MALAYSIAN CASE: e-PAY
What are the functions of "product families" in the cases of Toshiba
and Sony Walkman?
In the above mentioned cases, "product families" were considered as
vital and important to be combined and associated with appropriate
strategies in achieving business sustainability. Purposeful strategizing
based upon families of products has been empirically proven to
increase a company's performance over time. In large corporations
such as Toshiba and Sony, the existence of a favorable "internal"
environment to support the development of products families and the
use of appropriate strategies to manage their markets are critical.
It is learned that having both the strategic vision and conducive
environment for innovation led to success of the Toshiba's laptop
and notebook families in the marketplace. In addition to this, the Sony
Walkman's case portrayed that having multiple product models that are
backed by a strategy that focused on their "longevity", which is having
shelf lives compared to those of similar competitors' models are
significant towards its success.
What business is e-Pay in? Explain e-Pay's revenue and cost
e-Pay involves in mobile prepaid system started with the electronic mobile
prepaid top-up system that used wired platform and delivered via POS
terminals. Its service family's grower further followed by a second
platform innovation (wireless-based system). This includes top-up values
delivered via mobile phones or PDAs especially to cater the markets in
remote areas in Indonesia. E-Pay's expanded its service by introducing
payment software solutions in 2004. The service family then completed by
its fourth platform innovation (plastics cards applications) which finally
turned the company into a comprehensive electronic payment provider. E-
Pay's business is now serving multiple geographical markets, including
Indonesia, Thailand, Pakistan and China.
e-Pay's revenue initiated from the margin of top-ups values that it sells to
the retailers. The airtime values was bought in bulk from the telcos at a
discounted rate that enable e-Pay to generate revenue margins based on
their agreement. The retailers are also required to pay deposit for terminals
installed at their sites. By early 2007, e-PAY had over 15,000 POS
terminals and about 18,000 mobile agents (enterprising individuals or
companies) for its wireless-based system. The company not only managed
to dominate the local market but also expanded their business to
Indonesia, Thailand, Pakistan and China. e-PAY was listed in Australian
Stock Exchange (ASX) in 2005 and had also listed in the Alternative
Investment Markets (AIM) in London. It had also expanded its product
portfolio and generates income from selling of payment software solutions
which have been sold worldwide by 2007. Previously, in 2005, e-PAY had
launched its fourth platform innovation and generated revenue from
plastics card application.
e-PAY's cost structure ranging from firms infrastructure (in Kuala
Lumpur and Sydney), administration, human resources (IT, admin,
research and technology development, software
procurement of ICT hardware and software, logistics,
operations, marketing and sales, after-sales service, maintenance and
customer support. e-PAY also has to bear the cost of buying the airtime
values in bulk from the telcos and distributing profit shares for the
Describe e-PAY's original innovation.
The e-PAY's original innovation is an electronic terminal system-based
mobile phone prepaid top-up system that connected the company's system
to point-of-sale (POS) terminals located at multiple locations such as BP
Amoco kiosks, 7-Eleven convenience store chains, Petronas, ProJet and...
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