Orange: Read&go - Business Model and Structure

Orange: Read&Go - Business Model and Structure

i. Orange, a French telecommunications company, is contemplating launching a new service whereby newspaper content would be delivered to handheld devices wirelessly. Describe the basic elements and configuration (create a diagram) of the value network that will need to emerge to support this new service. Note, you're just describing the value network, not Orange's position in it.

ii. Using your description of the value network, characterize Orange's business model in terms of the set of business activities that it will engage in. What is the rationale for this business model?

Orange will engage in the following business activities:

a) Develop, market and sell a wireless device that is capable of delivering e-news.

b) Upgrade and maintain wireless networks capable of meeting consumer demand for bandwidth intense, e-news content.

c) Anchor a standards based platform for the delivery of e-news, which would include display formats, telecom protocols etc.

d) Aggregate content from news providers, in a standards based way, and deliver customized content to consumers.

e) Market and deliver location based, targeted ad's for R&G consumers.

The rationale for this business model is as follows:

a) Increased competition in the wireless service provider business has created a need for new sources of revenue.

b) Orange is looking at business model innovation to serve a "white space" which is essentially a new market (content/advertising) for existing customers (cross-selling).

c) Newspaper print subscriptions are down. More and more content is being consumed using mobile devices.

Value proposition:

* Brand and customer reach (network effect).

* Sophisticated IT system to

* Global reach of Monster is much better in monsters favor in urban rather than rural.

* Additional materials to the employees (social networking amongst employees).

* Partnership with local job sites such as HotJobs etc.

Target customers

* Small and medium businesses.

* Region in which manpower doesn't have a strong prescence.

Cost Model:

Revenue Model:

* Simplified process, cost competitive, similar to Manpower.

Critical Capabilities:

* Superior wireless service.

* Low cost, one stop location for triple play service.

* Seamless customer experience.

* Technology capabilities to define and create standards to make this technology accessible to users.

* Extensive customers reach via tv, internet and mobile assets.

Risks

*

2. Assess