Ivy Song, Colin Johnson, KC Geronimo

MKTG 481 | W. HERNANDEZ | OCT. 9, 2014

ARGENTINA

ARGENTINA● Current capital: Buenos Aires

● Current population: ~42 million people

● Currency: Argentine Peso

● Official language: Spanish

o English, Italian, German, French , Arabic,

Japanese, various indigenous languages

(Guarani, Quechuan, and more)

"Argentina Country Details." CountryWatch. http://www.countrywatch.com.mcc1.library.csulb.edu/cw_country.aspx?vcountry=7.

"Argentina Population 2014." Country Meters. October 4, 2014. http://countrymeters.info/en/Argentina.

HISTORY: TIMELINE● 1580: Est. Buenos Aires

● 1816: Argentina declares independence

from Spain

● 1853: Argentina establishes a

constitution and becomes a republic

● 1943-1976: Peron era

o Juan Peron rises to power, marries

Evita who later dies of cancer

o Peron flees country after army and

navy rebel

o 1956: Constitution of 1953 restored

o Peron marries Isabel Martinez

o Peron is elected President of

Argentina, dies a year later

o Isabel (VP) becomes president

until military coup leads to her exile

"Argentina History Timeline." Country Reports. http://www.countryreports.org/country/Argentina/timeline.htm.

HISTORY: TIMELINE● 1976-1983: Military Dictatorship/Dirty War

● 1982: Argentina-Britain war

o War over control of Falkland Islands

o Argentina military gov’t collapse

o Ends in repression

o Argentina surrenders

● 2001-2002: Adolfo Rodriguez Saa,

Fernando de la Rua, Eduardo Duhalde

● 2003: Nestor Kirchner becomes president

● 2007: Cristina Fernández de Kirchner

becomes president

● 2010: Death of Nestor Kirchner

● 2011: Cristina wins second term

"Argentina History Timeline." Country Reports. http://www.countryreports.org/country/Argentina/timeline.htm.

CULTURE: DANCE AND FOOD

● Best known for the tango

● Cuisine is heavily

influenced by Europe

and is rich in protein,

popular for grilling, and

abundant in pasta

o pizza, empanadas,

provoleta, milanesas Fig. 1. Fabian Perez, Love of Tango. Acrylic on canvas, 30 x 20. Available from Paragon Fine Art,

http://www.paragonfineart.com/artists/fabian-perez.html

Fig 2. Empanadas | Fig 3. Pizza

"Culture and Arts of Argentina." CountryWatch - Country Review. http://www.countrywatch.com.mcc1.library.csulb.edu/cw_topic.aspx?type=text&vcountry=7&topic=CLART.

"Typical Food of Argentina." South America CL Guide. March 14, 2014. http://www.southamerica.cl/Argentina/Food/Guide.htm.

1 2

3

CULTURE: ART AND LITERATURE

● Depicted everyday life,

war, and fond memories

● Some famous literary

writers: Jorge Luis

Borges, Julio Cortazar,

Ernesto Sabato "Culture and Arts of Argentina." CountryWatch - Country Review. http://www.countrywatch.com.mcc1.library.csulb.edu/cw_topic.aspx?type=text&vcountry=7&topic=CLART.

Fig. 1. Antonio Berni, “Unemployment.” Acrylic on canvas, 1934.. Available from Otras Obras, http://coleccion.educ.ar/coleccion/CD5/contenidos/bernichicos/galeria/pop/obrab7.html

Fig. 2. Julio Cortazar

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2

CULTURE: CINEMA

Like other art forms,

Argentine film focused

on everyday life and

war/government

Fig. 1. La Historia Oficial (The Official Story) directed by Luis Puenzo

Fig. 2. El Secreto de sus Ojos (The Secret in their Eyes) directed by Juan Jose Campanella

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CULTURE: SPORT

● Football (Futbol) Argentina’s national sport

o FIFA Rank: #2

● Horse racing

● Tennis

"Argentina Sport and Recreation." CountryReports. http://www.countryreports.org/country/Argentina/recreation.htm.

POLITICAL ENVIRONMENTPresident Cristina Fernández

de Kirchner

● First lady of Argentina from 2003-2007

● Ran and won in 2007 in place of her

husband Nestor Kirchner

● First female Argentine president to ever

be directly elected (Isabel Peron)

Murillo, María Victoria, and Steven Levitsky. 2008. Argentina: From Kirchner to Kirchner. Journal of Democracy. 19, no. 2: 16-30.

POLITICAL ENVIRONMENTPresident Cristina

Fernández de Kirchner

● Faced economic issues at start of new term

● Suitcase Scandal

● Soybean-export Tax

● 29.8% approval rating

● Won second term in 2011

Murillo, María Victoria, and Steven Levitsky. 2008. Argentina: From

Kirchner to Kirchner. Journal of Democracy. 19, no. 2: 16-30.

Moffett, Matt. The Wall Street Journal. July 18, 2008. http://online.wsj.com/articles/SB121628376004461591.

Murillo, María Victoria, and Steven Levitsky. 2008. Argentina: From Kirchner to Kirchner. Journal of Democracy. 19, no. 2: 16-30.

Romero, Simon, and Alexei Barrionuevo. "Suitcase of Cash Tangles U.S. And 2 Latin Nations in Intrigue." The New York Times. January 11, 2008.

POLITICAL ENVIRONMENTPresident Cristina

Fernández de Kirchner

● Frente para la Victoria

party (FpV)

● 2013 Primary Elections

POLITICAL ENVIRONMENTFrente Renovador

● Sergio Massa

● Argentine General Election, 2015

● Primary Election success

● Buenos Aires

ECONOMIC CONDITIONS

● Economy has great

potential:

o Natural resources

o High literacy rate

o Agricultural exports:

dairy, soybean, corn

ECONOMIC CONDITIONS

● Historically overvalued

exchange rate leads to

devaluation of Argentine peso● 60% difference between official

and unofficial rates

● President Kirchner’s failure to

act upon issue of inflation

ECONOMIC CONDITIONS

● Lagging GDP growth rate

o 3% in 2013

o 0% in 2014 Q2

● No long-term program in place

o Trade-off of perceived

economic growth and long-

term fiscal management

ECONOMIC CONDITIONS

Default on debt, July, 2014● Defaulted on U.S. bonds

● Will further worsen foreign investment

● Worsens Standard & Poor’s credit rating

● Detrimental to future funding

● Similar to 2001 default but less wide-reaching

ECONOMIC CONDITIONS2015

● Lack of investors’ confidence under

Kirchner’s policies

● Primary election results inspiring

investment

● Frente Renovador

INDUSTRY ANALYSIS

IT INDUSTRY

SOME DEMOGRAPHICS

● Urban percent of population: 92.81%

● At least some secondary education (ages

25+): 56.3%

● Literacy rate: 97.2%

"Argentina Facts." Country Facts | Government, Economy, Demographics, Education. http://country-facts.findthebest.com/l/7/Argentina.

"HDI Indicators By Country 2014." United Nations Development Programme. https://data.undp.org/dataset/HDI-Indicators-By-Country-2014/5tuc-d2a9?

"World Development Indicators." Google Public Data Explorer. https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=it_net_user_p2&idim=country:ARG:VEN:BOL&hl=en&dl=en.

ECONOMIC ANALYSIS Downside: currency depreciation

● Affordability of IT products and services.

● Margins

Bright side

● Falling grey market

● Rising incomes

● Growing penetration of credit cards

● Availability of VAT rebates on payment made by

debit cards.

PESO

INCOME PER

CAPITA

BREAKDOWN

e/f=BMI estimate/forecast. Source: National Sources/BMI

GOVERNMENT SUPPORT

● Purchased netbooks for schools

● Encourages to develop IT industry

● A high-tech national development plan

(programmes)

MARKET

DRIVERS

● The 2rd largest IT market in LatAm.

● Per capita IT spending is forecast to rise from ARS 697 in 2013 to

ARS 1,577 in 2018.

● Expanding retail channels and more flexible terms.

o Carrefour and Chile’s Cencosud

● Local PC production in Tierra del Fuego State has expanded

rapidly. PC penetration is high: 40%

● Laptop sales are growing faster

● Broadband internet penetration

● Internet users: 59.9% of pop. (2013)

INTERNET

USERS

"World Development Indicators." Google Public Data Explorer.

https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=it_net_user_p2&idim=country:ARG:VEN:BOL&hl=en&dl=en.

"HDI Indicators By Country 2014." United Nations Development Programme. https://data.undp.org/dataset/HDI-Indicators-By-Country-2014/5tuc-d2a9?

"World Development Indicators." Google Public Data Explorer. https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=it_net_user_p2&idim=country:ARG:VEN:BOL&hl=en&dl=en.

59.9%

TECHNOLOGY PREVALENCE OVER TIME (PER 100 PEOPLE)

"Argentina Facts." Country Facts | Government, Economy, Demographics, Education. http://country-

facts.findthebest.com/l/7/Argentina. "Argentina Facts." Country Facts | Government, Economy, Demographics, Education. http://country-facts.findthebest.com/l/7/Argentina.

1,777 SECURE

INTERNET SERVERS

AS OF 2013

"HDI Indicators By Country 2014." United Nations Development Programme. https://data.undp.org/dataset/HDI-Indicators-By-Country-2014/5tuc-d2a9?

"World Development Indicators." Google Public Data Explorer. https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=it_net_user_p2&idim=country:ARG:VEN:BOL&hl=en&dl=en.

SEGMENTS AND FORECASTS

PC Target - Individuals (students)

Capital of Argentina: Buenos Aires

● Higher per capita income

● Higher education levels

● Accounts for 63% of household

appliance sales.

IT SERVICES Target – SMEs

● Need cloud services:

save cost, boost

efficiency, increase

flexibility

● 300,000 SMEs, of

which only 5% are

significant users of IT.