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Kabletown Vertical Integration Update
The document discusses Kabletown's vertical integration strategy and its competition with IKEA, particularly focusing on product offerings like TVs, broadband services, and couches. A SWOT analysis highlights IKEA as a significant threat due to its cost advantages from in-house assembly and product pricing. Recommendations include radical actions such as lobbying against IKEA and canceling specific shows to counter their market impact.
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