External analysis1st level : general environment -> Opportunities and Threats-conceptPEST(Political, Economic, Social, Technological)Political : MNVO has come to actionKCC(Korea communications commission) is regulating global expansionEconomic : Communication market’s competitions is very severe.Cored market is almost saturatedCollaboration with other companies. (Ex) JV)Social : People wants fast and comfortable things.More creative thoughts are preferred.People are rational to price.Technological : cloud computing3w(wi-fi, wibro, WCDMA)FMC(Fixed Mobile convergence)2nd level : competitive environment-concept-5 force Frameworks1. Threat of new entrantsIt is only recently (March, 2010) that the Korean government passed a bill allowing the leasing of mobile networks, or MVNO business in the country.By September 23rd, KCC (Korea Communications Commission) will prepare a complete set of guidelines and regulations for MVNO services.MVNO(mobile virtual network operator) policy -> can make a diversity of competitors!!!MVNO policy is that some companies could rent networks from MNO(SK, LG, KT) and provide mobile network services. Like games., music,.. etc.-> There are no maintenance cost! Only they have to pay is the rental fee!WHY ACCEPT?Because the KCC announced this policy to defeat the oligopoly.Also There’re some comments that maybe MNO(SK, LG, KT) won’t let MVNOs enter to profitable markets. They only let them enter to minor markets.Presently, KT is providing MVNO services to Entaz which is a mobile contents provider. Hyperlink "http://www.koreaninsight.com/2010/08/kt-to-launch-korea%E2%80%99s-first-mvno-service/" http://www.koreaninsight.com/2010/08/kt-to-launch-korea%E2%80%99s-first-mvno-service/2. Threat of substitute productsLocal call : Sk broadband, LG U+Long distance call : LG U+, Onse telecom, SK Broadband, SK TelinkInternational call : LG U+, Onse telecom, SK Broadband, SK TelinkHigh-speed internet : SK Broadband, : LG U+,, SO(system operator)Mobile telecommuication : SK telecom, LG U+Internet telephone(VoIP) : SK브로드밴드, SK networks, SK Telink, Samsung networks, LG U+,IPTV : Sk broadband, LG U+3. Bargaining power of suppliers- very low because KT’s suppliers is itself especially, cored telephone & cord-less phone, high-speed interent. IPTV’s supplier is skylife yet it is KT’s subsidiary!-mobile phone’s hardware suppliers : low because the big three(SK, LG, KT) is the only customers!(SUBCONTRACTOR)I-phone -> AppleGallaxy K -> Sam sung- contents suppliers : maybe low since KT has announced to help and sponsor the application makers. Hyperlink "http://www.bloter.net/archives/27942" http://www.bloter.net/archives/27942: which says thatKT will foster Global level application makers, 3000KT will operate application makers place ‘econovation center’ ; www.econovation.co.kr- hardware suppliersKT will make national-wide API(Application programming Interface) environments.KT will help application makers to enter to global application markets.4. Bargaining power of customerslow…..high-switching costnot many subsititue products there.(THE services are quite similar… because if one company release some service program, the others promptly mimic the same service program)many customers want to get I-phone whose only supplier is KTAppstory poll. 2010.065. Intensity of rivalrya. SK broadcast(t+b), LG U+ are the rivalry yet mobile market is limited to only in Korea.If one wants to go abroad, it must permitted by 방송통신위원회(Korea communications commission) and it should make the joint venture with foreign companies.+ telecommunication market is almost saturated in KOREA.b. similar service programs & strategies since mobile phone companies have to follow theuniversal technology standard. -> can’t provide very differentiated services.c. difficulty of exit because of specialized assets like 기지국(base station?), high exit costshigh entrée cost yet because of MNVO, it will be lowered.Cloud computingCloud computing is Hyperlink "http://en.wikipedia.org/wiki/Web" o "Web" Web-based Hyperlink "http://en.wikipedia.org/wiki/Processing" o "Processing" processing, whereby shared resources, software, and information are provided to Hyperlink "http://en.wikipedia.org/wiki/Computer" o "Computer" computers and other devices (such as Hyperlink "http://en.wikipedia.org/wiki/Smartphones" o "Smartphones" smartphones) on demand over the Hyperlink "http://en.wikipedia.org/wiki/Internet" o "Internet" Internet.The advantage of using cloud computing are..1) The data is not disappered because of the hard disk breakage.2) They have to pay only the portion they used.3) There’re no maintenance cost, server installation cost, update cost…Service platformService platform is kinds of software contents…No matter what kinds of hardware, Each network companies can provide their own service platform. So Even the same hardware can contain different software program.So differentiation service platform could bring competitive advantage to companies.
Importance of FDI and its growthBrief information on Starbucks’ FDICase analysisFDI theoriesTheoretical ApplicationForm of FDI in StarbucksIV. Recommendation to Starbucks’ FDIImportance of Foreign Direct InvestmentFDI Stocks- 20% of the World’s GDPFDI Inflows- 10%Growth fixed formationTrends- FDI continues to growSource: United Nations, The UN Conference on Trade and Development Data BaseFactors in rapid growth of FDIMore favourable changes to FDI ex) China, India MultinationalsTarget new market to exploit opportunities with capital&expertiseGlobal operations become more attractive Source: The UN Conference on Trade and Development Data Base, Nestle’s official websiteStarbucks’ Foreign Direct InvestmentWorld’s Largest Coffee RetailerSells espresso based hot drinks, drip coffee, pastries, and coffee beans. Annual revenue exceeds $ 7 billion (2009) 16,706 stores in total(5,525-International /11,181-U.S)