©2005 deloitte inc. logical structuring case competition training strategy and operations january...
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©2005 Deloitte Inc.
Logical StructuringCase Competition TrainingStrategy and OperationsJanuary 8, 2008
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Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
3
Purpose
The purpose of this session is to help prepare you for this week’s case competition.
Objectives
By the end of this session you should have a better understanding of:
How to logically structure a case presentation:
• Logical Structuring & Storyboarding
How to use quantitative and qualitative data to support your research
• Research Tips
• Example
How to execute a successful presentation:
• Professionalism
Examples of previous presentations:
• DOs & DON’Ts
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Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
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Why does structure matter?
1. Makes the message precise Forces the writer to be “dead clear” about what they are
communicating to the reader, preventing messages that are unclear, unintended, or intellectually empty
2. Reveals gaps in thinking Enables the writer to identify gaps by anticipating and responding to
the reader’s questions before the communication is delivered
3. Provides clarity to the reader Prevents the reader from “working” to understand the message,
thereby eliminating the possibility that your message is misunderstood or ignored entirely
Memo AJohn Collins telephoned to say he can’t make the meeting at 9:00. Hal Johnson says he doesn’t mind making it later or even tomorrow, but not before 10:30 and Don Clifford won’t return from Frankfurt until tomorrow late. The conference room is booked tomorrow, but free on Thursday. Thursday at 11:00 looks to be a good time. Is that okay with you?
Memo BCould we reschedule today’s 9:00 meeting to Thursday at 11:00? This would make it more convenient for Collins and Johnson, and would permit Clifford to be present. It is also the only other time this week that the conference room is free.
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Governing Thought:States the answer to the question raised in the readers mind
Key Line:Major points which, taken together prove the answer
The Pyramid Structure
Support:Data and facts which support the key line
Explains how or why
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Opportunitiesand threats
Opportunitiesand threats
ABC should go onlineand the first priority should be to defend its current market share
ABC should go onlineand the first priority should be to defend its current market share
Primary benefitsof the internet
strategy
Primary benefitsof the internet
strategy
An Unstructured Communication
ABC’s current customers are more likely to shop online
than the general
population
ABC’s current customers are more likely to shop online
than the general
population
ABC’s competitors
are increasing their online
product assortment
ABC’s competitors
are increasing their online
product assortment
Without an online
channel ABC risks losing
some customers to competitors
Without an online
channel ABC risks losing
some customers to competitors
ABC’s online sales in 2005 could reach
$100mm
ABC’s online sales in 2005 could reach
$100mm
Defendmarket share
Defendmarket share
Growrevenue
Growrevenue
Develop deeper
relationships with
customers
Develop deeper
relationships with
customers
Support ABC’s operating strategy
Support ABC’s operating strategy
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Acme can reduce costs by $10mm in the next 2 years through some operational
improvements
Acme can reduce costs by $10mm in the next 2 years through some operational
improvements
Differentiate service levels to save $2mmDifferentiate service levels to save $2mm
Segment customers by value
Segment customers by value
Determine economic level of
service for each
segment
Determine economic level of
service for each
segment
Shift lower value
segments to lower
cost channels
Shift lower value
segments to lower
cost channels
Re-engineer core functions to save $5mm
Re-engineer core functions to save $5mm
Evaluate internal cost of core
function
Evaluate internal cost of core
function
Compare cost of
function to best-in-class benchmarks
Compare cost of
function to best-in-class benchmarks
Adopt best practices based on
benchmarks
Adopt best practices based on
benchmarks
Outsource non-corefunctions to save $3mm
Outsource non-corefunctions to save $3mm
Select non-core functions
Select non-core functions
Evaluate cost and service level of
potential partners
Evaluate cost and service level of
potential partners
Choose one
partner for each
function
Choose one
partner for each
function
A Structured Communication
Governing Thought:
Key Line:
Support:
Copyright © 2006 Deloitte Development LLC. All rights reserved. 9
1. Ideas at any level must be summaries of the ideas grouped below
– Derived from high-level ideas
– Point of a paragraph is a summary of the sentences it contains
2. Idea in each grouping must always be the same kind of ideas
– All ideas are from the same logical grouping
– Label idea with a plural noun
3. Ideas in each grouping must be in a logical order
– Deductively
– Chronologically
– Structurally
– Comparatively
Three Key Rules to Apply When Building a Pyramid
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AnswerAnswer
A statement about the subject with which you know the reader will agree
The complicating event that create the tension in the story
• Situation:
• Complication:
The implicit question that results from the complication
• Question:
Elements of the Introduction
Governing Thought:
Key Line:
Support:
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Acme must develop a value proposition tailored
to the coyote market.
Acme must develop a value proposition tailored
to the coyote market.
Understand the uniqueneeds of coyotes
Understand the uniqueneeds of coyotes
Adapt product line to meet coyote needs
Adapt product line to meet coyote needs
Educate coyotes on Acme’s ability to meet their needs
Educate coyotes on Acme’s ability to meet their needs
How?
Structuring a Response to How
Governing Thought:
Key Line:
S: Acme must increase its focus on the coyote market
C: Acme is not currently focused on the coyote market
Q: How can Acme focus on the coyote market?
Step 1 Step 2 Step 3
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DrugsRUs should spend $25 million to accelerate the approval process for
Antizak
DrugsRUs should spend $25 million to accelerate the approval process for
Antizak
The Antizak market is expected to top $1 billion
per year
The Antizak market is expected to top $1 billion
per year
Earlier approval allows DrugRUs more time
before patent protection expires, which is worth $200 million in profit
Earlier approval allows DrugRUs more time
before patent protection expires, which is worth $200 million in profit
Competitors are developing a substitute that may capture the
market if launched first
Competitors are developing a substitute that may capture the
market if launched first
Why?
Structuring a Response to Why
S: Approval for DrugsRUs new lifestyle drug Antizak is taking longer than expected
C: DrugsRUs can spend $25 million to accelerate the approval process
Q: Should DrugsRUs spend $25 million to accelerate the approval process?
Reason 1 Reason 2 Reason 3
Governing Thought:
Key Line:
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S: The plant is not meeting its widget production goals
C: The production line is frequently stopped because of insufficient partsQ: What should the plant do differently?A: The parts procurement process needs to be redesigned to reduce fulfillment time
S: Sow’s Ear Inc. developed a silk purse product line 2 years ago
C: Since then, the silk purse division has been unprofitableQ: What should Sow’s Ear do?A: Sow’s Ear Inc. should abandon its silk purse product line
S: ABC, a book retailer, is considering developing an online channel C: The online retail book market is dominated by 2 strong playersQ: Should ABC develop an online channel?A: Yes, ABC should go online
S: You have undertaken a number of initiatives to improve customer serviceC: Customer service continues to result in decreased customer satisfactionQ: How can we improve customers service?A: We must redesign customer service
Which Question is Raised - How or Why?
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Clarifying Grouped Ideas
List the PointsList the Points Identify the Type of Point
Identify the Type of Point
Summarize the Points
Summarize the Points Order the PointsOrder the Points
Synthesize findings from interviews, research and analysisCreate a list of key points
Put the points into categories by defining the kind of problem being discussed, attempting to use similar level of abstraction across categories
Write a sentence that states the “essence” of each category
Put the points in logical order, such as order of importance or time order
Activities:
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The Importance of MECE
MECE
MutuallyExclusive
Do any of the points overlap?
Example
Making Dinner:• Select menu• Buy ingredient• Prepare courses
CollectivelyExhaustive
Have all possibilities been covered?
Mobile Phone Types:• Analog• Digital• GSM
Reasons to acquire competitor ABC:• Complimentary customer base• Superior technology• Digestible size
Points across horizontal levels of the pyramid should be MECE (Mutually Exclusive, Collectively Exhaustive)
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Storyboarding
Creating a storyboard provides an outline for the presentation and the path you will follow:
Uses Pyramid Structure as a foundation
Maps out the storyline of a presentation
Establishes team and judging panel’s expectations about what is to be produced and delivered
Helps organize work and define data needs
Establishes evaluation frameworks and criteria used in the assessment
Facilitates greater productivity and higher quality
Keeps an engagement focused
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Creating the Storyboard
Cutting Edge Corporation should close its razor
manufacturing operation in Wisconsin and
manufacture razors in Mexico
Cutting Edge Corporation should close its razor
manufacturing operation in Wisconsin and
manufacture razors in Mexico
Overall costs in Mexico are 75% lower than in
Wisconsin, resulting in recovery of
moving costs in 6 months
Overall costs in Mexico are 75% lower than in
Wisconsin, resulting in recovery of
moving costs in 6 months
Key Line:
Governing Thought:
Mexico provides an operating environment that is as stable as Wisconsin,
ensuring continuity of operations
Mexico provides an operating environment that is as stable as Wisconsin,
ensuring continuity of operations
Manufacturing technology is more advanced in Mexico
than in Wisconsin, enabling Cutting Edge to leverageleading edge capabilities
Manufacturing technology is more advanced in Mexico
than in Wisconsin, enabling Cutting Edge to leverageleading edge capabilities
Support:
One page for each idea
Page 2
Page 1SituationComplication(Question)
Each requiresa set-up
page
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Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
19
Quantitative and Qualitative Observations
Definition Examples Sources
Quantitative
•Numerical and statistical
•Most suitable when the objective is to measure or quantify data
•Answers the “what” questions
•Firm stock value
•Market share
•Net Present Value
•financial statements
•statistical studies
•surveys
•censuses
Qualitative
•Interpretive and insightful
•Most helpful when the goal is to understand situations or provide context
•Answers the “how” and “why" questions
•Pending lawsuits
•Consumer trends
•Market perception
•press releases
•annual reports
•industry white papers
•analyst reports
It’s important to use both quantitative and qualitative observations to support your recommendation
•Qualitative data and analysis is required as hard justification for your recommendation (e.g., dollar savings, head count reduction)
•Qualitative data can be used to support and explain the meaning of quantitative research
•Combining methods leads to a balanced, persuasive argument
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Research Tips
Structuring your research using a defined approach can help you research effectively in a short period of time
• Several models can be applied to help you structure your research. One example is Porter’s Five Forces
Your approach to case research should mirror the logical structuring of your presentation
• Governing Thought (Recommendation) Key Lines Support
But how do you know what your recommendations are before conducting your research?
Answer: Guess.• Based on your initial impressions of the case, generate some hypotheses on
what you think the company should do. Then, based on your hypotheses, look for supporting evidence
• The advantage of this approach is that it can dramatically reduce the amount of time spent on research. You will be focusing your efforts on facts that support your hypotheses
Begin by creating a research log• This is a file that documents all of the research sources that have been
reviewed and includes a summary of key findings, facts and sourcing information. A research log allows for easy dissemination of key findings saving time. Assign a format and owner up front
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Example
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Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
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Professionalism – Execution of the presentation
There are two key avenues for case competitors to convey professionalism:
(1)The execution of the presentation
(2)The presentation materials
Assign roles early – subject matter experts and presenters
• Who answers questions on which topics? Rehearse the presentation to clearly define:
• Sequence – what order will the team members will present in?
• Duration – how long should each section take?
• Hand-offs – how will each section of the presentation smoothly and logically transition from one team member to the next?
• Contingency plan – which sections could be reduced or eliminated? Pay special attention to numbers, statistics, charts and analysis
• Inability to convincingly defend figures is a common pitfall
• Be able to recall sources and assumptions without having to use reference material
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Professionalism – Presentation Materials
Alignment
• Check text and object alignment to ensure a consistent look across slides
• Ensure headings and text boxes are in the same place, as you flip through your slides
Colour Scheme
• A muted colour scheme is generally recommended
• Avoid dark backgrounds, very bright colours or too many colours
• Ensure that your colour scheme both prints well and projects well
Font
• Sans-serif font styles tend to work best: Arial, Verdana, Tahoma
• Font size should be readable, but not too large (min ~12pt)
Consistency
• Be consistent with font size, font style and colour scheme
• Be consistent with punctuation at the end of bullets - Either use it or do not, but do not use it inconsistently
• Be consistent with overall structure—i.e. use of tag lines versus just headers
• Use the slide master to create a template to ensure consistency
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Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
26
DOs & DON’Ts
DOs Brainstorm as a team to develop a strategy and agree to an execution plan Divide and conquer the work to efficiently execute on the plan
• Determine required tasks, dependencies and agree to roles for each team member
• Have each person create their slides based on an agreed upon template (designed in ‘Slide Master’)
Avoid ‘version control’ issues by having one person own the ‘master’ and others provide send over their slides for inclusion in the master
Proof-read your presentation for spelling, grammar, content and logic Recognize each others’ strengths in determining roles for the presentation
• Group members should present material they are most comfortable with
• Confident speakers can present larger portions of the presentation Leave time to rest the night before the presentation
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DOs & DON’Ts
DON’TS Don’t fall victim to ‘analysis paralysis’
• Instead, set a deadline for making a recommendation decision and stick to it
• You will not come up with a recommendation that is irrefutable and 100% supported by the facts, so at some point, your group must make a decision and run with it – spend the rest of the time supporting your decision and creating a compelling story
Don’t let disagreements impact your team’s dynamics
• Agree upfront on a conflict resolution method (e.g. vote or unanimous agreement)
• Disagreements can lead to productive discussions, so take a few minutes to hear each point of view and then make a decision on next steps
Don’t leave facts or figures unsourced – always include references in the research log for easy footnoting in your final presentation
Don’t leave formatting until the end
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Question
In early 2006, managers in technology and media companies around the world observed Google with awe, envy, and fear. The company’s opportunities seemed boundless. What would Google do next?
Two Options
One option was to stay focused on the company’s distinctive competence: developing superior search solutions and monetizing those solutions through targeted advertising.
Alternatively, Google could branch into new arenas:
• Build Google into a portal like Yahoo! Or MSN by aggregating content into thematic channels
• Extend Google’s role in e-commerce beyond search into a more active role as an intermediary facilitating transactions
• Challenge Microsoft’s hegemony over the PC desktop by developing products to compete with Office and Windows
Last Year’s Case Competition Topic
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Evaluation Criteria
Recommendation
• Followed logically from analysis
• Dealt with all issues raised
• Used decision criteria
• Showed sounds business judgment
• End result was practical/realistic
Question & Answer
• Answered question posed
• Provided convincing explanations
• Admitted weakness
• Answered as a team
Analysis
• Identified key problems
• Used supporting facts/data
• Drew accurate conclusions
• Considered risk
• Offered original insights
Presentation
• Spoke clearly and concisely
• Structured storyline well
• Slides were visually attractive
• Showed enthusiasm and professionalism
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Last Year’s 2nd Place Case
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Bright Colour Scheme
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33
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1. Communicate recommendation in the beginning of the presentation
2. Set expectations
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37
38
Evaluate each recommendation against the 3 criteria
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40
41
42
Data Sourcing
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Pretty Pie Chart
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45
46
47
48
49
50
Last Year’s Winning Case
Terry Huang
Aron Lau
Ke Zhang
Godmans Chow
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
What is the situation?
Question: What should Google do?
Complication: Company is facing boundless opportunities.
Stay focused with Google’s distinctive competencies.
Branch into new arenas.
Recommendation: Google should stay with its core competencies – providing superior search solutions
$6.5 billion by end of 2011 Agenda
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Overview of the approach
What should Google do?
Branch into new areas
Extend Google’s core
search & targeting
competencies.
International Search
Mobile Advertising
NarrowcastingBuild Google into a portal
Extend Google’s role
into e-commerce
Develop Products to
Compete with Office & Windows
Use Pyramid Structure to Frame the Storyboard
Measurement Metrics:
•Market Potential
•Fit with Mission
Option 1 Option 2
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google should stay focus with its core competence
Driven by Company Philosophy It is best to do one thing really, really well – developing superior search
solutions
Market Potential Has opportunity to further monetize its search solutions through
targeted advertising
U.S. and International Internet Users Forecast(million users)
2003E 2004E 2005E 2006E 2007E 2008E 2009E
Time
U.S.
International
U.S. and International Paid Market SearchForecast ($ billions)
2.54.3
6.48
9.611.6
13.412.5
10.27.9
5.93.3
1.50.6
2003E 2004E 2005E 2006E 2007E 2008E 2009E
Time
U.S. Market International Market
Charts’ data sourced from provided Business Case Description
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google should not branch into new arenas. The three arenas proposed deviates from the company mission, or have tremendous risks (market potential).
Google’s mission - To organize the world’s information and make it universally accessible and useful.
Build Google into a portal
“We’re not in the portal business, we’re in the business of making all the world’s information accessible and useful.”
- Schemidt
Develop products to compete with Office and
Windows
“There is strategic leverage in building an
ecosystem around content and advertising that is an extension of our search mission.”
- Schemidt
Extend Google’s role in e-commerce
Acting as an intermediary facilitating transactions (Google
Checkout) is consistent with the mission of the
company.
Inconsistent Font
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google should not extend in e-commerce or develop products to compete with Microsoft due to the high risks (market potential) involved.
Extend Google’s role in e-commerce1. Strong competition:eBay has 39.2% of the e-commerce market. eBay facilitates eCommerce by
offering tools such as PayPal1.PayPal has 24% market share of U.S. online payments market. It is eBay’s
major electronic payment method1. 2. No incentive for PayPal users to switch to using Google Checkout3. Despite Google Checkout’s launch in June, 2006. PayPal posted revenues of
$417 million, a 37% growth rate compared with 2005’s fourth quarter2.
1 Wikipedia.org
2 CNN.com
Inconsistent Alignment
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google should not extend in e-commerce or develop products to compete with Microsoft due to the high risks (market potential) involved.
1. Strong competition: Microsoft2. Difficult for new entrant: OpenOffice currently only has 14% of the enterprise
software market as of 2004 – Hard to convince user to switch to new desktop applications1
3. Relatively small potential revenue The market for Office is only an annual revenue of $1 billion1
Too small of a market size comparing to Google's currently advertising business (140 million vs. 6.1 billion)
Develop products to compete with Office and Windows
1 Wikipedia.org
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google should continue to strengthen its expansion into the international online advertisement market.
Online Ads Spending Growth Rate Chart
0
50
100
150
200
250
1999 2000 2001 2002 2003 2004 2005 2006
Time
Gro
wth
Rat
e (%
)
North America
WesternEuropeAsia
Latin America
Australia/New ZealandTotal
U.S. vs International Internet Users (in millions)
183 203 219 235 251 266 274
500597
687769
854939 986
2003E 2004E 2005E 2006E 2007E 2008E 2009E
Time
U.S.
International
U.S. internet user is 30% of all users in the world.
By 2009, it will decrease and become 27.7%.
U.S. online ads spending slowed down recently while online ads spending from the
international market are increasing at a faster speed.
eMarket.comeMarket.com
The Winning Case Used Extensive DATA to Back
Up its Statement
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
International Online Advertising Entry Analysis
Who is the competition?
How do their products &
services differ
What are the potential
barriers to entry
How does Google become a player?
What are the risks
Yahoo, MSN, Local search
engines (Baidu)
Google's competitors entered the
market earlier, and tailored
products to adapt to local
customers.
Perhaps government regulations (censorship
issue in China)
Partner with local companies, leverage our
leading technology, and adapt to local
environment.
Late to the game. Lack of
understanding of the local environment
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
We believe the emerging mobile advertising market is a fit for both Google’s technological expertise and philosophies.
The potential of the mobile user base is promising, projected to rise to 1 billion
users of 3G data services by 2011.
Mobile Ad Revenues
$2,900.00 (millions)
$1,400.00 (millions)
2006 2011
3G User Base
100 users (millions)
1,000 users
(millions)
2006 2011
Mobile advertising revenues is expected to reach $2.9 billion
dollars by 2011.
Asia – Europe Business: 3G in the world : June 20th 2006 TVweek.com: Nov 15th 2006
More Data!!
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Mobile advertising market analysis before entry.
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
We believe the emerging narrowcasting market is a fit for both Google’s technological expertise and philosophies.
Online Gaming Ad Worth
$500 (million)
$100 (million)
2006 2010
US Narrowcasting Revenue
$450 (million)
$750 (million)
2006 2009
Narrowcasting revenue in the US is projected to reach $1.2 billion by
2009 - >$700 million in network/software operations.
Targeted online gaming advertising worth is projected to be worth $0.5 billion by
2010.
CapV InfoStats March 2005Businessweek Jan 2007
Even More Data!!!
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Narrowcasting market analysis before entry
Who is the competition
?
How do their products & services
differ
What are the potential barriers to entry
How do we become a player?What are the risks?
EK3, Scala, ipSigns
Current infrastructure of fixed targeted
content that is not user targeted
Privacy concerns, government billboard regulations, aesthetic
trends
Partner with existing players, leverage Google’s user targeted
algorithms for more targeted ads.
Inaccurate forecast of market.
Changing government regulations on public
ads.
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google can approach to enter the international online searching and advertising market with relative ease.
To continue strength its expansion in the international online advertisement market
Identify potential international market to expand its service
Conduct market research to understand customer behavior
Develop localized applications and adapt to taste of local customers
Cooperate with local business (partnership, M&A)
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google can approach to enter the narrowcasting and mobile advertising market with relative ease
Tie into the current and emerging markets with Google’s current technology and infrastructure.
FroogleGoogleMaps
GoogleMobile
GoogleNews
Blogger
GoogleServer
Targeted UserGroup/Individual
SystemIntegrator
Advertiser/Contents
RetailCorporateHospitalityServices
Public Spaces____
Gamers____
Mobile device users
San Fran Wifi____
Game developers____
Mobile service providersAnyone
Inconsistent Font
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Google’s projected growth in the next 5 years
Mobile Advertising :
$1.0B(assuming 1/3 market
share)
Narrowcasting: $0.5B
(assuming 1/3 market share)
International Search
$4.98B ($2.4B market with 20% annual growth)
Combined revenue growth of an additional
$6.5B by the end of 2011.
Clear Visual Representation
Recommendation Again Backed Up
by DATA!