MapQuest

Background of the Company

MapQuest was founded by RR Donnelley & sons a media and printing company originally called GeoSystems Global Corporation in Lancaster, Pennsylvania in the latest 1960s. In the 1970s, MapQuest became a leading supplier of custom maps to reference, travel, textbook and directory publishers. The company grew in the mapping industry as a high-quality custom map maker and expanded its client base. In 1991, RR Donnelley combined its mapping expertise with technology to pioneer electronic publishing software for interactive mapping applications.

In 1996 MapQuest launched the first consumer-focused interactive mapping site on the web. This innovative business model capture the attention of the internet consumer and the business market. In late 1998, the Company officially changed its name into MapQuest.com and establish its corporate headquarters in New York City.

Framing

Labeling

Labeling

Synthesizing

Concluding

Current Situation

The company faced a wide range of competitors including Rand McNally, Langenscheidt, Universal, Magellan, ESRI and Delorme. However MapQuest management had planned to shift focus away from the DMS business to the high growth , higher margin internet mapping opportunity. Mulligan and his executive team planned to present strategic alternatives to the board of directors . Investors were hungry for internet businesses.

MapQuest stock traded around $12 per share and made the firm worth around $ 400 million in market cap .

Corporate Governance

Mr. Michael J. Mulligan Chairman of the Board and Chief Executive Officer

Mr. James W. Thomas

Chief Financial Officer

Mr. William Muenster

Senior Vice President of Development and Production

Anke Corbin Vice President of Marketing

Mr. Christian Dwyer

Senior Vice President and General Manager

External Environment
Technological Advances in technology allowed companies to put their geospatial in formation into computer applications and to place their databases onto CD-ROMs and the internet. Advances in technology have made MapQuest company to be positioned in the market due to its forms of operation , which is the internet.
Sociocultural As the internet was growing consumers and travelers were increasingly turning to the internet to located businesses and other points of interests Consumers have shown loyalty to the brand because of the high quality data base that it provides. Economical The capital market for internet and technology companies were doing well , and had experienced one of the greatest run-ups in history .

Porters Analysis
Bargaining power of buyers High Bargaining power of suppliers High Threat of new entrants High Threat of substitutes Low Rivalry Medium

Mission
Be the leading online provider of destination solutions for businesses and consumers.

Vision
Be the leading provider of traditional and digital mapping products and services to the educational, reference , directory, travel , and governmental markets in the United States .

General Objectives

Provide customized maps, destination information and driving directions to potential customers. Expand the service offerings of their web sites to attract and retain users. Use outside sources to meet their map-generating and destinations information needs. Provide potential customers with information regarding which of a business multiple locations was closest to the potential customers.

Values

Build brand awareness Expand and Enhance the MapQuest service Grow sales channels aggressively Develop additional advertising opportunities Use existing integrated geographic data as a platform Pursue international opportunities

SWOT Matrix

TOWS Matrix

IFE Matrix

EFE Matrix

Internal-External Matrix

Space Matrix

2.8 0.93

Y AXIS

X AXIS

(FS)
4.33

(ES)
-3.4

= 0.93

(CA)
-1.67

+ (IS)
4.5

= 2.8

Summary Of Results

Establish new strategic alliances in order to expand into foreign markets

Maintain and develop the product and the image by increasing marketing campaigns

Make use of the innovation to satisfy the changes in consumer tastes and preferences

Renegotiate contractual agreements with the suppliers

GROW AND BUILD

AGRESSIVE

Alternatives

Renegotiate contractual agreements with the suppliers Maintain and develop the product and the image by increasing marketing campaigns

Increase the level of technology to develop cost efficiency, gain competitive advantage

Renegotiate contractual agreements with the suppliers

PROS Long terms contractual arrangements Several geographic data sources CONS Spend more money will affect the production cost Power of suppliers

Maintain and develop the product and the image by increasing marketing campaigns
PROS

Maintain old customers and attract new customers Accelerate share gains

CONS Spend more money will affect the production cost Customers can get bored of excessive publicity

Increase the level of technology to develop cost efficiency, gain competitive advantage
PROS Increase the add value of the product Gain more revenues CONS Highest cost The need of a marketing research process

Strategic Recommendation
Establish new strategic alliances in order to expand into foreign markets and also renegotiate contractual agreements with the suppliers in order to have long terms arrangements. With this alternative our company will develop synergies and this will help in create competitive advantage and increase sells and market power because of its availability of resources. The company can also develop technologies by doing this.

THANK YOU