LastMile Corporation Case Study

International Marketing Management

Presented by:
Bidyut Roy (#10)
Dilip Poricha (#16)
Prashant Kumar (#29)
Saurav Kumar (#40)
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• Founded in 1998 with headquarters in California
• It deals in technology for Wireless Broadband access
• Core Competency is Innovation and Integration
• Currently it needs cash to meet humungous customer
demand and future technology developments

But it’s dilemma is :-

o Whether to go for acquisition by ANZ Investment group
o If gone for acquisition by ANZ Investment group
• Will provide LastMile cash and keep competition at bay
• Acquisition of LastMile will create genuine interest of ANZ
• But biggest disadvantage is it has to relinquish some share
therefore may loose control over taking future decisions
Case Fact
o or to go for Technology licensing with Midwest Tech

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 CaseFact

LastMile Corporation
• Founded in 1998 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 :-

a) Whether to go for acquisition ANZ Investment group
b) Or to go for Technology licensing with Midwest Tech.

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 Q1 International Marketing Management: Market Entry Strategy
According to IMM Alternate market entry strategies, what are the various strategies that Last Mile has as
options in expanding internationally?

Wholly Owned Company Assembly

Joint Ventures
Subsidiary Acquisition Operation

Contract
Strategic
Licensing Manufacturing / Direct Marketing
Alliances
OEM Contracting

Trading /
Export
Franchising Sales Force Distributor &
Management
Agents

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 Q2 Acquisition by ANZ

• Control remains with LastMile

• Financial Problem will be resolved
• Can invest in R&D & International Market Expansion
• Minimum Interference from ANZ in Technological Innovation
• can keep intact their identity in long term

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Acquisition byANZ InvestmentGroup Option 1

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If Acquisition

Advantage Disadvantage
• Will provide LastMile cash and keep competition at • But biggest disadvantage is it has to relinquish some
bay share therefore may loose control over taking future
decisions
• Acquisition of LastMile will create genuine interest of
ANZ.

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Technology Licensing with
MidwestTechnologies

Option: Two

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Analysis of Technology Licensing deal from perspective of LastMile
• Large group with annual sales of about $20 billion
• Leads in manufacturing but lacks in Product Development because of which it seeks Tech. Licensing with Last mile

Advantages Disadvantages
• Financial support for R&D • Technology developed by LastMile will be used by
Midwest as its own technology which will decrease
• Royalty payments for technology transfer
its Market share
• Makes Midwest its formidable competitor as both
will same technological offerings
• Need to modify tech. according to needs of Midwest
Customers therefore narrowing its market

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 What arethe various levels/tiers of planning that Last Mile should do and what the various
Q3 business objectives at different levels of Planning?

• Define Five years goal

 Positioning in the industry
 International Market Expansion

• Due diligence of both the available options

 Analyze both the company financial condition
 Assume the possible objective and gains from ANZ/Midwest Perspective
 Infer their M&A, investment and licensing pattern and long-term outcome using available historical data
 SWOT analysis of both the companies
 Human resource policy

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 What special recommendations would you have for Last Mile Corporations to plan its
Q4 business strategy for expansion internationally?

• Approach Foreign • Introducing •Acquisition

Subsidiary of existing product •M&A

Phase: 3
Phase: 1

Phase: 2
existing customer in new market
• JV with SME’s in • Introducing new
developing product in
country and using existing market
the same • Diversification by
companies to acquiring tech
entry in companies
developed • Product line
market expansion and
• R&D & portfolio
Innovation diversification

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ThankYou

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