The Fit for Growth℠ approach & Business Model Innovation

This post is based on my reading of “A Fit for GrowthSM Framework for Telecom Operators: Aligning Capabilities, Costs, and Structure” by Martin Reitenspiess, Christine Rupp, Hannes Gmelin, and Chady Smayra, via Booz & Co. It is an attempt to reconstruct the proposal made in the publication by drawing analogies to other pieces of work. This publication (from April 2013) from Booz & Co proposes a “Fit for Growth” framework to transition from price-based competition strategy to differentiation strategy. Not surprisingly the industry in question, Telecom, is industry characterized by the following observations: Stagnating market due to saturation of primary revenue sources Declining margins accompanied...

Tale of the two ‘V’s – Vodafone & Verizon

An interesting in-depth view of what Vodafone can do with the 45% stake in it’s American counterpart – Verizon. (The complete article is at Lex in-depth: Vodafone via the Financial Times Buying back this stake from Vodafone, Verizon will be better able to bear the fruits of profitability. Also, cashing out will bring in a cheque bearing a huge figure to Vodafone. But (there is always one or more of them…) that said – what can be done with all that cash? what about the several re-organizations in JV’s with the regulatory situation ever make a telco’s path to profitability easier

Yahoo continues its acquisition spree – a bid for Hulu this time!

Yahoo continues its acquisition spree – this time it has bid for Hulu.com Hulu brings along a lot of content along with demographic data to complement the Tumblr acquisition. Yahoo competes with media giants and private equity firms for this bid! The ‘range’ of the bid indicates its desperation – clearly it does not want to repeat the Youtube bidding scenario. It might seem like Yahoo is trying to fill the Youtube gap in its portfolio, Hulu has its differences when compared to Youtube. Hopefully Yahoo doesn’t try to replicate Google’s Youtube strategy with Hulu – it deserves a integration & monetizing...

Yahoo acquires Tumblr – a move towards competitive parity?

Much has been written about the recent announcement of Yahoo’s decision to acquire Tumblr. Here are my two cents in a more than two lines. As with any acquisition, the key question has always been – will it add value? One of the best ways to look at value addition in an M&A is synergies among the merging firms in the value-chain. The Internet Value Chain For the value chain, I decided to refer to a different perspective – The Internet Value Chain (from the ‘Internet value chain economics‘ proposed by Mark Page & Christophe Firth from ATKearney back in...