16-16. Could other businesses follow the basic model employed by Novica? Why or why not? One of...

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16-16. Could other businesses follow the basic model employed by Novica? Why or why not? One of the longest-surviving online businesses in the world recently celebrated its 16th anniversary. This business provides a unique online experience, and, at the same time, is attempting to change the world. No, the company is not Google, Facebook, eBay, or Amazon. It’s Novica, an online retailer of beautiful handmade items from Brazil, Ghana, India, Indonesia, Mexico, Peru, and Thailand. Novica’s founders were Armenia Nercessian de Oliveira, a Brazilian and longtime United Nations human rights worker; Roberto Milk, her 23-year-old son-in-law; and Roberto’s brother, Andy. Roberto and Andy are sons of a Peace Corps volunteer.

Their business plan, launched in 1997, was based on direct sales between artisans in developing countries and customers in the United States. Together, the founders had lived in or traveled to dozens of countries, spoke a number of languages, and had strong management and financial experience.

But despite their obvious qualifications, “everyone said it couldn’t be done: simultaneously establish offices in countries all over the world, pay artists more than they have ever made before, and ship purchases directly to customers worldwide from countries all over the world with no U.S.

warehousing,” says de Oliveira. “But we did it! Novica.com

[is now] the leading online world style marketplace.”

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International Business A Managerial Perspective

ISBN: 9781292018218

8th Global Edition

Authors: Ricky W. Griffin, Michael Pustay

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