Design of an entry strategy for a new business segment

Abstract

For any organization to compete in the future, it is just not sufficient to focus on restructuring or reengineering the processes. It should also reinvent its strategy and create or enter into a The new opportunity should be identified after understanding the core competencies of the organization. In this research work, we have explored four technology offerings using the well know Funnel approach and SPAR methodology to identify most attractive offering for Wipro Technologies to enter into. The technology offerings studied are:1. Digital Television2. IP Set Top Box3. Digital Media Adapter (DMA)4. Portable Media Players (Hand held Devices) Of these four technology offerings, Integrated Digital Television market has entered the stage of a commodity market and hence is ignored from further analysis. The IP Set Top Box market looks more attractive for design service rather than entering the market with platform/solutions approach as the few customers/service providers in that market hold a huge bargaining power. The remaining two markets namely Digital Media Adapter and Portable Media Players look attractive in terms of the market environment. The Portable media Players market has its complexity in terms of the technology challenges compared to that of Digital Media Adapter market. The technology offering of Digital Media Adapter was chosen after brain storming. We have then used SPAR methodology to suggest a market entry strategy. From the end users' perspective, the Digital Media Adapter device would be competing with the PC for the user's entertainment time. The top entertainment application currently used on PC is listening to music followed by games and photograph sharing. Hence the DMA provider should ensure that apart from video streaming application, it includes music, gaming and image sharing applications. This in technology terms means that DMA should have a very good graphics and display engine, which is the weakness of Wipro Technologies. Hence we suggest that Wipro leverage its strength in networking area and develop a near complete reference design and software solutions for network connectivity which would bean attractive proposition to a partner organization that has a strong multimedia technology. In order to appropriate value by tapping this opportunity which would·open a new sales channel we suggest Wipro to create a separate group which focuses only onenabling the existing WLAN IP for the new technology segment. To supplement this, we suggest Wipro to dedicate from the existing pool of sales force exclusively to drive the sales in this new market segment. This has to be accompanied with aggressive marketing to increase awareness among target segment by being an active participant in various trade shows and technical forums. Our analysis shows that Wipro has time window of about 6 to 8 months only to capitalize this technology market.