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  

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  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  

4  

OverthinkingIt.com

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  

5  

OverthinkingIt.com

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  

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  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  

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