1. Kabletown
Vertical
Integration
Update
CONFIDENTIAL
–
NOT
FOR
DISTRIBUTION
2. Current
Status
• Broadcast
and
Network
Channels
TV
• Kabletown
Cable
TV
service
• Kabletown
Broadband
Internet
Service
Internet
• GE
Phones
Phone
• Kabletown
Phone
Service
• Kouchtown
Couches
2
OverthinkingIt.com
3. New
Competition
IKEA
UPPLEVA
TV
IKEA
is
a
Swedish
furniture
company.
The
TVs
are
made
in
China.
Integrated
Blu-‐Ray
Player,
Sound
System,
and
Internet
Video
3
OverthinkingIt.com
4. IKEA
Vertical
Integration
TV
• UPPLEVA
TV
TV
• None,
for
now…
Networks
TV
Stands
• BESTÅ
ÅDAL,
HEMNES,
MOSJÖ
TV
Stands
Internet
• None,
for
now…
Phone
• None,
for
now…
Couches
• EKTORP,
KIVIK,
SANDBY
Couches
4
OverthinkingIt.com
5. Kabletown
Vertical
Integration,
Revisited
TV
• NONE.
(GE
left
TV
business.)
• Broadcast
and
Network
Channels
TV
Networks
• Kabletown
Cable
TV
service
TV
Stands
• NONE.
Internet
• Kabletown
Broadband
Internet
Service
• GE
Phones
Phone
• Kabletown
Phone
Service
Couches
• Kouchtown
5
OverthinkingIt.com
6. Kabletown/IKEA
SWOT
Analysis
Helpful
Harmful
• Handsome
Executives
• Kouchtown
couches
are
Internal
Factors
• American
Company
expensive
and
uncomfortable
• Queen
of
Jordan
• No
TVs
or
TV
stands
(Kabletown)
• TGS
with
Tracy
Jordan
• IKEA
lacks
TV/broadband/ • IKEA
couches
are
inexpensive
External
Factors
phone
networks
and
comfortable
• Swedish
is
hard
to
pronounce
• IKEA
can
get
consumers
to
assemble
TV/broadband/
phone
networks
with
(IKEA)
instructions
and
Allen
wrenches
6
OverthinkingIt.com
7. SWOT
Analysis
Conclusions
IKEA
is
a
direct
threat
to
Kabletown’s
Vertical
Integration
strategy
Allen
wrenches
=
lower
labor
costs
=
unbeatable
cost
advantage
My
Harvard
MBA
really
came
in
handy
when
putting
that
SWOT
matrix
together.
By
the
way,
did
I
mention
that
I
went
to
HBS?
7
OverthinkingIt.com
8. Options:
Pros
&
Cons
Pros
Cons
Lobby
FCC
to
ban
the
Virtually
eliminates
Bravo
is
developing
a
new
letters
“å,”
“ä,”
and
naming
options
for
IKEA
show
called
“Reål
Housewives
“ö”
in
media
properties
of
Östersund”
Lobby
Congress
to
Takes
away
IKEA’s
key
First
they
came
for
the
Allen
make
Allen
wrenches
competitive
advantage
wrenches,
and
I
did
not
speak
illegal
in
the
US
out—Because
I
was
not
an
Allen
wrench.
Buy
IKEA
Market
domination
Takes
forever
to
navigate
in-‐
store
maze
to
get
to
the
IKEA
cash
registers.
Oh,
look,
$2
placemats!
Shut
down
Kouchtown
Cuts
losses
on
failed
Killing
American
Jobs
is
what
product
Obama
does,
not
Kabletown
8
OverthinkingIt.com
9. Recommendations
Cancel
TGS
with
Tracy
Jordan
Lobby
President
Romney
to
declare
war
on
Sweden
Beat
IKEA
in
Swedish
Meatball
market
with
Kabletown
meatballs
made
from
pink
slime
9
OverthinkingIt.com