1. Core structure
80%
Institutional Specialty Food Processing Property &
QSR
Catering Restaurant & Distribution Development
10%
Revenue
2. Core competitencies
CORE COMPETENCY SUBSEQUENT STRENGTHS COMPETITIVE ADVANTAGE
Adaptability
Efficiency
Effective food processing Cost savings
and distribution
operations
Trust from customers
Quality
Ability to change
perceptions
3. Strategy misfit inhibits entrance into blue ocean
Blue Ocean
Extensive
Distribution network
Concentrated
iRobot
Red Ocean
High-end Low-end
Market positioning
4. iRobot has 3 main expansion options
• Popularize robotics
Financial Investment
to boost and grow BUILD OWN BRAND
the industry.
Diversify product lines
under iRobot brand
• Infuse robotic name.
technology into
everyday products
to further the
human experience LICENSE STRATEGIC ALLIANCE
and make life TECHNOLOGY
easier and funner. Form agreements with
Sell patented technology market leaders to push
to external companies. out new products
together.
Independence
5. Implementation timeline
Negotiate with
Advertising
network Measure effectiveness
campaign
Contract ad Develop and Begin subsequent Launch
Launch ad
agency produce ad campaign ad
Design, develop,
Launch product
modify
Mowbot
Expand distribution
Recruit R&D staff Continuous monitoring and improvement
capacity
Design, develop,
Commercial
Continuous monitoring and improvement
modify
cleaner
Recruit R&D Launch product Evaluate sales team performance
Partner with sales org
staff
March 2011 March 2012 March 2013 March 2014
6. Winning Formula
Target
Strategic
Bets
High
Core
Innovation
Growth
options
Supply Talent
Chain Model
Low Market High
Share
7. i-shine – Strategic Bets in Solar
Strategic bets
Precision Robotics Solar Wafer Manufacturer
Penetrate Solar Power Optimize production
Segment using new technology
Financial Capabilities Technological know-
how
Strategic Fit
8. Analyzing the market mix
Alternatives
New
6
1 Consumer robots in US
7
2 Military robots in US
5
Consumer robots in non-
3
US
Segment Military robots in non-
4
US
2
3 5 Aerospace in US
1 4
6 Alternative energy in US
Current
US Geographical Market Non US 7 New Segment in non-US
9. Three Step Approach
EnhancingiRobot’sproduct and contract strategies
Maximize Patent Value Leverage R&D Promote Innovation
Awareness Campaign Mitigate Contract Risk Robotics Competition
International Presence Create®for Military Academic Research
Customer Adoption Informal Alliances weRobot Solutions
Goal: Complement core competencies with informal strategic alliances
Situation Analysis Alternatives Recommendation Implementation Results
16. Categorizing Your Challenges
2 Key Areas
Current Road
Future Growth
Blocks
What can be
Achieving Better
done about Sustainability
Synergies
import ban?
Acquire new
Lobby FDA for
producers /
timely resolution
build plants
- +/-
Strengthen
quality control
processes
+
17. Financial Implications
Net Cash Flows (Sensitivity Analysis)
Assumptions $160
$120
Millions of USD
Growth
$80
12.3% pharmaceutical
industry growth per year
$40
$-
Market Share
2012 2013 2014 2015 2016 2017 2018
5% innovative drug market
share by 2018 $(40)
Base Case Pessimistic Optimistic
Cost of Capital
13%
$1.5 billion $2.5 billion
NET PRESENT VALUE NET PRESENT VALUE
(=6.5 times 2010 Profit) (=11 times 2010 Profit)
17
18. Projected Sales and Costs
Sales (2015)
Pharmaceutical Market
$60 million $20 billion
$2 billion
Generics Innovative
$20 billion 90% 10% - $2 billion
Other Firms Ranbaxy
97% 3% - $60 million
Costs
Selling, General & Marketing
Transfer Pricing
Administrative Expenses
28% of revenues Expenses
$8.5 million
10% premium
15% of revenues $3 million / year
18
20. Executive Summary
By efficiently rearranging the schedule of
current touring shows and by extending
customer experience with a
restaurant, Cirque will be able to:
Expand its sustainable business model;
Enhance customer experience, increasing
yearly revenue by $19m to $35m;
Optimize ticket sales to achieve an
incremental revenue of $8M to $15m yearly.
Current Situation
22. Current Successes
AAHK succeeds today because its model
delivers value to multiple stakeholder groups
Current Related Environment
Situation businesses Cargo
shippers
Airlines
Employees
Government Franchisees Retailers
HR partners
Passengers
Tourism Media
Sustainable growth = delivering value forever
