AOL sees revenue growth for first time in eight years

'In the fourth quarter, advertising revenue - a key measure for the company as it moves away from subscription-based dial-up services to focus on its media outlets such as the Huffington Post - rose 13% to $410.6m.'

Read the whole article at: http://www.bbc.co.uk/news/business-21384583

The Most Common Strategy Mistakes

Interesting insights from the most influential author and researcher in strategic managment.

http://hbswk.hbs.edu/item/6737.html?goback=.gde_1846141_member_211064889

Amazon unveils £130 iPad rival

The 'battle' of the tablets has some very interesting points (from strategic management). Although, the tablets are not technologically superior to existing devices (ie laptops), they are entertainment items, and Apple has create a new segment in the market. The success of these products lays with the complimentarities that are to be developed with the rest of the products (ie iPad and iphone). Amazon offers the new tablet as 'ungrade' to kiddle which quite dominant in its market. Amazon seeks to establish synergies between the Kindle Fire and its e-books, mp3s businesses. It is quite interesting that Amazon is expected to seek access to the mobile handsets for greater coverage of the market (as Google recently did with buying Motorola's handset business unit). Also, amazon's strategy is a very good example of 'low cost leadership' as it is losing about $50 per device.

Hewlett Packard to exit computing and buy Autonomy

This is a good case study for a number of strategic management concepts:
i) planned and emergent strategies: a few months ago HP had announced that they will concentrate on WebOS which has not produced the expected results; HP is quick in changing strategy, even if it must be very financially painful for them.
ii) exit from its cash-cow business: selling pc BU which is considered the biggest in the world. Interpreting the justification from a strategic management perspective, it seems that the software segment has larger profit margins. Interesting to note that this refocusing is a combined with the acquisition of Autonomy.
iii) the refocusing of the business is based on the expertise of its new CEO who has joined from SAP.
The article draws the parallel between HP and IBM a decate ago, but there is a fundamental difference; IBM was not No. 1 when decided to diversify. Also, HP's history of mergers has shown that it is not the most adaptable and flexible company.

Hewlett Packard to exit computing and buy Autonomy

Hewlett Packard has confirmed plans to stop making PCs, tablets and phones, in order to refocus on software.
It has also emerged that the US company has agreed to buy UK software firm Autonomy for £7.1bn ($11.7bn).

Read the whole article at: http://www.bbc.co.uk/news/business-14584428

Google to buy Motorola Mobility for $12.5bn

Good example of an acquisition which serves as diversification-focus strategy by Motoral and an external growth strategy by Google. Motoral has lost the battle for the handsets, so focuses in the corporate and government solutions sector where it is well placed. Google does not have the time to grow organically its handset SBU to compete with the other smartphones and hopes that its existing core competences and SBUs could help develop synergies.

Google to buy Motorola Mobility for $12.5bn
Internet giant Google has announced a deal to buy Motorola Mobility for $12.5bn (£7.7bn).
A joint statement said the boards of both companies had unanimously approved the deal, which should be completed by the end of this year, or early in 2012.
Earlier this year, Motorola split into two separate companies.
Mobility develops and manufactures mobile phones, while Motorola Solutions covers wider technologies for corporate customers and governments.

Google enters travel market with flight data purchase

Google is diversifying while building on its core competences.

Google enters travel market with flight data purchase
By Daniel EmeryTechnology reporter, BBC News

Search engine giant Google has entered the travel market after acquiring flight information firm ITA Software.
ITA provides software that organises fares, flight and journey times that are used by airlines, travel agents and flight comparison sites such as Orbitz.
Google said it may well expand the scope, enabling users to search directly for flight destinations.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/10486358.stm

The rise and fall of MySpace

A very well written 'reportage' which is a great case study for MySpace and News Corp. There are example for a great variety of strategic management topics. Interesting to note: News Corp. diversification strategy; the process for Merger (and how the target was selected); the impact of the environment; and leadership styles.

The rise and fall of MySpace
By Matthew Garrahan
Published: December 4 2009 15:26 Last updated: December 4 2009 15:26

In summer 2005, having spent the best part of four decades ­building a newspaper, film and television empire, Rupert Murdoch decided that the time had come to get serious about the internet. As founder and chairman of News Corporation, one of the world’s biggest and most powerful media conglomerates, Murdoch controls an eclectic portfolio of businesses ranging from The Sun newspaper to the movie studio 20th Century Fox. Yet with young people “watching less television and reading fewer newspapers”, as he observed that summer, News Corp desperately needed a bigger presence online.

Read the whole article at: http://www.ft.com/cms/s/2/fd9ffd9c-dee5-11de-adff-00144feab49a.html

Google set to offer property dimension to UK mapping

This is a diversification that does not seems to be 'relevant' but it actually builds on corporate parents' core skills, it will create synergies between Google's core business and this new one.

Google set to offer property dimension to UK mapping

Google is set to launch a property dimension to its UK mapping system.
The new service will allow both estate agents and private sellers to put their property as an overlay on Google Maps.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/8394252.stm

Aldi moves into holiday market

One could think that this is an unrelated diversification: holiday packages by a supermarket chain. But this is not the first retailer to have such a SBU (Co-op has been offering similar services with a different business platform though). It is interesting to note how retailers can develop synergies across completely different SBSs.

Aldi moves into holiday market

Cut-price supermarket Aldi has begun to offer beach holidays and city breaks to cash-strapped consumers.
The move comes as the travel industry enters its busiest period of the year, with 20% of summer holidays usually booked before the end of the month

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7820008.stm

Daewoo leases African plantation

Vertical Integration.

Daewoo leases African plantation

South Korean firm Daewoo has unveiled plans to plant corn on one million acres of land in Madagascar, to sharply cut its reliance on US imports.
Daewoo is leasing the vast tract of land - half the size of Belgium - for 99 years and hopes to produce 5 million tonnes of corn a year by 2023.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7737643.stm