Fordham -How effective decision-making is within the IT department - Analysis...
【Basic Outline of e-Commerce】
1. 1
< Sheets for sharing for Creating Detail Strategy >
Potential EC + Contents
Business Framework
20100915 / Cozy Mizoguchi
cozymizo@hotmail.co.jp / +81-80-1205-8448
Cozy Mizoguchi, all rights reserved 2010
This is Brief
version,
Details
separately.
2. 2
Cozy Mizoguchi, all rights reserved 2010
Index Business Approach
1 Analysis Competitive Environments
- Japanese Internet Market, Fashion EC, etc
2 Setting up Positioning in Market
- Targeting Matrix, Smart-Phone, Mobile EC, etc
3 Clarifying Business Domain
- Type of EC Business, Strategy Matrix, Major Players in
Japanese EC, etc
4 Mapping out of Marketing Strategy
- Critical Pillars of EC, Positioning, Revenue Schemes,
Marketing / Alliances, Project Formation, etc
5 Planning Mid-Long Terms Business Scenario
Outline of Basic Business Direction
3. 3
Cozy Mizoguchi, all rights reserved / Sept, 2010
Basic Approach to Develop Internet Business
1 Analysis of Competitive Environments
- to grasp Market Potential / Risks, by SWOT analysis, etc
2 Setting up Positioning in Market
- to focus on entering market by leveraging our strengths, etc
3 Clarifying Business Domain “WHAT”
- to fix targeting clusters + unique / appealing services from other competitors
4 Mapping out of Marketing Strategy “HOW to”
- to develop Business Model + Tactics + Operational Flow, etc
5 Planning Mid-Long Terms Scenario “until WHEN”
- to pave the Roadmap + Business Plan for stable/reliable growth
“WHERE”
“How Much”
“WHICH ZONE”
“to WHOM”
4. 4
Cozy Mizoguchi, all rights reserved / Sept, 2010
1 Analysis of Competitive Environments
- to grasp Market Potential / Risks, by SWOT analysis, etc
“to WHERE & HOW Much Japanese Customers
tend to spend money in Internet ?”
1 Analysis of Competitive Environments
5. 5
Cozy Mizoguchi, all rights reserved / Sept, 2010
*resource from NRI research institute, 2009
1 The entire Japanese Internet markets:
to expand to 14 trillion in 2014 = 1.8 times 2009 markets size = 8 trillion
2 The biggest market = B2C EC:
to increase 12 trillion in 2014 due mainly to Mobile EC growth = 2.5 trillion
/ 20% share in entire EC from 17% in 2009
3 Internet AD:
to expand to 900 billion = 12% share among the entire Japanese AD arena,
due also to the growth of Mobile AD = 25% share in all internet AD
4 Mobile Contents:
to increase 460 billion, lead mainly by Entertainment related such as:
e-Magazines/Books, Online-Game, etc but growth rate to slow down
5 Online Game:
to expand slightly from 110 billion in 2009 to 158 billion in 2014
1-1 Japanese Internet Market - Major Trends -
6. 6
Cozy Mizoguchi, all rights reserved / Sept, 2010
1-2 Japanese Internet Market - Internet Population -
Generic trends of Japanese entire
internet market / % of Penetration
% of Penetration# of Users (Units;
million)
Close to 100million
= around 80% of
Japanese
experienced Internet
*resources from MIC, GarbageNews.com
7. 7
Cozy Mizoguchi, all rights reserved / Sept, 2010
1 Size of B2C-EC markets < 2008/ Impress inc. >
・ Food Retails ; 251billion 123%↑/ to compared with last year
・ Medical / Cosmetics : 141b 127%↑
・ Entertainment ; 222b 115%↑
・ Travel / Hotel / Gourmet ; 651b 128%↑
2 % of actual experiences of EC: 82,4% <2009 / Impress, inc>
3 % of potential needs for EC : 52.4% <2009 / Impress, inc>
4 Actual items / commodities bought via EC <2009 / Impress, inc>
・ Books / Magazines ; 60.1% ・ Apparel / Accessories /
Fashion ; 47.5%
・ Travel / Hotel ; 42.1% ・ CD / DVD / Bluray ; 45.4%
・ (Drop shipment kind of) Foods / Beverages / Drinks ; 33,2%
→ Where are the growing arena ?
・ Current EC users; 87.9m * 39% increasing from 2008 **26% in all net users 3.4b
・ Main clusters : 18 ~ 24 ages ( 53.3 %)、 25 ~ 30 ages ( 28.4 %)
・ Main genre in EC ; 1 Apparel / Fashion ( 61.5 %) 2 Jewry /
Cosmetics ( 23.5 %)
3 Books ・ CD ・ DVD ( 20.2 %) 4 Electronics ( 13.2
→ How about China EC market ?
< Comparison data >
1-4 Japanese Internet Market - EC -
8. 8
Cozy Mizoguchi, all rights reserved / Sept, 2010
<Main Reason for using EC> by Cross Marketing inc, 2010
1 Enable to buy items by reasonable / cheaper prices than real shops 61.4%
2 Enable to buy any items without considering time 54.0%
* especially higher points in “Health / Cosmetics / Fashion / Apparel
3 Easy to compare the prices
4 Original / Premium items only @ EC stores
* especially higher points in “Health / Cosmetics / Fashion / Apparel
5 Convenient delivery
* especially higher points in “Health / Cosmetics / Fashion / Apparel
< Average spending fees for 1time @ EC Stores > *resource from Nikkei, 2008
- 11,101 in Fashion / 23,625 in Furniture
*15,308 in Fashion @ Real / 36,492 in Furniture @ Real
< Main way to Pay > *resource from MasterCards, 2009
- 20s female; 8.9% 3times @ 1week to use EC, exceeding 20s male w/ 8.1%
- 30s, 40s, 50s Female: each group 5% increasing for EC usages
< Increasing Clusters > *resource from JADMA, 2009
- 71.8% by Credit Cards
1-5 Japanese Internet Market - Fashion EC related -
9. 9
Cozy Mizoguchi, all rights reserved / Sept, 2010
2 Setting up Positioning in Market
- to focus on entering market by leveraging strengths, etc
POSITIONING is Critical,
based on targeting Clusters’ NEED /
WANTS
“WHICH Zone in Market & WHO are the Primary
Clusters?”
2 Setting up Positioning in Internet Market
10. 10
Cozy Mizoguchi, all rights reserved / Sept, 2010
*resource from impress R&D, 2010
- Clusters by Accessing Tools to Internet
based on Age / Gender –
FEMALE MALE
ELDER
YOUNGER
Less Using
Group
-MALE:50.3% -Ave Age:43.5
= Female: housewife /30s
above + Male: Office
Workers/50s above, having
his own house – Married
%:68.3%
Other
Devises
Group
-MALE:47.5%
-Ave Age:41.0 =
Female:
housewife /30s
above + Male:
Office Workers /
50s above, having
his own house
Married %:57.4%
-MALE:46.9%
-Ave Age:33.2 =
Female: housewife,
Students /10-30s +
Male: Students/ 20-30s
Married %:47.1%
Mobile Main
Group
P C Main
Group
-MALE:63.6% -Ave
Age:41.3 = Male:
Office Workers/30s
above, having his
own house – Married
%:51.8%
PC + Mobile
Group
-MALE:58.4% -Ave
Age:30.6 = Female:
students / Under
20s + Male:
Students, Tech
related / Under 30s,
Married %:33.3%
Smart -
phone
Group
-MALE:81.7%
-Ave Age:30.7 =
Male: IT, Tech
related, Services,
Media, etc / 20 -
30s,
-having his own
house
-Married %:32.5%
-Higher PC = Mac
Usage, Higher
expenditure to Net
related
2-2 Targeting Matrix by Tools / Preferences
How to differentiate
from Competitors,
Potential Clusters ?
11. 11
Cozy Mizoguchi, all rights reserved / Sept, 2010
*resource from impress R&D, 2010
2-4 Smart Phone Expansion
< # of Sold units >
2011; 660million, 2012; 1,050million, 2013; 1,539million,
2014; 1,840million, 2015; 2030million
54.6 % to be covered by Smart-Phone in 2015
< # of Signed up >
2009; 315million, 2015; 4,760milliom
・ Volume of shipments in 2009: 3.02 million / 219%
increased
・ Predicted shipments in 2010: 4.75 million / 157% from
2009
% of having Smart-phone
33.9% in Urban area to
compared w/ nationwide
average 12.7% /
28.4% owned by
Businessman
- Smart-phone market in Japan -
# of sold # of Signedmillion million
Smart-Phone
expanding into
various clusters
12. 12
Cozy Mizoguchi, all rights reserved / Sept, 2010
3 Clarifying Business Domain
- to fix targeting clusters + unique / appealing services from other competitors
“WHAT are the fundamental business scheme?”
⇒ Most Growing Category = EC Business Study
3 Clarifying Business Domain
13. 13
Cozy Mizoguchi, all rights reserved / Sept, 2010
- Major EC Players in each categories -
Online GMS
3-1 Type of EC Business Model
- Gross Sales; $19billion
- Operation Profits:$0.8billion
- % of Profits: 4.4%
*purchasing commodities directly
Online GMS + Mall
Online Fashion Mall
*mixture business by GMS + Mall
- Gross Sales; 35billion
- Operation Profits:3billion
- % of Profits: 9.0%
*Fashion centric EC Mall
- Gross Sales; 17billion
- Operation Profits: 2.2billion
- % of Profits: 20.8%
ZOZOTOWN
Online Mall
*renting online space to tenants
- Gross Sales; 63billion
- Operation Profits:31billion
- % of Profits: 48.8%
Online Time Sales
*Time Sales featured EC GMS
- Gross Sales; 13billion
- Operation Profits:0.3billion
- % of Profits: 2.1%
Online Specialty Shop
*Entertainment centric EC
- Gross Sales; 15billion
- Operation Profits:1.2billion
- % of Profits: 8.0%
14. 14
Cozy Mizoguchi, all rights reserved / Sept, 2010
Importance of establishing useful / efficient EC business
formation with useful partners
+
Step by step approach for realizing EC as new profit line
< Needs to set up realistic EC strategy based on CSF of EC >
Organic
Alliance /
ASP
M & A
Items /
Services
◆Biz-Dev Matrix ◆
Delivery /
Settlement
Marketing
/ DB
Usability /
Visibility
◎
○some expectation for reality + $$ ◎much expectation for reality + $$△ less expectation for reality + $$
○○
◎
*◎
◎
◎
○
3-8 Matrix of Executing EC Business
15. 15
Cozy Mizoguchi, all rights reserved / Sept, 2010
4-15 Project Structure <3>
< Legal Scheme >
- Specified Commercial Transactions
- Personal Information Protection
- Products Liability
- Protection of a Trademark
- Electronic Consumer Contracts
- Electronic Acceptance Notice
- Terms of use concerning all relevant web pages
- Legal Responsibility of Improper Price Indications
- Copyrights
- Consumers Protection
- Cleaning-Off
- Legal Responsibility regarding Identity Theft, etc
To make all relevant
legislative preparations
16. 16
Cozy Mizoguchi, all rights reserved / Sept, 2010
CDN
子
cache C
A
R
P
親
cache
*負荷分散+耐障害性向上+トラフィック対
応
WEB APP D B
SAN
NAS
4-16 Project Structure <4>
< System Scheme >
To pave reliable /
secure backyards
scheme efficiently
17. 17
Cozy Mizoguchi, all rights reserved / Sept, 2010
2011 2012 2013
- Efficient + Practical Stepping Up for Realizing EC / Net Business-
Spread
Stable
5 Mid-Long terms Business Roadmap
1 e-Commerce
2 AD Business
4 Contents Billing
3 Affiliate Start
18. 18
Cozy Mizoguchi, all rights reserved 2010
Index
1 LAWSON inc.
- Japanese 2nd ranked Convenient company
2 EMI Music Japan inc.
- Global Record company
3 Entertainment Plus inc.
- Japanese 2nd ranked Ticketing Agency
4 Label Mobile inc.
- Japanese biggest mobile contents provider
*Due 100% to confidentiality, only outline posted in the following.
Case Studies for EC (re) Construction
19. 19
⇒ 4 Major Record Company
*Useful Global Deals, etc
⇒ Wide array of Repertories
*Beatles, Stones, Boowy, etc
⇒ High Profits on Digital area
< Strengths > < Weaknesses >
Established World Company
⇒ No New Comers
⇒ Relying mainly on UTADA
⇒ Shrinking Business Profits
⇒ Less revolution culture
⇒ Old type of Revenue Stream
- Example 2 -
< Opportunities > < Threats >
Expanding Net Business Aggressive Net Business
⇒ EC: 7trillion / AD: 700billion
Digital Contents: 1trillion
⇒ Entertainments Increasing
⇒ Having own mobile service
⇒ Having own distribution scheme
⇒ AVEX; Own EC Services
with 1million User
⇒ Sony Music; Expanding
MUSIC360 Business Model
⇒ Declining Size of Market
Cozy Mizoguchi, all rights reserved / 201010
Less Attractive Rosters
20. 20
Maximizing Own Assets< Business Direction >
Organic
Alliance / ASP
M & A
Items /
Services
◆Biz-Dev Matrix ◆
Delivery /
Settlement
Marketing
/ DB
Usability /
Visibility
◎◎ ◎
- Example 2 -
Cozy Mizoguchi, all rights reserved / 201010
◆Strategy ◆
To Leverage Mobile + PC media as new EC business windows
by effectively connecting the backyard scheme already paved in
mail order service to sell mainly EMI catalogues.
◆Solution ◆ Organic EC business by efficiently leveraging own assets +
already scheme via additional minimal system investment
◎
◆Purpose ◆
EC as new efficient + reliable profits stream