StarMedia: Launching a Latin American Revolution Harvard Case Solution & Analysis

StarMedia: Launching a Latin American Revolution Case Solution


Colour cases should be printed in color to optimize their effectiveness. By the autumn of 1999, StarMedia had sprinted to a sizable lead in the race to acquire Latin American Internet users. Its pan-regional, horizontal portal was the first to target Spanish- and Portuguese-language speakers online, filing 1.2 billion page views in the third quarter of 1999. Thirty three-year-old StarMedia cofounder Fernando Espuelas was the pledge of "Silicon Alley" and a recognized hero throughout Latin America. A picture of him on the cover of Internet World magazine--ripping his shirt open to reveal the StarMedia logo, like Superman, summed up the spirit of the firm. However, new initiative by a heavyweight nemesis was a common instance every passing day.

StarMedia raised and spent money at a frenetic pace, promoting its brand, acquiring businesses, and establishing new Web initiatives, to keep its lead. Losses for the year 1999 were anticipated to be around $90 million with revenues only to the tone of $19 million. This burn rate was made manageable by public and private financing rounds that had netted the firm half a billion dollars since its 1996 inception. As the new millennium started, the important question facing the executive team of StarMedia was how to best leverage the infrastructure of the company's to keep and expand its traffic leadership--and to monetize its audience--in an environment that was becoming complex and both more competitive. Includes color displays.

This is just an excerpt. This case is about  STRATEGY & EXECUTION

PUBLICATION DATE: January 19, 2000


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