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Using real options theory to evaluate strategic investment options for mobile content delivery: A case study

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

With a rich fare of localized content, but limited regional media outlet channels, mobile content generates new business opportunities for Media News, a small media company with considerable growth potential. Two business models are considered: partnering with wireless service providers and strategic alliances with mobile content syndicators. First, the models are evaluated based on their resource requirements, market share acquisition, revenue generation, and nature, scope and control of content and bandwidth. Then, real options analysis is used to value Media News' managerial flexibility in responding to uncertainty in investment choices specific to the media industry. The modeling approach, analytical methods, and decision support tools employed in this paper serve as exemplar for engineering managers involved in strategic investment decisions, especially in emerging areas such as mobile commerce. Copyright © 2010, IGI Global.
Original languageEnglish
Pages (from-to)18-39
JournalInternational Journal of Business Data Communications and Networking
Volume6
Issue number1
DOIs
Publication statusPublished - Jan 2010

Research Keywords

  • Decision-making
  • Mobile content services
  • News media
  • Real options
  • Valuation

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