LEAPPresentedby:EricPelanderMay21,20022019/9/15DocumentTitle2ContentsSubjectorcontextMajorideaorrecommendationBenefitsorvaluepropositionEvidenceandanalysisDetailedrecommendationsandactions2019/9/15DocumentTitle3ThisEffortIsDesignedtoAssisttheXYZCompanytoidentifyWirelessMarketOpportunitiesDefinetheWirelessMarketplaceandItsEvolutionDescribeandSizeWirelessMarketsIdentifyXYZ’s-AddressableMarkets•Keymarketplayersanddynamics•IBM’sperspectiveonthekeystrategicissues•Near-termevolutionofthewirelessmarket•Applicationmarketsandsizes•Devicesmarketsandsizes•Infrastructuremarketsandsizes•Currentplayersineachmarketandrelativestrengthsandweaknesses•IdentifyanddescribeXYZ-addressablemarkets•EvaluatethesizeoftheimpactthatXYZcanmake•IdentifycriticalsuccessfactorsXYZ’sobjectiveistogaininsightintotheevolutionofthewirelessmarketinordertoidentifymarketopportunitiesforXYZIdentifyUn-AddressedOpportunitiesforXYZ•Marketcomposition•Keyplayers•Criticalsuccessfactors•EvaluateopportunitiesagainstXYZcapabilities,customers,channels,andtechnologiesSUMMARYCONCLUSIONSSubject-Context2019/9/15DocumentTitle4InternetChannelsWillProvideIncrementalLeadsandRevenueIBMbelievesthereisasubstantialopportunityintheonlineleasingmarketXYZCompanyshouldtargetthefollowingcustomersegments:–ProfessionalServicesandManufacturing–IT,office,andmanufacturingcollateralclasses–Smallbusiness,smallticketmarketThesecustomersshouldbetargetedwithamulti-channelapproach:–Indirect–Aggregators–DirectThemajorchanneltothesecustomerswillbetheindirectone--throughInternetintermediariesthatgiveaccesstothecustomeratthepointoftransactionEachofthesechannelsappealtocustomerswithuniquebuyingbehaviorsCompetitorsaremovingintotheonlineleasingspace;XYZCompanyshouldmovequicklyMajorIdea-Recommendation2019/9/15DocumentTitle5XYZCompanyShouldSimultaneouslyPursueThreeInternetChannelsThroughaVarietyofPartnershipsTargetPartnersChannelOfferingCompetitiveIntensityDirectTrafficdriversfortargetsegmentsEducationalcontentOnlineapplicationsAutomatedcreditdecisioningMedium;buildingamongstart-upfundingaggregators,traditionallessors,andbanksIndirectOnlineStorefrontsOnlineexchangesOFPsAutomatedcreditdecisioningEducationalcontentOnlineapplicationsMedium;aggregatorsandlessorsaremovingtowardspartneringwithonlinevendorsAggregatorAggregatorsthatallowcompetitivedifferentiationbeyondpriceLeasefundingandfulfillmentAutomatedcreditscoringLow,thoughVCispouringintothisspaceChannelsAreRankedbyRelativePriorityTargetSegmentRookieEstablishedSavvyEXECUTIVESUMMARYMajorIdea-Recommendation2019/9/15DocumentTitle6TheIndirectChannelIstheHighestPriorityOurresearchintocustomerbehaviorssuggeststhatcustomersaremostlikelytoleaseatthepointofpurchaseEquipmentvendorswilldrivesignificantonlinetransactionvolumeThischannelallowsXYZCompanytoleverageitscorecompetencyofsourcingdealindirectly:–EarlyindicationssuggestthatonlineequipmentaggregatorsandvendorsrequireasmallerfeefordealreferralsthanofflineleasebrokersrequireAgrowingnumberofonlineequipmentvendorscurrentlyofferleasing:–BrandedandunbrandedstrategiesarebeingusedEXECUTIVESUMMARYWhiletheindirectchannelwilldrivethemostimmediaterevenueimpact,XYCCompanyshouldalsopursuethedirectandaggregatorchannelsinparallel.MajorIdea-Recommendation2019/9/15DocumentTitle7BasedontheEstimatedVolume,OnlineRevenueandGrossIncomeGrowRapidlySource:Forrester,ELA,USCensus,IDC,XYZ,IBM$Millions$0$20$40$60$80$100$120$14020002001200220032004XYZOnlineGrossIncomeXYZOnlineRevenue$Millions$0$20$40$60$80$100$120$140$16020002001200220032004XYZOnlineGrossIncomeXYZOnlineRevenueEXECUTIVESUMMARYKeyAssumptions•XYZVolumerangesfrom$121MMto$202MMin2004•ChannelPartnerFee=3%•CostofMoney=6.5%•Averagerate=16.5%HighAdoptionLowAdoptionBenefits-ValueProposition2019/9/15DocumentTitle8ThecabletripleplayofferingsignificantlyoverlapswithXYZ’scoreresidentialserviceofferingsCompetitiveThreatsCableWirelessSub.PortalsDescriptionofServiceDescriptionofThreatThecabletripleplayconsistsofthreebasicservices:−BroadcastTV−High-speeddata−CabletelephonyAncillaryservicesinclude:−Video-on-demand−Videoconferencing−HomesecurityCableprovidersalreadysellservicestoalargemajorityoftheU.S.population−ThecablefootprintcoversnearlytheentireU.S.homepopulation−Thetakerateforserviceisapproximately65%Cableprovidersarecurrentlydigitalizingtheirnetworksanddeployinghigh-speeddataserviceswhichcompetedirectlywithXYZ’shigh-growthDSLserviceCableprovidersarebeginningtodeploycabletelephonywhichwillcompetedirectlywithXYZ’scoreresidentialservice−CabletelephonywillbecomeincreasinglymoreofathreatinthenextcoupleofyearsastheDOCSISstandardforVoIPbecomesimplementedHFCcablemaintainsacompetitiveadvantageoverDSLintermsofbandwidthcapacitywhichallowsforadditionalserviceofferingsincludingvideo-on-demandandvideoconferencingCableproviderswillofferbroadandattractivelypricedbundlestoencourageconsumerstoswitchtocabletelephonyCableTriplePlayThreatEvidence-Analysis2019/9/15DocumentTitle9Cableofferingswillcontinuetoemergeasthedigitalcablefootprintreachesnearly90