Establish decision criteria.

  1. My company’s [stated or implied] vision is: Publix implied vision is to be, “… dedicated to customer service and community involvement, and being a great place to work and shop.” (Posts, 2021)
  1. My company’s mission is: “Our Mission at Publix is to be the premier quality food retailer in the world” (Home, 2021).
  1. My company’s values are: “To that end, we commit to be: Passionately focused on customer value, intolerant of waste, dedicated to the, devoted to the highest standards of stewardship for our stockholders and involved as responsible citizens in our communities.” (Home, 2021)
  1. My company’s generic competitive strategy is: A differentiating strategy of superior customer service and developing its employee resources in a unique way as owners to build the superior customer service. (Kritzer, 2018)
  1. The main constraints (geographic, resource, etc.) on my company are: Geographic reach due to only serving Florida, Georgia, Alabama, South Carolina, North Carolina, Tennessee and Virginia while two largest competitors (Kroger and Albertsons) operate in 35 and 34 states respectively. (Fernandez, 2020) Additionally, Publix has not invested in technology at the level that some of its direct or indirect competition which may impact customer perceptions of convenience. (Kritzer, 2018)
  2. My company’s top strategic goals are: Publix strives to succeed in a highly competitive environment by focusing on, “…customer service, product quality, shopping environment, competitive pricing and convenient locations.” They emphasize these core strategies to differentiate it from its competition and facilitate opportunities for market share and growth. (SEC Form 10-K, 2021)
  3. My company’s top financial goals are: Publix’s financial goals include continuing to increase sales and profits year over year, meet its cash requirements from internally generated funds and continue to offer a valuable stock and dividend to its employee owners. (SEC Form 10-K, 2021)

Collect and analyze data.

  1. The most attractive opportunity in my INDUSTRY is: Increase in grocery shopping by households due to COVID restrictions and desire from those same shoppers for in store experiences once COVID restrictions are lifted. (Ellison, McFadden, Rickard, & Wilson, 2020)
  2. The most pressing threat in my INDUSTRY is: Rising fuel costs related to recent storms in Texas as well as a shift to encourage green energy that may increase transportation and supply costs. (White, 2021)
  3. As related to pursuit of the most attractive industry opportunity and defense against the most pressing industry threat, my company’s biggest strength is: Publix’s increased sales numbers for 2020 demonstrate it is already taking advantage of the increased grocery shopping as COVID restrictions are still in place in by providing a high level of customer service including its implementation of its Instacart solution in 2016. However, to continue to take advantage of that opportunity and the customer desire for experiences once restrictions ease, Publix will have to manage its distribution and transportation costs tightly and take advantage of some of it Greenwise “experiences” for customers in other traditional Publix stores.
  4. As related to pursuit of the most attractive industry opportunity and defense against the most pressing industry threat, my company’s biggest weakness is: Publix biggest weakness in taking advantage of the industry opportunity is its lack of previous investment in technology. There may be opportunities to improve distribution processes or offer enhanced customer experiences via new technology but Publix will need to close the gap quickly.

Evaluate performance.

In the context of industry averages and close competitor data, how is the company performing:

  1. financially?

Publix has a strong financial position. Gross margin for 2020 was 27.88% while the industry average was 22.85% and Publix outperformed Kroger ($3.27) and Weis Markets ($3.70) with an EPS of $5.67. (SEC Form 10-K, 2021)(Grocery, 2021) Its Current Ratio is 1.01, much higher than Kroger at .14 and Weis at .73 indicating a much stronger position to stay solvent in the short-term. (SEC Form 10-K, 2021)(Grocery, 2021) Its Cumulative Return based on Fiscal year end stock trading price has outperformed its peer group (Ahold Delhaize, Kroger and Weis Markets) for the last five years and in 2020 was 156.02 versus 111.48 for its peer group. (SEC Form 10-K, 2021)

  1. strategically?

Publix is performing well on its customer service and employee relations strategy. Publix tied for second in the supermarket industry in the American Customer Satisfaction Index (ACSI®) Retail and Consumer Shipping Report 2020-2021 (Links to an external site.) with a score of 82 while Trader Joe’s took the top spot at 84, while the industry declined 2.6% on average to 76, showing that they are staying at the top of the pack for customer satisfaction. (DiMeglio, 2021) They also have high rankings in recent years for job security, best company to work for and largest majority employee-owned company indicating their strategic focus on employee development and respect is successful. (Home, 2021)

Define the problem (see your biggest internal weakness, above, before completing this section).

Complete the chart of symptoms (e.g., decline in sales, slipping profit margins, etc.); trace each symptom to its root cause that is under the control of the company (not external, like “COVID,” etc.); evaluate problem significance in light of most promising industry opportunity(ies) in #2, below). Any given problem may have one or more symptoms, and vice versa, so duplications are likely.

SymptomsInstacart orders growingCustomer Service Ranking #2 versus #1     
Underlying Internal Problem(s)Partnering versus in house technology investmentUse of 3rd party for delivery/online order prep versus Publix employee touchpoint     

My company’s most pressing problem or issue is: Use of a third party (Instacart) to assemble online orders in Publix stores and deliver to customers is reducing touchpoints with customers and reducing the impact its strategic focus on the value of employees and customer satisfaction.

Identify and evaluate solutions.

  1. Three feasible solutions to my company’s biggest problem are:
  1. Develop on inhouse solution to replace Instacart
  1. Redefine relationship with Instacart so that more of the customer contact is with Publix employees
  1. Develop a solution with a different third party that emphasizes customer contact with Pubix employees
  1. In light of our decision criteria (#1, above), the most effective and efficient of these solutions is:

Develop an inhouse solution to replace Instacart. This could bring a larger focus and investment on technology that could then be employed for other developments as well.

Defend proposed solution.

This solution will have the following effects on:

  1. strategic performance: Expanding offerings that existing or new Publix employees can perform will support providing dignity, value and employment security to associates. Additionally, if their vision is to be premier worldwide, investment in technology will take it another step in that direction.
  2. financial performance: Publix has shown it can deploy its resources in very effective ways to increase revenues, profit and grow its stock for its employees. With new in house technology, it should be able to grow its geographic reach and use such new resources in the most effective and efficient manner to strengthen its financial standing even more than today.

References:

DiMeglio, D. (2021, March 02). Press release retail and consumer shopping 2020-2021. Retrieved March 03, 2021, from https://www.theacsi.org/news-and-resources/press-releases/press-2021/press-release-retail-and-consumer-shipping-2020-2021 (Links to an external site.)

Ellison, B., McFadden, B., Rickard, B., & Wilson, N. (2020, November 04). Examining food purchase behavior and food values during the covid‐19 pandemic. Retrieved February 28, 2021, from https://onlinelibrary.wiley.com/doi/full/10.1002/aepp.13118 (Links to an external site.)

Fernandez, C. (2020, November). Supermarkets & Grocery Stores in the US Download Options. Retrieved February 28, 2021, from https://my.ibisworld.com/us/en/industry/44511/major-companies (Links to an external site.)

Grocery stores industry profitability. (n.d.). Retrieved March 02, 2021, from https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=1305 (Links to an external site.)

Home. (n.d.). Retrieved February 28, 2021, from http://www.publix.com/ (Links to an external site.)

Kritzer, A. G. (2018, January 29). If convenience and price drive grocery shoppers, how will Publix compete with Amazon, Kroger and Walmart? Retrieved February 28, 2021, from https://www.bizjournals.com/tampabay/news/2018/01/29/if-convenience-and-price-drive-grocery-shoppers.html (Links to an external site.)

Posts, R. (2021, January 27). Publix mission STATEMENT 2021: PUBLIX Mission & Vision Analysis. Retrieved February 28, 2021, from https://mission-statement.com/publix/ (Links to an external site.)

SEC Form 10-K for 2020. (2021, March 02). Retrieved March 02, 2021, from https://www.publixstockholder.com/financial-information-and-filings/sec-filings/sec-document/8718ac7b59a34fc0a8f7bb309b3e4d4e/html (Links to an external site.)

White, M. (2021, March 02). The price of food and gas is creeping higher – and will stay that way for a while. Retrieved March 05, 2021, from https://www.nbcnews.com/business/business-news/price-food-gas-creeping-higher-will-stay-way-while-n1259206

ScoreOut of:
Decision Criteria22
nice 
Data Analysis22
nicely done 
Performance Evaluation22
well done
Problem/Issue Definition2.83
ensure problem is tied directly to market/trend/opp exploitation so that its solution will be strategic
Evaluation of Alternatives & Solution1.82
see above
Solution Defense2.83
needs support and projections
APA Citation/Writing/References22
Total15.4160.9625

Mini-Case Template (Company – Apple- Chorn Poyner)
Establish decision criteria.
a. My company’s [stated or implied] vision is: “We are here to make the best
products on earth, and to leave the earth better than we found it.” (Rowland,
2020).
________________________________________________________________
b. My company’s mission is: “to bring the best personal computing products and
support to students, educators, designers, scientists, engineers,
businesspersons and consumers in over 140 countries around the world.”
(Rowland, 2020).
_______________________________________________________________
c. My company’s values are: _Accessibility, Education, Environment, Inclusion and
Diversity, Privacy, Supplier Responsibility (Business. n.d.) ___
___________________________________________________________
d. My company’s generic competitive strategy is: “Broad Differentiation”-Setting
itself apart by competitive advantages based on product design while focusing on
key features that differentiate the company’s products from competitors. (Meyer,
2019)
________________________________________________________________

e. The main constraints (geographic, resource, etc.) on my company are: _High
dependence on network providers to sell phones and foreign exchange risks of
transferring currency across countries (MarketLine, 2020).
.________________________________________________________________
_______________________________________________________________
f. My company’s top strategic goals are: to expand its business operations and
improve product capabilities through strategic partnerships with suppliers
(MarketLine, 2020).
________________________________________________________________
_______________________________________________________________
g. My company’s top financial goals are: _to increase revenue growth and returns
to shareholders which would also increase funds available for growth initiatives
(MarketLine, 2020).
________________________________________________________________
_______________________________________________________________
Collect and analyze data.
a. The most attractive opportunity in my INDUSTRY is: __the mobile 5G
commercialization market which is due to the high demand for high-speed mobile
data (MarketLine, 2020). According to researchers mobile 5G service is expected
to reach $196.1 billion globally by 2023, accounting for 19.4% of mobile service
revenue worldwide (MarketLine, 2020). 
______________________________________________________________

b. The most pressing threat in my INDUSTRY is: _Rapid technological changes
across the industry resulting in shifts in customer requirements and preferences
(MarketLine, 2020).
_______________________________________________________________
c. As related to pursuit of the most attractive industry opportunity and defense
against the most pressing industry threat, my company’s biggest strength is:
Research and development which ensures continuous and timely introduction of
innovative and competitive products, services and technologies (MarketLine,
2020). This allows the company to constantly develop new technology and
upgrade existing technology based on the latest market trends in the technology
industry (MarketLine, 2020).
________________________________________________________________
d. As related to pursuit of the most attractive industry opportunity and defense
against the most pressing industry threat, my company’s biggest weakness is:
_Its dependence on cell phone network providers for iphone distribution and
service support. This could potentially become problematic if there are failures on
behalf of these networks as new 5G products and services are introduced.
_______________________________________________________________
Evaluate performance.
In the context of industry averages and close competitor data, how is the company
performing:
a. financially?
Although the company has experienced temporary decreased sales of the
iPhone in comparison to industry averages and competitor data the company is

still performing well. Due to the recent release of the Iphone 12 revenues have
greatly increased. Apple’s high liquidity places it at an advantage against
competitors allowing the company the available funds to capture new
opportunities within the market (MarketLine, 2020). Its liquidity ratio is
substantially higher than its competitors Dell HP but substantially behind its
competitor Samsung. In its most recent quarter apple announced revenue of
111.4 billion a 21% increase from the previous year (Apple, 2021). The company
achieved earnings per diluted share of $1.68 which was a 35% increase from the
previous year (Apple, 2021). Apples current market share among smartphone
users is 46.9% among smartphone users (O’Dea, 2021). In regards to total
market share apple currently leads with 23.4% compared to its lead competitor
Samsung who controls 19.1% Market share (O’Dea ,2021).
.________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
______________________________________________________________
b. strategically?
Strategically, apple is performing moderately well in the industry although there is
room for improvement. The company is a leader in various industries due to its
exceptional ability to make customer focused products crafted for everyday use
and business needs. Apple is also well diversified with its premium apple product
offerings and various customer centered services that serve various market

segments and customer groups. Although its products are typically priced higher
than its competitor’s apple has managed to maintain its success through its
broad product differentiation strategy. To survive the company must maintain and
increase its market share through its various products and service offerings while
remaining on the cutting edge of technological advancements throughout the
tech industry for each of its product offerings as well as its
services._________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_______
Define the problem (see your biggest internal weakness, above, before completing this
section).
Complete the chart of symptoms (e.g., decline in sales, slipping profit margins, etc.);
trace each symptom to its root cause that is under the control of the company (not
external, like “COVID,” etc.); evaluate problem significance in light of most promising
industry opportunity(ies) in #2, below). Any given problem may have one or more
symptoms, and vice versa, so duplications are likely.
Symptoms Temporary
Decline in
Sales
Loss of
consumers
Slowed
innovation
Decline in
Market
share
Declining
Operating
income
Decline in
iPhone
sales
Litigation
&
Lawsuits
Underlying
Internal
Problem(s)
Dependency
on the
iPhone
Dependency
on the
Network
Providers
Delayed
Product
development
Delayed
product
releases
Dependency
on the
iPhone
Delayed
product
releases
Patent
Disputes
My company’s most pressing problem or issue is: _Its heavy dependence on the
Network Providers to sell products and generate revenue for the company.
Despite apples broad product offerings and High-quality products these cellular

networks are vital to the company’s success. This results in increased
dependence on network providers to attract and retain iPhone customers. Failure
by these companies to effectively manage and maintain customers could be
extremely costly to apple(MarketLine, 2020).
_______________________________________________________________
________________________________________________________________
________________________________________________________________
Identify and evaluate solutions.
a. Three feasible solutions to my company’s biggest problem are:
1. _Expanding business operations and facilities to increase direct interaction
with consumers as new 5G products are released. This will allow apple to
maintain its relationship with cellular networks as it rolls out new products
while also developing direct customer relationships.
_____________________________________________________________
2. Restructuring agreement and partnerships with cellular networks as it relates
to sale of apples new 5G products and services. Apple could require cellular
networks to take certain steps to prevent loss of customers as a part of their
agreement with the networks. Also requiring these networks to provide plans
and strategies for retaining apple customers.
______________________________________________________________
3._. Choosing to sell apples 5G products and services exclusively and ending
partnerships with cellular networks. This would give apple complete autonomy over
the sale of its new 5G products and services.
______________________________________________________________
b. In light of our decision criteria (#1, above), the most effective and efficient of
these solutions is:
____________________#1 above
____________________________________________
Defend proposed solution.
This solution will have the following effects on:

a.  strategic performance: This will allow apple to maintain its strategic partnerships
with cellular networks which generate significant profits for the company while
also hedging the risk associated with failures on behalf of the cellular networks.
By expanding stores and facilities apple can deal directly with consumers and
supply its products and services directly to consumers without totally depending
on third parties. By expanding direct stores and business operations this will
ultimately give apple more control over its consumer relationships and revenue
generation.
________________________________________________________________
________________________________________________________________
________________________________________________________________
b. financial performance: _This solution will have a positive impact on financial
performance by increasing operating and net income generated by the additional
stores and facilities. This will allow for increased funds to be invested back into
R&D for new products and investing in to technology like mobile 5G services.
This will aid the company in Maintaining its market position increase profits and
ensuring that the company remains up to date and equipped to take on new
technological advancements.__
________________________________________________________________
________________________________________________________________
_____________________________________________________________

References
Apple inc. : Services – company profile, SWOT & financial report. (2014). (). London:
GlobalData plc. Retrieved from ABI/INFORM Collection Retrieved from
https://search.proquest.com/reports/apple-inc-services-company-profile-swot-
amp/docview/1553145441/se-2?accountid=10639
Apple reports first quarter results. (2021, March 02). Retrieved March 06, 2021, from
https://www.apple.com/newsroom/2021/01/apple-reports-first-quarter-results/
Business. (n.d.). Retrieved March 05, 2021, from https://www.apple.com/business/
Meyer, P. (2019, June 05). Apple Inc.’s generic strategy & Intensive growth strategies. Retrieved
March 05, 2021, from http://panmore.com/apple-inc-generic-strategy-intensive-growth-
strategies#:~:text=Strategic%20Analysis%20and%20Recommendations%20for%20Apple
%20Inc.%20Apple%E2%80%99s,goal%20of%20leading%20the%20market%20through%
20technological%20innovation.
Market Line. Apple Inc SWOT Analysis. (2020). Apple Inc SWOT Analysis, 1–8. Retrieved
from Business Source Complete Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,shib&db=bth&AN=147
308333&site=ehost-live&scope=site&custid=s5822723
O’Dea, P. (2021, March 01). Share of people with iPhone in the Us 2014-2021. Retrieved March
06, 2021, from https://www.statista.com/statistics/236550/percentage-of-us-population-
that-own-a-iphone-smartphone/
O’Dea, P. (2021, February 12). Smartphone market SHARE 2020. Retrieved March 06, 2021,
from https://www.statista.com/statistics/271496/global-market-share-held-by-smartphone-
vendors-since-4th-quarter-2009/
Rowland, C. (2020, September 23). Apple Inc.’s mission statement and vision statement (An
Analysis). Retrieved March 05, 2021, from http://panmore.com/apple-mission-statement-
vision-statement

ScoreOut of:
Decision Criteria22
nicely done 
Data Analysis22
great opportunity identification and support!;  weakness well-contextualized 
Performance Evaluation1.82
quantify strategics (e.g., market share, etc)
Problem/Issue Definition33
well expressed
Evaluation of Alternatives & Solution1.72
My only question is why Apple has not already done this…
Solution Defense2.83
needs more support and projections
APA Citation/Writing/References1.92
writing issues (capitalize Apple, etc)
Total15.2160.95

Mini-Case Template: DraftKings (NOTE: GRAPHICS NOW SHOWN – WERE IN ORIGINAL SUBMISSION)


Establish decision criteria.
a. My company’s [stated or implied] vision is:
According to DraftKings website, “It’s our ultimate vision to build the best,
most trusted, and most customer-centric destination for skin-in-the game fans; to
develop the most innovative and entertaining real money products and offers; to
forever transform the manner in which people experience sports; to be a fully
vertically integrated sports betting operator.” (DraftKings: Who We Are 2021)
b. My company’s mission is:
As stated in DraftKings vision statement, the company is seeking to be a
vertically integrated sports betting operator. They are striving to be the best, most
trusted, and most customer-centric destination for “skin-in-the game” fans. They
are “committed to responsibly creating the world’s favorite games and betting
experiences.” (DraftKings: Who We Are 2021)
c. My company’s values are:
DraftKings states on their website that they value inclusion, equity, and
belonging. They “are propelled by constant curiosity. Diverse perspectives.
Thoughts, beliefs, ideas, and experiences. They’re invaluable assets that
continue to help us build toward our vision. We strive to create a place where all
feel safe. Empowered. Engaged. Championed. Inspired. And most of all, like
winners.” They also state that their “number one priority is making sure our
customers are playing safely, securely, and responsibly.” (DraftKings: Who We
Are 2021)

d. My company’s generic competitive strategy is:
DraftKings competes within the iGaming industry with a generic competitive
strategy of differentiation.
After a recent acquisition of another company in the iGaming industry
called SBTech, a writer with Seeking Alpha explains the newest developments to
the DraftKings strategy saying “This cohesive strategy allows for DraftKings to
offer a user-friendly service and is creating synergies by offering different types
of gambling on the platform. DraftKings is improving its payment solution and
offers multiple secure payment methods, while its acquisition of SBTech will
allow DraftKings to use an innovative betting platform and benefit from its
investment in data analytics. (Simons, 2020)

NOT SHOWN (DraftKings Analyst Day Presentation 2020)
e. The main constraints (geographic, resource, etc.) on my company are:
The main constraint on the company is regulation of sports betting and
gaming and iGaming in particular. The regulatory climate for gaming companies
like DraftKings varies by region with some nations and most US states allowing
sports betting online, and some restricting online gaming and sports betting.
(DraftKings Analyst Day Presentation 2020)
f. My company’s top strategic goals are:
DraftKings’ top strategic goals are shown in the table below. In summary,
their top goals are to leverage their vertically integrated gaming and betting
platform, which was built after acquiring SBTech, to maximize their sales
opportunities with each customer. This is how they believe they can outpace the
growth of their competition.

 NOT SHOWN: (DraftKings Analyst Day Presentation 2020)
g. My company’s top financial goals are:
DraftKings’ long term financial goal is to reach $1BN+ in EBITDA from its
vertically integrated online sports betting and iGaming businesses. Below is their
road map to how it can be achieved.
(DraftKings Analyst Day Presentation 2020)
Collect and analyze data.
a. The most attractive opportunity in my INDUSTRY is:
The rapid growth of online and mobile gaming, relative to other more
traditional or in-person modes of betting, is the most attractive opportunity in the
industry. This segment of the $456BN global gaming market has grown from a
9.5% share to an estimated 12.2% share in 2019.

NOT SHOWN (DraftKings Analyst Day Presentation 2020)
The development of regulation in the sports betting and online gaming
industry is creating market opportunity for all players, as the newly developed
online aspect of the industry becomes legalized and regulated in more markets.
The growing size of the online gaming market is requiring lawmakers to act, and
often is benefiting players in the market by allowing more legal opportunities and
locations for them to operate than in the past. In the US, currently one third of the
population can legally participate in sports betting. In 2018 “the U.S. Supreme
Court ruled that keeping sports betting illegal was unconstitutional” (Duprey,
2020). This landmark legislation cleared the way for any state to legalize online
sports betting. Further state regulation and future court rulings and legal changes
will continue to make online sports betting and online gaming more attractive for
these legal industry players.

b. The most pressing threat in my INDUSTRY is:
While widespread cancellation of professional and college sporting events
during the COVID-19 global pandemic posed the greatest present threat to the
survival of competitors within the sports betting industry in 2020, the ongoing
threat of regulatory restrictions is the most pressing ongoing threat in the online
gaming and sports betting industry. There has been a trend to regulate online
gaming in recent years, however, a change in the regulatory trajectory for the
industry could reduce the profitability and opportunity for industry players.
Regulatory changes can be difficult to predict, so industry players must develop
ways to prepare for product launches in states before they occur, or risk falling
behind the competition or losing customers to illegal, often foreign operated,
online gambling and sports betting websites.
c. As related to pursuit of the most attractive industry opportunity and defense
against the most pressing industry threat, my company’s biggest strength is:
DraftKings’ long term strength resides in their ability to utilize their
vertically integrated platform to cross-sell related sports betting and iGaming
products to their customer base. This means they can attract customers with
products like Daily Fantasy Sports, and then cross-sell the same customer on
iGaming or sports betting where and when they are legally permitted to do so.
As one market analyst on AOL explains, “‘DKNG’s data is their moat.’
Scale and transaction volume drives this competitive advantage, leading to better
economic decision-making, and a better customer experience leading to greater

share gains…because of DraftKings’ large transaction volumes, the company
has in depth knowledge of their customer base and can leverage the data to
‘inform accretive levels of customer acquisition through projecting and then
maximizing customer lifetime values.’ For example, through the company’s daily
fantasy sports (DFS) customer database the company is adept at targeting the
right audience. The conversion rate of this customer base to OSB stands at 30-
40%, while 50% turn to iGaming. This “cross sell opportunity” is important, says
McTernan, because it helps drive ‘higher customer lifetime value.’ Additionally,
the data can be used to increase engagement on the platform ‘through tactics
like strategic push notifications or cross selling other sports and verticals’” (AOL
Staff, 2020).
By maintaining an integrated platform with cross-selling opportunities
within various sports betting and iGaming products, the company can maximize
their selling opportunities with each customer, wherever the regulatory
environment allows them to operate. This strength brings promise to the
company succeeding even with the ongoing threat of negative regulatory
outcomes in some regions since they can bring in customers early with more
broadly legalized Daily Fantasy Sports and sports betting, and hopefully
eventually cross-sell customers on iGaming if/when that is legalized in individual
states or nationwide.
d. As related to pursuit of the most attractive industry opportunity and defense
against the most pressing industry threat, my company’s biggest weakness is:

The acquisition of SBTech was a crucial component to vertically
integrating the company’s software platform, however, the back-end software
stack migration hasn’t been completed yet. The company states that they plan to
complete their back-end stack migration with SBTech’s technology in late 2021.
An analyst explained “Despite DraftKings referring to itself as ‘the only vertically
integrated sports betting company in the US’, the vertical integration has not
actually happened yet…The integration brings with it material risks” (Allen, 2020).
As another analyst put it, “these types of platform migrations can drag on for
years and “tech migrations can be a massive drain on manpower, resources, and
operational momentum” (Allen, 2020). Any delay to the platform migration for
DraftKings to incorporate SBTech technology into their single vertically integrated
platform could severely harm the company’s ability to cross-sell to customers in
their limited legal operating regions and maintain long-term profitability.
Evaluate performance.
In the context of industry averages and close competitor data, how is the company
performing:
a. financially?
In 2020, FanDuel took the lead as the largest US online gambling operator
when its parent company Flutter announced annual revenues of $967 Million
(Allen, 2021). In comparison, DraftKings generated $644 Million of revenue in the
same period (DraftKings Q4 2020 Earnings Presentation 2021). This secured
DraftKings as the number two competitor in the industry for online gambling
revenues.

The closest competitors for DraftKings vary widely by geographical
location though, as some operators only operate within one state or very few
regions. The key competitors for DraftKings nationwide include FanDuel,
BetRivers, and Bet365 as well as newer industry players BetMGM, Barstool
Sportsbook, and Caesars/William Hill (Allen, 2020). However, FanDuel is the
single largest competitor that DraftKings faces in the largest US market for online
sports betting and iGaming, New Jersey. Together the two companies hold 83%
of the market share of the online sports betting industry (Sherman, 2019).
b. Strategically?
Though DraftKings doesn’t hold the #1 spot for online gambling operators
by revenue, they do rise to the top when it comes to customer perception with
their leading product line, Daily Fantasy Sports (DFS). The DFS product line is a
natural entry point for many customers and the company is able to cross-sell to
these customers at an over 50% rate. As shown in the chart below, the
DraftKings brand is top of mind for customers when it comes to brands that allow
people to gamble on sports, even ahead of the revenue leader for online

gambling, FanDuel.

NOT SHOWN (DraftKings Investor Presentation January 2020 2020).
Define the problem (see your biggest internal weakness, above, before completing this
section).
Complete the chart of symptoms (e.g., decline in sales, slipping profit margins, etc.);
trace each symptom to its root cause that is under the control of the company (not
external, like “COVID,” etc.); evaluate problem significance in light of most promising
industry opportunity(ies) in #2, below). Any given problem may have one or more
symptoms, and vice versa, so duplications are likely.

Symptoms

DraftKings is not
#1 in online
gambling revenue,
but is #1 in brand
recognition for their
DFS core product.
Company posted
2020 net loss of
$855M vs 2019
loss of $173M.
Product and
Technology
spending increase
of over 100% year
over year.

Underlying Internal
Problem(s)
SBTech platform
migration is not
complete yet,
which will allow
better cross-selling.
Excessive
operational
spending occurring
during SBTech
migration
Costs related to the
SBTech migration is
draining company
resources.
My company’s most pressing problem or issue is:
DraftKings migration to the integrated SBTech platform for their back-end
software is hampering the company’s ability to perform. They are unable to
execute their crucial cross-selling strategy until completing the migration.
Identify and evaluate solutions.
a. Three feasible solutions to my company’s biggest problem are:
1. Outsource the completion of their platform migration to a more experienced
software development company.
2. Continue to migrate the back-end software in-house but hire experienced
professionals who have completed similar migrations like that of GVC
holdings with Ladbrokes Coral.
3. Push the anticipated completion of the migration project another year to allow
more time for a successful launch and in turn, slow down investment in
marketing and operational expansion until closer to the time of launch.
b. In light of our decision criteria (#1, above), the most effective and efficient of
these solutions is:
#2: Due to the highly competitive nature of the industry, DraftKings should retain the
migration work in-house to protect their intellectual property and continue to invest in
marketing and operational expansion to push forward to be the industry leader. They
should strive to complete the migration by late 2021 to avoid falling further behind with
revenue growth.
Defend proposed solution.
This solution will have the following effects on:
a.  strategic performance:

Upon successful completion of the SBTech migration, DraftKings will be able to
more effectively cross sell online gaming products to their already loyal DFS
customer base. As shown previously, the company is effective at cross-selling to
customers at over a 50% rate, so the integrated technology will enable that trend
to continue. The mismatch between being the perceived leader for sports betting
but being the second place competitor will likely end once this critical project is
behind the company.
b. financial performance:
By increasing the ability to cross-sell to their customer base, DraftKings will be
able to realize better revenue and earnings growth that comes along with a
vertically integrated platform. It is clear that DFS customers want to be able to
play other games online, and a seamless customer experience is key to allowing
that to happen, so the financial benefit is awaiting the company once their back-
end stack integration is complete. I anticipate that the company will jump to the
leading position for revenue in the online gambling industry during the 2022
calendar year, ahead of FanDuel.

References
Allen, B. (2020, July 13). The ‘Outright Concussion’ ahead For DraftKings And SBTech.
Retrieved March 06, 2021, from
https://www.legalsportsreport.com/42195/draftkings-sbtech-platform-migration/
Allen, B. (2020, June 24). Which sports betting company is a better buy Than
DraftKings Stock? Retrieved March 06, 2021, from
https://www.legalsportsreport.com/42032/flutter-draftkings-stock-fanduel-
research/
Allen, B. (2021, March 02). FanDuel sees high costs of gold medals in us sports betting.
Retrieved March 07, 2021, from
https://www.legalsportsreport.com/48760/fanduel-flutter-2020-earnings-results/
AOL Staff. (2020, November 27). DraftKings’ customer data sets it apart from the
Competition, says analyst. Retrieved March 06, 2021, from
https://www.aol.com/news/draftkings-customer-data-sets-apart-224035309.html
DraftKings Analyst Day Presentation. (2020, March). Retrieved from
https://draftkings.gcs-web.com/static-files/f973bec8-59cb-43d5-9681-
676566ea5c6e
DraftKings Investor Presentation January 2020. (2020, January). Retrieved from
https://draftkings.gcs-web.com/static-files/79c29ade-a5d5-4ffc-87bd-
36decb006ad8
DraftKings Q4 2020 Earnings Presentation. (2021, February 26). Retrieved from
https://draftkings.gcs-web.com/static-files/ef0b0afc-4202-4091-99d8-
a6f9b2a99661
DraftKings: Who We Are. (n.d.). Retrieved March 06, 2021, from
https://www.draftkings.com/about/who-we-
are/#:~:text=It’s%20our%20ultimate%20vision%20to,fully%20vertically%20integr
ated%20sports%20betting
Duprey, R. (2020, December 03). Flutter entertainment Ups stake IN FanDuel to 95%.
Retrieved March 06, 2021, from
https://www.fool.com/investing/2020/12/03/flutter-entertainment-ups-stake-in-
fanduel-to-95/
Sherman, A. (2019, April 29). Legal gambling from your phone could be a $150 billion
market, but making it happen will be tough. Retrieved March 07, 2021, from
https://www.cnbc.com/2019/04/27/fanduel-draftkings-race-to-win-150-billion-
sports-betting-market.html

Simons, J. (2020, October 29). Tech and SPORTS Betting: DRAFTKINGS
(NASDAQ:DKNG). Retrieved March 06, 2021, from
https://seekingalpha.com/article/4382419-tech-and-sports-betting-draftkings

ScoreOut of:
Decision Criteria22
well done 
Data Analysis22
Excellent! Great context and contextualized weakness explication. 
Performance Evaluation22
nicely done
Problem/Issue Definition2.73
This is a helpful assessment. However, I wonder why the migration has not been completed and/or why this process is moving slowly… Is there another, underlying problem?
Evaluation of Alternatives & Solution22
Great work; sound rationale for preferred solution
Solution Defense2.93
financial projections would be helpful in selling this solution
APA Citation/Writing/References22
Total15.6160.975

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