WHAT DO WE SELL? CUSTOM INTELLIGENCE SERVICES 3 May 2007 Confidential

WHAT DO WE SELL?WHAT DO WE SELL?CUSTOM INTELLIGENCE SERVICESCUSTOM INTELLIGENCE SERVICES

3 May 20073 May 2007Confidential Confidential

DISCLAIMERDISCLAIMERTHE VIEWS DESCRIBED

HERE ARE SOLELY THOSE OF

DOUG WHITEHEAD.

(BUT THINK ABOUT IT AND IGNORE AT YOUR OWN RISK)

WHAT STRATFOR DOESWHAT STRATFOR DOES

1. Collect Information Worldwide1. Open Sources2. Non-Confidential Friends/Contacts3. Confidential Sources

2. Analyze Information1. General Geo-Politics2. Customer Focused

3. Publish/Serve Analysis1. Website2. Briefings3. Reports

Confidential

WHAT STRATFOR SELLSWHAT STRATFOR SELLS

• Individual Subscriptions• Institutional Subscriptions• Custom Intelligence

– Domestic• ”Global Vantage”• Issue Monitoring• Field-Source Information

– International• “Global Vantage”• Field-Source Information

• Protective Intelligence

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INDIVIDUAL SUBSCRIPTIONSINDIVIDUAL SUBSCRIPTIONS

• Focus of Publishing Group 2007– Use of Partnerships

• ROA, May 2007• USNI, May 2007• WAC, September 2007

• Strengths– Profitable– Fairly Easy to Attack– 80% Renewal Rate

• Weaknesses– Limits to Ultimate Audience– Limited $ Value per Customer

Confidential

INSTITUTIONAL SUBSCRIPTIONSINSTITUTIONAL SUBSCRIPTIONS• Two Types

– Nonprofit/Educational– Private Business

• Strengths– High Profit

• Texas A&M- $37,500 Per Year

– Sells to Our Strengths– Steady Revenue– Easy to Manage/Track/Renew

• Weaknesses– Requires Individualized Sales Push– Analysts Not Aligned With Business

• SELL THIS!!! Confidential

DOMESTIC CIS PRODUCTSDOMESTIC CIS PRODUCTS1 of 41 of 4

• Briefings– Free- Only With Strong PR/Sales– Paid Need Price Increase

• Global Vantage– Reports– Verbal Access– Proactive

• Non Field-Source Driven– Recurring Reports (Legacy Work)

• Field-Source Driven

– THIS WILL GO!Confidential

OVERSEAS CIS PRODUCTSOVERSEAS CIS PRODUCTS2 of 42 of 4

• Briefings• Global Vantage• Field-Source Driven

– Due-Diligence (Before or After)• Confirm Financial• Relationship Audit• Security Audit• Political Analysis

– Competitor Analysis– Employee Background Checks

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OVERSEAS CIS STRENGTHSOVERSEAS CIS STRENGTHS3 of 43 of 4

• True Need Out There– Growth in World Market– US Companies’ Limited Experience

• Nearly a Unique Offering• We Have Ability

– China– Former Soviet Republics– Middle East (?)– India (?)

• Large Revenue– $400k to $600k for Work

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OVERSEAS CIS WEAKNESSESOVERSEAS CIS WEAKNESSES4 of 44 of 4

• Irregular Revenue– Link Long-Term Institutional Sale

• Difficult to Price– Must Be Conservative

• Have Limited World Coverage– Coverage Can Be Grown

• Company Must Improve Financially• Need Time To Develop Sources• Protective Intelligence Can Assist

Confidential