2. Agenda
• Company Overview
• External Analysis
• Internal Analysis
• Value Chain
• Business Model
• Convergence Strategy
• Recent Issue
3. Company Overview
• Founded 1991 Revenue(FY2009)
• Headquarter: Paris, France France
948
• Key Brand: Orange 7,074 2% Poland
• Key People 16%
– Stephane Rechard (CEO, since 2010)
Spain
– Didier Lombard (Chairman, since 2005)
22,274
• Industry: Telecommunications 7,958
49% Rest of the
17%
• Major Business: world
– Fixed /Mobile/Internet/Pay TV Enterprise
• Area served: Worldwide 3,836 Division
8% 3,794 IC & SS
• Revenue: € 45.9 billion (FY2009) 8%
• Profit: € 2.99 billion (FY2009)
Source: Data Monitor, 2010
4. History
• 1991: Established and was part of the French Postal and Telco Ministry
• 1997-98: Privatized and spun off from government control
• Till 2000: Mobile service brands were Itineris, Ola and Mobicart
• 2000: Acquired UK based mobile operator Orange
• 2002: Enter into submarine cable business
• 2006: Integration of FT, Equant and Orange Business Services in Orange
Brand
• 2007: Orange Lab network: 15 R&D labs in 7 countries
• 2009: Acquired Unanimis, the UK’s largest exclusive digital ad. Network
Strategic pan-European partnership with Google
Partnership with iPhone in UK
• 2009: Launch of complete cloud computing services
• 2010: Agreement with LGE
5. External Analysis: Six Forces
High Low
Government
New Entrant
(Operating License
Tech Barrier
Authority) Capital Intensive
Medium
Suppliers Low/Medium
High
-Handset Buyers
Rivalry
-Equipment Individual, Enterpri
-SFR
Manufacturer -Bouyguess se
Substitute
Very Low
6. Internal Analysis
• Resources • Competencies
– Skilled Executive board – Relation with the regulation
authorities
– Orange Lab – Brand management
– Infrastructure – Commercialization of offers
– User friendly and simple for the mass market with
products subscription
– The negotiation with large
suppliers (supplier of mobile
phones)
• Distinctive Resources • Core Competencies
– Network of Orange R&D – Good relationship with
lab (15labs in 7 countries) Government
• Competitive Advantage
R & D and the relationship with government
7. Value Chain
Former Value Chain
Basic and
Content Network Distribution
Value-added
providers Operator (End Users)
Service
Integrators Equipment Handset
Mobile Manufacturer Manufacturer
Applications
Present Value Chain
Net providing Transmission Added Value Service CRM/Sales
Telecommunication
Procurement Hard/software Production Hardware/Software Sales and Services
IT
Content Creation Content Aggregation Content Distribution
Media
8. Value Chain
Present Value Chain
Telecommunication, IT and Media
End User
Content Content Application Network
Management
Creation Convergence Management Management
and Terminals
Studio 37 Pay Channels Soft/Hard Network Retailers
(subsidiary for Own channels ware suppliers equipment Service Center
the co- Partnership suppliers
production of with hand
films) phone suppliers
Partnership suppliers
with Warner
Bros,
HBO
9. Business Model
• Telecommunication • Entertainment
– Subscription – Pay TV
– Service – Digital Ads
– Licensing – Subscription
– Cloud Computing
10. Convergence Strategy (2005)
• Orange: NeXT (New Experience in
Telcom Services)
– Fixed, Mobile, Pay TV and Broadband
• Implementation of Convergence
Strategy
– Focus on Content, Networks and
Organization
– Content should be available on 3-Screens
Live Box (launched in 2006)
Source: Google Image
