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Case Study business

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Amazing Internet Advertising

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Case Study business

  1. 1. San Diego State University MSBA MGT-626 Sean Yeh Instructor: Dr. Larry Rhyne August 24, 2007
  2. 2. Contents <ul><li>Introduction </li></ul><ul><ul><li>The Goal to the Market </li></ul></ul><ul><ul><li>The Clients </li></ul></ul><ul><ul><li>Profiles </li></ul></ul><ul><li>The Market Structure of the industry </li></ul><ul><ul><li>Internet usage </li></ul></ul><ul><ul><li>Who is online? </li></ul></ul><ul><ul><li>Market Structure </li></ul></ul><ul><li>Michael Porter 5 force analysis </li></ul><ul><li>Competitive Strategy </li></ul>
  3. 3. Introduction <ul><li>The Goal to the Market </li></ul>Help communicate with their customers and their brand preference through internet Traditional Advertising Agency Top Of Mind Ideal brand Brand preference : Event , Official Website Brand Awareness: media, TV , print media, OTC banner
  4. 4. Product and Service: Total Solution on Internet Ads. <ul><li>We provide the following product and services: </li></ul><ul><ul><li>Official Website for an Enterprise </li></ul></ul><ul><ul><li>Web Hosting </li></ul></ul><ul><ul><li>Promotions on the Internet </li></ul></ul><ul><ul><li>Internet Application Programming </li></ul></ul><ul><ul><li>Multi Media Animation design </li></ul></ul><ul><ul><li>Custom Relation Management </li></ul></ul><ul><ul><li>Agency for Internet Media( Purchasing, Planning, Analysis ) </li></ul></ul><ul><ul><li>Public Relation on Internet </li></ul></ul><ul><ul><li>E paper/ E card / Virus Marketing </li></ul></ul><ul><ul><li>Web log( BLOG ) Marketing </li></ul></ul>
  5. 5. Introduction: The Clients
  6. 6. Introduction: Profiles Official Website
  7. 7. Introduction: Profiles Promotions on the Internet
  8. 8. Introduction: Profiles E paper/ E card / Virus Marketing
  9. 9. Introduction: Profiles Web log( BLOG ) Marketing
  10. 10. The Market of the industry: Internet usage rate in 2006 <ul><li>Nearly 60% of Taiwan residents on line in population of 11,8 million people. </li></ul>2006 年 12 月 27 日
  11. 11. The Market of the industry: Internet usage rate in 2006 <ul><li>More Rely on internet </li></ul><ul><ul><li>One who use internet within one day </li></ul></ul><ul><ul><ul><li>Year 2004:36.1% </li></ul></ul></ul><ul><ul><ul><li>Year 2006:42.5% </li></ul></ul></ul>
  12. 12. The Market of the industry: Who is online? <ul><li>20 something: the highest, 40 something: more than 50% </li></ul><ul><ul><li>The highest usage on internet located on 20-29 years old and 10-19 years old </li></ul></ul><ul><ul><li>The highest growth rate on usage located on 30-39 ,40-49 years old. </li></ul></ul><ul><ul><li>More than 75% of 10-39 year-old person online. </li></ul></ul>
  13. 13. The Market of the industry: Our Sales <ul><li>Gross Sales in first half of 2007 is more than the aggregate number in year 2006 </li></ul>250 510 680 759 0 100 200 300 400 500 600 700 800 2004 2005 2006 First half of 2007
  14. 14. The Market of the industry: Market Structure <ul><li>An Emerging Industry ? </li></ul><ul><ul><li>Market is new </li></ul></ul><ul><ul><li>Companies in grow-and-build model </li></ul></ul><ul><ul><li>Technological know-how emerging </li></ul></ul><ul><ul><li>Experience curve effects often permit cost reductions as volume builds </li></ul></ul><ul><ul><li>Buyers first-time users </li></ul></ul><ul><ul><li>Marketing task involves inducing initial purchase & overcoming customer concerns </li></ul></ul><ul><ul><li>Uncertainty about how fast demand for product will grow & how big market will get </li></ul></ul><ul><ul><li>No “rules of the game” </li></ul></ul><ul><ul><li>Entry barriers tend to be low </li></ul></ul><ul><li>A Fragmented Industry ? </li></ul><ul><ul><li>Absence of visible market leaders </li></ul></ul><ul><ul><li>Low entry barriers & absence of scale economies </li></ul></ul><ul><ul><li>Market for product is local </li></ul></ul><ul><ul><li>Small quantities of customized products required </li></ul></ul><ul><ul><li>Market is so large & diverse it takes numerous firms to accommodate buyer needs </li></ul></ul><ul><ul><li>Newness of industry </li></ul></ul>
  15. 15. The Market of the industry: Example: Fragmented Industries <ul><li>Book publishing </li></ul><ul><li>Landscaping & plant nurseries </li></ul><ul><li>Auto repair </li></ul><ul><li>Restaurant industry </li></ul><ul><li>Public accounting </li></ul><ul><li>Women’s dresses </li></ul><ul><li>Meat packing </li></ul><ul><li>Paperboard boxes </li></ul><ul><li>Hotels & motels </li></ul><ul><li>Furniture </li></ul><ul><li>Some “creative” things </li></ul>
  16. 16. Michael Porter’s Five Competitive Forces Analysis 1 <ul><li>Concentration: low </li></ul><ul><li>Diversity of competitors: High </li></ul><ul><li>Product differentiation: High </li></ul><ul><li>Cost conditions </li></ul><ul><ul><li>Scale of economics: absence </li></ul></ul>Industry Competitors Rivalry Among Existing Firms
  17. 17. Michael Porter’s Five Competitive Forces Analysis 2 <ul><li>Cost of product </li></ul><ul><ul><li>Server: lower </li></ul></ul><ul><ul><li>Media: higher </li></ul></ul><ul><li>Product differentiation: high </li></ul><ul><li>Competition between suppliers: high </li></ul><ul><li>Size and concentration of suppliers: low </li></ul><ul><li>Suppliers’ switching costs: low </li></ul><ul><li>Supplier’s ability to integrate: low </li></ul>Industry Competitors Rivalry Among Existing Firms Buyers Bargaining Power of Suppliers Bargaining Power of Buyers Suppliers <ul><li>Size and concentration of buys: high </li></ul><ul><li>Buys’ switching costs: </li></ul><ul><ul><li>higher if choose to use our website applications </li></ul></ul><ul><li>Buy’s information: </li></ul><ul><ul><li>Big Co. : high </li></ul></ul><ul><ul><li>Small Co.: low </li></ul></ul>
  18. 18. Michael Porter’s Five Competitive Forces Analysis 3 <ul><li>Inter-substitutes: </li></ul><ul><ul><li>Internet vs. Print media (Newspaper, magazine…) </li></ul></ul>Industry Competitors Rivalry Among Existing Firms Substitutes Potential Entrants Threat of Substitute Products or Services Threat of New Entrants <ul><li>Economies of scale: low </li></ul><ul><li>Absolute cost advantages : low </li></ul><ul><li>Capital requirements </li></ul><ul><ul><li>Web Design: low </li></ul></ul><ul><ul><li>Media Purchase: higher </li></ul></ul><ul><li>Product differentiation: high </li></ul><ul><li>Government and legal barriers </li></ul><ul><ul><li>Generally: low </li></ul></ul><ul><ul><li>E-paper market: high (Anti-SPAM </li></ul></ul><ul><ul><li>S imultaneously P osted A dvertising M essage ) </li></ul></ul>
  19. 19. Michael Porter’s Five Competitive Forces Analysis 4 Industry Competitors Rivalry Among Existing Firms Buyers Potential Entrants Bargaining Power of Suppliers : Weak Threat of Substitute: Weak Threat of New Entrants: Strong Bargaining Power of Buyers: Strong Substitutes Suppliers
  20. 20. Competitive Strategy 1 <ul><li>In fragmented industries </li></ul><ul><ul><li>Construct & operate “formula” facilities </li></ul></ul><ul><ul><li>Become a low-cost producer </li></ul></ul><ul><ul><li>Increase customer value via vertical integration </li></ul></ul><ul><ul><li>Specialize by product type </li></ul></ul><ul><ul><li>Specialize by customer type </li></ul></ul><ul><ul><li>Focus on limited geographic area </li></ul></ul>
  21. 21. Competitive Strategy 2 <ul><li>In emerging industries </li></ul><ul><ul><li>Push hard </li></ul></ul><ul><ul><ul><li>to perfect technology </li></ul></ul></ul><ul><ul><ul><li>to Improve product quality </li></ul></ul></ul><ul><ul><ul><li>to develop attractive performance features </li></ul></ul></ul><ul><ul><ul><li>to shape rules of competition </li></ul></ul></ul><ul><ul><li>Try to capture potential first-mover advantages </li></ul></ul><ul><ul><li>Pursue new </li></ul></ul><ul><ul><ul><li>Customers & user applications </li></ul></ul></ul><ul><ul><li>Move quickly when technological uncertainty clears & a “dominant” technology emerges </li></ul></ul>
  22. 22. Competitive Strategy 3 <ul><li>Our strategy to the market </li></ul><ul><ul><li>Focus on Specific industry </li></ul></ul><ul><ul><ul><li>product differentiation </li></ul></ul></ul><ul><ul><li>Vertical Corporation </li></ul></ul><ul><ul><ul><li>strategic alliance with media inc. </li></ul></ul></ul><ul><ul><ul><ul><li>UDN( United Daily News Online), Yahoo, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>traditional advertising company (ex. DDB) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PR company (ex. Edelman public relations consultancy ) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Affiliate with web server providers Competencies </li></ul></ul></ul></ul><ul><ul><ul><li>Ability to control quality (ex. PMP ) </li></ul></ul></ul><ul><ul><ul><li>Ability to integrate all needed human resources (work flow) </li></ul></ul></ul>
  23. 23. Thank you

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