Is Magist a good partner for Eniac? Summary of our solution:

1. Categorizing the goods (Tech and Non_Tech)
2. Finding the average of delivery time (12 days) 3.Comparing the Magist’s tech products with Eniac • Eniac’s average monthly revenue dwarfs that of Magist sellers • Magist’s tech products are cheap relative to Eniac’s • The Magist marketplace is dominated by non-tech items • Expensive tech products are not popular on Magist 4.Recommendation: Magist is not a good fit for Eniac "But there is still a way to expand in Brazil" 5.Focucing on The Sao Paulo metropolitan area • The demand for expensive technology in this city is high • The Sao Paulo metropolitan area is huge (23,455,256 Inhabitants in 2016) • The Sao Paulo metropolitan area is wealthy
3. But they are still challenges • The iPhone is more expensive in Brazil than in Europe • Apple is in legal conflict with the Brazilian government, possibly driving up prices further • Customs are strict and slow, requiring in-country warehousing 7.Because of these challenges, it is prudent to limit our investment