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Kabletown	
  	
  
Vertical	
  Integration	
  	
  
Update	
  
      CONFIDENTIAL	
  –	
  NOT	
  FOR	
  DISTRIBUTION	
  
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
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
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
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
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
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
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
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

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Kabletown Vertical Integration Update

  • 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