Isi Case Study

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Internet Securities Inc. Case Study The Opportunity: With the rapid expansion of the Internet, capital markets in the Eastern Block rising, and the serious data and knowledge gap within emerging markets, there is market readiness for Internet Securities Inc. (ISI). ISI provides a strong value proposition to the Professional and Intermediate Services Market who are in need of economic and financial data about the emerging markets, creating a high demand for ISI’s services. Nonetheless, if ISI gains enough traction within this niche, it could garner the attention of competitors due to the low barrier of entry. ISI can combat this risk with their first to market advantage, where they need to become the reputable leader for this market segment. The key to their success is for ISI to maintain the balance of quality and growth as they attempt to supply information on more emerging markets in other countries. Concurrently, if ISI can further their relationships with their data suppliers and obtain more exclusive contracts, they will be able to limit competition while capturing a large portion of the Intermediate and Professional Industry segment ($7.911 billion solely in U.S). As seen in Exhibit A below, ISI’s projected growth over the next few years are substantial. As they continue incorporating quality information on other countries and maintaining their net profit margin, this growth will have high durability. Ultimately, if executed correctly, there is great opportunity for ISI to become the dominant figure within the niche of emerging markets. Exhibit A: Projected Net Profit Growth (NPG) and Net Profit Margin (NPM) NPG= Difference/orig. value; NPM= net income/net sales 1996-1995 NPG=70.2%; 1997-1996 NPG=612.4%; 1998-1997 NPG=68% 1995 NPM=-178.9%; 1996 NPM=9.1%; 1997 NPM=21.23%; 1998 NPM=19.38% The Team: With Gary handling the business operations and

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