Opportunities and Strategies of Entering Location-Based Services by GPS System Maker
Date Issued
2007
Date
2007
Author(s)
Gong, Huei-Yun
DOI
zh-TW
Abstract
In recent years, GPS and related applications occur on the most media, because US military cancelled the limitation of “selective available”, that really increased the precision of positioning system, and created lots of various applications in the worldwide. At the same time, the different GPS systems are also developed in European counties, Russia and China. Afterward, it diversifies the applications of LBS (Location-Based Services) as well. So far, the Taiwan’s system companies, as a ranking No. 1 in the design and manufacturing area of worldwide IT industry, would really play the good role on GPS as well. Actually, Taiwan is already No. 1 in GPS industry from design and manufacturing point of view.
This research is majorly based upon the current viewpoints and advantages from the company of system maker to explore those related new markets due to new applications, so Taiwan’s companies could have the chance to leverage these new opportunities to enter the non-manufacturing markets as well.
The GPS system maker could use the capabilities and advantages of platform design to create the future opportunities, which is called “design for consumer services”. In such cases, the “consumer-needs” services could be put on GPS devices in advance per market request by software platform concept. Such concept really creates another new value chain, which is different from the previous one. The new value creation cycle should include the new roles, one is information provider for getting geo-location services and the other one is application operator for delivery such services.
The Information Provider is to provide the related Geo-location information to consumers for creating the new revenue stream, including the initial-information services via system makers, the continuous-information services via operators, and goods-information services via merchants. From finance assumptions and simulations, we get the result that the most revenue stream would come from goods-information services, the reason is that such business model, based upon “localization” and “time-limited” characteristics, really creates the win-win strategies among the different roles, consumer, merchant, information provider and application operator.
The Application Operator is to provide the convenient, reliable network to consumers for creating the new value proposition. Because this is new application service, all kind of traditional or new operator, including traditional operator (ex. FM), telecom operator (ex. mobile phone), web operator (ex. internet portal) and new operator (ex. WiMax), would be interested in entering such new area. The research only focus on both of them, web operator and new operator, to explore the possible incomes and to do the finance simulation, including VPN leased fee from enterprise, advertisement fee from information provider, and usage fee from consumer. The interested result is that, the number of consumer users would the most revenue stream.
The research is also to provide one framework for new value creation cycle, new value proposition and corresponding revenue stream, and then it does finance simulation and sensitivity analysis. At the end, one example is proposed – Parking system, to verify such framework, and to check the possible incomes and diversified value proposition for both of information provider and application operator by simplified the income sources.
At the last chapter, the valuable suggestions are proposed, such as the new competitions, the new market opportunities, and how to catch such new area.
Subjects
衛星定位系統
地理位址服務
GPS
LBS
Type
other
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