Business Model Enhancement
Frank N. Magid Associates works with a variety of companies to research, refine, evolve and/or develop new business models. By applying experience-based frameworks and perspectives, we assess existing business models, determine areas for improvement, and identify and build out new business models. Key elements of this process include identifying unique value propositions, examining operational approaches and profit mechanisms, assessing the impact of technological and competitive change, and determining the client’s ability to execute these changes. Changing or evolving business models can be challenging, and Magid is there every step of the way to ensure that the new approach is executed successfully. The business model evolution process answers key questions, including:
- Where does the extraordinary value reside?
- For what internal business unit is the company developing this strategy?
- What are the sources of business value?
- What will allow the client company to develop its business model?
- What must the client do to make the strategy work?
- What are the critical success factors needed to execute this strategy (e.g. key partnerships, organizational requirements, etc.)?
Case Study
Leveraging Magid's Mobile Expertise, Unique Perspective, and Capabilities to Identify Opportunities in the Mobile Location-Based Advertising Landscape
A division of a leading US wireless carrier that develops and provides geographic information systems wanted to analyze the location-based advertising space to guide their branding, product development and advertising strategies. Applying its mobile expertise and strategic insights, Frank N. Magid Associates conducted an exhaustive deep dive of the location-based advertising landscape, including an analysis of competitors and best practice models in and outside of the industry. Magid also conducted executive interviews with media buyers, ad agency buyers, and advertisers to identify the needs, attitudes and behaviors towards location-based advertising, and the current and future intent to invest in location-based advertising. Magid’s unique perspective of key audience, advertising and technology trends across media platforms provided a filter to analyze the viability and growth potential of the opportunities. The landscape analysis, primary research and Magid’s recommendations guided the client’s entrance strategy into mobile advertising. The success of the engagement has led the firm to continue to leverage Magid’s media and strategic expertise to inform several other key mobile advertising strategies.
Identifying Content and Distribution Opportunities to Increase Customer Engagement and Product Sales
In an effort to more deeply engage its customers, reach new audiences and grow its brand presence, a Fortune 50 consumer products company partnered with Frank N. Magid Associates to develop a media strategy across brands and platforms to increase customer engagement. Magid conducted a large scale analysis of the related content, distribution and competitive landscape, and identified best practices to identify content and distribution opportunities for the company. Based on this analysis, Magid and the client identified content opportunities and tested these opportunities with target markets. The engagement resulted in an executable, validated media strategy roadmap that aligned with consumer, industry, and competitive opportunities and that positioned the client as a leader in the content area to drive engagement and, ultimately, product sales.
Implementing a Strategic Process to Align Products with Local Reader and Advertiser Needs to Create the Newspaper of the Future
Recognizing Frank N. Magid Associates’ strategic and operational local media expertise, a major US publisher engaged Magid to help reverse the fortunes of one of its local newspapers which was experiencing declining circulation and advertising revenues. Believing that local newspapers could grow by exploiting their unique selling propositions and aligning their products and services with local market needs, Magid developed a process to explore patterns of local media consumption, investigate potential new business models for both print and online, and evaluate opportunities to recapture important consumer and advertiser positions assumed by other media. Through a comprehensive process that included strategy sessions with key personnel and multiple phases of qualitative and quantitative research with consumers and advertisers, Magid developed new prototypes of the print newspaper and ad products. After testing these prototypes with the relevant markets, Magid partnered with the newspaper to develop a strategic roadmap including an operational approach and identification of profit mechanisms. As a result, the newspaper has experienced an increase in year-over-year ad sales, strong positive reader feedback, and internal recognition from its parent company. This engagement has also led to strategy engagements with other local newspapers of major US newspaper holding companies.
Applying Magid's Television Station Expertise and a Market, Station, and Audience Analysis to Improve Station Products and Revenues
Leveraging Frank N. Magid Associates’ 50+ years of expertise in the local media space, a local television station partnered with Magid to understand how to differentiate and enhance its products to take advantage of product strengths and the vulnerabilities of its key competitors. Magid implemented an intense consulting process including a market analysis of ratings and competitor content across platforms, and an in-depth station analysis of product strengths, weaknesses, and vulnerabilities. The comprehensive external and internal analysis was complemented by primary research to assess market audience ideals, identify brand attributes and opportunities, and identify potential breakout strategies to move the audience measurement needle. Based on the analyses and research findings, and through a lens of its local station expertise, Magid provided recommendations to improve current products and develop new products that took advantage of market opportunities, station strengths, and viewer needs. Magid provided consulting support and progress assessment to drive change, and continues to make consultation visits to the station to ensure tangible progress and ROI.
Utilizing Magid's Mobile Industry Expertise and International Research Capabilities to Assess the Viability of Mobile Gambling in Europe
A US-based mobile handset manufacturer believed it could drive international sales by taking advantage of the popularity of mobile gambling in Europe. Utilizing Frank N. Magid Associates' European research partners and mobile strategy expertise, the company partnered with Magid to conduct research across European markets to determine the market size and opportunity for mobile gambling, and understand how to optimize its offering according to local tastes, cultural dynamics, and brand affinity. Magid’s research revealed that the client’s hypothesis overstated the actual popularity of mobile gambling, and was a weak product and brand fit for the manufacturer. As a result, the client allocated its resources and investments in more promising new business development opportunities.