Case:

One of the longest-surviving online businesses in the world recently celebrated its 22nd 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 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 several 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."

Although some companies choose globalization to reduce costs or to respond to competitive pressure, Novica is more concerned about building global communities that share products and ideas. The main goal of Novica is not "merely selling products," de Oliveira emphasizes. "We are actively working to disseminate cultures and restore the importance and appreciation of traditional cultures and skills." Moreover, it is important for the company that both cultures benefit and are not harmed by the exchange. "Novica has broken down the traditional international barriers to direct trade between individuals," says Catherine Ryan, Novica's vice president for communications. "Our goal is to help usher in a second, positive era of globalization that moves away from both the consolidation of the marketplace and the homogenization of culture."

Novica's business model shows a close fit with the cultural characteristics of both the United States and developing nations. Americans tend to want to buy luxury goods for themselves and their homes. They often prefer objects that are unique and handcrafted to ones that are mass produced. In parallel fashion, individuals from developing nations and traditional cultures often like to work with family and friends, typically from home or in a small organization. All of these preferences are supported by Novica.

Although Novica was already succeeding, the firm gained new financial strength and marketing support when National Geographic bought a minority stake in the company in 2001. Today more than 11,500 artists are featured and thousands of others are employed. "Novica is all about promoting artisans as individuals and increasing appreciation of all cultureson a tremendous scale," notes Ryan. Her employer provides an online marketplace to connect artists in developing countries with buyers in the United States. Novica is unique among sellers of international art in sustaining global culture by opening direct lines of communication and trade among a diverse group of individuals. The company's website gives clues to the diverse characteristics, motivations, and values of the artisans and buyers.

Artist biographies and detailed product information encourage cultural awareness. Pravakar Das, from Puri in India, explains his traditional Hindu temple paintings. "Patachitra painting originated thousands of years ago to adorn the temple of Lord Jagarnath, another name for Krishna.... [They are used in] the Jagarnath Mandir festival, where thousands of devotees offer their prayers."

Neide Ambrosio crochets soda can tops she finds discarded on Brazil's beaches into purses and belts. "Novica encouraged my creativity," she says. "I realized myself as a person. My quality of life improved.... I now offer employment to ten young girls from favelas.... It's also a good way for me to keep Brazil clean and unpolluted." Ambrosio adds, "I feel so glad every time I read what my clients tell me. It is so motivating!"

A letter from customer Jeane Vogel tells about her bond with the artist who created the jewelry she purchased from Novica. "Rajan made me feel as if I were his cherished friend.... He included a hand-written notein two languages. I felt quite beloved.... He connects in a very personal way with the recipient of his art."

Many Novica artisans can now afford to own their own homes, buy computers, or send children to college, unheard-of luxuries for much of the population in developing regions. Even more important than financial gain, according to de Oliveira, are the social benefits. "Beyond business and the economic improvement of artisans, we are also and mainly talking about dignity, about pride, about the international recognition of extraordinary work.... We're succeeding in transmitting human energy along with each item that is sold through us."

Your response must address the questions asked (Visit www.novica.com and www.unilever.com. Compare and contrast the two sites in terms of their marketing effectiveness. What does this case illustrate about the trade-offs between economic and social benefits in international business?)

You can elaborate on the comment, provide an explanation to help a fellow student, or present a point of debate.

You can agree or disagree with whatever has already been stated in the thread, as long as you back up your statement.

Here is what you need to respond to:

Question 17:

Compare and contrast www.novica.com

Links to an external site.

and www.unilever.com

Links to an external site.

in terms of their marketing effectiveness.

I think both NOVICA and Unilever does a great job making it clear within the first few seconds of observing their websites what their companies are about. As a first-time visitor of NOVICA's website, I would have been unfamiliar with what to expect from the website if I had not read the case beforehand. They have been doing a great job of keeping their core values front and center within their website, setting the tone for what visitors can expect from their company. As for the layout, it is easy to track and follow along throughout the website because of its simple layout. The white background and dark contrasting colors make it easy to navigate. Throughout their main page, they are doing a good job of adding reminders of their core values and how they benefit artisans. Beyond that, as someone who would be there to intend to purchase items, it would be easy for someone to browse through the various products they have with ease due to their ability to lump like-products together.

Unilever makes it clear they have a business that has products globally. They also display their initiative for sustainability for the planet and diversity and inclusion. Unilever and NOVICA are similar in how they incorporate their initiatives throughout the main web page. Unilever's website is also easy to navigate by having tabs that are clearly labeled for areas of interest by visitors to the website. One area they are different is in the colors chosen for the website. NOVICA has very simple colors that contrast well, and Unilever has a very colorful theme with various bright colors and themes. In my opinion, I think NOVICA's simple contrasting colors is more appealing.

Question 18:

What does this case illustrate about the trade-offs between economic and social benefits in international business?

I think it illustrates that businesses can have both economic and social benefits be a part of their business plans successfully. It seems that there can be opposite effects in most cases because if a business focuses on economics, the social benefits can be left behind or neglected. The same can be said for businesses that focus on social benefits. NOVICA has created a business that benefits both sides. Economically, it allows those in developing countries opportunities to showcase their talents where in other cases it can be difficult or impossible. It can also help them afford to support their families. The social benefits are numerous as well since the platform promotes the artisans in those countries. It is great for people to be exposed to the variety of countries supported through NOVICA and how those people work their crafts.