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Enhance and Expand: A Recipe for Success. Justin Saks Emma Browne Craig Schleicher Shreya Oswal. Conquest Consulting. Value Proposition. Objective. Critical Issues. Recommendation. Achieved Value. Objective. Build an attractive future for Schibsted Classified Media.

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Presentation Transcript
slide1

Enhance and Expand: A Recipe for Success

Justin Saks Emma Browne Craig Schleicher Shreya Oswal

Conquest Consulting

value proposition
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

value proposition1
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Attractive to Investors

Attractive to Employees

Being More Attractive than the Alternatives

value proposition2
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

value proposition3
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Every Step is Scrutinized

Increased Volatility

Opportunity is still there

value proposition4
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Every Step is Scrutinized

Increased Volatility

Opportunity is still there

Would rather be #1 in one market than #2 in three or four markets

value proposition5
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Every Step is Scrutinized

Increased Volatility

Opportunity is still there

Would rather be #1 in one market then #2 in three or four markets

Industry is constantly changing

Need to react quickly

Want to be as close to first mover as possible

value proposition6
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Expand

Enhance

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Recommendation

“Two E Strategy: Enhance”

“Two E Strategy: Expand”

Move towards a Hybrid business model

Ensure that we are equipped for long term sustainable success

value proposition7
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Expand

Enhance

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Recommendation

“Two E Strategy: Enhance”

“Two E Strategy: Expand”

Move towards a Hybrid business model

Ensure that we are equipped for long term sustainable success

Avoid the “Flight to Safety” mentality

Take advantage of the times and position SCM as a first mover

Expand aggressively and quickly

value proposition8
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Recommendation

“Two E Strategy: Enhance”

“Two E Strategy: Expand”

Leadership Position Across Markets

Sustainable Competitive Position

Benefits

value proposition9
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Recommendation

“Two E Strategy: Enhance”

“Two E Strategy: Expand”

NPV of NOK~$410mm or USD$56.11mm

Break Even of Less Than A Year

Benefits

agenda
Agenda

Conquest Consulting

Justin Saks

Emma Browne

Craig Schleicher

ShreyaOswal

Emma Browne

Justin Saks

Introduction

Situation Analysis

Enhance Brand

Expand into New Markets

Implementation

Financials/Conclusion

market growth changes
Market Growth Changes

Our Position

The Market

Decision Tree

Solution

Previous Market Growth

Transition from Print Media

  • Classified media is now primarily online

Rapid Growth in Market

  • Advertising expenditure for online classifieds alone in Europe expected to rise to 2.5 B Euros by 2012

Lower competitive threat due to high growth

market growth changes1
Market Growth Changes

Our Position

The Market

Decision Tree

Solution

Previous Market Growth

Threat in Economic Crisis

Transition from Print Media

Discourages Consumer Spending

  • Consumers spend less, including on classified websites due to economic uncertainty
  • Classified media is now primarily online

Rapid Growth in Market

Limits Growth with Current Strategy

  • Online advertising expenditure for online classifieds alone in Europe expected to rise to 2.5 B Euros by 2012
  • Necessity to innovate strategy to draw in new consumers

Increases Competitive Environment

Major growth from market growth

  • Same companies competing for fewer customers
scm current presence all markets
SCM Current Presence: All Markets

Our Position

The Market

Decision Tree

Solution

european presence multi brand leaders
European Presence: Multi-Brand Leaders

Our Position

The Market

Decision Tree

Solution

european presence single brand exposure
European Presence: Single-Brand Exposure

Our Position

The Market

Decision Tree

Solution

decision tree
Decision Tree

Our Position

The Market

Decision Tree

Solution

M&A?

Organic Growth?

Roll Outs?

M & A

How To Maximize Attractiveness

Organic Growth

Roll Outs

decision tree1
Decision Tree

Our Position

The Market

Decision Tree

Solution

M&A?

Organic Growth?

Roll Outs?

Merger

Not a good company fit; difficult to coordinate; limits upside

M & A

Acquisition

Expensive; risky; not best idea in these times

Cost Effectiveness

Not long term enough, falls victim to flight to safety

How To Maximize Attractiveness

Organic Growth

Brand Expansion

Encourages customer usage; sustainable in the long term

Blocket or Infojobs Model

Easier and faster to implement; low capital expenditure

Roll Outs

Finn Model

Very expensive and slow to implement; risky

decision tree2
Decision Tree

Our Position

The Market

Decision Tree

Solution

Merger

Not a good company fit; difficult to coordinate; limits upside

M & A

Acquisition

Expensive; risky; not best idea in these times

Cost Effectiveness

Not long term enough, falls victim to flight to safety

How To Maximize Attractiveness

Organic Growth

Initiative 1: Implement Hybrid Strategy in Current Leadership Markets

Initiative 2: Expand revenues by immediately rolling out easier models internationally

Brand Expansion

Blocket

or Infojobs Model

Roll Outs

Finn Model

Very expensive and slow to implement; risky

current business models
Current Business Models

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

In Theory

Finn vs. Hybrid

Country

Spain

Sweden

Norway

General

Cars

Real Estate

Jobs

new business model
New Business Model

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

In Theory

Finn vs. Hybrid

Country

Spain

Sweden

Norway

General

Cars

Real Estate

Jobs

Coches

Casas

Empleos

Bilar

Hus

Jobb

Biler

Hus

Jobb

new business model1
New Business Model

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

In Theory

Finn vs. Hybrid

Country

Spain

Sweden

Norway

General

Cars

Real Estate

Jobs

Hybrid model incorporates specialized sites with greater functionality than current Finn model

Coches

Casas

Empleos

Bilar

Hus

Jobb

Biler

Hus

Jobb

aol classifieds case study
AOL Classifieds Case Study

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Key Takeaways

Similar Approach

AOL Classifieds

Horizontal breadth with depth in full-function vertical segments

  • USA Launch: 23 February 2009
  • Expanding to Canada and UK by end of week
  • Access to 40 million listings through Oodle partnership
  • Interconnected with AOL Jobs, Autos, and Real Estate

No Immediate Threat

Oodle aggregation only available in UK, US, Canada…AOL not major player in Europe

Need for Speed

Must get to market before other companies can

hybrid model
Hybrid Model

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Benefits

Structure

Example

Revenue Sources

Structure

INTEGRATED

Single login for all product categories to improve ease of use

BROAD PRESENCE

Horizontal coverage of all product categories within general marketplace

FULL FUNCTIONALITY

Improved functionality within key vertical categories including autos, real estate, and jobs

hybrid model1
Hybrid Model

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Benefits

Structure

Example

Revenue Sources

Structure

Benefits

INTEGRATED

Powerful Brand Name

  • All marketing focused on single brand
  • Leverage credibility across categories

Single login for all product categories to improve ease of use

Expanded Customer Base

BROAD PRESENCE

  • Customers come for one category but see them all
  • Potential to increase time on site per viewer

Horizontalcoverageofallproductcategorieswithingeneralmarketplace

FULL FUNCTIONALITY

Tailored To Consumer Preferences

  • Only provides expert services when needed
  • Takes best of both worlds from previous business models

Improved functionality within key vertical categories including autos, real estate, and jobs

hybrid model2
Hybrid Model

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Benefits

Structure

Example

Revenue Sources

Structure

Benefits

INTEGRATED

Powerful Brand Name

Hybrid Platform Combines

Functionality of Multiple Sites

Into A Single Strong Brand

  • All marketing focused on single site
  • Can build a strong reputation for community

Single login for all product categories to improve ease of use

Expanded Customer Base

BROAD PRESENCE

  • Customers come for one category but see them all
  • Potential to increase time on site per viewer

Horizontalcoverageofallproductcategorieswithingeneralmarketplace

FULL FUNCTIONALITY

Tailored To Consumer Preferences

  • Replicates successful functionality of individual sites by only providing additional expertise when necessary

Improved functionality within key vertical categories including autos, real estate, and jobs

site design mock up
Site Design Mock-Up

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Benefits

Structure

Example

Revenue Sources

www.URL.xx

www.URL.xx

site design mock up1
Site Design Mock-Up

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Benefits

Structure

Example

Revenue Sources

Full-Service

Portals

www.URL.xx

www.URL.xx

Simple Lists

revenue sources
Revenue Sources

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Benefits

Structure

Example

Revenue Sources

Specific Categories

Full-Service Portals

  • Free Search
  • Listing Fee
  • Paid Advertising

General Merchandise

  • Free Search
  • Free Listing
  • Paid Advertising

Simple Lists

revenue sources1
Revenue Sources

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Benefits

Structure

Example

Revenue Sources

Specific Categories

Benefits

  • Free Search
  • Listing Fee
  • Paid Advertising

Encourages Consumer Use

  • Free postings in most categories increase willingness to use site

Monetization When Possible

  • Listing fees in specialized categories where listers are willing to pay

General Merchandise

Sustainable for Long-Term

  • Free Search
  • Free Listing
  • Paid Advertising
  • Don’t have to worry about being undercut by free competitors
  • Large community of free users will attract paid listers in premium categories
roll out process
Roll-Out Process

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Risks

Timing

Existing Market

Step

1

Step

2

Step

3

roll out process1
Roll-Out Process

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Risks

Timing

Existing Market

Greenfield Roll-Out

Step

1

Step

1

Step

2

Step

2

Step

3

Step

3

roll out process2
Roll-Out Process

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Risks

Timing

Existing Market

Greenfield Roll-Out

Step

1

Both new and

existing markets

experience

phased transitions

Step

1

Step

2

Step

2

Step

3

Step

3

risk analysis
Risk Analysis

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

Risks

Timing

RISK MITIGATION CONTINGENCY

Brand Confusion

Emphasize Different Page Layouts, i.e. “Cars by Finn”

Increase focus on sub-branding;

Category specific advertisements

1

Consumer Resistance to One-Shop-Fits-All

Focus on additional services and convenience

Encourage consumers to go straight to category sites;

De-emphasize portal

2

Excessive Costs

Phased development; Completed loan restructuring

Scale back development schedule; Only complete Phase 1 in each locations

3

Logistics

Leveraging best practices; Phased roll-out

Bring in project management experts to assist with training

4

factors influencing evaluation
Factors Influencing Evaluation

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Top Line Evaluation of 50 European Countries

In Depth Evaluation of 24 Countries

factors influencing evaluation1
Factors Influencing Evaluation

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

  • Factors that indicate consumers’ willingness to “buy” our product
        • Indicates strong chance of success in those markets
  • A way to prioritize expansion into different countries
  • Resources are limited in current financial crisis
factors influencing evaluation2
Factors Influencing Evaluation

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Vehicles

Generalist

Travel

Jobs

General Indicators

factors influencing evaluation3
Factors Influencing Evaluation

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Vehicles

Generalist

Travel

Jobs

General Indicators

factors influencing evaluation4
Factors Influencing Evaluation

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Vehicles

Generalist

Travel

Jobs

General Indicators

factors influencing evaluation5
Factors Influencing Evaluation

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Vehicles

Generalist

Travel

Jobs

General Indicators

factors influencing evaluation6
Factors Influencing Evaluation

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Vehicles

Generalist

Travel

Jobs

General Indicators

choosing attractive markets to enter
Choosing Attractive Markets to Enter

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Ideal

Internet Sales

Sales Growth

Consumer Sentiment

Fragmentation

Netherlands

Finland

Switzerland

Russia

Turkey

Greece

Ukraine

Poland

choosing attractive markets to enter1
Choosing Attractive Markets to Enter

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Ideal

Internet Sales

Sales Growth

Consumer Sentiment

Fragmentation

Netherlands

Finland

Switzerland

Russia

Turkey

Greece

Ukraine

Poland

choosing attractive markets to enter2
Choosing Attractive Markets to Enter

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Ideal

Internet Sales

Sales Growth

Consumer Sentiment

Fragmentation

Netherlands

Finland

Switzerland

Russia

Turkey

Greece

Ukraine

Poland

choosing attractive markets to enter3
Choosing Attractive Markets to Enter

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Ideal

Internet Sales

Sales Growth

Consumer Sentiment

Fragmentation

Netherlands

Finland

Switzerland

Russia

Turkey

Greece

Ukraine

Poland

choosing attractive markets to enter4
Choosing Attractive Markets to Enter

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

Ideal

Internet Sales

Sales Growth

Consumer Sentiment

Fragmentation

1

Netherlands

2

Finland

3

Switzerland

2

Russia

1

Turkey

2

Greece

3

Ukraine

3

Poland

three phases of expansion into new markets
Three Phases of Expansion Into New Markets

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

How

Where

  • Phase One: Most Attractive
  • Phase Two: Attractive
  • Phase Three: Becoming Attractive
implementing a hybrid model
Implementing a Hybrid Model

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

How

Where

implementing a hybrid step 2
Implementing a Hybrid: Step 2

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

How

Where

implementing a hybrid step 3
Implementing a Hybrid: Step 3

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

How

Where

achieved value from hybrid model
Achieved Value from Hybrid Model

The Criteria

The Potential Opportunities

Prime Opportunities

Markets to Enter

How

Where

  • Cross category synergies
  • Increased number of unique users
  • Increased number of page views
  • Increased revenue per user
logistics and hr implementation
Logistics and HR Implementation

Logistics

Marketing

Financials

Timeline

Hire personnel in each new country division

Project Manager

Senior Developer

Marketing Director

Senior Developer

logistics and hr implementation1
Logistics and HR Implementation

Logistics

Marketing

Financials

Timeline

Hire personnel in each new country division

Inform SCM Headquarters of best practices in market

Project Manager

Senior Developer

Marketing Director

Senior Developer

logistics and hr implementation2
Logistics and HR Implementation

Logistics

Marketing

Financials

Timeline

Spread knowledge and best practices to new and existing markets

Hire personnel in each new country division

Inform SCM Headquarters of best practices in market

Project Manager

Senior Developer

Marketing Director

Senior Developer

logistics and hr implementation3
Logistics and HR Implementation

Logistics

Marketing

Financials

Timeline

Spread knowledge and best practices to new and existing markets

New country divisions can add to overall success of company through spreading global learning

Hire personnel in each new country division

Inform SCM Headquarters of best practices in market

Project Manager

Senior Developer

Marketing Director

Senior Developer

marketing implementation
Marketing Implementation

Logistics

Marketing

Financials

Timeline

$100,000 Initial Marketing Budget

Fits in with hybrid model to leverage horizontal products

marketing implementation1
Marketing Implementation

Logistics

Marketing

Financials

Timeline

SCM: Charge newspapers to link to co-branded classified page

50%

Shared

Rev.

Increased Online Shoppers for Ad Posters

Exposure to Users in SCM’s New Markets

Newspapers: Give readers opportunity to post on national classified page

marketing implementation2
Marketing Implementation

Logistics

Marketing

Financials

Timeline

Potential Clients in Initial New Markets

SCM: Charge newspapers to link to co-branded classified page

50%

Shared

Rev.

Increased Online Shoppers for Ad Posters

Largest Media Group in NL; No Online Classifieds

Exposure to Users in SCM’s New Markets

Most widely circulated newspaper in Turkey; No Online Classifieds

Newspapers: Give readers opportunity to post on national classified page

financial implications
Financial Implications

Logistics

Marketing

Financials

Timeline

Enhance Financials

Expand Financials

Football Field

financial implications1
Financial Implications

Logistics

Marketing

Financials

Timeline

Enhance Financials

Expand Financials

Football Field

Hybrid Initiative

Initial Development Cost

Synergies from Marketing

Synergies from Sales

financial implications2
Financial Implications

Logistics

Marketing

Financials

Timeline

Enhance Financials

Expand Financials

Football Field

New Market Expansion

Chosen upon 50 different criteria

Team Cost:

1 IT Manager

2 Senior Developer

1 Marketing Director

Marketing Budget

Web Development Cost

% of Market Captured

financial implications3
Financial Implications

Logistics

Marketing

Financials

Timeline

Enhance Financials

Expand Financials

Football Field

$92.87

$60.16

$46.87

financial implications4
Financial Implications

Logistics

Marketing

Financials

Timeline

Enhance Financials

Expand Financials

Football Field

$92.87

Average

$86.57

$60.16

Average

$56.11

$46.87

Average

$43.57

WACC: 11.94%

Terminal Exit Multiple: 4.0x

Revenue/user: $0.35

Aggressive Capture: 25%

Conservative Capture: 20%

Conservative Capture: 15%

Avg. Synergies Realized: 0.44%

Internet Market Growth: 10%

WACC: 11.94%

Terminal Exit Multiple: 4.0x

Revenue/user: $0.41

Aggressive Capture: 30%

Conservative Capture: 20%

Conservative Capture: 10%

Avg. Synergies Realized: 0.49%

Internet Market Growth: 15%

WACC: 11.94%

Terminal Exit Multiple: 4.0x

Revenue/user: $0.50

Aggressive Capture: 35%

Conservative Capture: 25%

Conservative Capture: 20%

Avg. Synergies Realized: 0.53%

Internet Market Growth: 20%

financial implications5
Financial Implications

Logistics

Marketing

Financials

Timeline

Enhance Financials

Expand Financials

Football Field

$92.87

Average

$86.57

Four Year Implementation Yields a Net Present Value of

$56.11 M or

410 M NOK

$60.16

Average

$56.11

$46.87

Average

$43.57

WACC: 11.94%

Terminal Exit Multiple: 4.0x

Revenue/user: $0.35

Aggressive Capture: 25%

Conservative Capture: 20%

Conservative Capture: 15%

Avg. Synergies Realized: 0.44%

Internet Market Growth: 10%

WACC: 11.94%

Terminal Exit Multiple: 4.0x

Revenue/user: $0.41

Aggressive Capture: 30%

Conservative Capture: 20%

Conservative Capture: 10%

Avg. Synergies Realized: 0.49%

Internet Market Growth: 15%

WACC: 11.94%

Terminal Exit Multiple: 4.0x

Revenue/user: $0.50

Aggressive Capture: 35%

Conservative Capture: 25%

Conservative Capture: 20%

Avg. Synergies Realized: 0.53%

Internet Market Growth: 20%

implementation timeline
Implementation Timeline

Logistics

Marketing

Financials

Timeline

Wave 2 Enhance

Wave 3 Evaluate

Wave 1 Expand

2009

2010

2011

2012

2013

Wave 1

Contract, Develop, Install

Introduce blocket variations in 3 phased process

Newspaper Marketing Partnership Implementation

P1 Expansion

Expand

P2 Expansion

P3 Expansion

Marketing

implementation timeline1
Implementation Timeline

Logistics

Marketing

Financials

Timeline

Wave 2 Enhance

Wave 3 Evaluate

Wave 1 Expand

2009

2010

2011

2012

2013

Wave 2

Contract, Develop, Install

Develop Hybrid Platform

Roll out in Primary Markets

Continue to Roll out in other markets

P1 Expansion

Enhance

P2 Expansion

P3 Expansion

Marketing

Develop

Primary Roll-out

Continued Roll Out

implementation timeline2
Implementation Timeline

Logistics

Marketing

Financials

Timeline

Wave 2 Enhance

Wave 3 Evaluate

Wave 1 Expand

2009

2010

2011

2012

2013

Wave 3

Contract, Develop, Install

Constantly Review and Evaluate Performance

Continue to realize scale and leverage best practice

P1 Expansion

Review and Monitor

P2 Expansion

P3 Expansion

Marketing

Develop

Primary Roll-out

Continued Roll Out

Evaluate

Best Practice

value proposition10
Value Proposition

Objective

Critical Issues

Recommendation

Achieved Value

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be Market leader

Fast-Moving Industry

Critical Issues

Recommendation

“Two E Strategy: Enhance”

“Two E Strategy: Expand”

NPV of NOK~$410mm or USD$58mm

Break Even of Less Than A Year

Benefits

slide70

Enhance and Expand: A Recipe for Success

Justin Saks Emma Browne Craig Schleicher Shreya Oswal

Conquest Consulting

presentation index
Presentation Index

Value Proposition

Agenda

Market Growth Changes

SCM Current Presence

Decision Tree

Current Business Model

New Business Model

AOL Classifieds Study

Hybrid Model

Site Design Mock-Up

Revenue Sources

Roll Out Process

Risk Analysis

Factors Influencing Evaluation

Choosing Attractive Markets to Enter

Three Phases of Expansion Into New Markets

Implementing a Hybrid Model

Achieved Value from Hybrid Model

Logistics and HR Implementation

Marketing Implementation

Financial Implications

Implementation Timeline

appendix index
Appendix Index

Growth Strategies

Exit Strategy

Value Proposition

WACC

Base Case Detail

Base Case Assumption and Output

Aggressive Case Detail

Aggressive Case Assumption and Output

Conservative Case Detail

Conservative Case Assumption and Output

Valuation Outputs

Decision Tree

Newspaper Partnerships Examples

Market Size & Growth For Expansion Targets

Competition in Netherlands & Turkey

Finn vs. Hybrid

Why not mobile (yet)?

Why not acquisitions?

How our strategy addresses financial crisis

Finn Jobs vs. Hybrid Jobs

AOL Classifieds

Breakdown of Target Market

Potential Vertical Businesses

Markets to Keep Watching

growth strategies
Growth Strategies

Covered by “Expand” Strategy

Portfolio

Momentum

Growth achieved through general market growth

Total

Growth

Mergers

&

Acquisitions

Net revenue growth from acquisitions or divestitures

Share

Gain

Covered by “Enhance” Strategy

Revenue growth from gaining market shares

exit strategy
Exit Strategy
  • Sell off sites
  • Convert to separate sites
value proposition11
Value Proposition

Objective

Build an attractive future for Schibsted Classified Media

Global Financial Crisis

Need to be #1

Fast-Moving Industry

Critical Issues

Recommendation

Hybrid Platform

Phased Global Rollout

Leadership Position Across Markets

Sustainable Competitive Position

Benefits

decision tree3
Decision Tree

Merger or Joint Venture

Able to succeed alone; difficult to coordinate; limits upside

M & A

Acquisition

Expensive; no brand coordination; risky; not SCW’s talent

Initiatives contribute to dual growth strategy :

Share Gain

And

Portfolio Momentum

Increase Brand Depth

Does not reach new customers; limits brand synergies

How To Maximize Attractiveness

Organic Growth

Initiative 1: Implement Hybrid Strategy in Current Leadership Markets

Initiative 2: Expand revenues by immediately rolling out easier models internationally

Increase Brand Breadth

Blocket Model

Roll Outs

Infojobs Model

Finn Model

Very expensive and slow to implement; risky

newspaper partnerships examples
Newspaper Partnerships Examples

Sun-Times / Monster

Yahoo! HotJobs

  • 264 newspapers have linked jobs-wanted sites to HotJobs
  • Provides greater traffic to both parties
  • Revenue split between HotJobs and Yahoo!
  • Announced Jan. 5, 2009
  • Includes 70 newspapers in Midwestern United States
  • Co-branded website providing job classifieds on Monster platform
market size growth for expansion targets
Market Size & Growth For Expansion Targets

Why Enter?

  • High Growth Markets
  • Not Overly Mature markets
  • Gaining a strong position in these countries reinforces dominant position in Europe
finn vs hybrid
Finn vs. Hybrid

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

In Theory

Finn vs. Hybrid

Biler

Hus

Jobb

finn vs hybrid1
Finn vs. Hybrid

AOL Case Study

The Hybrid Model

Details

Theoretical Roll Out

In Theory

Finn vs. Hybrid

Forums

Videos

Expert Advice

News

Forums

Videos

Expert Advice

News

Forums

Videos

Expert Advice

News

Biler

Hus

Jobb

finn jobs vs hybrid jobs
Finn Jobs vs. Hybrid Jobs

Job Listings

Finn Jobs

Job Listings

CV Prep Advice

Forums

Financial News

Templates

Interview Training

Newsletters

Downloadable Models

Hybrid Jobs

markets to keep watching
Markets to Keep Watching

Enter These Markets If…

These Factors Increase

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Enhance and Expand: A Recipe for Success

Justin Saks Emma Browne Craig Schleicher Shreya Oswal

Conquest Consulting