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Analysis: IT Strengths and Weaknesses

Analysis: Impacts on the (non-IT) Globally-competing Firm

About the Author

  1. HARDWARE: Local production of telecommunications equipment, computers and peripherals is extremely small, totaling US$60.6 million in 1996. Total exports of these combined products totaled only $8.7 million. Total imports of telecom equipment and computers, however, totaled US$1.16 billion in 1996. 1

  2. SOFTWARE & SOFTWARE SERVICES: In 1994, Chilean exports of software totaled in US$38.8 million. It is estimated that in 1998, the number will increase to US$170.7 million, or .14% of total world software sales. Exported software has traditionally included MIS applications packages, software utilities and applications associated with Chilean niche markets such as forestry and mining. 2

  3. TELECOMMUNICATIONS: Due to the absence of trade barriers, the telecommunications market will continue to expand. This expansion will occur most likely through the establishing of alliances with local and multinational companies to provide telecommunications services throughout Latin America.

  4. ARE THERE SOFTWARE NICHES THAT CHILE HAS DEVELOPED IN WHICH IT IS BECOMING RECOGNIZED AS A REGIONAL/GLOBAL PLAYER?: Chile's expertise in the timber industry has been exploited by Excelsys Engineering's Logmeter which estimates the volume of wood and anticipated output using a PC and video camera.3 Latin America is an attractive market for Chilean software companies due to shared language and social customs. This attraction will most likely intensify with the WTO Telecom Agreement.


1. U.S. Department of State: Chile Commercial Guide

2. "Computing in Chile: The Jaguar of the Pacific Rim?", Communications of the ACM, Sept. 1995, Vol. 38, No. 9, pg. 25

3. http://www.sas.upenn.edu/African_Studies/Software/Soft_Exp.html