Title of the Project: How Digital Communication Boosts Ecuadorian Competitiveness"
Team Members: Roberto Guzman, Jordan Ortiz, Glenn Palma
Date of Project: 26/03/25
1. Introduction
Problem Facts: In today’s interconnected world, digital communication has redefined the way
businesses interact with customers, partners, and markets. In Ecuador, where small and
medium-sized enterprises (SMEs) dominate the business landscape, the adoption of digital
platforms such as social media remains inconsistent. This project explores the research
question: How can Ecuadorian businesses improve their competitiveness in prices by using
digital communication? The relevance lies in identifying strategic tools that can drive
cost-efficiency and improve sales performance.
Results in Different Countries or Segments/Times: Globally, businesses that adopt digital
strategies experience up to 20% higher revenue growth, as seen in case studies from Southeast
Asia and Latin America. A 2021 study in Colombia showed a 15% increase in SME sales
following sustained social media engagement. Similarly, research in Mexico found businesses
with active Instagram and Facebook presence were more likely to outperform local competitors
in pricing.
Objectives:
●​ To analyze how digital communication impacts price competitiveness among Ecuadorian
businesses.
●​ To assess the relationship between social media usage and sales volume.
●​ To provide actionable recommendations for SMEs to adopt digital strategies effectively.
2. Methodology
Population: Ecuadorian small and medium-sized enterprises across various sectors including
retail, food service, automotive, and handmade products. The focus is on businesses that
operate both offline and online.
Sample: The sample consists of three SMEs selected for qualitative interviews in Quito,
Cuenca, and Guayaquil. Selection prioritized businesses actively using digital communication
tools.
Sampling Method: Purposeful sampling was used to select businesses with relevant
experience using digital platforms for customer acquisition and sales.
Measurement Tool (Interviews): Semi-structured interviews were conducted in person and
online to gather detailed qualitative insights. Questions were designed to evaluate the impact of
social media on monthly sales, profit margins, advertising strategies, and customer acquisition.
Example Interview Questions:
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How many products do you sell per month?
What is your average profit per sale?
What percentage of your customers find you through social media?
How has digital communication affected your business revenue?
What platforms do you use and why?
How much do you invest in digital advertising?
3. Results (Two Inferences per Student)
Student 1 – Car Sales Business (Guayaquil)
Inference 1: Before using social media, the business sold 2 to 4 cars monthly. After
implementing Facebook Marketplace and TikTok, sales increased to 5–8 cars monthly. This
represents a 100% increase in sales volume and directly supports the hypothesis that digital
communication boosts competitiveness through increased volume.
Inference 2: The average time to sell a car decreased from 4–6 weeks to 1–3 weeks. Faster
turnover contributes to a higher monthly income and supports improved operational efficiency as
a form of competitive pricing.
Student 2 – Clothing Boutique (Quito)
Inference 1: Monthly income nearly doubled from $3,000–$4,000 to $6,000–$10,000 after
adopting Instagram as a main sales tool. The majority of clients (70%) are now acquired via
digital platforms. The qualitative growth indicates that social media significantly affects revenue
potential and customer reach.
Inference 2: Advertising investment of $1,200 annually led to a 50% sales increase. With a
cost-benefit ratio far exceeding 1:1, digital ads are a high-return marketing channel that
supports growth and pricing flexibility.
Student 3 – Handmade Accessories (Cuenca)
Inference 1: The business tripled its monthly sales revenue from $500–$800 to $1,500–$2,500
through consistent TikTok and Instagram usage. This suggests that digital storytelling and
trend-based marketing are highly effective in the artisan sector.
Inference 2: Profit margins improved as bulk material purchases became viable due to
increased volume. This shows a direct connection between digital sales growth and the ability to
manage costs, which supports better price competitiveness.
4. Conclusions
The project confirms that digital communication—especially social media—significantly
improves the competitiveness of Ecuadorian SMEs. All three interviews revealed clear growth in
sales, reduced time to sale, and increased profit potential following the adoption of digital tools.
The hypothesis that social media improves sales volume was supported across all sectors.
Businesses that invest in digital advertising and regularly engage customers on platforms like
Instagram, TikTok, and WhatsApp are better positioned to compete on both price and visibility.
The results highlight the need for broader digital literacy, strategic platform use, and investment
in content marketing.
Limitations include the small sample size and qualitative nature of data. Future research should
include a broader dataset across more cities and use a mixed-methods approach for
triangulated insights.
5. References
1.​ Alalwan, A. A., Rana, N. P., Dwivedi, Y. K., & Algharabat, R. (2017). Social media in
marketing: A review and analysis of the existing literature. Telematics and Informatics,
34(7), 1177-1190. https://doi.org/10.1016/j.tele.2017.05.008
2.​ Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and
opportunities of Social Media. Business Horizons, 53(1), 59-68.
https://doi.org/10.1016/j.bushor.2009.09.003
3.​ Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media:
Why bother? Business Horizons, 57(6), 703-708.
https://doi.org/10.1016/j.bushor.2014.07.002
4.​ Wamba, S. F., & Carter, L. (2016). Social media tools adoption and use by SMEs: An
empirical study. Journal of Organizational and End User Computing, 28(2), 1-23.
https://doi.org/10.4018/JOEUC.2016040101
5.​ Ahmad, S. Z., et al. (2015). An empirical study of factors affecting e-commerce adoption.
Journal of Business Economics and Management, 16(2), 317-332.
https://doi.org/10.3846/16111699.2013.839476
6. Annexes
●​ Interviews: Transcriptions of 3 business interviews
●​ Data Base: Summary table of key indicators from interviews (sales volume, profit
margin, advertising investment)
●​ Pictures for Evidence: Screenshots of Instagram/TikTok pages, interview session
photos
●​ Project Timeline:
○​ Week 1: Topic selection
○​ Week 2–3: Background research
○​ Week 4: Interview guide development
○​ Week 5–6: Conducting interviews
○​ Week 7: Analyzing data and writing results
○​ Week 8: Finalizing project and infographic
●​ Infographic: [Placeholder for infographic showing key statistics and growth trends from
the interviews]
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