cookpad strategy final
DESCRIPTION
TRANSCRIPT
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Business Strategy I“COOKPAD”
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Mission:
“Make everyday cooking fun”
•Japan’s largest recipe site that lets upload and search original or self-
created recipes.• Listed company which went public on the Tokyo
Exchange Market (07/2009)
•Which recipe site do you use most frequently?”
-80% of users answered “COOKPAD”
Source: Survey from Nikkei Research Institute of Industry
and Regional Economy
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Broad Low- Cost
StrategyBroad
Differentiation Strategy
Narrow Low - Cost Strategy
Narrow Differentiation
Strategy
Strategic Model of COOKPAD
20 million registered
users
(as of 07/2012)
1,2 million registered
recipes
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Quality of
Service
Quality of
Service
Variety ofOffers
Variety ofOffers
Social Networking
System
Social Networking
System
Advanced Technologies
Advanced Technologies
Business ModelBusiness Model
COOKPAD
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Net Sales 3,544
Operating Income 1,875
Net Income 1,151FY2012 Q3(9 months)
17,02MillionMobileusers
13,88Million
PC Users
32% Income/Sales
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Highest sales in the company’s history
303
413390
480
420452
485
542 558 583638
681727
775
Q1 Q2 Q3 Q4 Q1 Q2 Q3
Advertising Premium Services
( ¥ million )
Source: Cookpad reports FY2012
20122011
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General External EnvironmentPolitical Environment Corporate tax is high in Japan
Economic Environment AbenomicsDepreciation of the yen
Social Environment SNS is spreadingWeb search became commonWomen’s social participation (Sharing house works with men)Safety and health conscious of food
Technological Environment Share of Smartphone is increasingSupply chain management
Demographic Environment Aging societyBaby boomers is retiring
Specific International Events Depreciation of the yen
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Five force analysis
Number of membership and recipes is overwhelmingHigh awareness and satisfaction of Web siteOther recipe site
Switching cost highMany IT service providers
Switching cost is lowNo comparable competitor Oligopoly
Capital investment is lowSimple business modelNumber of membership and recipes is overwhelming
BooksMagazinesTVrestaurant industry
Buyer power
Supplier power
Threat of substitutes
Threat of new entrants
Segment Rivalry
AdvertiserUserweak
sl.weak weak
neutral
sl.weak
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VRIO Framework
Brand & First Move Advantage
Customer Awareness / Preference
Customer Satisfaction / Beyond Customers' Expectation
Large Number of Recipes
Simplicity / Usability
Internet TechnologyShort Click Response Time
Accuracy of Search Function
Big Data Analysis
Ruby / Open Source Web Application Framework
Business ModelEasy to imitate the Business Model
Need Time, Capital, and Technology to catch up
Structure & Control Mechanism
Strong Leadership of Founder
In-house Technology Development
Homogeneous Background of Management Team
Value : High Rarity : High
Imitability : Medium Organization : Medium
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Evaluation of Cookpad's Current Strategy
Cookpad's diffentiated service creates customers preference. Customer preference allows Cookpad to make above normal
profits Cookpad's diffentiated service generates competitive
advantage. Cookpad's service differentiation strategy is well implemented
through the organizational structure and control.
VRIO criteria verifies Cookpad's service differentiation strategy.
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SWOT AnalysisHigh awareness and satisfaction of Web site
Number of membership and recipes is overwhelming
Market leader position
Technological excellence (short response time, etc)
Simplicity
Less diversification in business
Too much reliance on the founder/top management
Rapid expansion/Recruit of good engineers/Burden of investment for the future
Increase of paying members
Other potential segments
Alliance with Facebook
Globalization/Overseas market
Many potential customers (men, young age)
Women’s social participation/Sharing housework with men
Safety and health consciousness of food
Simple business model
Service obsolescence
Relatively low entrance barrier (Simple business model, less capital intensive)
Possible entrants
SO
WT
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• A platform business based on FOOD
Customer experiences
-Tons of Food
recipes-
Premium services
Marketing support
Advertising
Analysis of Cookpad strategy
PlatformStable and growing market
Want more information!
Want to know customers’
needs!
Want effective
ways!
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• Two options for alternatives
Strategic alternative
Time to expand
their business!
Globalization
Diversification
Current business in Japan
Go global with
current business
Synergy with other
businesses and targets in
Japan
Synergy globally
Growth in overseas
A risk of saturated paid users among low diversification
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Strategic alternativeMission statement
Make everyday cooking fun
Globalization
Important resource
Should choose people who have• high community
sense in SNS• high sympathy
to Japanese food
is a country which has• the highest usage of
SNS about Japanese foods
• the highest number of people who like Japanese foods the best
JETRO report 2012Customer value
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Strategic alternativeMission statement
Make everyday cooking fun
Diversification
Should aim• To target new
segments (age and men)
• Service expansion
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Sales Forecast (5-year)
5-year forecast
Assumptions1. Adverting business will steadily grow at 5%2. Premium service market will be saturated and slow down3. Capture 1% of Korean people (age 25-35) and grow at 20%4. Sell 1,000-yen book to 10% of premium members
2012 2013 2014 2015 2016 2017 2018 -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Diversification
Globalization
Premium Services
Advertising
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Broad Low- Cost
StrategyBroad
Differentiation Strategy
Narrow Low - Cost Strategy
Narrow Differentiation
Strategy
Strategic Model of COOKPAD
20 million registered
users
(as of 07/2012)
1,2 million registered
recipes
New Strategy
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Backup
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Value Chain Analysis
SupportActivities
OperationsManufac-turing
Inboundlogistics
Outboundlogistics
Marketing/ Sales
After salesservice
Firm InfrastructureHuman Resource Management
Technology DevelopmentProcurement
Margin
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