My Alert Case
Was the first to see the business opportunity in the mobile alerts. The idea was already working well in another channel (Internet). The mobile phone market was growing very quickly. They offered a wide range and tailor-made services. Besides as MyAlert will be the first in the market, the technology investment could became a strength and turn it in an entry barrier, thing that actually happened. For these reasons we can assert that MyAlert was a good business idea.
Which is the competitive advantage of MyAlert when it is launched? How the competitive advantage and business model evolves? Why? Is it sustainable? The competitive advantage of MyAlert at the begging was its own technological platform (MAGO). The platform was Valuable because was the core of the business also it was Inimitable, Rareness and Original due to they developed it from the scratch and was the first in the market specifically designed for its business model.
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Content Production Design & Packaging 1- Corporate Customers Distribution Sales 2- Other Customers Provision of Infrastructure (Mobile Operators) Looking at the value chain of MyAlet we can see highlight in red their core activity, their platform allowed them to distribute the content throw the network to the final customers, the key was that the platform has a great scalability able to distribute data throw different technology enablers (GMS, GPRS…)
From the beginning they realized that text alerts could be used to provide customized services for corporate partners exploiting new business opportunities and here we can see a new competitive advantage because the company was able to introduce their investors into its own value chain getting content and a solid customer portfolio. This is a win win situation, the investors provide contents and the MyAlert provides them a new innovative service for them increasing the company revenues as well as turn over for the shareholders, this business model provides feedback itself being able to maintain it in the long run.
After the merger MyAlert, which started providing data services for the mobile industry, changed its product portfolio and business model providing technology and mobile marketing services. Thanks to MAGO platform MyAlert was far superior technologically than Buongiorno!. On the other hand appeared a new product “consumer services” (ring tones, logos…) the new company had to adapt its business model including consumer services which soon produced benefits. Also they were able to keep creating new business models as “Digital Marketing Project”.
As we have seen MyAlert is a good example of how a company is able to adapt and survive in a really dynamic environment what changes pretty fast, adapting and creating new business models and investing in technology in order to keep its leading position. Is the merge with Buongiorno! a must or just a good idea? Definitely the merge was a MUST, MyAlert had become a world leader and to keep this status they needed to remain this position in every market, soon they realized that it was impossible to achieve through organic growth.
The economical environment was unstable due to the dot com crisis, investors become more demanding looking for positives results in the short term, competitors started to appear and revenues from advertising and m-commerce were reduced due to the economic crisis. All this factors push to Mr. Jorge and his team to look for a similar company with the same goal to join forces and survive in the long term, and this is how they found Buongiorno! And merge in order to keep growing in a very competitive dynamic market.