Location Based Services


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Location Based Services

  1. 1. Location Based Services Entry Strategy Debesh Majumdar 09BM8016 Kumar Bipallav Mani 09BM8068 VGSOM March 4, 2011
  2. 2. Overview <ul><li>LBS is an information based service that uses the ability of the global positioning capability on phones. </li></ul><ul><li>For example, Location Based Services allow you to find Points of Interest using your current location. </li></ul><ul><li>Other examples include personalised weather forecasts based on your location, or the ability to play mobile games against people in your local area. </li></ul>
  3. 3. Needs of LBS <ul><li>A huge audience of users </li></ul><ul><li>Repeated and on going “checking in” </li></ul><ul><li>Repeated and on going participation from businesses - large and small. </li></ul><ul><li>As a reasonable way for everyday people to express themselves. </li></ul>
  4. 4. Facts and Figures <ul><li>Since the launch of the iPhone’s ability to offer location awareness, the possibilities have changed from being mere ideas to real value-added applications for which many are even prepared to pay premium. </li></ul><ul><li>Reference: http://www.mobilemonday.ch/?p=1763 </li></ul><ul><li>To be a $13bn industry by 2013 [ABI Research] </li></ul>
  5. 5. The Players in the market
  6. 6. LBS in iPhone
  7. 7. LBS in Android
  8. 8. LBS in iPhone – Paid vs Free
  9. 9. LBS in Android – Paid vs Free
  10. 10. Things to note about LBS <ul><li>Location shouldn’t be the only goal - Advertising is important </li></ul><ul><li>Mobile battery life is important </li></ul><ul><li>Location will be the battleground of the Mobile OS </li></ul><ul><li>Location Pays </li></ul>
  11. 11. Forecast <ul><li>Western Europe Location Based Services (LBS) Market Forecast, 2009 - 2013: </li></ul><ul><li>Western Europe consumer-centric LBS market to rise to $2.97 billion in 2013, a CAGR of 96.4% </li></ul><ul><li>Total LBS service revenue in the EU 27+2 was € 214 million in 2008 </li></ul><ul><li>Berg Insight forecasts LBS revenues to grow to about € 580 million in 2014. Including location-based tariffs for data and voice calls, total revenues are estimated to exceed € 1,430 million. </li></ul>
  12. 12. Forecast contd.. <ul><li>Rapid Location Based Services Growth </li></ul><ul><li>Strategy Analytics forecasts prospects for location based services to brighten considerably, with total spending to exceed $7 billion by 2013. </li></ul><ul><li>Strategy Analytics predicts strong growth in volume of location enhanced download applications from 5 million globally in 2008 to 280 million in 2013. </li></ul>
  13. 13. <ul><li>Location Based Service Revenue by region 2005 and 2010 </li></ul><ul><li>EMarketer estimates that there were 63 million location-based services (LBS) users worldwide in 2008, and expects this number to reach 486 million in 2012. </li></ul>
  14. 14. LBS Applications available or in the pipeline
  15. 15. LBS Applications available or in the pipeline
  16. 16. Mobile Advertising via LBS
  17. 17. Market Size
  18. 18. Porter’s 5 forces Analysis Threat of Entry Buyers Suppliers Rivalry Substitutes LBS
  19. 19. Threat of entry Threat of Entry Buyers Suppliers Rivalry Substitutes LBS <ul><li>High </li></ul><ul><li>Very less investment required </li></ul><ul><li>Time to market is low </li></ul><ul><li>Low entry and exit barriers </li></ul>
  20. 20. Buyers Threat of Entry Buyers Suppliers Rivalry Substitutes LBS <ul><li>High </li></ul><ul><li>Availability of competing products </li></ul><ul><li>Low switching cost </li></ul>
  21. 21. Substitutes Threat of Entry Buyers Suppliers Rivalry Substitutes LBS <ul><li>High </li></ul><ul><li>Number of products fulfilling the same need </li></ul><ul><li>Uncertainty over future technology </li></ul>
  22. 22. Rivalry Threat of Entry Buyers Suppliers Rivalry Substitutes LBS <ul><li>Moderate </li></ul><ul><li>Current players have niche markets. </li></ul>
  23. 23. Suppliers Threat of Entry Buyers Suppliers Rivalry Substitutes LBS <ul><li>Low </li></ul><ul><li>Telecom operators, handset manufacturers and mobile OS developers act as facilitators </li></ul>
  24. 24. Business Model
  25. 25. LBS Metrics <ul><li>Percentage of Active Users </li></ul><ul><li>Revenue </li></ul><ul><li>Average Number of Check-ins Per Day </li></ul><ul><li>Time Spent in Application </li></ul><ul><li>Percentage of Users Who Have Been Inactive Over the Last Month </li></ul>
  26. 26. <ul><li>Thank You </li></ul>