...2013 HfS Research Ltd. State of the industry 2013 - Agenda • Market Size and Forecast • Key Industry Dynamics • Competitive Landscape • Market Wrap Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 2 State of the industry 2013 - Intro • • • • • • Conducted December 2012 / January 2013 The largest-ever quantitative industry study covering both IT and business process outsourcing Respondents included 1355 stakeholders across enterprise buyers, service providers and consultant/influencer organizations The aim of the survey was to understand their views, observations and intentions for 2013 and beyond, when it comes to outsourcing IT and business processes Survey was conducted with the support of KPMG This presentation contains a set of slides with the top level results of the survey Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 3 Key Highlights: BPO Adoption and Outlook: • • • • • • • Deal activity rebounds Market forecasted to grow Attitudes towards BPO have gone “back to basics” Attitude of buyers has shifted from the “we can’t” to the “why can’t we?” Key growth industries increasing BPO uptake: Telecom, Software / High Tech, Media and Publishing and Retail/Hospitality. Major industries show slowing growth. BFSI and Manufacturing still dominate a third of the market, but growth has slowed. Market still nascent. Most business functions are still predominately managed...
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...A1The first thing I did when making my initial decisions regarding computer brands was to look at the summary of customers’ needs provided in the simulation. There were three market segments covered by the simulation: Mercedes, Workhorse, and Traveler. My first decision was to determine which market segments I wanted to market to. I decided to focus on the Mercedes and Workhorse segments as it seemed to me that those markets would have higher sales volumes than the Traveler market. I felt that I could focus on Mercedes as the high end model and market it to higher income customers, while the Workhorse would be an everyday model that the average consumer could afford. The simulation indicated that a score of 110 or higher meant that a need was very important to that segment of the market. The Mercedes segment indicated the following needs: engineering applications; fast and powerful; can link with other computers; and easy on the eyes. The Workhorse segments indicated these needs: office applications; after-sales service and support; easy to use; and low price. I decided to name my brand ‘The Elite’ to make it sound like a top brand during advertising. I named the model I created for the Mercedes segment ‘The Premiere’, and the model for the Workhorse segment was named ‘The Student’. I wanted the names to suggest the product and sales prices hoping that The Premiere would appeal to the higher incomes customers, while The Student would be advertised as affordable, dependable, and...
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...BUSINESS MODEL GENERATION Yves Pigneur Patrick Van Der Pijl Alexander Osterwalder Alan Smith Tim Clark www.businessmodelgeneration.com, EUR 27,60 THE CORE TEAM a core team did the heavy lifting in authorship, design and production of this collaborative effort involving over 400 strategy practitioners from around the world. Lead authors Alexander Osterwalder, Ph.D, and Professor Yves Pigneur, Ph.D., Creative Director & Designer Alan Smith from The Movement, Producer Patrick Van der Pijl of Business Models Inc. and Editor Tim Clark of Hitotsubashi University Graduate School of International Corporate Strategy. www.businessmodelgeneration.com 2 AGENDA 1. 2. 3. 4. 5. 6. 7. 8. 9. BUSINESS MODEL BUSINESS MODEL EXAMPLES MORE... BUSINESS MODEL REVENUE MODEL BUSINESS MODEL BUSINESS MODEL MISC. FRAMEWORK ENVIRONMENT MEASUREMENTS INNOVATION 3 1. BUSINESS MODEL 4 BUSINESS MODEL 5 BUSINESS MODEL A Business Model Of A Company Is A Simplified Representation Of Its Business Logic. 5 BUSINESS MODEL 5 BUSINESS MODEL BUSINESS MODEL “describes what a company offers its customers, how it reaches them and relates to them, through which resources, activities and partners it achieves this and finally, how it earns money.” Dr. Alexander Osterwalder 6 KP KA VP CR CS 2. C$ by Alexander Osterwalder & Yves Pigneur (taken from the book „Business Model Generation“) BUSINESS MODELCH FRAMEWORK KR R$ 7 2. BUSINESS...
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...their corporate culture with minimal or no disrupt to their current business practices. Good will comes with Morgans Hotel Group and Starwood clearly sees and understands that value in their brand. Customers are generally comforted by the familiar, and it is important to Starwood that Morgans customer’s experience, nor fell any change with the company. But we also believe that there are synergistic benefits that will be offered and felt in a positive form. This deal should round out Starwood’s portfolio, adding a unique brand in the boutique market that will allow organic growth and adds value via synergies and opportunities for growth through cross selling. Now let’s address the issues of challenges with respect to the same order. Employees may question that if there are no obvious or evident changes was the merger actually necessary. We don’t want employees of Morgans to feel as if they are just cogs in the wheel of a large organization. There might be some concern on part of Morgans employee as to how much control Starwood might impose on them. But if Starwood allows too much independence are opportunities for cross selling lost? If customers see no obvious changes may they too question the merger? If they feel that it was just a financial benefit for Starwood cross selling may be an annoyance to Morgans...
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...1. Reasons for Going Abroad 1) Market Factors ❖ Limited growth in domestic market □ The company’s domestic market might be stagnant or shrinking; □ For example: Tesco’s move into the Far East, the US, and Central and Eastern Europe. ❖ Small domestic market □ In some industries, survival means broadening scope beyond small national markets to the international area. □ For example: Philips, Nokia and Electrolux could not compete against the strength of global competitors by servicing their small domestic market alone. For them, internationalisation was not an option: it was a fundamental condition for survival. ❖ Foreign markets attractive □ The company might discover foreign markets that present higher profit opportunities than the domestic market does. 2) Competition Factors ❖ Global competitors offering better products or lower prices might attack the company’s domestic market. The company might want to counterattack these competitors in their home markets to tie up their resources. (Kotler, et al. 2004). ❖ When several companies in an industry go abroad, others feel obliged to follow suit to maintain their relative size and growth rate. This is particularly true in oligopolistic industries. 3) Cost Factors ❖ High national labour cost, shortages of skilled workers, and rising energy charges can raise domestic cots to uneconomic levels. These factors may stimulate moves towards foreign direct investment...
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...NTT DoCoMo: Marketing i-mode Why was NTT DoCoMo so successful? What is the most critical reason for its success? DoCoMo’s i-mode delivered a service that met the incipient need of a large target group in the market, namely a world wide web-like content service on a mobile phone, and rapid easy messaging; this was the critical driver of its success. Most of their strategic and marketing decisions, such as its choice of content, advertising, pricing, technology and hardware, revolved around appealing to young Japanese customers. Its consistent marketing approach created a service that consumers were previously not able to articulate. The service was a “blue ocean” (Kim & Mauborgne, 2005) - a standalone service that uniquely integrated the most appealing aspects of the internet and mobile communications. The following are the key decisions that supported the success of DoCoMo: Content DoCoMo chose not to control the entire value chain from content to network, but rather involved the work of third-party entrepreneurs to build content. Partners like Bandai (Moon et al., 2002, p.6), Japan’s largest producer of toys and video games, supplied emotionally appealing content for teenagers and young adults. In addition, a centralized and seamless billing structure facilitated payment to content providers by subscribers who valued convenience and who disliked small purchases made with credit cards. This service proved popular; in 2001 around half of i-mode’s customers were subscribing to...
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...presumably give consumers who do not otherwise have access to a full-size IKEA the opportunity to experience the brand. In addition, consumers who do live near a full-size IKEA would be able to use these mini-outlets to make minor purchases (e.g., purchase a set of mugs, as opposed to an entire living room set). Do you agree with this idea? Why or why not? Opening small satellite stores across America could be beneficial as well as detrimental to Ikea for their future prospective. Since the US is such a large market it is important for Ikea to have a large number of stores to gain a solid chunk of the market share. In order to achieve this, small stores can be used as the first step in the process of customer acquisition. As these small stores help new consumers get used to the brand, products and service. Smaller stores would be faster to setup than the traditional monster size locations that Ikea has. Ikea needs to conduct market research to see which small products it should keep in small stores. This will help identify revenue streams so that these small stores remain profitable as well. Furthermore Ikea needs to identify products that can serve as a gateway for customers to find a desire/need to visit a large sized Ikea e.g selling semi complete kitchen sets. However these same small stores can be detrimental to Ikea’s efforts by creating a misconception of Ikea’s brand image and brand equity. Since it is only in a large store that one can gain the complete Ikea experience...
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...the company in the future, after further increasing its valuation. 2. Refusing the acquisition of the entire company or part of it from a big player would mean turning down fast growth opportunities. In addition, it would be difficult to access the multi-serve distribution, which offers the highest growth possibilities, without the retail relationships of a big company. Furthermore, by going solo Nantucket Nectars would not be able to decrease its cost structure and this would expose the company to the risk of being taken down on price competition by large firms. Finally, there is no certainty that the valuation of the company will increase in the future and an opportunity of selling on these favorable condition may not happen again. B. Go public and do an IPO 1. This strategy would represent a fast way of gaining money to invest for growth while at the same time keeping a reasonable degree of control over the company, since usually in the IPOs there are many different investors, and each of them has few shares. The further growth of the company would permit EoS, thus driving down the costs. In addition, the the New Age drinks industry’s favorable market conditions would help increase the valuation of the company on the stock market. 2. An Ipo would obviously entail the risk of being acquired by an unwanted company. Furthermore the process of contacting an investment bank and define valuation would be costly and time-taking. Also, the short-term profits...
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...Industry Analysis Description of the Industry Since 2010 United States Craft Brewers have been on a steady market share growth. The past five years have transformed the Craft Beer Production industry into one of the fastest growing and most popular alcoholic beverage segments in the United States. Craft brewers have gained over 11% volume shares of the $78 billion beer industry in 2014, producing over 22.2 million barrels valued at $19.6 billion. The last year has seen an increase in breweries with 615 new breweries, while 46 breweries closed, bring the total of craft breweries to 3,464. While most states have seen a steady increase in the number of breweries two states saw declines, North Dakota and Vermont. Vermont saw declines because...
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...Introduction Elecdyne is a 20 year old Japanese electronics SME with 100 employees that is currently struggling in the Japanese electronics market. This company is considering internationalizing their business in order to better meet the needs of the company. The following report outlines where Elecdyne should internationalize to (section 1) as well as how they should internationalize (Section 2) and what products they should produce (Section 3) once they decide on the later options. Elecdyne will choose a country to internationalize to through the use of a combined SWOT and PEST analysis. The strengths and weaknesses portion of the SWOT analysis (see table 1.1) along with emails from the president, Matsumoto Toyo, spurred the genesis of the factors involved in choosing a country to internationalize to. The most important factor Elecdyne needs to consider is cost minimization, which determines if there is cost reductions associated with internationalizing to a specific country. The next factor is access to technology and determines the likelihood of accessing technological expertise within a country. Elecdyne also needs to consider not only having access to new markets, but also the size of the markets being targeted. Additionally, political and economic risk factors are important due to the fact that Elecdyne cannot afford to take high risks. Political risk is the "risk of a change in political institutions stemming from a change in government control, social fabric, or other...
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...Gaming. However, many organizations use Michael Porter’s frame work to analyze business micro environment where the organization/company belongs. Business development managers/ Market Survey managers are mainly critical on analysis of competitive forces in the industry environment in order to identify opportunities and threats towards the organization so as to win the markets shares. As a case study, Buranyikwa Agro Farming Company Ltd uses Michael Porter’s framework of competitive analysis for its competitive advantages. 1.1 THE VISION To be a leading agro farming equipments and implements manufacturer in Tanzania, through manufacturing, developing and distributing affordable farming implements and equipments to small scale farmers across the country. 1.2 THE MISION To contribute to the ongoing economic and social development of Tanzanians through supplying specialized equipments and market them through an efficient and sustainable network where the farmers are provided with promptness and responsiveness. 2:0 Michael Porter’s Framework This is the approach which uses a process of conducting research on the business micro environment within which an organization operates. This theory is based on the forces which determine the competitive intensity and attractiveness of a market. By Porter’s framework, barrier to entry/threat of new entrants, bargaining power of buyer, bargaining power of supplier, threat of substitute products or services and intensity...
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...Globalisation is a phenomenon that poses great opportunities and should be pursued while recognising and addressing the costs. Globalisation takes various forms, yet defined here within the economic scope due to its strong contemporary prominence and impact. Economic globalisation entails the interactions and interdependence of global markets, due to increased mobility of goods, services, capital and communications. Globalisation is driven by many factors, including technological advancements and deliberate neo-liberalist policy. It is not a new phenomenon, yet contemporary globalisation differs dramatically in scale, penetrating more people and remote areas than ever before. Globalisation has many benefits such as economic growth and poverty reduction, yet on a domestic scale economies must be allowed to adapt, and the global economy must be managed on an international scale. Economic interdependence and advances leads to a safer, more democratic world. The forces of globalisation have been set in motion and are not able to be reversed, hence the world must recognise globalisation as inevitable, and work to reap the benefits. Globalisation is an encompassing term, taking various forms that describing the vast social, economic, cultural and political changes that arise due to interaction and integration of people, institutions and governments of different states. Due to contemporary impact, globalisation here is defined within the scope of economic globalisation, it is a process...
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...General Electric). For great business firms, winning is not a one time or now and then thing. Winning is a habit. To be a winner, a firm has to create, exploit, and sustain its competitive advantages vis-à-vis rivals. And it has to do so consistently if it wants to be a perennial winner. Where do competitive advantages come from? What are their contents and effects? Where do they reside inside or outside the firm? In what form can we observe them? How sustainable are they? These are all important questions concerning the multiple facets of the anatomy of competitive advantage. Competitive advantage comes in various shapes and sizes. Understanding the anatomy of competitive advantage helps general managers improve their firms’ chance of gaining and sustaining of competitive advantage hence their chance of winning. This paper advances an integrative framework to help general managers systematically analyze six facets of competitive advantage: its substance, expression,...
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...The industry we could consider could be MP3. Vertically integrated company gaining control over customers and developing new customer outlets. The advantages being certainity, quality control or supply reliability. IPod is Not only a product but service and lifestyle while Itunes is a new wave of music distribution in the music industry. Apple maintains a business model that does not fit into traditional industry borders. Besides its traditional business of making and selling computers (e.g. iMacs, Power Books, etc.) it sells music over the internet in order to increase its sales of iPods, which is a sort of digital walkman. In terms of industries this business model includes hardware (the iPod), software (iTunes, which is the software to download the music) and entertainment (music). Hence we could define apple being in the Consumer Electronics and Digital Distribution. Since the scope of products it provides is a bit complicated we cannot compare it with any industry. Porter’s 5 forces Threat of new entry is low Capital Intensive Industry Economies of Scale: Ipod along with the Itunes services had captured most of the market Product Differentiation: Ipod had it own music services which allowed customers to download music convieniently. There were accessories market that mushroomed around the IPOD flogging leather Chanel pouches to Ipod enabled Toilet roll holders. Cost Advantage: High demand in proprietary technology. Apple has several patents for its products...
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...and expanding industry with 1035.18 million subscribers. The growth in subscribers is dominated by the increase in number of subscribers in wireless mobile segment with a quarter growth rate in the tune of 1.66%(including wireless and wire line). The liberal and reformist policies of the Government of India have been instrumental along with strong consumer demand in the rapid growth in the Indian telecom sector. The government has enabled easy market access to telecom equipment and a fair and proactive regulatory framework that has ensured availability of telecom services to consumer at affordable prices. The deregulation of foreign direct investment (FDI) norms has made the sector one of the fastest growing and a top five employment opportunity generator in the country. Trends observed in Telecom Industry LTE to become mainstream in India; Indian subscripbers will adopt to 4G considering the affordability of prices and need for high speed data. This is even complemented by the growth in smart phone purchases | Public Wifi gaining traction in metropolitan cities as a part of Digital India | Smart Phone becoming integrated part of life, thus increase in the usage of data over voice | Intense competition foreseen in the telecom industry due to delayed M&A activities | Ease in regulatory mandates; with policies like infrastructure sharing between operators | Porters Five Forces Analysis fot Telecom Industry Competitive Rivalry: High * Very low switching...
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