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LOCATION- BASED SERVICES INDUSTRIAL AND BUSINESS ANALYSIS Group 6 Huanhuan WANG Bo WANG Xinwei YANG Han LIU Telecommunication Management F2011.

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Presentation on theme: "LOCATION- BASED SERVICES INDUSTRIAL AND BUSINESS ANALYSIS Group 6 Huanhuan WANG Bo WANG Xinwei YANG Han LIU Telecommunication Management F2011."— Presentation transcript:

1 LOCATION- BASED SERVICES INDUSTRIAL AND BUSINESS ANALYSIS Group 6 Huanhuan WANG Bo WANG Xinwei YANG Han LIU Telecommunication Management F2011

2 OBJECTIVES What is Location-based services (LBS)?What is the impact of Location-based services?What is the most viable business model in LBS? Ultimate Question How should we create our own LBS Business?

3 OUTLINE I.Introduction II.Industrial Analysis III.Business Evaluation Model IV.Implementation of Model V.Comparison & Evaluation ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction

4 INTRODUCTION OF LBS Definition: Information services provided to mobile devices through mobile networks, which may utilize the location information to various value-adding services. Core Components: ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Hardware & Infrastructure: Mobile Devices Positioning Component Software & Services Service & Application Providers Data & Content Providers Networking Environment Communication Network

5 INDUSTRIAL ANALYSIS Type of LBS Business Model Information Used Examples Authorities and corporate applications B2B Location data, Aggregated data Surveillance, Network control, Asset management Location informationB2C Client location data Maps, Navigation, Traffic PersonalizationB2C Client location data and profiles data Promotions, Coupons, Social contact ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Application of Location-Based Services

6 INDUSTRIAL ANALYSIS ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Timeline of Location-Based Services in US

7 INDUSTRIAL ANALYSIS Impact to the Industry ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Social Networking Real-time Social Networking Physical Participation New Channel for Profit Making Mobile Customer Demand Eg, Location sharing Software Design Eg, Data Mining Hardware Capabilitie s Eg, iPhone

8 INDUSTRIAL ANALYSIS Concerns & Challenges Technical No single standard Lack of hardware & software support Social User privacy No specific legal policies ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction

9 BUSINESS EVALUATION MODEL ComparisonImplementationEvaluation ModelIntroduction Industrial Analysis Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation ►Value Proposition: Value generation ►Opportunity Size: User bases, Social/behavioral impacts of services, ►Revenue Generation ►Cost Structure ►Sustainability & Growth ►Technical, Financial ►Internal, External (Partners) ►Competition ►Substitutes ►New entrants ►IPR, Privacy, Regulations, Industry Trend = Business Models + LBS Features + Investment Evaluations

10 YELP ComparisonImplementationIntroduction Industrial Analysis Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation ►Values: Visitors & Reviewers (Yelpers), Business Owners, Paying Advertisers ►61 Million Visitors/1 Million Reviews Per Month ►Revenue: Local Subscription, Advertisements, Daily Deals (30% Charge) ►Cost Structure: R&D, Operating Expenses, Sales & Marketing ►Growth: Filed IPO in Nov 2011 ►GPS, Wifi, Transmitter positioning ►Competitors: Google Places, CitySearch, etc ►Differentiation: Well-established Social Networking + Diversified Platform Support ►Legal Risks: Manipulating Results ►Security Risks: Mobiles ►Partnership: Half of Flow from Google Evaluation Model

11 YELP ComparisonImplementationIntroduction Industrial Analysis Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation ►Values: Visitors & Reviewers (Yelpers), Business Owners, Paying Advertisers ►61 Million Visitors/1 Million Reviews Per Month ►Revenue: Location Subscription, Advertisements, Daily Deals (30% Charge) ►Cost Structure: R&D, Operating Expenses, Sales & Marketing ►Growth: Filed IPO in Nov 2011 ►GPS, Wifi, Transmitter positioning ►Competitors: Google Places, CitySearch, etc ►Differentiation: Well-established Social Networking + Diversified Platform Support ►Legal Risks: Manipulating Results ►Security Risks: Mobiles ►Partnership: Half of Flow from Google Evaluation Model

12 YELP ComparisonImplementationIntroduction Industrial Analysis Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation ►Values: Visitors & Reviewers (Yelpers), Business Owners, Paying Advertisers ►61 Million Visitors/1 Million Reviews Per Month ►Revenue: Location Subscription, Advertisements, Daily Deals (30% Charge) ►Cost Structure: R&D, Operating Expenses, Sales & Marketing ►Growth: Filed IPO in Nov 2011 ►GPS, Wifi, Transmitter positioning ►Competitors: Google Places, CitySearch, etc ►Differentiation: Well-established Social Networking + Diversified Platform Support ►Legal Risks: Manipulating Results ►Security Risks: Mobiles ►Partnership: Half of Flow from Google Evaluation Model

13 FOURSQUARE ComparisonImplementationIntroduction Industrial Analysis Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation ►Value: “Check In” Promote Business Development ►1 Million Registered Users / 3 Million Check-ins per day for the 2-Year-Old ►Revenue: No Solid Model (Exploration & Accumulation Phase) ►Competitors: LBS, Social Networking Providers ►Differentiation: LBS + Social Networking ►Privacy: Automatic posts / Position displays ►Regulation: IRP issues Evaluation Model

14 GOOGLE LATITUDE ComparisonImplementationIntroduction Industrial Analysis Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation ►Value: Location Sharing, Supplementary Product ►3 Million Users / > 50% Inactive ►Revenue: No Direct Source, Funded by Google ►Growth: “Succeeded” by Google Place ►Previous incompatibility with iphone ►Competitors: Foursquare, Facebook Deals (Gowalla) ►Privacy: Many procedures to protect privacy Optional Check-in + False Display + History Management Evaluation Model

15 COMPARISON & EVALUATION ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation Users + Business + Advertisers Yelp Information facilitation Less value-adding from Yelp Users + Business Foursquare Entertaining social network Value-adding through data mining Users Latitude Location sharing among users Limited value adding Customer Base

16 COMPARISON & EVALUATION ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation Advertising + Subscription + Deals Yelp Location specific selling Subscriptions: Value adding for Business Deals: Location-based + Daily Advertising + Location-based Deals Foursquare Immature profit model Advertising (Google) Latitude Indirect revenue generation Revenue Generation

17 COMPARISON & EVALUATION ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation OE + Sales & Marketing Yelp Operating Expense Foursquare Operating Expense Latitude Utilized by Google package Cost Structure

18 COMPARISON & EVALUATION ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation To-be-listed Dominator in the Field Yelp New Growing Organization Foursquare Comprehensive Services from Google Latitude Google Place Google + Organizational Capabilities

19 COMPARISON & EVALUATION ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation Giants entering new domains Yelp Google Offers, Facebook Places Both LBS & Social Network Providers Foursquare Leading position in the field Unique differentiation Supported by Google Latitude No financial pressure Comprehensive packages by Google Competition

20 COMPARISON & EVALUATION ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Service Contents Profit Model Ease of implementation Organizational Capabilities Positioning Risk Evaluation Biased Services + Privacy Concerns Yelp Sued by subscribers IRP + Privacy Concerns Foursquare Lack of specific regulations in LBS privacy protection Privacy Concerns Latitude Privacy vs. Quality of Services Legal Concerns

21 CONCLUSION ComparisonImplementationEvaluation ModelIndustrial AnalysisIntroduction Service Contents: Integration of LBS with other services + Utilize the data Profit Model: Comprehensive revenue generation + Economies of Scale Ease of Implementation: Multi-platform support Organizational Capabilities: Package selling + Partnership Positioning: Leading position + Network externality + Unique positioning Risk Evaluation: Preparation for regulation changes + Privacy Protection Results

22 LOCATION- BASED SERVICES INDUSTRIAL AND BUSINESS ANALYSIS Telecommunication Management F2011 THANK YOU! Q&A


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