mobile commerce -ktf-

Mobile Commerce -KMobile Commerce -KTF-TF-

2007. 5. 29.Team 5

IME Kim Jae-jungIME Heo Jun-yeon

IME Hong Sung-uk

Management of Information System #5

contentsContents

CompanyIntroduction

What isM-Commerce?

KTF’ Strategies

Company Overview

Discussion


Company Overview

Established in December, 1996 “ 한국통신 프리텔”

the first ranking in mobile communication area

on ‘Business Week’ in June, 2002.

The second largest company

in mobile communication industry in Korea

K-merce, a brand name of KTF, is one of main items of KTF.


contentsContents

CompanyIntroduction

What isM-Commerce?

KTF’ Strategies

DefinitionCharacteristicsPerspectives

Discussion


Definition of M-Commerce

The buying and selling of products or services by using wireless handheld devices such as mobile phones, smart phones, PDAs and so on.

M-commerce enables us to deal with tasks such as private banking, ticketing and some kinds of payment over a mobile telecommunications network.

Definition

Usage


Characteristics of M-Commerce

Security

Reachability

Mobility

M-Commerce

Product and Service

localization

Product personalization

Ubiquity enhancement

Instant connectivity

Convenience

Characteristics

Value-added attributes


Perspective of M-commerce

• High diffusion rate of mobile phones• Portability• Ubiquity• High expected profits

98 99 00 01 02 03 04

Excessiveexpectation

Disappointment

K-Merce

Growth

UP

Down

• Slowness due to security problems• Small and uncomfortable input method and UI• Lack of standardization• Security and privacy problems• Need for enormous investment costs to build infrastructure•Estrangement between excessive expectation and reality


contentsContents

CompanyIntroduction

What isM-Commerce?

KTF’ Strategies

Definition of K-MerceBusiness Model of K-Merce

Discussion


Definition of K-Merce

A private brand of KTF for M-Commerce which started in April, 2002

K-merce is a service based on wire and wireless internet. It helps people pay easier by electronic devices like cards, mobile phones and electronic purses.

Definition

Usage

Life

Reservation and discount services for movie, public performance, travel and airline.

FinanceFinancial services for stock, banking, loan and insurance.

ShoppingService for cooperative buying, on-line auction, total shopping service.

PaymentElectronic payment by mobile phones.


Business Model of K-Merce

CustomerCustomer

Contents Provider

Contents Provider BankBank


contentsContents

CompanyIntroduction

What isM-Commerce?

KTF’ Strategies

SWOT AnalysisFuture StrategyFurther Improvement

Discussion


SWOT Analysis

S

O T

W

Strength• Because K-Merce is the first brand of M-commerce, it is easy to get big market share.•KTF already has young customers, so it is easier to focus on young people.

Weakness• A brand equity of KTF is lower than that of SKT.

• lack of originality of mobile service is a problem. Its services are similar to those of SKT

Opportunity• Today, many people are interested in M-commerce.

• Demands for new way of payment and financial system are emerging.

Threat• Because of the mobile phone not suitable to read many information, it is hard to structure commerce in mobile environment.

• It is harder to protect privacy and solve security problem than E-Commerce and other off-line commerce.

• It is not attractive to old people.


Future Strategy

Expanding its business by more partnerships with other companies in order to make consumers be close with K-

merce.

Making safer and faster environment of M-Commerce by collaborating with a security company.

Making standardization of M-Commerce Industry by collaborating with internal competitors.


Further Improvement

<Future state>

Strategic collaboration

Usab

ilit

y

High

Low High

<Present state>High

Low HighStrategic

collaboration

Usab

ilit

y

• M-commerce industry is a Red Ocean. Therefore, KTF have to maintain existing customers and snatch competitors customers.• KTF should use CRM or other customer-related strategy to obtain customers’ loyalty• The characteristics of present contents of M-commerce are similar to web1.0 contents. The contents will change into web 2.0 contents. KTF should find a solution to change the contents into web 2.0 contents to be a leader of web 2.0 era.


Special Thanks to………

Thanks for your teaching!!

Prof. Suh Eui Ho


Q & A

mobile commerce -ktf-

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