kabletown vertical integration update
Post on 21-May-2015
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Kabletown Vertical Integration Update
CONFIDENTIAL – NOT FOR DISTRIBUTION
OverthinkingIt.com
Current Status
TV
• Broadcast and Network Channels • Kabletown Cable TV service
Internet • Kabletown Broadband Internet Service
Phone
• GE Phones • Kabletown Phone Service
Couches • Kouchtown
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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
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IKEA Vertical Integration
TV • UPPLEVA TV
TV Networks
• None, for now…
TV Stands • BESTÅ ÅDAL, HEMNES, MOSJÖ TV Stands
Internet • None, for now…
Phone • None, for now…
Couches • EKTORP, KIVIK, SANDBY Couches
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Kabletown Vertical Integration, Revisited
TV • NONE. (GE left TV business.)
TV Networks
• Broadcast and Network Channels • Kabletown Cable TV service
TV Stands • NONE.
Internet • Kabletown Broadband Internet Service
Phone
• GE Phones • Kabletown Phone Service
Couches • Kouchtown
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Helpful Harmful
Internal Fac
tors
(Kab
leto
wn)
• Handsome Executives • American Company • Queen of Jordan
• Kouchtown couches are expensive and uncomfortable
• No TVs or TV stands • TGS with Tracy Jordan
External Fac
tors
(IKEA
)
• IKEA lacks TV/broadband/phone networks
• Swedish is hard to pronounce
• IKEA couches are inexpensive and comfortable
• IKEA can get consumers to assemble TV/broadband/phone networks with instructions and Allen wrenches
Kabletown/IKEA SWOT Analysis
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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?
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Options: Pros & Cons
Pros Cons
Lobby FCC to ban the letters “å,” “ä,” and “ö” in media properties
Virtually eliminates naming options for IKEA
Bravo is developing a new show called “Reål Housewives of Östersund”
Lobby Congress to make Allen wrenches illegal in the US
Takes away IKEA’s key competitive advantage
First they came for the Allen wrenches, and I did not speak 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 product
Killing American Jobs is what Obama does, not Kabletown
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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
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