Kabletown Vertical Integration Update

•

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Mark Lee

OverthinkingIt.com has obtained a leaked copy of a Kabletown corporate presentation detailing its resp

Entertainment & Humor Technology

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

The document discusses IKEA's strategy for building a global brand. It outlines IKEA's history of international expansion since 1943. IKEA's keys to success include democratic design, vertical integration, and a strong brand image emphasizing cost-consciousness and environmental awareness. IKEA maintains consistency in its global strategy by positioning itself as a value brand and emphasizing its store experience and Swedish influence. However, it also adapts its advertising and products to local markets. The document also examines IKEA's use of non-traditional marketing like PR stunts and guerrilla tactics tailored to different cultures. Finally, it notes IKEA's location strategy focuses on entering markets where suppliers are available and expanding in China.

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IKEA was founded in 1943 in Sweden by Ingvar Kamprad with a vision of providing well-designed, affordable home furnishings. In the late 1950s, IKEA began focusing solely on furniture and pioneered a new retail model of flat-packed furniture that customers assemble themselves, keeping costs and prices low. This innovative strategy enabled IKEA to grow rapidly and become the world's largest furniture retailer, with 287 stores globally by 2011 and annual sales of $24.7 billion. The document discusses IKEA's past growth and potential future strategic positioning as furniture retailing continues to evolve.

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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

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