LAST MILE

CORPORATION:II
- Choosing a development partner.

GROUP-2:

ADITYA RAGHUVANSHI – 2

ANIL KUMAR BHARTIYA – 5

ISHMEET SINGH SACHDEVA – 19

NIKHIL GOEL – 25

NISHANT MEHRA – 26

International Marketing Mgmt.

MBA IB 2018-21
 CASE SUMMARY
- FOUNDED IN 1992 WITH HEADQUARTERS IN CALIFORNIA IT DEALS IN TECHNOLOGY FOR WIRELESS BROADBAND ACCESS
CORE BUILDING BLOCKS BY LASTMILE  TELECOM EQUIPMENT MAKERS  COMMUNICATION SERVICE PROVIDERS.

- CORE COMPETENCY IS INNOVATION AND INTEGRATION CURRENTLY IT NEEDS CASH TO MEET HUMUNGOUS CUSTOMER
DEMAND AND FUTURE TECHNOLOGY DEVELOPMENTS.

-BUT IT’S DILEMMA IS :-

WHETHER TO GO FOR ACQUISITION ANZ INVESTMENT GROUP

OR TO GO FOR TECHNOLOGY LICENSING WITH MIDWEST TECH.

MIDWEST TECH ACQUISITION BY ANZ

-LARGE GROUP WITH ANNUAL SALES OF ABOUT $20 BILLION. -WILL PROVIDE LASTMILE CASH AND KEEP COMPETITION
- FINANCIAL SUPPORT FOR R&D AT BAY.
- ROYALTY PAYMENTS FOR TECHNOLOGY TRANSFER -IN RETURN IS DEMANDING FOR A SIGNIFICANT SHARE.
Q1

Q1-ALTERNATE MARKET ENTRY STRATEGY

Licensing Agreement SWOT ANALYSIS

Strength: Weakness:
•Pioneers in wireless broadband •Fast changing business
access. environment
•Lack of funds.
Joint Venturing •Inexpensive technology. •Problems like skimming vs. price
penetration.

Opportunities: Threats:
•Promising market environment( 4
times growth rate forecast) • Money pouring with new ventures
Mergers & Acquisitions •New technology: Internet & E-
Business
 STRATEGIC INTERNATIONAL ALLIANCE

• Strategic International Alliance is business relationship

established by two or more companies to co-operate out of
mutual needs and to share risk in achieving a common
objective. SIA is sought as a way to shore up weaknesses
and increase competitive strength.
 REASONS FOR SIA

• Rapid Expansion into new market

• Excess to new technology
• More efficient production and innovation
• Reduced Marketing Cost
• Access to additional sources of products and capital.
 Question 2 – What is the most favourable strategy for
LastMile to expand internationally and why?
The most favourable strategy for LastMile Corporation to expand internationally is to accept
the technology licensing proposal floated by MidWest Technologies over the acquisition
proposal offered by ANZ Investment Group.

Highlights
 ANZ’s acquisition proposal demands a significant ownership share from LastMile. Supplying
the technology for the agreement period to MidWest is way beneficial over transferring the
substantial equity to ANZ
 Technological Expansion and International Presence – LastMile would expand
technologically and would have its footsteps in MidWest’s Automotive, Aerospace and
Information Technology markets worldwide
 Improvisation and Innovation – LastMile would learn how to improve and innovate its
technology, as per the international standards
 Economies of Scale – It would enable LastMile to marshal a broad set of resources and
achieve the critical mass needed for international success
 Resolution of Financial Crisis – LastMile would have a fixed international revenue stream
from Day 1, which resolve its financial crunch
 Post-Termination Globalization – After the termination of the agreement, LastMile would
be well versed with the international market needs and would be able to cater the same
independently
 Lowlights

 Single-Client Association – During the agreement period, LastMile would only be

associated to one client; resultantly, would work as instructed or directed
 Latent Identity – As a technology supplier to MidWest, LastMile’s identity would
remain on the back burner before the market, till the tenure of the agreement
lasts
Conclusion

This Strategic International Agreement (SIA) is a win-win situation for both the
parties – MidWest would fetch a turnkey solution to the technology supplier and
LastMile would have an access to the international market. Thus, growing financially
and expanding its arena.
Q3: What are the various levels/tiers of planning that last mile should do and
what are the various business objectives at different levels of planning ?

Information derived from each phase, market research, and, evaluation of program
performance

Phase-1
Phase-2 Phase-3 Phase-4
Preliminary analysis
and screening: Defining market segments and Developing the Implementation and control
Matching adapting the marketing mix marketing plan
company/country accordingly
needs

Environmental factors, Marketing plan Implementation, evaluation,

Matching mix and control
company character, development
requirements defining and
and screening criteria • Situation Analysis
selecting market • Objectives
• Objective and goals
segments • Standards
• Company Character • Strategy & tactics
• Product • Assign responsibility
• Home-country • Selecting mode of
• Price • Measure performance
constraints entry
• Promotion • Correct for error
• Host-country / • Budgets
• Distribution
constraints • Action programs
Last Mile should do various levels/tiers of planning to manage the effects of
external, uncontrollable factors on firm’s strength, weaknesses, objectives and
goals to attain desired end.
Corporate Planning Strategic Planning
Essentially long term. Both long-term and short term.
Incorporating Conducted at the highest
generalized goals for levels of management and
the enterprise as a deals with products, capital,
whole. research.
Enhance market Technology Licensing
share Agreement (Midwest) or
Acquisition (ANZ Investment
Group);
Skimming after launch of
product
Tactical Planning
Pertains to specific
actions and to the
allocation of resources
used to implement
strategic planning goals
in specific markets.
Made at local level and
address marketing and
advertising questions.
Terms and conditions
finalization ;
Build Innovative product
 REFERENCE LITERATURE
• Strategy development in international markets: a two tier approach

Carl Arthur Solberg (BI Norwegian School of Management, Nydalen, Norway)

François Durrieu (BEM Management School Bordeaux, Talence, France)

• Strategy development in globalising markets has been the subject of research over the last
fifteen years.
• However little agreement has been reached as to the impact of different strategies, let alone
the classification of strategies themselves.
• This paper analyses strategies of UK exporting firms in two levels – generic strategies and five
dimensions of internationalisation strategies.
• It concludes that generic strategies impact the more detailed internationalisation strategies
and that different contingencies make these more or less relevant for firms.
https://www.emeraldinsight.com/doi/pdfplus/10.1108/02651330810904071
Direct Investment Option – ANZ Investment Group
 Provide LastMile much-needed cash for further development , help company keeping competition at bay.

 ANZ Investment Group , will have a genuine interest in the future of LastMile Corporation.

 LastMile would have full control over it’s products and will be free to choose which markets it would like to

pursue.

Terms of Agreement Clause:

 Tactical ways to improve the LastMile’s market share, binding ANZ to give undue favors to earlier invested

companies.

 Other ANZ companies should not build the same sector goods, to avoid any competition, or favouritism by

ANZ.
 Q4-SPECIAL RECOMMENDATIONS
FOR EXPANSION
Licensing Agreement SWOT ANALYSIS
Weakness:
Strength: •Fast changing business
•Pioneers in wireless broadband environment
access. •Lack of funds.
•Problems like skimming vs. price
Joint Venturing •Inexpensive technology. penetration if they don’t do
anything/spend time in R&D.

Opportunities: Threats:
•Promising market environment(4
times growth rate forecast) • Money pouring with new ventures
Mergers & Acquisitions •New technology: Internet & E-
Business
 Our primary
solution
TERM SHEET
 HOW , WHAT & WHY ?
WHAT ?
- A term sheet is a non-binding agreement between the parties that
nullifies the primary need for a contract and a licensing attorney.
WHY ?
- Business is all about momentum, we don't want to get everything
done in one go.
- It's an ugly term in business. (Never go straight)
- We want to ensure our happiness when we are working together.
HOW ?
- PERFORMANCE CLAUSE
- IMPROVEMENT CLAUSE
 CLAUSES & PITFALLS
- PERFORMANCE CLAUSE
What if something goes wrong and they breech the clause?
- There is a need for min. guarantees
- Performance clause
- Means royalties you’ll get in quarter
- Set milestones you'll get
- IMPROVEMENT CLAUSE PITFALLS?
What if something-STAYgoesCLOSE WITHand
wrong YOUR LICENSOR.
they breech the clause?
-ASK THEM ABOUT THE NEXT PROTOTYPE.
-File intellectual properties
-MAYBE LURE THEM WITH CROWDFUNDING
-File patents
-Otherwise you'll end up paying royalties
-Any improvement they make you own
THE END