Iridium Global Strategy
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Iridium Global Strategy

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Iridium Global Strategy Iridium Global Strategy Presentation Transcript

  • Iridium Case Study
    Case Study Briefing
    Satellite Sector Introduction
    Iridium Introduction
    6-Force Model Analysis
    Iridium Strategy Summary
    Group 4
  • Case Study Briefing
    This case study will mainly use (5-force + complementary force) model to do an analysis on satellite communication industries and Iridium company, and review
    • what the satellite sector and industries looks like
    • what services Iridium provides
    • what customers Iridium serves
    • how Iridium shaped global strategy and built up distinctive competitive advantages
  • What the satellite sector and industries looks like (1/3)
    Satellite Sector
    Satellite Application or Solution Industries
    Satellite Infrastructure Industries
    Satellite Services Industries
    SupplyInputs
    ProvideComplements
    Satellite Hardware Industries (Satellite/Gateway)
    Maritime/Aviation Solution Industries
    Satellite Radio/TV Service Industries
    Government/Military Solution Industries
    Satellite Communication Service Industries
    Terrestrial Cellular Networks Industries (GSM/CDMA/TDMA)
    Emergency/Humanitarian Services Solution Industries
    Satellite Voice Service Industries
    Satellite Terminals Industries (Satellite Phone, Modem, Voice/Data Transmitters)
    Satellite Roaming Service Industries
    Mining, forestry, oil and gas Solution Industries
    Satellite Page Service Industries
    Satellite Data Service Industries
    Transportation and utilities Solution Industries
  • What the satellite sector and industries looks like (2/3)
    The satellite constellation could be launched in 3 kinds of orbits in the space - LEO, MEO and GEO.
    Distinct competitive advantages for the first movers to launch LEO satellites because of scarce bandwidth and space in this tier.
    Opportunities for LEOs companies for providing high quality and reliable voice communication from technicalperspective.
  • What the satellite sector and industries looks like (3/3)
    Provides affordable, high quality satellite voice and data service across over 120 countries worldwide with 44 LEO satellites
    Offers the only truly global coverage for satellite communications, is the only company offering customers a guarantee of 100% satisfaction with 66 LEO cross-lined satellites
    Opportunity for Iridium: Share China’s Economic growth
    Opportunity for LEO:
    80+% of the land remained outside a terrestrial cellular network
    Complementary for LEO: GSM provide terrestrial communication services.
    Substitutes for same coverage: GSM provides lower price and better mobile communication services than LEO satellite communication services
  • What services Iridium provides
    Monitoring
    Asset Tracking
    Safety Services
    Your global safety net
    Never out of sight
    Data on demand
    Automation & Control
    Weather
    Fleet Management
    No matter where or when, you're in control
    Stay updated. Anytime. Anywhere
    From dispatch to destination
    Crew Calling
    Netted Communications
    Email
    Personnel Tracking
    Stay connected - no matter where you go
    Far away, close to home
    Always at their side
    Communication that moves
  • What customers Iridium serves
    Business to Business or Business to Government
    Business to Consumer
    2000
    Year
    Expeditions
    Aviation
    Maritime
    Business Traveler
    Military
    Forestry
    Oil & Gas
    Adventures
    Sailing
    Transportation
    Rally
  • How Iridium shaped global strategy and built up distinctive competitive advantages
    2000
    Year
    Buyer: Lack of customer responsiveness, only 27,000 subscribers by April 1999; but forecast was 240,000.
    Rival: Incentive marketing campaigns from ICO and Globalstar, much lower price for similar services
    Supplier: Sprite push Iridium to cut off 65% price
    Substitute: GSM/CDMA/TDMA networks provide better quality mobile communication and data services than Iridium for the 20% terrestrial coverage, even roaming services.
    Potential Entry: High startup capital, High operation cost, High technical entry barriers.
    Complementary: Seldom
    Advantage: Truly global coverage with LEO satellites; No latency.
    Weakness: Hard to manage the complexity of the system and deal with the collaboration.
    Opportunity: Cover the 80% of the globe outside of terrestrial network; Smaller and better power satellite phone comparing to GEO terminals; Launch the 1st batch of constellation of satellites on the LEO.
    Threat: Run out of cash, and go bankruptcy as a first mover.
    Buyer: Changed customer segments from B2C to B2B or B2G, reach to economic scale.
    Rival: ICO went bankruptcy; Globalstar is not global coverage.
    Supplier: More suppliers, less bargaining power than before.
    Substitute: 3G/WiMax networks provide faster wireless 1G bandwidth for the 20% terrestrial coverage, such as Clear.com.
    Potential Entry: There are more and more national or private commercial companies running satellite business, and the startup capital will be lower than before.
    Complementary: Launched partner program, 200+ partners on providing all kinds of complementary solutions to boost the potential demands.
    Advantage: Combined with GHL Acquisition Corp, free debt; Truly global coverage; Iridium Next will be launch at 2015.
    Weakness:…
    Opportunity: Globalization and BRIC economic growth brought new opportunities.
    Threat: More and more satellites on the LEO, satellite crash.
  • Iridium Strategy Summary
    Moving forward to cost leadership by partnership with GHL Acquisition Corp, free debt.
    Establishing distinct competitive advantages by leveraging for globalized differentiation strategies:
    • Only one truly global coverage with LEO constellation of satellites;
    • Better customer segmentation against B2B and B2G;
    • The complementary solutions by partner program;
    • The Iridium Next with better bandwidth, new services and devices and IP technology.