Corporate Strategy

Group C
BUDAEVA Anna, CULIS-FERY Maude, GOWANI Twinkle, and HANDA Premik

“Luminar-Leveraging Big Data using Corporate Entrepreneurship”

1. Should Luminar be exploited as a stand-alone enterprise or as a division of Entravision? If the

latter, how much autonomy should it have?

Ulloa, Chairman of Entravision is keen that Entravision should transform itself from a media company
into an informatics and analytics company; he expects Luminar to be the centrepiece of such a
transformation. The launch of Luminar is also linked with the future of Entravision as the traditional TV
industry market is losing its share, thus Luminar should be exploited as a division of Entravision.
Entravision should treat its Luminar project, based not just on the goal of increasing product sales but also
based on the economic value Luminar could bring by its qualitative Big Data technology. However, this
integration must happen gradually as the employees of Entravision are uncomfortable with change. An
integration would be a significant commitment that will require top-level management vision and support,
which will further aid in achieving the goal of making Luminar a new revenue stream for Entravision.

However, Entravision should avoid excess oversight during the first 5 years and allow Luminar to have
operational freedom and liberty to hire externally as well. Rios should have the autonomy to use his
judgement when deciding how to best “wow” the blue chip marketers and advertisers. Moreover, a
supervision committee can be formed to take strategic decisions and review numbers, it could consist of
experienced managers, Rios and Ullua, bringing credible managers on the supervising committee would
foster understanding amongst the employees of Entravision.

2. How can Rios secure internal (managerial) support from the rest of Entravision?

The main part of the employees doesn’t see quantitative data as relevant as qualitative data for
broadcasting, the traditional business of Entravision. To agree with the Luminar project, first, they need
to understand the reason why this project could be beneficial for Eurovision.

Backed by the supervision committee involving R&D, sales and finance members, Rios can set
meetings aimed at analyzing the value-added of Luminar across these functions. Luminar can help the
R&D function to not only measure viewership ratings but also better understand what kinds of products
the Latino audience consumes. Hence, they can better attract advisers by offering them a broad audience
and a deep understanding of what draws the attention of this audience. Besides, by better understanding
its customers base, Eurovision can offer the bespoke programme and increase its clients base, which will
make Eurovision more competitive when dealing with advertisers. The success of this activity can be
measured by the growth rate of signing deals.

To win the support of finance function, Rios has to recognize the initial cost of Luminar project,
arguing that each additional user add value without increasing the costs. Thus, the growth rate of
customers would be a valuable indicator of future profitability, which can reassure the financial analysts.
Besides, Luminar can also be used by the financial function to better track cash flows.

Likewise, sales personnel have to be involved in the committee to better understand the product to see
the application in increasing the quality of the Eurovision’s programme and its attractiveness to advertisers
as its customers based is growing.

Finally, Rios has to give credibility to the project to foster the employee’s adherence. For this reason,
I recommend that he hires an experienced and respected manager from the R&D department to advocate
the Luminar project and find the better way to combine the traditional and new way of doing business
with data.