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Justin Saks Emma Browne Craig Schleicher Shreya Oswal PowerPoint Presentation
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Justin Saks Emma Browne Craig Schleicher Shreya Oswal

Justin Saks Emma Browne Craig Schleicher Shreya Oswal

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Justin Saks Emma Browne Craig Schleicher Shreya Oswal

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  1. Enhance and Expand: A Recipe for Success Justin Saks Emma Browne Craig Schleicher Shreya Oswal Conquest Consulting

  2. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media

  3. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media Attractive to Investors Attractive to Employees Being More Attractive than the Alternatives

  4. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues

  5. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues Every Step is Scrutinized Increased Volatility Opportunity is still there

  6. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues Every Step is Scrutinized Increased Volatility Opportunity is still there Would rather be #1 in one market than #2 in three or four markets

  7. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues Every Step is Scrutinized Increased Volatility Opportunity is still there Would rather be #1 in one market then #2 in three or four markets Industry is constantly changing Need to react quickly Want to be as close to first mover as possible

  8. Value Proposition Objective Critical Issues Recommendation Achieved Value Expand Enhance Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues Recommendation “Two E Strategy: Enhance” “Two E Strategy: Expand” Move towards a Hybrid business model Ensure that we are equipped for long term sustainable success

  9. Value Proposition Objective Critical Issues Recommendation Achieved Value Expand Enhance Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues Recommendation “Two E Strategy: Enhance” “Two E Strategy: Expand” Move towards a Hybrid business model Ensure that we are equipped for long term sustainable success Avoid the “Flight to Safety” mentality Take advantage of the times and position SCM as a first mover Expand aggressively and quickly

  10. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues Recommendation “Two E Strategy: Enhance” “Two E Strategy: Expand” Leadership Position Across Markets Sustainable Competitive Position Benefits

  11. Value Proposition Objective Critical Issues Recommendation Achieved Value Objective Build an attractive future for Schibsted Classified Media Global Financial Crisis Need to be Market leader Fast-Moving Industry Critical Issues Recommendation “Two E Strategy: Enhance” “Two E Strategy: Expand” NPV of NOK~$410mm or USD$56.11mm Break Even of Less Than A Year Benefits

  12. Agenda Conquest Consulting Justin Saks Emma Browne Craig Schleicher ShreyaOswal Emma Browne Justin Saks Introduction Situation Analysis Enhance Brand Expand into New Markets Implementation Financials/Conclusion

  13. Market Growth Changes Our Position The Market Decision Tree Solution Previous Market Growth Transition from Print Media • Classified media is now primarily online Rapid Growth in Market • Advertising expenditure for online classifieds alone in Europe expected to rise to 2.5 B Euros by 2012 Lower competitive threat due to high growth

  14. Market Growth Changes Our Position The Market Decision Tree Solution Previous Market Growth Threat in Economic Crisis Transition from Print Media Discourages Consumer Spending • Consumers spend less, including on classified websites due to economic uncertainty • Classified media is now primarily online Rapid Growth in Market Limits Growth with Current Strategy • Online advertising expenditure for online classifieds alone in Europe expected to rise to 2.5 B Euros by 2012 • Necessity to innovate strategy to draw in new consumers Increases Competitive Environment Major growth from market growth • Same companies competing for fewer customers

  15. SCM Current Presence: All Markets Our Position The Market Decision Tree Solution

  16. European Presence: Multi-Brand Leaders Our Position The Market Decision Tree Solution

  17. European Presence: Single-Brand Exposure Our Position The Market Decision Tree Solution

  18. Decision Tree Our Position The Market Decision Tree Solution M&A? Organic Growth? Roll Outs? M & A How To Maximize Attractiveness Organic Growth Roll Outs

  19. Decision Tree Our Position The Market Decision Tree Solution M&A? Organic Growth? Roll Outs? Merger Not a good company fit; difficult to coordinate; limits upside M & A Acquisition Expensive; risky; not best idea in these times Cost Effectiveness Not long term enough, falls victim to flight to safety How To Maximize Attractiveness Organic Growth Brand Expansion Encourages customer usage; sustainable in the long term Blocket or Infojobs Model Easier and faster to implement; low capital expenditure Roll Outs Finn Model Very expensive and slow to implement; risky

  20. Decision Tree Our Position The Market Decision Tree Solution Merger Not a good company fit; difficult to coordinate; limits upside M & A Acquisition Expensive; risky; not best idea in these times Cost Effectiveness Not long term enough, falls victim to flight to safety How To Maximize Attractiveness Organic Growth Initiative 1: Implement Hybrid Strategy in Current Leadership Markets Initiative 2: Expand revenues by immediately rolling out easier models internationally Brand Expansion Blocket or Infojobs Model Roll Outs Finn Model Very expensive and slow to implement; risky

  21. Current Business Models AOL Case Study The Hybrid Model Details Theoretical Roll Out In Theory Finn vs. Hybrid Country Spain Sweden Norway General Cars Real Estate Jobs

  22. New Business Model AOL Case Study The Hybrid Model Details Theoretical Roll Out In Theory Finn vs. Hybrid Country Spain Sweden Norway General Cars Real Estate Jobs Coches Casas Empleos Bilar Hus Jobb Biler Hus Jobb

  23. New Business Model AOL Case Study The Hybrid Model Details Theoretical Roll Out In Theory Finn vs. Hybrid Country Spain Sweden Norway General Cars Real Estate Jobs Hybrid model incorporates specialized sites with greater functionality than current Finn model Coches Casas Empleos Bilar Hus Jobb Biler Hus Jobb

  24. AOL Classifieds Case Study AOL Case Study The Hybrid Model Details Theoretical Roll Out Key Takeaways Similar Approach AOL Classifieds Horizontal breadth with depth in full-function vertical segments • USA Launch: 23 February 2009 • Expanding to Canada and UK by end of week • Access to 40 million listings through Oodle partnership • Interconnected with AOL Jobs, Autos, and Real Estate No Immediate Threat Oodle aggregation only available in UK, US, Canada…AOL not major player in Europe Need for Speed Must get to market before other companies can

  25. Hybrid Model AOL Case Study The Hybrid Model Details Theoretical Roll Out Benefits Structure Example Revenue Sources Structure INTEGRATED Single login for all product categories to improve ease of use BROAD PRESENCE Horizontal coverage of all product categories within general marketplace FULL FUNCTIONALITY Improved functionality within key vertical categories including autos, real estate, and jobs

  26. Hybrid Model AOL Case Study The Hybrid Model Details Theoretical Roll Out Benefits Structure Example Revenue Sources Structure Benefits INTEGRATED Powerful Brand Name • All marketing focused on single brand • Leverage credibility across categories Single login for all product categories to improve ease of use Expanded Customer Base BROAD PRESENCE • Customers come for one category but see them all • Potential to increase time on site per viewer Horizontalcoverageofallproductcategorieswithingeneralmarketplace FULL FUNCTIONALITY Tailored To Consumer Preferences • Only provides expert services when needed • Takes best of both worlds from previous business models Improved functionality within key vertical categories including autos, real estate, and jobs

  27. Hybrid Model AOL Case Study The Hybrid Model Details Theoretical Roll Out Benefits Structure Example Revenue Sources Structure Benefits INTEGRATED Powerful Brand Name Hybrid Platform Combines Functionality of Multiple Sites Into A Single Strong Brand • All marketing focused on single site • Can build a strong reputation for community Single login for all product categories to improve ease of use Expanded Customer Base BROAD PRESENCE • Customers come for one category but see them all • Potential to increase time on site per viewer Horizontalcoverageofallproductcategorieswithingeneralmarketplace FULL FUNCTIONALITY Tailored To Consumer Preferences • Replicates successful functionality of individual sites by only providing additional expertise when necessary Improved functionality within key vertical categories including autos, real estate, and jobs

  28. Site Design Mock-Up AOL Case Study The Hybrid Model Details Theoretical Roll Out Benefits Structure Example Revenue Sources www.URL.xx www.URL.xx

  29. Site Design Mock-Up AOL Case Study The Hybrid Model Details Theoretical Roll Out Benefits Structure Example Revenue Sources Full-Service Portals www.URL.xx www.URL.xx Simple Lists

  30. Revenue Sources AOL Case Study The Hybrid Model Details Theoretical Roll Out Benefits Structure Example Revenue Sources Specific Categories Full-Service Portals • Free Search • Listing Fee • Paid Advertising General Merchandise • Free Search • Free Listing • Paid Advertising Simple Lists

  31. Revenue Sources AOL Case Study The Hybrid Model Details Theoretical Roll Out Benefits Structure Example Revenue Sources Specific Categories Benefits • Free Search • Listing Fee • Paid Advertising Encourages Consumer Use • Free postings in most categories increase willingness to use site Monetization When Possible • Listing fees in specialized categories where listers are willing to pay General Merchandise Sustainable for Long-Term • Free Search • Free Listing • Paid Advertising • Don’t have to worry about being undercut by free competitors • Large community of free users will attract paid listers in premium categories

  32. Roll-Out Process AOL Case Study The Hybrid Model Details Theoretical Roll Out Risks Timing Existing Market Step 1 Step 2 Step 3

  33. Roll-Out Process AOL Case Study The Hybrid Model Details Theoretical Roll Out Risks Timing Existing Market Greenfield Roll-Out Step 1 Step 1 Step 2 Step 2 Step 3 Step 3

  34. Roll-Out Process AOL Case Study The Hybrid Model Details Theoretical Roll Out Risks Timing Existing Market Greenfield Roll-Out Step 1 Both new and existing markets experience phased transitions Step 1 Step 2 Step 2 Step 3 Step 3

  35. Risk Analysis AOL Case Study The Hybrid Model Details Theoretical Roll Out Risks Timing RISK MITIGATION CONTINGENCY Brand Confusion Emphasize Different Page Layouts, i.e. “Cars by Finn” Increase focus on sub-branding; Category specific advertisements 1 Consumer Resistance to One-Shop-Fits-All Focus on additional services and convenience Encourage consumers to go straight to category sites; De-emphasize portal 2 Excessive Costs Phased development; Completed loan restructuring Scale back development schedule; Only complete Phase 1 in each locations 3 Logistics Leveraging best practices; Phased roll-out Bring in project management experts to assist with training 4

  36. Factors Influencing Evaluation The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Top Line Evaluation of 50 European Countries In Depth Evaluation of 24 Countries

  37. Factors Influencing Evaluation The Criteria The Potential Opportunities Prime Opportunities Markets to Enter • Factors that indicate consumers’ willingness to “buy” our product • Indicates strong chance of success in those markets • A way to prioritize expansion into different countries • Resources are limited in current financial crisis

  38. Factors Influencing Evaluation The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Vehicles Generalist Travel Jobs General Indicators

  39. Factors Influencing Evaluation The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Vehicles Generalist Travel Jobs General Indicators

  40. Factors Influencing Evaluation The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Vehicles Generalist Travel Jobs General Indicators

  41. Factors Influencing Evaluation The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Vehicles Generalist Travel Jobs General Indicators

  42. Factors Influencing Evaluation The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Vehicles Generalist Travel Jobs General Indicators

  43. Choosing Attractive Markets to Enter The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Ideal Internet Sales Sales Growth Consumer Sentiment Fragmentation Netherlands Finland Switzerland Russia Turkey Greece Ukraine Poland

  44. Choosing Attractive Markets to Enter The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Ideal Internet Sales Sales Growth Consumer Sentiment Fragmentation Netherlands Finland Switzerland Russia Turkey Greece Ukraine Poland

  45. Choosing Attractive Markets to Enter The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Ideal Internet Sales Sales Growth Consumer Sentiment Fragmentation Netherlands Finland Switzerland Russia Turkey Greece Ukraine Poland

  46. Choosing Attractive Markets to Enter The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Ideal Internet Sales Sales Growth Consumer Sentiment Fragmentation Netherlands Finland Switzerland Russia Turkey Greece Ukraine Poland

  47. Choosing Attractive Markets to Enter The Criteria The Potential Opportunities Prime Opportunities Markets to Enter Ideal Internet Sales Sales Growth Consumer Sentiment Fragmentation 1 Netherlands 2 Finland 3 Switzerland 2 Russia 1 Turkey 2 Greece 3 Ukraine 3 Poland

  48. Three Phases of Expansion Into New Markets The Criteria The Potential Opportunities Prime Opportunities Markets to Enter How Where • Phase One: Most Attractive • Phase Two: Attractive • Phase Three: Becoming Attractive

  49. Implementing a Hybrid Model The Criteria The Potential Opportunities Prime Opportunities Markets to Enter How Where

  50. Implementing a Hybrid: Step 2 The Criteria The Potential Opportunities Prime Opportunities Markets to Enter How Where