LEAP Presentedby EricPelander May21 2002 2020 6 1 CopyrightIBMCorporation 2002 2 Contents SubjectorcontextMajorideaorrecommendationBenefitsorvaluepropositionEvidenceandanalysisDetailedrecommendationsandactions 2020 6 1 CopyrightIBMCorporation 2002 3 ThisEffortIsDesignedtoAssisttheXYZCompanytoidentifyWirelessMarketOpportunities DefinetheWirelessMarketplaceandItsEvolution DescribeandSizeWirelessMarkets IdentifyXYZ s AddressableMarkets KeymarketplayersanddynamicsIBM sperspectiveonthekeystrategicissuesNear termevolutionofthewirelessmarket ApplicationmarketsandsizesDevicesmarketsandsizesInfrastructuremarketsandsizesCurrentplayersineachmarketandrelativestrengthsandweaknesses IdentifyanddescribeXYZ addressablemarketsEvaluatethesizeoftheimpactthatXYZcanmakeIdentifycriticalsuccessfactors XYZ sobjectiveistogaininsightintotheevolutionofthewirelessmarketinordertoidentifymarketopportunitiesforXYZ IdentifyUn AddressedOpportunitiesforXYZ MarketcompositionKeyplayersCriticalsuccessfactorsEvaluateopportunitiesagainstXYZcapabilities customers channels andtechnologies SUMMARYCONCLUSIONS Subject Context 2020 6 1 CopyrightIBMCorporation 2002 4 InternetChannelsWillProvideIncrementalLeadsandRevenue IBMbelievesthereisasubstantialopportunityintheonlineleasingmarketXYZCompanyshouldtargetthefollowingcustomersegments ProfessionalServicesandManufacturingIT office andmanufacturingcollateralclassesSmallbusiness smallticketmarketThesecustomersshouldbetargetedwithamulti channelapproach IndirectAggregatorsDirectThemajorchanneltothesecustomerswillbetheindirectone throughInternetintermediariesthatgiveaccesstothecustomeratthepointoftransactionEachofthesechannelsappealtocustomerswithuniquebuyingbehaviorsCompetitorsaremovingintotheonlineleasingspace XYZCompanyshouldmovequickly MajorIdea Recommendation 2020 6 1 CopyrightIBMCorporation 2002 5 XYZCompanyShouldSimultaneouslyPursueThreeInternetChannelsThroughaVarietyofPartnerships TargetPartners Channel Offering CompetitiveIntensity Direct Trafficdriversfortargetsegments EducationalcontentOnlineapplicationsAutomatedcreditdecisioning Medium buildingamongstart upfundingaggregators traditionallessors andbanks Indirect OnlineStorefrontsOnlineexchangesOFPs AutomatedcreditdecisioningEducationalcontentOnlineapplications Medium aggregatorsandlessorsaremovingtowardspartneringwithonlinevendors Aggregator Aggregatorsthatallowcompetitivedifferentiationbeyondprice LeasefundingandfulfillmentAutomatedcreditscoring Low thoughVCispouringintothisspace ChannelsAreRankedbyRelativePriority TargetSegment Rookie Established Savvy EXECUTIVESUMMARY MajorIdea Recommendation 2020 6 1 CopyrightIBMCorporation 2002 6 TheIndirectChannelIstheHighestPriority OurresearchintocustomerbehaviorssuggeststhatcustomersaremostlikelytoleaseatthepointofpurchaseEquipmentvendorswilldrivesignificantonlinetransactionvolumeThischannelallowsXYZCompanytoleverageitscorecompetencyofsourcingdealindirectly EarlyindicationssuggestthatonlineequipmentaggregatorsandvendorsrequireasmallerfeefordealreferralsthanofflineleasebrokersrequireAgrowingnumberofonlineequipmentvendorscurrentlyofferleasing Brandedandunbrandedstrategiesarebeingused EXECUTIVESUMMARY Whiletheindirectchannelwilldrivethemostimmediaterevenueimpact XYCCompanyshouldalsopursuethedirectandaggregatorchannelsinparallel MajorIdea Recommendation 2020 6 1 CopyrightIBMCorporation 2002 7 BasedontheEstimatedVolume OnlineRevenueandGrossIncomeGrowRapidly Source Forrester ELA USCensus IDC XYZ IBM Millions Millions EXECUTIVESUMMARY KeyAssumptions HighAdoption LowAdoption Benefits ValueProposition 2020 6 1 CopyrightIBMCorporation 2002 8 ThecabletripleplayofferingsignificantlyoverlapswithXYZ scoreresidentialserviceofferings CompetitiveThreats Cable WirelessSub Portals DescriptionofService DescriptionofThreat Thecabletripleplayconsistsofthreebasicservices BroadcastTVHigh speeddataCabletelephonyAncillaryservicesinclude Video on demandVideoconferencingHomesecurity CableprovidersalreadysellservicestoalargemajorityoftheU S populationThecablefootprintcoversnearlytheentireU S homepopulationThetakerateforserviceisapproximately65 Cableprovidersarecurrentlydigitalizingtheirnetworksanddeployinghigh speeddataserviceswhichcompetedirectlywithXYZ shigh growthDSLserviceCableprovidersarebeginningtodeploycabletelephonywhichwillcompetedirectlywithXYZ scoreresidentialserviceCabletelephonywillbecomeincreasinglymoreofathreatinthenextcoupleofyearsastheDOCSISstandardforVoIPbecomesimplementedHFCcablemaintainsacompetitiveadvantageoverDSLintermsofbandwidthcapacitywhichallowsforadditionalserviceofferingsincludingvideo on demandandvideoconferencingCableproviderswillofferbroadandattractivelypricedbundlestoencourageconsumerstoswitchtocabletelephony CableTriplePlayThreat Evidence Analysis 2020 6 1 CopyrightIBMCorporation 2002 9 Cableofferingswillcontinuetoemergeasthedigitalcablefootprintreachesnearly90 ofpassedcablehomesby2005 Cablecompanieshavealreadyupdatedalargemajorityoftheirnetworksandareprojectedtosellancillaryservicesatasteeprateofpenet