Presentation Transcript
Market Monkeys: Market Monkeys Wai Eric Cheung
Chang Yup Kim
Derek Ku
Kevin Kuang
Leon Chee Kit Leong
Weiquan Lu
Danny Tseng World Indigo Case Opening
MS&E 271
April 12, 2006
Diagnosis: Diagnosis SG & HK Ferries Europe Ferries & Private Airlines USA airlines USA Ferries, China, UK & Russia Airlines FAA Regulations also a factor TALC Total Available Market Division Based on Passenger Volume USA Ferries SG Ferries HK Ferries Europe Ferries (11%) USA Airlines
(57%) China Airlines
(20.7%) Russia Airlines UK Airlines 13.6% of TAM are in the ferry industry. The majority (11% of TAM) is made up by the European ferry Market.
86.4% of the TAM are in the airline industry. 57% or the TAM is made up by the USA airline industry; 20.7% by the China airline industry.
Decision: Decision Asia
Ferry Oct 04 Apr 05 Oct 05 Apr 06 Oct 06 Apr 07 Oct 07 Europe
Ferry Asia Airline Europe Airline North America
Airline South America
Airline Private
Airline Service
Provider
Billing Hardware
Installation SR-101
Radio Hardware
Service &
Support User
Service &
Support Connectivity FAA, CAAS Nanocell Satellite
Receiver Wireless
Service on
Planes and
Ferries Complementary Services Complementary Products Service
Provider
Billing Hardware
Installation SR-101
Radio Hardware
Service &
Support User
Service &
Support Connectivity FAA, CAAS Nanocell Satellite
Receiver Wireless
Service on
Planes and
Ferries Complementary Services Ferry Monitoring
and tracking WHOLE PRODUCT AIRLINE WHOLE PRODUCT FERRY
Analysis: Analysis Airline industry itself is expected to grow much stronger as a whole
Sensitivity analysis performed
Analysis Part II: Analysis Part II Porter’s 5 forces Substitutes
Verizon Airfone
Aircell (Expensive)
Other Cell phone carriers New Entrants
FAA, FCC approval
Less regulations Suppliers
Many suppliers
Low cost
Easy to manufacture Buyers
No in-flight entertainment
Low cost budget flights
High Mobile Penetration
Established Ferry Market in Asia Change in FAA Regulations Rivalry
Boeing and Airbus,
Starling
Geolink, MCP, MTN
(None in Asia!) Government Support Airlines Ferries All
Reality Test: Reality Test