Presentation Transcript

1. Agenda Market/Industry Analysis The Product Company Overview Motives and Fits between partners Alliance Structure Type of Alliance What is it for stakeholders? Benefits and Weaknesses
2. TV is still be a mass medium we all use to explore the world. Americans spend hours a day in front of TV billion dollars spent on TV advertising annually 5 70 Market/Industry Analysis
3. billion dollars viewers worldwide Declining VCR and DVD ownership People love online contents 4 Market/Industry Analysis
4. There is a potential growth of “Android” culture as it ranks # 6 with 0.27% share in operating system market More people prefer in expensive laptop to desktop Market/Industry Analysis
5. The Product
6. The Product
7. Found in 1968, Intel is the world’s largest producer of processor chip and motherboard. Acquired 80.6% of market share in chip industry In 2009, Intel generated 75% of total revenue from processor chip for PC and 18% from chipset for server Found by Larry Page and Sergey Brin in 1998Claimed 67.5% of search engine market in U.S Derives 66% of total revenue from text ads and hope to generate more than 2.5 billion dollars next year Found in 1946, Sony Corporation is the parents company of Sony Group. It is responsible for electronic segments (video, TV, audio, etc.) In 2009, 66.8 % of total revenue of Sony Group comes from Sony Corporation Derives 23% of revenue from TV and 22% from Digital camera Found in 1981, Logitech is world’s leading producer of PC peripheral devices (mice, keyboards, webcams) Logitech also offers products for living room In 2010, Logitech made 27% of pointing device, 20% from audio, 16% from keyboard and desktop. Company Overview
8. Sony wants to gain back the leading position in television industry since it lost to competitors like Samsung, LG, and Vzio. So, it needs a new hit to get a leg up on those rivals. 1. Google wants to spread the “Android” culture to other kinds of telecommunication. 2.Google is hunting for new source of revenue from television advertising. 3.Google plans to make “Android” platform to be center of OS. Also, it want to beat Apple Intel plans to boost up the usage of its latest “Atom” processor in other kinds of consumer electronics. It simply wants new market to grow 1. Logitech did not do well on its core product; the mouse; since the revenue dropped from $2.3 billion in 2007 to $1.9 billion in 2009 2. Declining demand of PC peripherals due to the change in PC industry They worked very best to bring out and leverage their expertise to create new phenomenon of TV viewing experience They shared visions about “Challenginginnew kindofbusiness” rather than struggling in their core products. They successfully created a nightmare for rivals. Motives for Motives for Motives for Motives for The fits Motives and Fits between partners
9. MARCH, 2010 MAY, 2010 September, 2010 Sony Internet TV Logitech Revue with GoogleTV Set-top Box The news of alliance for Google TV had been released. However, the partners were not allowed to disclose any details since it was still under negotiation On September 7, 2010, in IFA consumer electronics conference in Berlin, Eric Schmidt, CEO of Sony corp. announced that Google TV will go global by 20101 October 16, Sony Internet TV is available for pre-sell at Sony Style online October 20, Logitech Revue is available at Logitech retail /online store and Best Buy October 24, Sony Internet TV is available at Sony Style and Best Buy October, 2010 For, We would deliver the world’s first Internet TV, which runs GoogleTV. We also introduce the set-top box incorporating Blu-ray Disc drive Howard Stringer CEO of Sony Corp. For, We are going to put our “ATOM” processor CE4100 in both Logitech and Sony devices to ensure the best A/V performance. Paul S. Otellini CEO of Intel For, We would provide the “Android” platform as the main operating system for GoogleTV and “Google Chrome” as its web browser. Eric Schmidt CEO of Google For, We would introduce “Logitech Revue”. which is a set of companion box that links existing TV to GoogleTV , and wireless keyboard controller. Gerald P. Quindlen CEO of Logitech On May 20, 2010, CEOs of four companies announced their strategic alliance for Google TVin Google I/O conference in San Francisco. Alliance Structure
10. Type of Alliance Sale alliance Strategic alliance to beat competitors The four companies targets to jump over their competitors with the new breakthrough. Most of them need to claim their throne in the market from rivals. The four companies targets new stream of revenue. Google can gain more from advertising while Sony, Intel and Logitech can have more profit from their products. Sale alliance Type of Alliance
11. Stockholders Another alliance with “Best Buy” Temporarily shift of Android engineers from Google to partners Tends to decline the revenue of broadcasters Post a threat to cable companies Stockholders benefit from increasing share price. For Intel, stock price would go up by 5% They might prefer paying one lump-sum to purchase Google TV, rather than paying on monthly basis for those companies What is it for stakeholders?
12. Benefits for Benefits for Benefits for Benefit from FMA Increase brand awareness in living-room items Low and average incomers might love Logitech Revenue, so, they probably gain more income Benefit from FMA Gain access to Sony’s technology Successfully embed Android into other kinds of technology Clearly gains from advertising revenue Benefit from FMA Gain access to Google software platform Probably get new stream of revenue to offset the sales it lost from other products. Get a leg up on competitors Extend the dominance from computer and laptop to television, meaning that Intel could sell more of its processor Escape from catching-up competitors Probably increases its revenue base Benefits for Benefits / Weaknesses
13. Weaknesses Big broadcasters blocked Google TV from accessing its online content as it harms their main source of revenue Main reasons to block Google TV; Less ad revenue because there are less as shown in online contents than regular TV Lose transmission fee Google still cannot find the way out; Youtube will not be solution for Google Google is still under negotiation with broadcasters. Sony and Logitech might end up competing each other on the sale of companion box. So, this provides little competitive environment within the alliance Benefits / Weaknesses
14. THANK YOU Group.8