Date post: | 01-Jul-2015 |
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Core structure
Food Processing
& Distribution
Institutional CateringQSR
Specialty Restaurant
Property & Development
Reve
nue
80%
10%
Core competitenciesCORE COMPETENCY SUBSEQUENT STRENGTHS COMPETITIVE ADVANTAGE
Effective food processing and distribution
operations
Quality
Trust from customers
Ability to change perceptions
Efficiency
Adaptability
Cost savings
Strategy misfit inhibits entrance into blue ocean
Market positioning
Dis
trib
ution
net
wor
kCo
ncen
trat
edEx
tens
ive
Low-endHigh-end
Red Ocean
Blue Ocean
iRobot
iRobot has 3 main expansion options
• Popularize robotics to boost and grow the industry.
• Infuse robotic technology into everyday products to further the human experience and make life easier and funner.
BUILD OWN BRAND
Diversify product lines under iRobot brand
name.
LICENSE TECHNOLOGY
Sell patented technology to external companies.
STRATEGIC ALLIANCE
Form agreements with market leaders to push
out new products together.
Independence
Fina
ncia
l Inv
estm
ent
Implementation timeline
Recruit R&D staff
Design, develop, modify
Launch productPartner with sales org
Continuous monitoring and improvement
Evaluate sales team performance
March 2011 March 2012 March 2013 March 2014
Com
mer
cial
cl
eane
rM
owbo
tAd
verti
sing
ca
mpa
ign
Recruit R&D staff
Design, develop, modify Launch product
Continuous monitoring and improvementExpand distribution
capacity
Contract ad agency
Negotiate with network
Develop and produce ad Launch ad
Measure effectiveness
Begin subsequent campaign
Launch ad
Market
Share
Inno
vatio
n
Low High
High
Target
Core Growth options
Strategic Bets
TalentModel
Supply Chain
Winning Formula
Optimize production using new technology
Solar Wafer Manufacturer Precision Robotics
Penetrate Solar Power Segment
Strategic Fit
Technological know-how
Financial Capabilities
Strategic bets
i-shine – Strategic Bets in Solar
Analyzing the market mix
Alternatives
1 Consumer robots in US
2 Military robots in US
3 Consumer robots in non- US
4 Military robots in non- US
5 Aerospace in US
6 Alternative energy in US
7 New Segment in non-USGeographical Market
Segment
US Non US
New
Current
1
23
4
5
6 7
Three Step ApproachEnhancing iRobot’s product and contract strategies
Maximize Patent Value
Awareness Campaign
International Presence
Customer Adoption
Goal: Complement core competencies with informal strategic alliances
Leverage R&D
Mitigate Contract Risk
Create® for Military
Informal Alliances
Situation Analysis Alternatives Recommendation Implementation Results
Promote Innovation
Robotics Competition
Academic Research
weRobot Solutions
Roadmap to Success
15
Situation Analysis
Alternatives
Recommendation
Financial Impact
Implementation
Wrap-Up
Categorizing Your Challenges
Current Road Blocks Future Growth
What can be done about import ban?
Achieving Better Synergies
Sustainability
Acquire new producers / build plants
Lobby FDA for timely resolution
Strengthen quality control
processes
+/--
+
2 Key Areas
Financial Implications
17
2012 2013 2014 2015 2016 2017 2018
$(40,000,000)
$-
$40,000,000
$80,000,000
$120,000,000
$160,000,000
Net Cash Flows (Sensitivity Analysis)
Base Case Pessimistic Optimistic
Mill
ion
s o
f US
D
$1.5 billionNET PRESENT VALUE(=6.5 times 2010 Profit)
$2.5 billionNET PRESENT VALUE(=11 times 2010 Profit)
Growth12.3% pharmaceutical
industry growth per year
Cost of Capital13%
Assumptions
Market Share5% innovative drug market
share by 2018
Projected Sales and Costs
18
Pharmaceutical Market$20 billion
Generics90%
Innovative10% - $2 billion
Ranbaxy3% - $60 million
Other Firms97%
Transfer Pricing
28% of revenues10% premium
Selling, General & Administrative
Expenses
15% of revenues
Marketing Expenses
$8.5 million$3 million / year
Costs
Sales (2015)
$20 billion
$2 billion$60 million
Current Situation
Touring Shows Merchandising Resident Shows
40% 10% 50%
Tent Shows Arena Shows
Executive Summary
Current Situation
By efficiently rearranging the schedule of current touring shows and by extending customer experience with a restaurant, Cirque will be able to:
Expand its sustainable business model;
Optimize ticket sales to achieve an
Enhance customer experience, increasing yearly revenue by $19m to $35m;
incremental revenue of $8M to $15m yearly.
Key Issues
Changing toy market
Key Issues Symptoms
Seasonality of demand
Changing retail channels
Rising oil costs
↓ Toy market
↑ Inventory & obsolenscence
↓ Margins
↑ Costs & ↓ margins
1
2
3
4
Key Issues
AAHK succeeds today because its model delivers value to multiple stakeholder groups
Sustainable growth = delivering value forever
Current Successes
Current Situation
Employees
HR partners
Franchisees
Airlines
Passengers
Cargo shippers
RetailersGovernment
EnvironmentRelated businesses
MediaTourism