Telecommunication Management F2011
LOCATIONBASED
SERVICES
INDUSTRIAL AND BUSINESS ANALYSIS
Group 6
Huanhuan WANG
Bo WANG Xinwei YANG Han LIU
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?
OUTLINE
I.
Introduction
II.
Industrial Analysis
III. Business Evaluation Model
IV. Implementation of Model
V. Comparison & Evaluation
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
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:
Hardware &
Infrastructure:
• Mobile Devices
• Positioning
Component
Introduction
Software &
Services
• Service & Application
Providers
• Data & Content
Providers
Industrial Analysis
Evaluation Model
Networking
Environment
• Communication
Network
Implementation
Comparison
INDUSTRIAL ANALYSIS
Application of Location-Based Services
Business
Information
Model
Used
Authorities and
corporate applications
B2B
Location data,
Aggregated data
Surveillance,
Network control,
Asset management
Location information
B2C
Client location
data
Maps, Navigation,
Traffic
B2C
Client location
data and profiles
data
Promotions,
Coupons, Social
contact
Type of LBS
Personalization
Introduction
Industrial Analysis
Evaluation Model
Examples
Implementation
Comparison
INDUSTRIAL ANALYSIS
Timeline of Location-Based Services in US
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
INDUSTRIAL ANALYSIS
Impact to the Industry
Social Networking
Mobile
Real-time Social Networking
Customer
Demand
•
Physical Participation
Eg, Location
sharing
•
New Channel for Profit
Making
•
Hardware
Capabilitie
s
Eg, iPhone
Introduction
Industrial Analysis
Evaluation Model
Implementation
Software
Design
Eg, Data
Mining
Comparison
INDUSTRIAL ANALYSIS
Concerns & Challenges
Technical
• No single standard
• Lack of hardware & software support
Social
• User privacy
• No specific legal policies
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
BUSINESS EVALUATION MODEL
= Business Models + LBS Features + Investment Evaluations
► Value Proposition: Value generation
► Opportunity Size: User bases,
Social/behavioral impacts of services,
Service Contents
Profit Model
Ease of
implementation
Organizational
Capabilities
Positioning
Risk Evaluation
► Revenue Generation
► Cost Structure
► Sustainability & Growth
► Technical, Financial
► Internal, External (Partners)
► Competition
► Substitutes
► New entrants
► IPR, Privacy, Regulations, Industry Trend
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
YELP
► Values: Visitors & Reviewers (Yelpers) , Business
Owners, Paying Advertisers
► 61 Million Visitors/1 Million Reviews Per Month
Service Contents
Profit Model
Ease of
implementation
Organizational
Capabilities
Positioning
Risk Evaluation
► 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
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
YELP
► Values: Visitors & Reviewers (Yelpers) , Business
Owners, Paying Advertisers
► 61 Million Visitors/1 Million Reviews Per Month
Service Contents
Profit Model
Ease of
implementation
Organizational
Capabilities
Positioning
Risk Evaluation
► 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
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
YELP
► Values: Visitors & Reviewers (Yelpers) , Business
Owners, Paying Advertisers
► 61 Million Visitors/1 Million Reviews Per Month
Service Contents
Profit Model
Ease of
implementation
Organizational
Capabilities
Positioning
Risk Evaluation
► 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
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
FOURSQUARE
► Value: “Check In”
Promote Business Development
► 1 Million Registered Users / 3 Million Check-ins
per day for the 2-Year-Old
Service Contents
Profit Model
Ease of
implementation
Organizational
Capabilities
► Revenue: No Solid Model
(Exploration & Accumulation Phase)
► Competitors: LBS, Social Networking Providers
► Differentiation: LBS + Social Networking
Positioning
Risk Evaluation
Introduction
► Privacy: Automatic posts / Position displays
► Regulation: IRP issues
Industrial Analysis
Evaluation Model
Implementation
Comparison
GOOGLE LATITUDE
► Value: Location Sharing, Supplementary Product
► 3 Million Users / > 50% Inactive
Service Contents
Profit Model
Ease of
implementation
Organizational
Capabilities
Positioning
Risk Evaluation
Introduction
► 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
Industrial Analysis
Evaluation Model
Implementation
Comparison
COMPARISON & EVALUATION
Customer Base
Yelp
Service Contents
Users + Business + Advertisers
• Information facilitation
• Less value-adding from Yelp
Profit Model
Ease of
implementation
Organizational
Capabilities
Foursquare Users + Business
• Entertaining social network
• Value-adding through data mining
Positioning
Latitude
Risk Evaluation
Introduction
Users
• Location sharing among users
• Limited value adding
Industrial Analysis
Evaluation Model
Implementation
Comparison
COMPARISON & EVALUATION
Revenue Generation
Yelp
Service Contents
Advertising + Subscription + Deals
• Location specific selling
• Subscriptions: Value adding for Business
• Deals: Location-based + Daily
Profit Model
Ease of
implementation
Organizational
Capabilities
Foursquare Advertising + Location-based Deals
• Immature profit model
Positioning
Latitude
Risk Evaluation
Introduction
Advertising (Google)
• Indirect revenue generation
Industrial Analysis
Evaluation Model
Implementation
Comparison
COMPARISON & EVALUATION
Cost Structure
Yelp
Service Contents
OE + Sales & Marketing
Profit Model
Ease of
implementation
Foursquare Operating Expense
Organizational
Capabilities
Positioning
Latitude
Risk Evaluation
Introduction
Operating Expense
• Utilized by Google package
Industrial Analysis
Evaluation Model
Implementation
Comparison
COMPARISON & EVALUATION
Organizational Capabilities
Yelp
Service Contents
To-be-listed Dominator in the Field
Profit Model
Ease of
implementation
Foursquare New Growing Organization
Organizational
Capabilities
Positioning
Latitude
Risk Evaluation
Introduction
Comprehensive Services from Google
• Google Place
• Google +
Industrial Analysis
Evaluation Model
Implementation
Comparison
COMPARISON & EVALUATION
Competition
Yelp
Service Contents
Giants entering new domains
• Google Offers, Facebook Places
Profit Model
Ease of
implementation
Organizational
Capabilities
Foursquare Both LBS & Social Network Providers
• Leading position in the field
• Unique differentiation
Positioning
Latitude
Risk Evaluation
Introduction
Supported by Google
• No financial pressure
• Comprehensive packages by Google
Industrial Analysis
Evaluation Model
Implementation
Comparison
COMPARISON & EVALUATION
Legal Concerns
Yelp
Service Contents
Biased Services + Privacy Concerns
• Sued by subscribers
Profit Model
Ease of
implementation
Organizational
Capabilities
Foursquare IRP + Privacy Concerns
• Lack of specific regulations in LBS privacy protection
Positioning
Latitude
Risk Evaluation
Introduction
Privacy Concerns
• Privacy vs. Quality of Services
Industrial Analysis
Evaluation Model
Implementation
Comparison
CONCLUSION
Results
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
Introduction
Industrial Analysis
Evaluation Model
Implementation
Comparison
Telecommunication Management F2011
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Q&A
LOCATIONBASED
SERVICES
INDUSTRIAL AND BUSINESS ANALYSIS