...Competitors •Hulu: 7.99$ per month (Hulu), –In 2007, NBC and Fox—joined, two years later, by ABC—created Hulu, a Web site that lets viewers watch current and many past television shows but is subsidized by the same complement of commercials seen on broadcasters’ Web sites. –Five million viewers subscribe to Hulu Plus, which, for eight dollars per month, offers more current content and past shows, on multiple devices and with fewer commercials. •Amazon Prime: costs $79 a year or $6.60 per month) –The advent of the Internet and streaming video brought new competitors. In 2011, Amazon made its streaming-video service, Instant Video, available free to every customer who signs up for its Amazon Prime program, which, for seventy-nine dollars a year, also provides free two-day shipping. –The arrangement inverts the traditional advertising model: instead of forcing you to view commercials, video is the gift you get for shopping. –Amazon Prime subscribers number about twenty million, although the number of those who are Instant Video viewers is certainly smaller. –Last fall, Amazon released its first original series, “Alpha House,” created by Garry Trudeau. •YouTube -owned by Google: –A billion unique visitors watching six billion hours of video every month. Ynon Kreiz, the executive chairman of Maker Studios, the world’s largest provider of online content, noted that its series “Epic Rap Battles of History,” broadcast on YouTube, and which offers comical face-offs...
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...world until the late 1970s, when a series of disastrous business decisions and family quarrels brought the company to the verge of bankruptcy. At the time, brothers Aldo and Rodolfo controlled equal 50% shares of the company, though contributed less to the company than he and his sons did. In 1979, Aldo developed the Gucci Accessories Collection, or GAC, intended to bolster the sales for the Gucci Parfumes sector, which his sons controlled. GAC consisted of small accessories, such as cosmetic bags, lighters, and pens, which were priced at considerably lower points than the other items in the company’s accessories catalogue. Aldo relegated control of Parfums to his son Roberto in an effort to weaken Rodolfo’s control of the overall operations of the company. Aldo Gucci expanded into new markets including an agreement with American Motors Corporation (AMC). The 1972 AMC Hornet compact "Sportabout" station wagon became one of the first American cars to offer a special luxury trim package created by a famous fashion designer. The Gucci cars sported boldly striped green, red, and buff upholstery and on the door panels, as well as the designer's emblems and exterior color selections. Though the Gucci Accessories Collection was well received, it proved to be the force that brought the Gucci dynasty crashing down. Within a few years, the Perfumes division began outselling the Accessories division. The newly-founded wholesaling business had brought the once-exclusive brand to over a thousand...
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...The Buyout of AMC Entertainment Private Equity & Leveraged Buyout November 30, 2009 FI 8320 – Corporate Finance Strategy Kevin Mullally Aaron Nowak Regina Ordonez Joel Pierce Jeff Smith The Buyout of AMC Entertainment Table of Contents Executive Summary....................................................................................................................................... 1 The Market for LBOs ..................................................................................................................................... 2 LBOs in the Movie Industry ........................................................................................................................... 3 JPMP and AMCE ............................................................................................................................................ 3 Transaction Risks........................................................................................................................................... 4 The Buyout Proposal ..................................................................................................................................... 4 Conclusion ..................................................................................................................................................... 5 Appendix A: Top 10 US. Theater Circuits (as of June 1st, 2004) .................................................................... 6 Appendix B: Industry...
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...AMC theaters is and American movie theater and it is operated by AMC Entertainment Inc. The Durwood brothers founded it in 1920 and nowadays AMC Company occupies the second-largest place on the chain of the American cinema market share, behind Regal Entertainment group and ahead of Cinemark Theaters. The theatres welcome approximately 200 million guests annually through the doors of its more than 300 locations and with 4960 screens. With innovative amenities and a focus on providing a bunch of movies in the best theatre environment. In hence, AMC is recognized as an industry leader and an iconic destination. The company has 346 locations around the USA, mostly in North America. They also have more location outside USA in Mainland China, home of its corporate parent. Moreover, the headquarters of AMC is located in Leawood, Kansas. AMC’s objective is based to welcome every people to their theaters gates to all associates and make them to live every experience amazing. Also, on the other hand, AMC plans to expand their structure worldwide with the idea of having icon locations in major urban areas and other select areas. On the competition section, AMC was the first cinema who created multiplexing, which is the act of building a movie theater complex with multiple screens converting a unique environment using motion picture exhibitors (traditional method) to increase operating activities efficiencies. However, multiplexing has been discontinued to be a competitive advantage for AMC...
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...The Buyout of AMC Entertainment (AMC) 1. What are the current strengths and weaknesses of AMC (before the proposed buyout) and the movie theater industry as a whole? 2. In what ways does AMC conform or not conform to an "ideal LBO target"? 3. Why does JPMP want to own AMC? In particular, what are the value-creating opportunities for this transaction? 4. What are the main risks of the transaction? Does the existence of Apollo Management , L.P. make the deal more or less risky? If things do not go as planned, what downside protection, if any, does JPMP have? Obviously, explain your answer. 5. What is the per share value of AMC to JPMP under the proposed LBO? Use the APV approach to value AMC. You can use an exit multiple of the adjusted EBITDA of 8 as an estimate of the terminal value. Calculate the price based on the 2 following assumptions. Obviously, parts a and b will be done using Excel. When you do your case, make sure the spreadsheet printouts are easy to follow, label everything, etc. a. Using the APV, calculate the per share value assuming the debt level will stay constant after 2009 to calculate the terminal value of the interest tax shield. b. Using the APV, calculate the per share value assuming the terminal value of the interest tax shield is zero. c. Comment on the impact of the terminal value of the tax shield on the overall value of this deal. d. Comment on the appropriateness of...
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...The movie exhibition industry holds one of the largest retail spaces after shopping complexes/malls. The greatest opportunity of this industry lies here. Being an industry that has been constantly adopting new technology and trends, I am of the opinion that leveraging this retail space not only for advertising space (standees, posters, etc.) but also for enhancing the cinema experience, would make profits soar in the long term. By having Bowling centers, Billiards tables and other in-house sporting activities, it lures the young adults and children alike. Introducing a diversified alternate content during the weekdays and off-peak hours would be another mechanism of generating greater profits. The experience of being at a movie theatre is the sole differentiator and maximizing it without adversely affecting the consumer interests should be the goal of exhibitors. The external threats to this industry lies in the very hands that feed it – the studios. Studios are poaching that sacred territory of exclusivity by introducing Video-On-Demand and reducing the gap between movie and DVD releases. This could be attributed the ever changing needs of the consumer. The rise of streaming options such as Netflix and Hulu have further bitten into the exhibitor’s share of the pie. The barriers to entry in the movie exhibition industry are relatively high. The major players, by their sheer number outpace any new entrant. The profitability levels also depend on the economies of scale here....
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...2013 Chevy Camaro I. The Chevrolet has an abundant product family that is versatile across the entire automobile spectrum. Chevrolet offers any type of car that is on the consumer market, with the Camaro as their affordable sport car selling at a basic price of $23,000. The Camaro is an affordable and economical rear-wheel-drive performance sports car with a V-6 or V-8 engine. The Camaro is a two door coupe that seats four people comfortably with an estimated 30 miles per gallon. The Camaro can be classified as a red ocean as it competes directly with other retro-inspired muscle cars, including the Dodge Challenger and Ford Mustang. This car is geared for optimal customer user experience. The powerful engine and old American muscle car style gives the user a full exclusive sports car experience. For Chevrolet, safety is extremely important to their brand. The innovation of having high performance headlights with multiple air bags helped give the car the rating of a perfect NHTSA Crash Test Ratings of 5 stars. II. The Chevy Camaro is targeted and segmented to a specific market because there is a particular customer group who is interested in this product. For starters, Chevy cannot start marketing and targeting families with children because this car would be impractical for that situation. It would be just as impractical for Chevy to target businesses and market this car as a flexible all work condition vehicle. This car is clearly a sports car, and should be...
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...Directions: Think about individual products and the company that makes them. Describe three generations of that product (past, present, and future). Then in a multipage write-up, answer why was there change, what changed, and what will be the challenges and issues (business and technical) of the future generation. On September 12, 1966, General Motors first displayed a preview of their next generation car, the Camaro. There were two main reasons why General Motors came out with this car. First, General Motors was trying to create a new type of car to satisfy consumer’s desire for a strong and faster type of car. Second, it was General Motor’s way to compete with Ford’s new Mustang. When the Camaro first came out, it was classified as a compact car. However, they later changed the classification to a pony car, and it has been seen more as a touring car, sports car, or muscle car. Along with the changes in names, there have also been many changes in style, technology, features, and specifications. General Motors is now in production of their 5th generation Chevrolet Camaro. On January 6th, 2006, General Motors started brainstorming ideas and concepts for this new generation car with a new body, wheelbase, engine, transmission, suspension, and much more. After two years of designing, engineering, manufacturing, and problems, on July 21, 2008, General Motors officially unveiled the production of the 2010 5th generation Camaro. This new generation Camaro was able to enhance...
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...Business Model Canvas with Assumptions – Tool for Growth Map ASSIGNMENT _CHALLENGING BUSINESS ASSUMPTION Vinaya Thite | MBA 2013-14_MG6506 | December 6, 2013 PG. 0 Table of Contents Introduction ............................................................................................................................................................ 1 Key Aspects to learn ........................................................................................................................................... 1 Literature Review .................................................................................................................................................. 2 Force Field Analysis .......................................................................................................................................... 2 Figure 1 Force Field Analysis ........................................................................................................................... 2 Theory of Business ............................................................................................................................................ 2 Business model .................................................................................................................................................. 4 Integration of Theory of Business and Challenging business assumptions ....................................................... 5 Case Study - i-Secure Consultancy ....
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...Аbstrаct The report detаils on the Industry- e-commerce, to which Аmаzon belongs аnd how Аmаzon implemets E-commerce in its model. Аmаzon’s business strаtegies аnd it’s mаrket strаtegies hаve been covered in brief. Аmаzon is one of the biggest plаyers in the field of cloud computing аnd the wаy it’s implemented hаs been covered. Vаrious MIS tools аnd Models which аre employed by Аmаzon in it’s business solution, helps in developing better understаnding of the compаny аnd the subject in generаl. Industry Introduction: E-Commerce Electronic commerce populаrly known аs e-commerce is а new growth direction for the business community. It is the use of digitаl trаnsаctions between businesses аnd individuаls. In other words, e-commerce is the use of the Internet to conduct business trаnsаctions. Given the huge potentiаl thаt this formаt hаs, technology will certаinly improve ecommerce аnd hence provide individuаls with more choices, thereby аdding to the economy. E-Commerce is аlso defined аs the аbility of а compаny to possess а dynаmic presence on the Internet which will thus аllow the compаny to conduct its business electronicаlly; in other words shift to аn electronic shop. Products here аre аdvertised, sold аnd pаid electronicаlly. Due to the expаnsion of the internet, аdvertising аnd is аvаilаble to people аcross the world for аlmost negligible. Аn аdditionаl аdvаntаge is thаt, the technology offers immediаte up grаdаtion аnd solution to issues. The biggest chаllenge for...
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...Club IT part 2 Mark Reis Xbis/219 August 18, 2013 Katherine Escobar Club IT part 2 Ruben Keys and Lisa Tejada along with many other business owners understand that information system technologies will let their originations to compete and flourish in the market place. Lisa, Rubin, and a systems consultant have analyzed the current information system status and during this analysis they have identified three areas that need improvement. This prompted Lisa and Ruben made the decision to upgrade their information management systems. The first problem their information system identified was neither Lisa nor Ruben were not up-to-speed with e-commerce. The second problem is that their computers are old and out-dated along with that their Internet connection was the old hard-wired system that plugged directly into the computer. The third problem, they need a better way to keep track of customer orders along with keeping track of inventory. A “Water Fall” method was Lisa and Rubens choice of method to use in their systems analysis (Wiley Higher Education, 2006). Current Information System Lisa and Rubin use their information system to help run their business and in their decision-making process’ (Wiley Higher Education, 2006). Their intranet and using the Internet helps them search for and retrieve needed information quickly. The web site has a login for employees, and they can access their personal information like, how many hours they...
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...SG C1 True/False Indicate whether the statement is true or false. __T_ 1. IBM defines electronic business as "the transformation of key business processes through the use of Internet technologies." ___T_ 2. A transaction is an exchange of value. ___F_ 3. A transaction always has one or more activities associated with it, and an activity will always be related to a transaction. __T__ 4. Transferring funds, placing orders, sending invoices, and shipping goods to customers are all types of activities or transactions. __F__ 5. Business-to-consumer electronic commerce occurs when a person sells an item through a Web auction site to another person. __T__ 6. The U.S. government is one of the largest EDI trading partners in the world. __T__ 7. Firms such as Walmart and General Electric have been pioneers in using EDI to improve their purchasing processes and their relationships with suppliers. __T__ 8. A value added network (VAN) is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI. __T__ 9. The increase in broadband connections in homes is a key element in the B2C component of the second wave. __T__ 10. In some cases, business processes use traditional commerce activities very effectively, and technology cannot improve upon them. __F__ 11. The skills of merchandising and personal selling can be easy to practice remotely. __F__ 12. A small-denomination item...
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...The Growth of Alibaba pg.8-pg.10 * Alibaba Business Model pg.11 * Five Forces Analysis pg.12-pg.13 * Present the Corporation Now pg.13 * Business Environment pg.14-pg.15 * The Financial Analysis pg.17-pg.18 * SWOT Analysis pg.19 * Recommendation for Alibaba pg.20 * Conclusion pg.20 * References pg.21 Definition * E-commerce Electronic commerce, commonly known as e-commerce or eCommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating...
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...Li & Fung : Strategic Role of E-Commerce 2006/9/13 ECT 7010 Fundamental of ECommerce Technologies 1 Defensive posture of Li & Fung to the Internet at the beginning “Would the Internet disintermediate us? Would we get Amazoned by someone who will put together all of the information about buyers and factories online?” Answer: The Internet facilitates supply chain management and Li & Fung were not going to be disintermediated Key: have the old economy know-how and yet be open to new economy ideas 2 2006/9/13 ECT 7010 Fundamental of E-Commerce Technologies Internet Issues August 2000, beta launch of the new Businessto-business(B2B) e-commerce portal Important issues: Was there any chance of channel conflict or cannibalization between the offline business and the start-up? How would the market reach to the start-up once it was launched the following year? How specifically would e-commerce ultimately transform his family’s century-old company? 2006/9/13 ECT 7010 Fundamental of E-Commerce Technologies 3 Company Background 2000 – Li & Fung a $2 billion global export trading company 3,600 staff worldwide Sourcing and managing the global supply chain for high-volume, time-sensitive consumer goods Product mix – hard and soft goods Soft goods – apparel, including woven and knit garments Hard goods – fashion accessories, festive or holiday products, furnishings, giftware, handicrafts, home products, furnishing, home products, fireworks, sporting goods, toys...
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...Associate Level Material Appendix D Club IT, Part 2 To learn more about Club IT’s operations, you stayed until the 2:00 a.m. closing this morning to see how everything was tallied and accounted at the end of a business day. Although it was a late night and you had to wake up early this morning to report back to work, you now have a better understanding of the daily business cycle at Club IT. You are energized when Lisa asks you for suggestions on how to use club and public resources to keep Club IT’s edge as the high-energy, high-impact club it strives to be. The Internet research you have been doing for Lisa and Ruben has been eye-opening, but it is also exasperatingly slow on their dialup connection in their cramped back office. You have a lot of ideas for useful network applications at Club IT. There are many opportunities for discovery and collaboration among employees, members and business partners. You decide to take the initiative and research network applications for the benefit of Club IT. You have interviewed Ruben and the rest of the staff at Club IT and have compiled the following notes: • Club IT’s customers are mostly Net Generation and Millennials. They regularly use mobile technologies such as Blackberries, PDAs, camera phones, and other wireless communication devices. Online shopping is a regular part of their lives. • Not many nightclubs have taken advantage of various e-commerce activities, and Ruben sees this as an opportunity to gain...
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