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HARVARD CASE ANALYSIS

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Terra/Lycos. El Sitio. Nat'l sites w/ISP. Telemex/Prodigy/MSN. Universo Online ... YHOO: Yahoo! TRLY: Terra/Lycos. Problem Statement ... – PowerPoint PPT presentation

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Title: HARVARD CASE ANALYSIS


1
HARVARD CASE ANALYSIS
  • STARMEDIA LAUNCHING A LATIN AMERICAN
    REVOLUTION
  • Electronic Commerce
  • Management 671
  • Radford University
  • Spring 2001
  • Elizabeth Curl
  • Karl Zartarian
  • Mike Biscotte

2
Outline
  • Description of company
  • Analysis using Porters Five Competitive Forces,
    STEEP and SWOT
  • Business Model and Target Markets
  • Core Competencies
  • Financials and Industry Comparisons
  • Problem Statement
  • Strategies
  • Recommended Actions
  • References

3
Description
  • An international integrated media company
  • Significant first-mover advantage in Latin
    American internet market with 1.2 billion page
    views/quarter
  • Active as
  • Internet portal
  • Wireless/cable provider
  • Search engine
  • Community builder
  • E-commerce facilitator
  • Content provider

4
Porters Model
  • Suppliers
  • ISPs
  • Content providers
  • Wireless/Mobile
  • Cable
  • Telephony
  • RealNetworks
  • Buyers
  • Advertisers
  • ISP users
  • Wireless users
  • E-tailers
  • Content providers

5
Porters Model (contd)
  • Industry Rivals
  • Portals
  • AOL Latin America
  • Yahoo!
  • Terra/Lycos
  • El Sitio
  • Natl sites w/ISP
  • Telemex/Prodigy/MSN
  • Universo Online
  • Pan-Regional startups
  • Media conglomerates
  • New Entrants
  • Internet startups
  • Local providers
  • Stiff barriers for new global industry entrants
  • Negligible barriers for new local entrants
  • Substitutes
  • Land based v. wireless
  • Alternate Interface
  • (Neural chip)

6
STEEP Analysis
  • Situation PLC (Internet E-commerce) Early
  • Technology
  • Early/Intro for telephony/computer
  • Evolving communications infrastructure
  • Economic
  • Latin American economy exhibiting vigorous growth
    stimulated by privatisation of industry
  • Latin American economy is dependent on the U.S.
    Economy
  • Political
  • Privitisation of government regulated industries
    (Telephone)
  • NAFTA and Mercosur

7
SWOT Analysis
8
Business Model
  • E-Network
  • Value chain integrator
  • Information brokerage
  • E-tail facilitator
  • Virtual community
  • Wireless Access Provider

9
W.W.W
Information
Virtual Community
Transactions
StarMedia
  • SCM to facilitate
  • Online delivery (e.g. SkyLab)
  • Virtual Store (e.g. HP)
  • Credit (e.g. VISA)
  • Hardware (e.g. DELL, wireless)

Companies
Consumer
10
Target Markets
  • Consumer
  • Latinos ages 18-34
  • Wealthiest 20 (100 Million people)
  • Advertisers
  • Consistent with consumer target
  • Blue chip / Fortune 500
  • E-tailers

11
Core Competencies
Product Technology Web site development
Innovation / creativity Network development
  • Visionary Management

CRM Supply chain integration Service company
Marketing Promotional ability Branding
12
Financial Situation
  • StarMedia has not made a profit since inception.
  • Projecting profitability in 4Q2001
  • Cash on hand 127M
  • Revenues for 2000 were 50M
  • 90 revenues from advertising
  • 70 traditional companies/30 Dot.coms
  • 10 revenues from access/subscription fees

13
Historic Revenue and EPS
14
Industry Comparisons
STRM StarMedia AOLA AOL Latin America LCTO
El Sitio YHOO Yahoo! TRLY Terra/Lycos
15
Problem Statement
  • How should StarMedia best position themselves to
    ACHIEVE PROFITABILITY while maintaining and
    expanding their presence in Latin America?
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