Roy Y. Kim
Business Policy
Porter’s 5 generic competitive strategies
The company I chose to analyze is MercadoLibre. This company is Latin America’s most
popular e-commerce site by number of visitors. It is running in more than 10 Latin American
countries, and its revenue in 2015 was 651.8M. Even though E-bay is the largest common stock
owner (18.40%) of this .com portal, the company nowadays is shifting to a business model very
related to Amazon. Before this new strategy, MercadoLibre was a platform where B2C, C2C, C2B
businesses models took place everyday. This concept lead to many problems with guarantees,
deliveries, payments, etc, so the company changed its policy and it’s going for a portal to promote
B2C business model, like Amazon does nowadays. This will help the big E-commerce site have
more regulations over the items, the deliveries, the payments, and any other issues that may arise
in the E-commerce transaction protocol. In order to still have the lead in this market, MercadoLibre
has its own payment system (MercadoPago), and it has strong policies that ensure the satisfaction