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Competitive Business CaseCompetitive Business CaseUBI – Dec/2003UBI – Dec/2003
Alex Cutrim / Suzana RomaAlex Cutrim / Suzana Roma
Layered, Multi-Player Mobile Industry Layered, Multi-Player Mobile Industry Creates Complex Business EnvironmentCreates Complex Business Environment
Corporate Personal
Consumer
Basic Components Processors, electronics, plastics,…
Telecomm. Equipments
Core network switching and transmission equip., wireless handsets, satellite equip.,…
Service Provider
s
Vodafone, T-Mobile, …
Good Morning Electronic InformationTaiwan basedSupplies: Nokia, Ericsson, Motorola, Siemens
SanyoBattery maker: Nokia, Ericsson, Motorola
Texas InstrumentsBluetooth capabilities, wireless infrastructure, RF products
Geo Tex Creative Plastics
Components - No clear leaders, fragmented
NokiaMotorola Telecommunications
Ericsson
Alcatel Siemens Information and Communications
Cell phone - Dominated by Top 5
Service Providers - Abundance of Players
Towering Service - Major PlayersAmerican Tower Corporation14600 towers, USA, Brazil, Mexico
Crown Castle InternationalAustralia, P.Rico, UK, USAAT&T, Sprint
Pinnacle Towers, Inc.2300 towers. USA, Canada
SBA Comm., Inc.3700 towers. USA, P.Rico
Spectrasite Comm., Inc. 8000 towers. USA, Canada
Alltel AT&T wireless group
Cellular One
Cingular WirelessCentennial Comm.
Century Tel.
Dobson Comm.
Dynamic Mobile Data
GoAmerica
MCI WorldComMetricom
Nextel Comm.
Southern LincSprint PCS
T-MobileTriton PCS
Vodafone
VoiceStream Wireless
Western Wireless
WinphoriaNetworks
Visions of a Near Future…Visions of a Near Future…
Estimate of 1 Billion mobile subscribers by 2003!
Visions of a Farther Future…Visions of a Farther Future…Connecting OBJECTS with BUSINESS APPLICATIONS for added-value products and services
Mobile Network
Business
House
ERP
CRM
dB
CarTV
www.com
Consumer
Employee
The real challenge is connecting The real challenge is connecting Business Interests to a Common GoalBusiness Interests to a Common Goal
The ChallengeThe ChallengeIntegrating the plethora of systems and protocols along the value chain
Mobile NetworkBusiness
House
ERP
CRM
dB
CarTV
www.com
Consumer
Employee
Cellphones, PDAs, smartphones, blackberry,…
WLAN, bluetooth,…
WAP, Windows, Linux,…
Java, XML, XHTML, VXML,…
GSM, CDMA, TDMA, GRPS, UMTS, EDGE, W-CDMA,…
Microsoft, Symbian, Palmsource,…
… … under a changing Technological under a changing Technological LandscapeLandscape
1G1G
2G2G
3G3G
1st Generation: Analogue
Limited to Voice Services
Always-on: limited batt. life=> limited mobility
Subject to cloning/fraud
2nd Generation: Digital
Voice and Data (SMS)
Intel tracking: extended batt. life
Limitation on # connecting users
3rd Generation: Broadband Digital
Voice and Extended Data (MMS)
Higher connecting users => populated areas
2.5G2.5GGPRS (GSM)
EDGE
UM
TS
GSMTDMA(850 MHz)
CDMA
WCDMA
CDMA2000
Opposing Strategies Will Slow the Opposing Strategies Will Slow the Expansion ProcessExpansion Process
ProfitProfit
Diversity in Technologies
Complexity of Hardware
Abundance of Equipment Types
Increased Equip. Revenues
Standardization of Technologies
Synergies in value chain
Efficiency, Lower Investments
Increased Service Value
Service ProvidersService Providers Telecomm. EquipmentTelecomm. Equipment
In the End, Consumer will DecideIn the End, Consumer will DecideStandardization of
TechnologiesDiversity of
Technologies
Consolidation
Faster Transmission, More Power
Higher On-going Costs
Proliferation of Devices / Providers
Limited Transmission
Higher Start-up Costs
More Servic
e
“You Get What You Pay For”
“You Pay for What We Have”
Rapid Expansion in Mobile Internet Use Will Rapid Expansion in Mobile Internet Use Will Test Capability of Providers to Keep UpTest Capability of Providers to Keep Up
7
194
2
89
0.1
5230
79
Europe North America LatinaAmerica
Asia-Pacific
Mobile Internet Users
2000
2005
MM
VodafoneVodafone T-MobileT-MobileMissionMission We help people find information, entertainment or We help people find information, entertainment or
assistance wherever they are.assistance wherever they are.We will deliver the best customer We will deliver the best customer experience in mobile communication experience in mobile communication – the true freedom to move- on a – the true freedom to move- on a global scale.global scale.
VisionVision Our vision is to be the world’s mobile telecommunication Our vision is to be the world’s mobile telecommunication leader- enriching customer’s lives, helping individuals, leader- enriching customer’s lives, helping individuals, business and communities be more connected in a business and communities be more connected in a mobile world. mobile world.
They will prefer Vodafone because the experience of They will prefer Vodafone because the experience of using Vodafone will be the best they can find. using Vodafone will be the best they can find.
We will lead in making the mobile the primary means of We will lead in making the mobile the primary means of personal communication for every individual around the personal communication for every individual around the world.world.
Through leadership,our scale, our scope and our Through leadership,our scale, our scope and our partnerships, we will bring online mobile services to the partnerships, we will bring online mobile services to the world.world.
Our core slogan is “Get More” more Our core slogan is “Get More” more value for money, more freedom of value for money, more freedom of choice, more options, more services; choice, more options, more services; without more expenses.without more expenses.
ObjectivesObjectives The Company’s objective is increasingly focused on The Company’s objective is increasingly focused on voice and data revenue growth and margin voice and data revenue growth and margin improvement.improvement.
Provide the best possible return for the shareholders.Provide the best possible return for the shareholders.
To extend our operational leadership of the industry .To extend our operational leadership of the industry .
To extend service differentiationTo extend service differentiation
To provide our customers with safe, reliable products To provide our customers with safe, reliable products and services that represent good value for money.and services that represent good value for money.
Global brand for global movers: Global brand for global movers: customers are on the move round the customers are on the move round the globe and want to use their mobile globe and want to use their mobile phones everywhere.phones everywhere.
Transnational Company: be one teamTransnational Company: be one team
Individual Markets and CulturesIndividual Markets and Cultures
Competitive
Assessment
Research &
Development
Global Presence
Growth Strategy
Products
Market Image
Organization
al Structure
Growth StrategyGrowth Strategy
VodafoneVodafone T-MobileT-MobileIncrease marketing focus on our Increase marketing focus on our established high quality customer baseestablished high quality customer base
Provide its customer seamless trans-Provide its customer seamless trans-Atlantic servicesAtlantic services
Invest in delivering Vodafone branded, Invest in delivering Vodafone branded, easy to use, customer propositions for easy to use, customer propositions for mobile voice and data. One worldwide mobile voice and data. One worldwide brand => Brand awareness => preferencebrand => Brand awareness => preference
A recognizable brand, present on A recognizable brand, present on international markets, assuring the same international markets, assuring the same high quality everywherehigh quality everywhere
Maximize the benefits of scale and scope, Maximize the benefits of scale and scope, through the use of partner network through the use of partner network agreements, by increasing equity interests agreements, by increasing equity interests in business where the group has existing in business where the group has existing shareholdingsshareholdings
Subsidiaries are still responsible for Subsidiaries are still responsible for performance in their countries. They know performance in their countries. They know best what their customers want and need, best what their customers want and need, and will be the ones from whom the and will be the ones from whom the important ideas will comeimportant ideas will come
Understand, anticipate and respond to the Understand, anticipate and respond to the needs of our customers and provide them needs of our customers and provide them with innovative products and serviceswith innovative products and services
Make further acquisitions or disposals of Make further acquisitions or disposals of business business
Global PresenceGlobal Presence
VodafoneVodafone T-MobileT-Mobile123 million customers spanning 123 million customers spanning
the key global cellular markets in the key global cellular markets in 28 countries28 countries
Deutsche Telekom and its Deutsche Telekom and its subsidiaries and affiliates provide subsidiaries and affiliates provide wireless services to approximately wireless services to approximately 82 million customers worldwide82 million customers worldwide
Still, its global strategy appears Still, its global strategy appears less than clear outside its less than clear outside its European heartland, especially in European heartland, especially in the United Statesthe United States
It is the first to operate a trans-It is the first to operate a trans-Atlantic mobile network based on Atlantic mobile network based on GSMGSM
In the United Kingdom, it carved In the United Kingdom, it carved out a position of market out a position of market dominance against a powerful dominance against a powerful rival, partially owned by the former rival, partially owned by the former telecom monopoly, BTtelecom monopoly, BT
Its subsidiaries and affiliates are Its subsidiaries and affiliates are among the first operators to use among the first operators to use the future oriented GPRSthe future oriented GPRS
$300 Billion in acquisitions$300 Billion in acquisitions
ProductsProducts
VodafoneVodafone T-MobileT-MobileVodafone Live!: bringing customers a world of Vodafone Live!: bringing customers a world of
colour, sound and picturescolour, sound and pictures
Acquisition of Vizzavi is expected to continue Acquisition of Vizzavi is expected to continue to drive a significant part of the Group's growth to drive a significant part of the Group's growth in future yearsin future years
Lifestyle and mobility:Lifestyle and mobility:The company is broadening its mobile multimedia services The company is broadening its mobile multimedia services spectrumspectrumColor displays, multitonal ringing, Java capability and GPRS Color displays, multitonal ringing, Java capability and GPRS connections have made many mobile multimedia services more connections have made many mobile multimedia services more attractive, faster and easierattractive, faster and easierT-Mobile t-zones are characteristic for this next content generation.T-Mobile t-zones are characteristic for this next content generation.Six popular channels: t-info, t-sports, t-news, t-games, t-music. Six popular channels: t-info, t-sports, t-news, t-games, t-music. More than 100 partners with over 500 services providing a wide More than 100 partners with over 500 services providing a wide variety of contentvariety of content
Mobile Office from Vodafone: high speed data Mobile Office from Vodafone: high speed data card enabling customers to access their normal card enabling customers to access their normal business applications when out of the officebusiness applications when out of the office
A customised Vodafone branded GPRS data A customised Vodafone branded GPRS data card provides optimal service on Vodafone card provides optimal service on Vodafone networknetwork
Making the Office Mobile:Making the Office Mobile:The products provide secure, efficient communication between the The products provide secure, efficient communication between the mobile employees by optimizing essential office applications, such mobile employees by optimizing essential office applications, such as e-mail and office Outlook.as e-mail and office Outlook.Products already available: Mobile Access Portal, Mobile Service Products already available: Mobile Access Portal, Mobile Service Portal, BlackBerry Solution or the T-Mobile MDA and SidekickPortal, BlackBerry Solution or the T-Mobile MDA and Sidekick
Wireless Office: replace desk phones or Wireless Office: replace desk phones or replace their entire PBXreplace their entire PBX
New technologies: Acquisition of UMTS licenses in six european New technologies: Acquisition of UMTS licenses in six european countriescountries
Blackberry: advanced wireless handhelds, Blackberry: advanced wireless handhelds, software and servicessoftware and services
Mobile messaging: The company launched GPRS in 2002 in Mobile messaging: The company launched GPRS in 2002 in EuropeEurope
Connected by Vodafone: descriptor applied to Connected by Vodafone: descriptor applied to mobile data solutions provided through mobile data solutions provided through partnerships between Vodafone and leading partnerships between Vodafone and leading mobile device manufacturersmobile device manufacturers
Market ImageMarket Image
VodafoneVodafone T-MobileT-MobileFor many early British mobile users, For many early British mobile users,
Vodafone became synonymous with Vodafone became synonymous with the mobile phone, as in “call me on my the mobile phone, as in “call me on my Vodafone."Vodafone."
As part of its brand philosophy, the As part of its brand philosophy, the company will strengthen its company will strengthen its commitment to quality and a superior commitment to quality and a superior range of voice and data productsrange of voice and data products
Vodafone live!: Best Consumer Vodafone live!: Best Consumer Wireless Application or Service at the Wireless Application or Service at the GSM Association Awards, and, most GSM Association Awards, and, most recently Best New Service at the recently Best New Service at the World Communications Awards and World Communications Awards and Best Network Service at the Mobile Best Network Service at the Mobile Choice Consumer AwardsChoice Consumer Awards
The T-Mobile brands symbolizes The T-Mobile brands symbolizes reliability, attractiveness, and reliability, attractiveness, and innovation throughout Europe and the innovation throughout Europe and the United States.United States.
High profile sponsorship of Ferrari High profile sponsorship of Ferrari and Manchester Unitedand Manchester United
Spokestar Catherine Zeta-JonesSpokestar Catherine Zeta-Jones
Vodafone Hopes to Make Global Vodafone Hopes to Make Global Mobile Mean More Than Wireless Mobile Mean More Than Wireless VoiceVoice
A recognizable T-Mobile brand, A recognizable T-Mobile brand, present on international markets, present on international markets, assuring the same high quality assuring the same high quality everywhere, is an important everywhere, is an important orientation.orientation.
Organizational StructureOrganizational Structure
VodafoneVodafone T-MobileT-MobileIt developed global It developed global
functions for supply chain, IT functions for supply chain, IT and technology and technology management.management.
One team: Main activities, One team: Main activities, such as marketing, platform such as marketing, platform harmonization, procurement, harmonization, procurement, and brand migration will be and brand migration will be managed centrally in futuremanaged centrally in future
Individual markets and Individual markets and cultures: Subsidiaries are cultures: Subsidiaries are responsible for performance responsible for performance in their countriesin their countries
Research and DevelopmentResearch and Development
VodafoneVodafone T-MobileT-MobileNTT DoCoMo and J-Phone (owned partially by NTT DoCoMo and J-Phone (owned partially by Vodafone) launch 3G networkVodafone) launch 3G network
Lucent Technologies and T-Mobile launched a Lucent Technologies and T-Mobile launched a joint pilot project to evaluate secure high-speed joint pilot project to evaluate secure high-speed data services using 3G UMTS technology.data services using 3G UMTS technology.
Vizzavi is Vodafone’s 50/50 joint venture with Vizzavi is Vodafone’s 50/50 joint venture with media giant Vivendi. Essentially it is looking to be media giant Vivendi. Essentially it is looking to be the Yahoo! of the mobile internet.the Yahoo! of the mobile internet.
Joined forces with Google to bring advanced Joined forces with Google to bring advanced search capabilities to mobile internet portalsearch capabilities to mobile internet portal
Signed agreements with content providers: MTV, Signed agreements with content providers: MTV, Universal Mobile, AOL, Aspiro, CNN, Digital Universal Mobile, AOL, Aspiro, CNN, Digital Bridges, E*Trade, MapQuest, NGame, Picofun, Bridges, E*Trade, MapQuest, NGame, Picofun, PocketBoxOffice, PocketThis, Sabre, PocketBoxOffice, PocketThis, Sabre, TicketMaster & CitySearch, Upoc, ViAir’s, TicketMaster & CitySearch, Upoc, ViAir’s, ZagataZagata
Vodafone made a joint-venture with Oracle to offer Vodafone made a joint-venture with Oracle to offer field workers access to key business systems. field workers access to key business systems. Vodafone partnerships with SAP and Hewlet-Vodafone partnerships with SAP and Hewlet-Packard to collaborate on Mobile Enterprise Packard to collaborate on Mobile Enterprise solutionssolutions
Microsoft partners with T-Mobile HotSpot to Microsoft partners with T-Mobile HotSpot to promote Wi-Fi access for Windows Mobile promote Wi-Fi access for Windows Mobile CustomersCustomers
Vodafone and Microsoft join forces to create Vodafone and Microsoft join forces to create programming standards for software that will programming standards for software that will eventually link computers and mobile phoneseventually link computers and mobile phones
T-Mobile will deploy 3G Lab’s Trigenix product: T-Mobile will deploy 3G Lab’s Trigenix product: the goal is to enable users to create their own the goal is to enable users to create their own personalized interface.personalized interface.
Launches Global Blackberry Solution. Has worked Launches Global Blackberry Solution. Has worked closely with Research In Motion to deliver closely with Research In Motion to deliver customized BlackBerry solution.customized BlackBerry solution.
Working closely with Research in Motion to offer Working closely with Research in Motion to offer Blackberry terminals supported by the operator’s Blackberry terminals supported by the operator’s GRPS and “push” e-mail services.GRPS and “push” e-mail services.
Competitive
Assessment
Research &
Development
Global Presence
Growth Strategy
Products
Market Image
Organization
al Structure
VodafoneVodafone T-MobileT-MobileStrengthsStrengths Global reach, Global reach,
strategic executer, strategic executer, industry enablerindustry enabler
Agile, opportunistic Agile, opportunistic with current with current possibilitiespossibilities
WeaknessesWeaknesses Technology base in Technology base in US, “over focus” on US, “over focus” on global Brand strategyglobal Brand strategy
Lack of long-term Lack of long-term focusfocus
OpportunitiesOpportunities Leverage global Leverage global capabilities to drive capabilities to drive mobile standardsmobile standards
Keep close distance Keep close distance to leader to avoid to leader to avoid risksrisks
ThreatsThreats Value for money of Value for money of 3G derived mobile 3G derived mobile services, price paid services, price paid for 3G licensesfor 3G licenses
Value for money of Value for money of 3G derived mobile 3G derived mobile servicesservices
Executive SummaryExecutive Summary
Vodafone is well positioned to become the Vodafone is well positioned to become the World’s true leader in Mobile servicesWorld’s true leader in Mobile services Focused, global, executionFocused, global, execution Leveraging global presence to drive mobile Leveraging global presence to drive mobile
industry to deliver increased valueindustry to deliver increased valueThe real power of a global player is The real power of a global player is notnot in in leveraging seamless global servicesleveraging seamless global services
T-Mobile has the technological global T-Mobile has the technological global competitive edge to be in the forefront of competitive edge to be in the forefront of the industrythe industry Does not appear to be committed to thisDoes not appear to be committed to this
Vodafone’s Choice for Verizon in the US Vodafone’s Choice for Verizon in the US appears to be driven by quality opposed to appears to be driven by quality opposed to
strategystrategy
Verizon is based on the Verizon is based on the CDMA platformCDMA platform
Not one of Verizon Not one of Verizon Wireless services carry Wireless services carry the Vodafone brandthe Vodafone brand
““Put option” on $10 billion Put option” on $10 billion 45% stake can be 45% stake can be exercised by Vodafoneexercised by Vodafone
AT&T Wireless and T-AT&T Wireless and T-Mobile USA are GSMMobile USA are GSM
Are you encouraged to switch providers based in WNP?
12.2
24.4
24.5
27.1
32.2
33.1
33.3
34.8
38.2
37.0
37.6
22.6
TracFone
Alltell
Nextel
Cingular
Sprint PCS
Cricket
Cellular One
US Cellular
Qwest
AT&T
T-Mobile US
Verizon
Reference SourcesReference Sources
BIGresearchBIGresearchCeBit NewsCeBit NewsCNET News.comCNET News.comDuke UniversityDuke UniversityGartnerGartnerGlobalWirelessNewsGlobalWirelessNewsGSM associationGSM associationgsm worldgsm worldIntermarket GroupIntermarket GroupMicrosoftMicrosoftMIT UniversityMIT UniversityMULTEXMULTEX
New York TimesNew York TimesPMN PublicationsPMN PublicationsQualcommQualcommReutersReutersRobert Kahn, “Father of Robert Kahn, “Father of the Internet”the Internet”The Motley FoolThe Motley FoolThis Is Money.comThis Is Money.comT-Mobile InternationalT-Mobile InternationalVodafoneVodafoneWall Street JournalWall Street JournalWorld Investment AKWorld Investment AKYahoo! FinanceYahoo! Finance
About the AuthorsAbout the Authors
Suzana Roma is a Statistician majorSuzana Roma is a Statistician majorShe has broad experience with applied statistics She has broad experience with applied statistics to Marketing Intelligenceto Marketing IntelligenceShe has worked in several consumer oriented She has worked in several consumer oriented companies such as Coca-Cola, Telemar companies such as Coca-Cola, Telemar (Telecom) and Fininvest (Bank)(Telecom) and Fininvest (Bank)[email protected]@yahoo.com
Alex Cutrim is an Electronics Engineer majorAlex Cutrim is an Electronics Engineer majorHe has extensive practical background in He has extensive practical background in Strategic Intelligence functionsStrategic Intelligence functionsHe has worked in several areas of The Coca-He has worked in several areas of The Coca-Cola Company and SonyCola Company and [email protected]@domain.com.br