Location Based ServicesLocation Based ServicesEntry StrategyEntry Strategy

Debesh Majumdar 09BM8016Kumar Bipallav Mani 09BM8068 VGSOM

March 4, 2011

Overview

• LBS is an information based service that uses the ability of the global positioning capability on phones.

• For example, Location Based Services allow you to find Points of Interest using your current location.

• Other examples include personalised weather forecasts based on your location, or the ability to play mobile games against people in your local area.

Needs of LBS

• A huge audience of users

• Repeated and on going “checking in”

• Repeated and on going participation from businesses - large and small.

• As a reasonable way for everyday people to express themselves.

Facts and Figures

• Since the launch of the iPhone’s ability to offer location awareness, the possibilities have changed from being mere ideas to real value-added applications for which many are even prepared to pay premium.

• Reference: http://www.mobilemonday.ch/?p=1763• To be a $13bn industry by 2013 [ABI Research]

The Players in the market

LBS in iPhone

LBS in Android

LBS in iPhone – Paid vs Free

LBS in Android – Paid vs Free

Things to note about LBS

• Location shouldn’t be the only goal - Advertising is important

• Mobile battery life is important• Location will be the battleground of

the Mobile OS• Location Pays

Forecast

• Western Europe Location Based Services (LBS) Market Forecast, 2009 - 2013:

• Western Europe consumer-centric LBS market to rise to $2.97 billion in 2013, a CAGR of 96.4%

• Total LBS service revenue in the EU 27+2 was € 214 million in 2008

• Berg Insight forecasts LBS revenues to grow to about € 580 million in 2014. Including location-based tariffs for data and voice calls, total revenues are estimated to exceed € 1,430 million.

Forecast contd..

• Rapid Location Based Services Growth

• Strategy Analytics forecasts prospects for location based services to brighten considerably, with total spending to exceed $7 billion by 2013.

• Strategy Analytics predicts strong growth in volume of location enhanced download applications from 5 million globally in 2008 to 280 million in 2013.

• Location Based Service Revenue by region 2005 and 2010

• EMarketer estimates that there were 63 million location-based services (LBS) users worldwide in 2008, and expects this number to reach 486 million in 2012.

LBS Applications available or in the pipeline

LBS Applications available or in the pipeline

Mobile Advertising via LBS

Market Size

Porter’s 5 forces Analysis

Threat of Entry

BuyersSuppliers

RivalrySubstitutes

LBS

Threat of entry

Threat of Entry

BuyersSuppliers

RivalrySubstitutes

LBS

High• Very less investment required• Time to market is low •Low entry and exit barriers

Buyers

Threat of

Entry

BuyersSuppliers

RivalrySubstitutes

LBS

High• Availability of competing products• Low switching cost

Substitutes

Threat of

Entry

BuyersSuppliers

Rivalry

Substitutes

LBS

High• Number of products fulfilling the same need• Uncertainty over future technology

Rivalry

Threat of

Entry

BuyersSuppliers

Rivalry

Substitutes

LBS

Moderate• Current players have niche markets.

Suppliers

Threat of

Entry

BuyersSuppliers

Rivalry

Substitutes

LBS

Low• Telecom operators, handset manufacturers and mobile OS developers act as facilitators

Business Model

LBS Metrics

• Percentage of Active Users

• Revenue

• Average Number of Check-ins Per Day

• Time Spent in Application• Percentage of Users Who Have Been

Inactive Over the Last Month

Thank You