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Mobile Commerce -KTF-. 2007. 5. 29. Team 5 IME Kim Jae-jung IME Heo Jun-yeon IME Hong Sung-uk. Contents. contents. What is M-Commerce?. Company Introduction. KTF’ Strategies. Discussion. Company Overview. Company Overview. Established in December, 1996 “ 한국통신 프리텔”. - PowerPoint PPT Presentation
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Mobile Commerce -KMobile Commerce -KTF-TF-
2007. 5. 29.Team 5
IME Kim Jae-jungIME Heo Jun-yeon
IME Hong Sung-uk
Management of Information System #5
contentsContents
CompanyIntroduction
What isM-Commerce?
KTF’ Strategies
Company Overview
Discussion
Management of Information System #5
Company Overview
Established in December, 1996 “ 한국통신 프리텔”
the first ranking in mobile communication area
on ‘Business Week’ in June, 2002.
The second largest company
in mobile communication industry in Korea
K-merce, a brand name of KTF, is one of main items of KTF.
Management of Information System #5
contentsContents
CompanyIntroduction
What isM-Commerce?
KTF’ Strategies
DefinitionCharacteristicsPerspectives
Discussion
Management of Information System #5
Definition of M-Commerce
The buying and selling of products or services by using wireless handheld devices such as mobile phones, smart phones, PDAs and so on.
M-commerce enables us to deal with tasks such as private banking, ticketing and some kinds of payment over a mobile telecommunications network.
Definition
Usage
Management of Information System #5
Characteristics of M-Commerce
Security
Reachability
Mobility
M-Commerce
Product and Service
localization
Product personalization
Ubiquity enhancement
Instant connectivity
Convenience
Characteristics
Value-added attributes
Management of Information System #5
Perspective of M-commerce
• High diffusion rate of mobile phones• Portability• Ubiquity• High expected profits
98 99 00 01 02 03 04
Excessiveexpectation
Disappointment
K-Merce
Growth
UP
Down
• Slowness due to security problems• Small and uncomfortable input method and UI• Lack of standardization• Security and privacy problems• Need for enormous investment costs to build infrastructure•Estrangement between excessive expectation and reality
Management of Information System #5
contentsContents
CompanyIntroduction
What isM-Commerce?
KTF’ Strategies
Definition of K-MerceBusiness Model of K-Merce
Discussion
Management of Information System #5
Definition of K-Merce
A private brand of KTF for M-Commerce which started in April, 2002
K-merce is a service based on wire and wireless internet. It helps people pay easier by electronic devices like cards, mobile phones and electronic purses.
Definition
Usage
Life
Reservation and discount services for movie, public performance, travel and airline.
FinanceFinancial services for stock, banking, loan and insurance.
ShoppingService for cooperative buying, on-line auction, total shopping service.
PaymentElectronic payment by mobile phones.
Management of Information System #5
Business Model of K-Merce
CustomerCustomer
Contents Provider
Contents Provider BankBank
Management of Information System #5
contentsContents
CompanyIntroduction
What isM-Commerce?
KTF’ Strategies
SWOT AnalysisFuture StrategyFurther Improvement
Discussion
Management of Information System #5
SWOT Analysis
S
O T
W
Strength• Because K-Merce is the first brand of M-commerce, it is easy to get big market share.•KTF already has young customers, so it is easier to focus on young people.
Weakness• A brand equity of KTF is lower than that of SKT.
• lack of originality of mobile service is a problem. Its services are similar to those of SKT
Opportunity• Today, many people are interested in M-commerce.
• Demands for new way of payment and financial system are emerging.
Threat• Because of the mobile phone not suitable to read many information, it is hard to structure commerce in mobile environment.
• It is harder to protect privacy and solve security problem than E-Commerce and other off-line commerce.
• It is not attractive to old people.
Management of Information System #5
Future Strategy
Expanding its business by more partnerships with other companies in order to make consumers be close with K-
merce.
Making safer and faster environment of M-Commerce by collaborating with a security company.
Making standardization of M-Commerce Industry by collaborating with internal competitors.
Management of Information System #5
Further Improvement
<Future state>
Strategic collaboration
Usab
ilit
y
High
Low High
<Present state>High
Low HighStrategic
collaboration
Usab
ilit
y
• M-commerce industry is a Red Ocean. Therefore, KTF have to maintain existing customers and snatch competitors customers.• KTF should use CRM or other customer-related strategy to obtain customers’ loyalty• The characteristics of present contents of M-commerce are similar to web1.0 contents. The contents will change into web 2.0 contents. KTF should find a solution to change the contents into web 2.0 contents to be a leader of web 2.0 era.
Management of Information System #5
Special Thanks to………
Thanks for your teaching!!
Prof. Suh Eui Ho
Management of Information System #5
Q & A