France telecom sa (orange)_KAIST MBA

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France telecom sa (orange)_KAIST MBA

  1. 1. France Telecom SA (Orange) Amol and M.M.Binte 2011.06.22
  2. 2. Agenda• Company Overview• External Analysis• Internal Analysis• Value Chain• Business Model• Convergence Strategy• Recent Issue
  3. 3. Company Overview• Founded 1991 Revenue(FY2009)• Headquarter: Paris, France France 948• Key Brand: Orange 7,074 2% Poland• Key People 16% – Stephane Rechard (CEO, since 2010) Spain – Didier Lombard (Chairman, since 2005) 22,274• Industry: Telecommunications 7,958 49% Rest of the 17%• Major Business: world – Fixed /Mobile/Internet/Pay TV Enterprise• Area served: Worldwide 3,836 Division 8% 3,794 IC & SS• Revenue: € 45.9 billion (FY2009) 8%• Profit: € 2.99 billion (FY2009) Source: Data Monitor, 2010
  4. 4. History• 1991: Established and was part of the French Postal and Telco Ministry• 1997-98: Privatized and spun off from government control• Till 2000: Mobile service brands were Itineris, Ola and Mobicart• 2000: Acquired UK based mobile operator Orange• 2002: Enter into submarine cable business• 2006: Integration of FT, Equant and Orange Business Services in Orange Brand• 2007: Orange Lab network: 15 R&D labs in 7 countries• 2009: Acquired Unanimis, the UK’s largest exclusive digital ad. Network Strategic pan-European partnership with Google Partnership with iPhone in UK• 2009: Launch of complete cloud computing services• 2010: Agreement with LGE
  5. 5. External Analysis: Six Forces High Low Government New Entrant (Operating License Tech Barrier Authority) Capital Intensive Medium Suppliers Low/Medium High-Handset Buyers Rivalry-Equipment Individual, Enterpri -SFRManufacturer -Bouyguess se Substitute Very Low
  6. 6. Internal Analysis• Resources • Competencies – Skilled Executive board – Relation with the regulation authorities – Orange Lab – Brand management – Infrastructure – Commercialization of offers – User friendly and simple for the mass market with products subscription – The negotiation with large suppliers (supplier of mobile phones)• Distinctive Resources • Core Competencies – Network of Orange R&D – Good relationship with lab (15labs in 7 countries) Government • Competitive Advantage R & D and the relationship with government
  7. 7. Value Chain Former Value Chain Basic and Content Network Distribution Value-added providers Operator (End Users) Service Integrators Equipment Handset Mobile Manufacturer Manufacturer Applications Present Value ChainNet providing Transmission Added Value Service CRM/Sales Telecommunication Procurement Hard/software Production Hardware/Software Sales and Services IT Content Creation Content Aggregation Content Distribution Media
  8. 8. Value Chain Present Value Chain Telecommunication, IT and Media End User Content Content Application Network Management Creation Convergence Management Management and TerminalsStudio 37 Pay Channels Soft/Hard Network Retailers(subsidiary for Own channels ware suppliers equipment Service Centerthe co- Partnership suppliersproduction of with handfilms) phone suppliersPartnership supplierswith WarnerBros,HBO
  9. 9. Business Model• Telecommunication • Entertainment – Subscription – Pay TV – Service – Digital Ads – Licensing – Subscription – Cloud Computing
  10. 10. Convergence Strategy (2005)• Orange: NeXT (New Experience in Telcom Services) – Fixed, Mobile, Pay TV and Broadband• Implementation of Convergence Strategy – Focus on Content, Networks and Organization – Content should be available on 3-Screens Live Box (launched in 2006) Source: Google Image
  11. 11. Recent Issues• New way to do partnership with Google, June, 2011
  12. 12. 감사합니다 Merci Thank You

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