location based services
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Location Based ServicesLocation Based ServicesEntry StrategyEntry Strategy
Debesh Majumdar 09BM8016Kumar Bipallav Mani 09BM8068 VGSOM
March 4, 2011
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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.
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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.
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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]
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The Players in the market
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LBS in iPhone
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LBS in Android
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LBS in iPhone – Paid vs Free
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LBS in Android – Paid vs Free
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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
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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.
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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.
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• 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.
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LBS Applications available or in the pipeline
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LBS Applications available or in the pipeline
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Mobile Advertising via LBS
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Market Size
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Porter’s 5 forces Analysis
Threat of Entry
BuyersSuppliers
RivalrySubstitutes
LBS
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Threat of entry
Threat of Entry
BuyersSuppliers
RivalrySubstitutes
LBS
High• Very less investment required• Time to market is low •Low entry and exit barriers
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Buyers
Threat of
Entry
BuyersSuppliers
RivalrySubstitutes
LBS
High• Availability of competing products• Low switching cost
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Substitutes
Threat of
Entry
BuyersSuppliers
Rivalry
Substitutes
LBS
High• Number of products fulfilling the same need• Uncertainty over future technology
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Rivalry
Threat of
Entry
BuyersSuppliers
Rivalry
Substitutes
LBS
Moderate• Current players have niche markets.
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Suppliers
Threat of
Entry
BuyersSuppliers
Rivalry
Substitutes
LBS
Low• Telecom operators, handset manufacturers and mobile OS developers act as facilitators
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Business Model
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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
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Thank You