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  • 1. 1S T R A T E G Y – IS T R A T E G Y – IS T R A T E G Y – IS T R A T E G Y – IS T R A T E G Y – I
  • 2. SunTzu’s The Art of War: Industry India’s Subhiksha – Aping Wal- Analysis Excercise (B) Mart’s EDLP Strategy? Competition and Strategy/Competitive Strategies This is a set of 102 Multiple Choice Subhiksha, a popular Indian retailer is on Nokia – Global Market Share Questions (MCQs) based on Sun Tzu’s The an expansion mode and hoped to make its 40%; US Market Share 10%: Art of War book. Designed primarily to presence felt in all parts of the country by Competitive Strategies ensure that the students have read the book, the end of 2008. As part of its marketing this can be used as an evaluation tool for strategy, Subhiksha adopted Wal-Mart’s In 2008, Nokia, the global leader in mobile this exercise. popular EDLP pricing strategy. Though handset manufacturing faced difficulties in Subhiksha did not aspire to compete with Industry Not Applicable capturing a sizeable market share in the the conventional retailers like Nilgiri’s or Reference No. COM0171 US. Nokia’s profit margins reduced year Spencer’s Daily; it hoped to create a niche Year of Pub. 2009 after year in US since 2004. One often market with its discount model. Subhiksha Teaching Note Not Available cited reason was its unwillingness to relied heavily on organised retailing and Struc.Assign. Not Available customise according to the preferences of economies of scale. Would an EDLP the markets there. As the US Keywords strategy suit the Indian retail scenario? telecommunication industry is one of the world’s biggest telecommunication Leadership, Military, The Art of War, Pedagogical Objectives markets, Nokia had to establish itself in RMAS, Henry Fayol, Sandhurst, Strategy, this market to retain its global No.1 Sun Tzu, Warfare, Culture, Wars, Crisis, • To comprehend the trends in the Indian position. The case study outlines the US HRM, Marketing, Drucker retail industry telecommunication industry structure and • To analyse the rationale behind the the obstacles Nokia faced in finding a EDLP strategy of Subhiksha foothold in this marketplace. It has Sun Tzu’s The Art of War: Industry grabbed a 40% global market share; but in Analysis Exercise (A) • To study the challenges of a low pricing the US it has been able to rake it up to just model in the competitive Indian retail 10%. What possible steps should Nokia Sun Tzu’s The Art of War, written 2,500 sector. take to capture a sizeable portion of US years ago holds powerful lessons for Industry Retail Industry market share? What challenges does it running businesses, managing people, Reference No. COM0169C face? What prevents it from having a honing leadership abilities, motivating the Year of Pub. 2008 formidable market position in the US? employees, preparing for a battle, etc. If Teaching Note Available Should it, succumbing to the market the book is used in a highly structured way Struc.Assign. Available pressures (realities!), decide to customise to underscore the underpinnings of priceless its business model? What are the wisdom contained throughout the book, Keywords consequences if it does? For a company, the derived learning would be highly which adopted a standardised business model enriching. No doubt, the book’s principles Indian Retailing Industry; Competitive across the world, what would be the can be applied across all the functional Strategies Case Studies; Global Retailing consequences of altering it? areas of management – may it be industry; Subhiksha; Customer Behaviour; manufacturing/production, marketing, EDLP Strategy; Wal-Mart’s EDLP strategy Pedagogical Objectives finance, HR or any other dimension of managing a company. Most interestingly • To understand the evolution of mobile and effectively, the book’s powerful Hershey vs Mars: The Candy phones and the revolutionary trends in the mobile handset industry lessons can be related to Strategy course, Store War especially for analysing industries. When • To analyse the telecommunication this book is used for analysing an industry, Hershey and Mars had been rivals in the industry’s standards and their impact on along with the other established industry chocolate industry for decades, and had the industry and handset manufacturers analysis tools and techniques, the students shown no signs of backing off from the would have definitely widened their way they had competed so far. The greatest • To analyse the structure of the US horizons. To that end, this note provides irony was that, Mars and Hershey were telecommunication industry and its how competition shapes up the strategy partners in chocolate making way back in relevance for handset manufacturers making, an overview of Sun Tzu’s The Art the 1930s. And when they split, it was said of War and how to go about integrating that, Mars vowed to replace Hershey as • To identify the reasons for Nokia’s this book with industry analysis exercise. the number one chocolate maker in the failure in the US telecommunication A set of 100 MCQs and two videos (one on US. But till 2006, Hershey had been going industry and to debate on its strategic Indian Banking Industry and other on in full throttle and held the top position in response. Indian Telecom Industry) are also available the US market. Though Hershey was on Industry Mobile Telecommunications along with this note. the top, it faced new threats when its share Reference No. COM0172 price came down, the sales declined, and Industry Not Applicable Year of Pub. 2009 Mars started taking them head-on in the Reference No. COM0170 Teaching Note Available retail front too. So is the vow that was Year of Pub. 2009 Struc.Assign. Available taken decades back getting fulfilled and will Teaching Note Not Available Mars overtake Hershey in 2007? Keywords Struc.Assign. Not Available Nokia, Mobile Phones, Five Forces, Keywords Pedagogical Objectives Business Model, iPhone, 3G, Motorola, Leadership, Military, The Art of War, • To discuss how the trend of health Value Chain, Convergence RMAS, Henry Fayol, Sandhurst, Strategy, consciousness affects the chocolate Sun Tzu, Warfare, Culture, Wars, Crisis, industry HRM, Marketing, Drucker • What strategies Hershey should adopt to counter competition from Mars2
  • 3. • Discuss rivalry and competition of Pepsi Teaching Note Available Indian Hotel Industry (B): The Park’s Eye for the Unconventional S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I and Coke or of companies in other S T R A T E G Y – I S T R A T E G Y – I Struc.Assign. Available industries Keywords Companies can stick with their competitive• The newest trends in chocolate retailing. advantage, by either satisfying customers’ Airbus 350; Boeing 787; AircraftIndustry Confectionery Industry Manufacturing Industry; Airbus Boeing; need or else altering them. Firms that shapeReference No. COM0168B Dreamliner; A350 XWB; European Union; customer needs in new directionsYear of Pub. 2008 Subsidies; A330; Competitive Strategies Case dramatically increase the customer valueTeaching Note Available Study; Bombardier; Commercial Aircraft proposition and improve business systemsStruc.Assign. Available – a strategy best described as market- driving. Many pioneering companies followKeywords this strategy and are hugely successful. Case The Coffee War: McDonald’s vs (B) discusses how an Indian hotel, The ParkBusiness Rivalry; US Chocolate Industry; Starbucks – a pioneer of ‘boutique’ hotels in India –Competitive Strategies Case Study; followed this strategy to create a small butChocolate Retailing; Gourmet Chocolates; Companies can stick with their competitive exclusive chain of sleek designer boutiqueM&M World; Health and Wellness advantage, by either satisfying customers’ hotels. In a country accustomed to large,Products; Hershey; Mars need or else altering them. Firms that shape marble-clad hotels, The Park’s strategy to customer needs in new directions create the hotel was considered highly risky dramatically increase the customer value and bizarre. But the hotel’s chairperson,Airbus 350 vs Boeing 787 – Battle proposition and improve business systems Priya Paul, fought for her idea and her – a strategy best described as market- for the Skies driving. Many pioneering companies follow transformational leadership qualities has seen the hotel chain create a niche in theOver the decades, Airbus and Boeing, the this strategy and are hugely successful. Case boutique hotels segment. The case is a goodtwo major players have been at loggerheads (B) discusses how an Indian hotel, The Park illustration of a hotel chain with a market-for aircraft orders. This case details the – a pioneer of ‘boutique’ hotels in India – driving approach that came up withintensity of the rivalry between the two followed this strategy to create a small but breakthrough innovations and deeplycompanies by elucidating facts and figures exclusive chain of sleek designer boutique reshaped business systems.of a new aircraft being developed from each hotels. In a country accustomed to large,of their stables. Boeing’s 787 Dreamliner marble-clad hotels, The Park’s strategy to create the hotel was considered highly risky Pedagogical Objectivesbeing designed with new compositematerial is meant to set industry standards. and bizarre. But the hotel’s chairperson, • To understand the boutique hotel conceptAs according to the company, this aircraft Priya Paul, fought for her idea and her and its uniqueness among the otherwould help airliners save fuel costs. The transformational leadership qualities has formats, and also highlight its successaircraft is also intended to be tons lighter seen the hotel chain create a niche in the factors in Indiathan other models. Airbus, on the other boutique hotels segment. The case is a goodside, with its A350 XWB intends to offer illustration of a hotel chain with a market- • To discuss The Park’s positioning, beforethe airline market with the largest aircraft driving approach that came up with and after India’s economic liberalisation,it has produced till date. Post, Paris Air breakthrough innovations and deeply and analyse the reasons for the hotel’sShow and the Dubai Air Show held in 2007, reshaped business systems. repositioningA350 claims to give a stiff competition to • To discuss the framework in creating and787. Boeing plans to deliver its Dreamliner Pedagogical Objectives implementing a market-driving culture,by 2008, and Airbus by 2013. Boeing with to gain a competitive advantage.5 years of advantage, and confirmed orders, • To analyse the dynamics of the foodindustry observers inquire, if Airbus would service industry of the US Industry Hospitality Industrybeat the time advantage or bank on the • To analyse the core competencies of Reference No. COM0165strength of the A350, or better still use the McDonald’s and Starbucks Year of Pub. 2008time to their advantage and modify the Teaching Note Availableaircraft to being user friendly. • To understand the rationale of Starbucks Struc.Assign. Available and McDonald’s expansion KeywordsPedagogical Objectives • To highlight the challenges involved in product offering enhancements Boutique Hotel Concept in India; Priya• To understand competition existing in a Paul; Apeejay Surrendra Group; Market duopoly market • To discuss how McDonald’s and Driving Strategy; Target Customers; Value• To understand demand and supply of Starbucks would retain their core and Lifestyle Group; Repositioning aircrafts in the aviation industry competencies. Strategies; Leadership through Differentiation; Innovations in the Indian Industry Food and Beverages• To analyse the competitive strategies Hotel Industry; Key Success Factors in Reference No. COM0166A deployed by Airbus and Boeing and the Indian Boutique Hotel; Competitive Year of Pub. 2008 possible threats from various new Strategies Case Study; Indian Hotel Teaching Note Available entrants to their duopoly Segmentation; Transformational Struc.Assign. Available Leadership; Change Management• To analyse whether the competition between Airbus and Boeing would be a Keywords healthy sign for the aircraft Food Service Industry US; Fast Food manufacturing industry or would they Industry US; Coffee Shops; Starbucks Dell vs Lenovo: The Competitive lose their market share to the new players Experience; Convergence; Speciality Strategies in China of the industry. Coffee; Howard Schultz; Baristas; Brand Dell entered China, the world’s fastestIndustry Aircraft Industrys Dilution; Competitive Strategies Case growing PC market, in 1998. Though itReference No. COM0167B Study; Product Offering Enhancements; was a late entrant, Dell initially did wellYear of Pub. 2008 Core Competencies; Breakfast Segment through its direct selling business model 3
  • 4. that primarily targeted the industrial and and networks. In June 2007, Virgin Atlantic Pedagogical Objectives public service departments. But this model announced its plan to start BCO service on • To understand the strategies used by Competition and Strategy/Competitive Strategies left out the Chinese consumer’s desire to various transatlantic routes between New touch the product before buying it. Even York and various European destinations. Honda and Piaggio in their pursuit for the actual growth zones, the third and fourth Though Virgin Atlantic held significant global leadership tier cities, were overlooked. But the same competitive advantages, the first mover • To discuss and analyse the reasons behind Chinese turf was tamed by a domestic advantage of these small niche players posed the success of Honda and failure of brand, Lenovo. Its relationship and a major challenge to Virgin Atlantic. How Piaggio transactional business model - coupled with well Virgin Atlantic can position itself in a highly efficient supply chain network - this niche market was yet to be seen. • To debate why good companies go bad helped Lenovo corner 35% of market • To understand and discuss the need and share, dipping Dell’s further. So should Dell Pedagogical Objectives importance of strategy formulation. alter its business model is just one of the many questions discussed in this case. • To understand the dynamics of the Industry Automobile transatlantic aviation market Reference No. COM0162 Pedagogical Objectives • To understand the factors that led to Year of Pub. 2007 Teaching Note Available • To discuss critical success factors in the the emergence of the transatlantic BCO Struc.Assign. Available Chinese PC market market • To analyse the positioning of small niche Keywords • To understand and contrast the business models of Dell and Lenovo players and their strategies Enrico Piaggio; Soichiro Honda; Vespa; • To discuss the entry strategies of Ape; Supercub; US Automobile Industry; • To analyse the reasons behind Dell’s Japanese Motorcycle industry; Giovanni declining profits and falling market established players in emerging niche markets. Agnelli; Roberto Colaninno; Market Entry share in China Strategy; Restructuring Strategies; • To discuss Dell’s choices to gain a market Industry Airline Industry Competitive Strategies; Global Expansion foothold in China. Reference No. COM0163A Strategies; Marketing and Promotional Year of Pub. 2008 Strategies; Cash on Delivery (COD); Industry Personal Computers Teaching Note Available Competitive Strategies Case Study; Reference No. COM0164 Struc.Assign. Available Strategic Intent; Need and importance of Year of Pub. 2008 Strategy Formulation Teaching Note Available Keywords Struc.Assign. Available Transatlantic Aviation Industry; Keywords Deregulation; Open Skies Pact; Jack in the Box: Combating the Competitive Advantage; Growth Strategy; Breakfast War in US Chinese PC Industry; Business Models; Niche Market; Business Travel; Virgin Direct Selling Business Model; Relationship Atlantic; Business-Class-Only Services; Jack in the Box was the fifth largest and Transaction Business Model; Den Brand Positioning; Product hamburger chain in the US. The company Xiaoping; Joint Ventures and Partnerships; Cannibalisation; Market Segmentation; operated in 2100 locations across the US Chinese Consumer Behaviour; Acquisition Eos; Competitive Strategies Case Study; with revenues of $2766 million for the of IBM’s PC Division; Market Entry MAXjet; Silverjet and L’Avion year 2006. But the company had been Strategy; Supply Chain Management; overshadowed by rivals like McDonald’s Competitive Strategies Case Study; and Burger King, which were far greater in Developing a Business Strategy for China; size. The fast food market of US was in a Piaggio vs Honda: The Strategy Critical Success Factors in Chinese PC slump after decades of over expansion. But industry; Business Model Comparison; Lessons the breakfast market was emerging as the Second Mover Disadvantage; Challenges Most companies that rose to become global silver lining, accounting for 8% of the $500 Faced by a Foreign Player leaders, most often, started with limited million in restaurant sales in the US. As a resources and capabilities. But they were result, all the major fast food chains bent on winning and then sustained that competed for a share of the breakfast Virgin Atlantic’s Business-Class- obsession, termed as “strategic intent”. market with even speciality coffee chains like Starbucks joining the fray by offering only Airline: Emerging Threat to Piaggio, the Italian motorcycle different breakfast products. Jack in the manufacturer, who tasted initial success with Niche Air Carriers? Box also decided to defend its share of the the launch of ‘Vespa’ motor scooter in In 2007, the open skies pact between 1946 faced numerous challenges ahead and breakfast market and thought of Europe and US was rapidly changing the was close to bankruptcy in 2003. In promoting its breakfast products, which it competitive scenario on transatlantic contrast, Honda, the Japanese automobile had been serving all day since the last 20 routes. The small BCO (business-class-only) manufacturer, leveraged its initial success years with help of an advertising campaign. carriers like Eos, MAXjet, Silverjet, and of ‘Supercub’ motorcycle to foray into As competition among various fast food L’Avion grew significantly creating a niche automobile production and achieved the chains intensifies with different companies market on the New York-London route. status of a global automotive player. The adopting strategies like menu innovation, Though all major traditional carriers like Piaggio vs Honda case compares the advertising and better restaurant British Airways, Virgin Atlantic, United strategies adopted by both manufacturers, experience, whether a regional chain like Airlines and American Airlines had well- each with a point of uniqueness, in a market Jack in the Box would be able to fight the established business-class services, these new that required greater flexibility, high goliaths of the fast food market remains niche players successfully positioned complexity, quick changes and competitive to be seen. themselves against these established players. strategies. A comparison - of these two The success of these small niche carriers companies’ strategy models - reveals that Pedagogical Objectives forced the established carriers including strategy is never static and involves continuous adjustments. • To understand the drivers of the fast Virgin Atlantic to re-assess their services food industry4
  • 5. • To understand the strategies to be entrants) with local players (the Keywords adopted to survive in an over crowded S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I incumbents); who is better equipped to S T R A T E G Y – I S T R A T E G Y – I and fragmented fast food market tap China’s retailing potential?; can Nintendo’s Decline; Gaming Industry; foreign players leverage on their Strategy to recover market share; Wii;• To discuss the various strategies adopted Xbox; Competitive Strategies Case Study; by companies in the fast food segment experience and learning curves from other markets?; should they work on Play station; Nintendo; Game Cube; Video specifically the breakfast market Games; CEO Satoru Iwata; New product their strengths or create new ones to• To analyse the strategies adopted by Jack operate in China’s market?; what are launch strategy in the Box to survive in the breakfast the strengths of incumbents as well as market the new entrants? Convergence of Media: Impact• To analyse the challenges faced by Jack • To debate on the co-existence of new in the Box and evaluate the future trends entrants and the incumbents; what on Viacom’s Entertainment for the fast food industry. happens to the local players as a result Business of increased and intensified competition Viacom, the largest cable network in theIndustry Fast Food Industry from multi-national retailers? US in terms of revenue in 2004, had itsReference No. COM0161AYear of Pub. 2007 Industry Retail presence in film production and musicTeaching Note Available Reference No. COM0160 distribution and popular cable networks likeStruc.Assign. Available Year of Pub. 2007 MTV and BET in its portfolio. Teaching Note AvailableKeywords With the digitisation, all media companies Struc.Assign. Available were shifting their focus to new digitalFast Food Industry; Menu Innovation; Keywords formats, as digital media content could beAdvertising; Breakfast Market; Brand accessed on a variety of devices. ViacomReinvention; Demographic Trends; Wal-Mart in China; Carrefour in China; also recognised the importance of digitalCompetitive Strategies Case Study; Brand Metro AG in China; Tesco PLC in China; media convergence, and changed its courseDifferentiation, Social Networking, Wumart Stores, Inc.; Lianhua Supermarket of business to accommodate digital mediaMcDonalds, Burger King, Reimaged Holdings Co. Ltd.; Competitive strategies offerings in its services. However, ViacomRestaurants, Fast Casual Segment; Drive of retailing companies; Protectionism in was neither the first mover nor the leaderThrust; Jack In The Box; Healthier Food China in retailing; Territorial restrictions in the field of digital media. It had to faceOptions in China; China’s traditional retail industry; stiff competition from other players of Competitive Strategies Case Study; Chinese media and entertainment industry. retailing in the new era; Profitability in China’s Retail Industry (C): The Chinese retailing; Sustainability Chinese Pedagogical Objectives retailing Competitive Strategies • The case study offers scope to learnThis is the last case in China’s retail industry about new media platforms such as DVR, VOD, iPod, Mobile TVs and the Internetseries. While case (A) looks at the Nintendo’s Competitivecompetitive landscape of China’s retail as media offering different content Strategies in Gaming Consoleindustry, case (B) helps analyse thecompetitive responses to Chinese Market • The case deals with the emerging media platforms due to changing customerconsumer behavior. Case (C) presents a a Nintendo Co. Ltd., one of the leading preferencesgallery of competitive strategies. From producers of video games in the world, iswhat has been learnt in cases A and B, C facing severe competition from Sony and • It raises debate as to the possiblehelps know which company stands a better Microsoft. Nintendo’s last launch, the strategic options available to Viacom inchance to carve a niche for itself. What is Game Cube has failed to make a mark in the wake of digital media convergence.their unique advantage? If not, what should the market place. In order to regain its Industry Media and Entertainmentthey still do - immediately, remotely or market share in November 2006 the Reference No. COM0158Aforever? If strategy is all about creating company has launched Wii videogame Year of Pub. 2007unique advantages, this case is much more console. The case discusses Nintendo’s Teaching Note Availablethan how companies deploy different positioning, segmentation, pricing, Struc.Assign. Availablestrategies to become unique. Should marketing and product launch strategy ofcompanies enter China with their time- Wii. The Case further debates whether Keywordstested business models? Or should they go Nintendo can sustain the success of Wii orfor new business practices? How the local not. Viacom Inc; Cable Networks; Entertainmentplayers (incumbents) adjust their game Industry; Convergence; Digital Media;plans to the moves of bigger and better Competitive Strategies Case Study; Internet Pedagogical Objectives Video; IPTV; Time Warner; Businesscompetitors (new entrants)? Can both co-exist? Or would they exit with the entry of • To analyse the causes for decline offoreign players? The big picture would be Nintendo in Electronic Gaming Consolehow intensified competition can catapult Industry Mattel: Competitive Strategies inan industry. • To analyse Nintendo’s strategy for the US launch of its new console Wii to recoverPedagogical Objectives market share. Since 1995 till 2007, the global toy industry has been experiencing changes like the rise• To understand and analyse various Industry Electronic Gaming in the number of video game players and competitive strategies of creating unique Reference No. COM0159P shift in consumer preferences. Due to the positions in China’s retail industry Year of Pub. 2007 unpredictable shift in the play patterns of• To compare and contrast competitive Teaching Note Not Available kids, traditional toy manufacturers – losing strategies of foreign players (the new Struc.Assign. Not Available market share to video game companies – are toiling hard to retain their positions in 5
  • 6. the minds of Gen X kids. During 2003, • To understand the impact of trade service; Napster; Music industry; Increasing Mattel Inc., the top player in the US toy regulations on the textile and clothing popularity; Competitors; No. of users; Competition and Strategy/Competitive Strategies industry realised that its total market share industry Legal challenges; Recording Industry including the market for its flagship brand, Association of America; Improved Barbie, were under attack from competitors • To discuss the changing dynamics in the technology; Digital online like MGA, Hasbro, LeapFrog, Jakks and apparel industry service;Competitive Strategies Case Study; video games players. Mattel swiftly • To examine the effect of changing Expansion; Promotional efforts retaliated by chalking out initiatives to consumer preferences on the apparel counter the changes in the industry companies threatening its market leader position. • To discuss the resulting challenges and Dunkin’ Donuts’ Competitive Mattel broadened its product lines and undertook several other measures, as a result strategies of Liz Clairborne. Strategies of which, its revenue increased for fiscal Industry Women’s Clothing In 2005, $4.8 billion-Dunkin’ Donuts 2006. But industry observers are not sure if Reference No. COM0156 (Dunkin) is one of the largest coffee and Mattel would succeed in retaining its industry Year of Pub. 2007 baked goods chain in the world serving 2.7 leader position in the years to come. Teaching Note Available million customers every day. With rising Struc.Assign. Available competition, Dunkin had lost its position Pedagogical Objectives as a market leader which it had enjoyed all Keywords through the 1990s. In March 2006, Dunkin • To understand Mattel’s growth strategies Branded apparel; Quota restrictions; Free- was acquired by a consortium of private in the US toy industry trade agreements; Textile and clothing trade; equity firms- Capital Partners LLC, The • To get an insight of the changing Multi-Fibre arrangement; Outsourcing; Carlyle Group and Thomas H. Lee Partners landscape in the global toy industry Supply chain of apparel manufacturers; LP. The new owners outlined an aggressive Trends in global apparel industry; growth strategy for Dunkin including • To study the competitive threats faced tripling its size over the next ten years, by Mattel Departmental stores; Competitive Strategies Case Study; Private labels; Multi- entering new markets across the country • To analyse the strategies chalked out by brand; Multi-geography; Multi-channel; and expanding the menu offerings beyond Mattel Inc. to tackle the competition. William L. McComb; Fashion Trends breakfast. The case discusses competitive strategies adopted by Dunkin to reposition Industry Toy Industry itself and expand into newer markets. Reference No. COM0157B Year of Pub. 2007 Napster Inc.: Singing a New Tune Pedagogical Objectives Teaching Note Available Napster Inc. (Napster) was the first widely- • Growth strategies adopted to reposition Struc.Assign. Available used peer-to-peer (or P2P) music sharing Dunkin, the largest coffee and baked Keywords service on the internet. Its technology goods chain in the world allowed music fans to easily share MP3 Barbie; Mattel; Toy Indutry; Video Games; format song files with each other. Its • Business expansion strategies by Competition; Hasbro; Age-compression; services were popular among internet users entering new markets Fisher-Price; KGOY; Handlers; Leapfrog who downloaded copyrighted music. enterprises; Jakks Pacific; Competitive • To discuss the dynamics of the fast food However, between 2002-2005, growing Strategies Case Study; Learning Company; and beverage industry. competition had led to Napster ’s sales Bratz; Toy Fair decline. To reverse the declining sales and Industry Food & Beverage recapture lost consumers, Napster launched Reference No. COM0154P its free downloading service. The case study Year of Pub. 2007 Liz Claiborne: The US Apparel discusses Napster’s strategies to regain Teaching Note Not Available Retailer’s “Three-M’s” Strategy market share in the online music industry. Struc.Assign. Not Available Keywords During the mid-2000s, Liz Claiborne, a US Pedagogical Objectives apparel retailer, was whacked by the Doughnuts and coffee; Value for money changing dynamics in the apparel industry. • Understand the dynamics of online music segment; Competition; New owner; Growth The industry has been undergoing many industry. strategy; Competitive Strategies Case changes, due to consolidations among Study; New markets; Expanding menus; · How Napster became a legendary icon. major departmental stores and the stores Advertisements; Coffee market; Premium preferring their own private labels. These · Impact of legal controversy on online segment; Market survey; Change outlook changing market trends forced companies music business of stores; Expanded market; Online to rethink ways of doing business. As a promotion; Product line; Global result, companies implemented strategies · Reason for Napster downfall Positioning System; Loyal clientele to expand their brand portfolios and widen · Analyses the future prospects of Napster the distribution network across channels. with reference to the increasing To bring back its lost glory, William L. competition. McComb, Liz Claiborne’s CEO, initiated Best Buy: Growth through ‘Three-M’s’ strategy – multi-brand, multi- Industry Music Sharing Segmentation geography and multi-channel. Through Reference No. COM0155P which he hopes to win out in the fiercely Year of Pub. 2007 Best Buy is a $30-billion-a-year consumer competitive apparel industry. Teaching Note Available electronics superstore with more than 930 Struc.Assign. Not Available outlets across US and Canada. Its warehouse-style superstores with yellow tag Pedagogical Objectives Keywords logo offer branded consumer products like • To analyse the value chain of the apparel Peer-to-peer (or P2P) music sharing televisions, DVD players, home audio, car companies service; Internet; Mp3; Free downloading audio, computers, cameras, music, movies,6
  • 7. software, games and personal computers. promotion; Morale boosting; Service Japan based leading automaker worldwide S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – ISince the 1990s, Best Buy followed ‘the quality; Online selling; Store extension and which offers a product portfolio including S T R A T E G Y – I S T R A T E G Y – Ibigger the better’ strategy which helped it new openings passenger cars, sport-utility vehiclesgrow but with increasing competition the (SUVs), minivans and trucks. It alsocompany felt the need to consolidate its manufactures automotive parts,position. This case study discusses Best components and accessories. Yahoo vs Google: TheBuy’s strategy to overcome competition. Challenge The case study talks about the dynamics of the US auto industry as of 2006-07 andPedagogical Objectives With the battle of portals heating up, position of the major players in the US internet companies – Google and Yahoo! market- the US Big 3- General Motors(GM),• The case evaluates the strategies adopted (Yahoo) are aggressively vying to become by Best Buy, to segment its target Ford and DaimlerChrysler.The big three were the world’s leading internet portal—the site experiencing huge losses by 2006-07 and customers to overcome the increasing that most internet users rely on for competition in the consumer electronics closing down some of their US everything, from searching the web to manufacturing plants and rationalising their market. sending e-mail and catching up on the news. staff. In contrast, Toyota was flourishing inIndustry Retail By 2005, Yahoo has become much more its business and expanding its operations inReference No. COM0153P than a portal; it is a full-fledged media the US .It had become the second largestYear of Pub. 2007 company. During 2006, Google’s player in the US in 2006. The case studyTeaching Note Available dominance in search continues to give it a discusses Toyota’s success in the US marketStruc.Assign. Not Available commanding lead in Internet advertising. in two stages: Stage 1: Since entry into the The search engine major maintains its US market till 2003-04 when it became theKeywords growth momentum through organic and second largest player in the US and Stage 2:US retail industry; Future shop; Magnolia inorganic growth. Yahoo has missed out Toyota’s strategy to become No .1 fromAudio vedio; Geek squad; Accenture; on acquisitions and setbacks such as the 2004 onwards till 2006-07.Musicland; Customer centricity model; delay of its search-advertising system, and decelerating revenue growth are increasingReward zone; Competitive Strategies Case Pedagogical ObjectivesStudy; RFID tag; Studio D; Escape; Ask A the pressure on Yahoo. As analystsBlue Shirt programme compared the two internet companies, the • To discuss business dynamics of US Auto companies themselves try to outdo each Industry other in areas such as search, advertising and products and services. The case • To anlyse the changing trends in the USASDA: Competitive Strategy in UK compares the product offerings of the two auto industry Retail Market companies, their strength in search and • To discuss Toyota’s strategy for their advertising models and revenue. It achieving success in the US automobileASDA was the second largest supermarket also compares their growth strategy.chain in the United Kingdom (U.K.). market.Positioned as a value for money store, itsold groceries, apparel, CDs, books, videos, Pedagogical Objectives Industry Automobile Industry Reference No. COM0150Pand other household items. ASDA, which • The case discusses the critical success Year of Pub. 2007was taken over by Wal-Mart in 1999, had factors in the IT industry Teaching Note Availableused the formula of Every Day Low Prices Struc.Assign. Available(EDLP) to gain market share in the British • The case outlines Yahoo and Google’sretail market. The initiative proved growth strategy Keywordssuccessful for a few years, but stopped • The case compares their new product Toyota; Camry; Corolla; Avensis; Lexus;yielding results as competition increased. launches, search engines and advertising Tacoma; Tundra; US Auto industry;In 2005, ASDA’s sales declined and market strategy Toyota’s strategy for success; Kaizen; JIT;share fell from 16.7% in 2004 to 16.5% in • The case discusses their future growth Lean manufacturing; Global Body Line;2005. This case study discusses the strategy prospects. Hybrid Vehicles; US youth market; pick upadopted by ASDA’s to make a turnaround trucks; Competitive Strategies Case Study; Industry IT Industry CCC21; Value Innovation (VI)Pedagogical Objectives Reference No. COM0151P• Changes in retail industry in UK Year of Pub. 2007• To analyse the ASDA’s Pricing Strategy Teaching Note Not Available The Future of Gap Inc Struc.Assign. Not Available Gap Inc (Gap) is one of the leading• To discuss the ASDA’s trouble shooting Keywords initiatives. international specialty retailers offering Yahoo; Google; Search engines; business clothing, accessories and personal careIndustry Retail models in the IT industry; advertising products for men, women, children and babiesReference No. COM0152P strategy; electronic mail; Competitive under the Gap, Banana Republic, Old NavyYear of Pub. 2007 Strategies Case Study; desktop search; web and Forth & Towne brand names. Paul.Teaching Note Not Available traffic; flickr; orkut; business goals; product Pressler (Pressler) who became Gap Inc’sStruc.Assign. Not Available design CEO in October 2002 has been heralded for his cost- cutting strategies that have restoredKeywords financial discipline in the company. ButSupermarket chain; Wal-Mart; Value for there has been a trade-off. Pressler, who Toyota’s Success in the US Auto has little retail experience, has not steeredmoney; Changing management; Businessmanagement; Business strategies; Greg Industry Gap toward its customers’ tastes. RealisingBenneman; Aggressive price; Competitive The Case study is about business strategies his mistakes, Pressler has changed hisStrategies Case Study; Competitors; Market of the auto company –Toyota Motor strategy in mid 2004 to generate growth.share; Price-rollback strategy; In-store Corporation in the US market. Toyota is a He has revitalized the marketing strategy, 7
  • 8. tied up with renowned designers and increased Pringles– Combating the Launch continuous improvement; Competitive the focus on emerging economies. Will he of Lays Stax Strategies Case Study; champion Competition and Strategy/Competitive Strategies succeed in rejuvenating Gap Inc and programme; inclusion; Toyota attracting customers once again? Pringles the global market leader in the ‘potato crisps’ category in the US is facing Industry Auto Industry a new threat. In late 2003, Frito Lays has Reference No. COM0146P Pedagogical Objectives Year of Pub. 2007 launched Lays Stax—a variety of potato • The case discusses the dynamics of the crisps that closely resembles Pringles. Teaching Note Not Available US garment industry Though people across the world are Struc.Assign. Not Available accustomed to the crunchy taste and the Keywords • The case analyses Gap’s repositioning unique packaging of Pringles, Frito Lays, strategy and its decline Nokia Media Master; AMPS/TDMA; 3G; is offering an extensive range of flavours • The case debates over Gap’s revival in the potato crisps segment. It also offers Tetra; WAP; W-CADMA; Nokia E series; strategy. unique packaging and competitive pricing Competitive Strategies Case Study; and enjoys a huge distribution network. Symbian OS Industry Garment Industry Being a market leader in the potato chips Reference No. COM0149P market, Frito Lays is a formidable Year of Pub. 2007 Teaching Note Not Available competitor. How can Pringles maintain its HMV: Competing in the Digital market share in the face of stiff Struc.Assign. Not Available World competition from Frito Lays? Keywords The case can be used to teach competitive HMV Group plc (HMV) was one of the world’s leading retailers of music, DVD/ Gap; Competitive Strategies Case Study; strategy, branding strategy and market video, computer games and books in the Banana Republic; old navy; marketing strategy. UK, US and Asia. An increase in the number strategy; repositioning strategy; brand of online purchase of CDs and DVDs, a cannibalisation; consumer preference; Pedagogical Objectives rise in digital downloads and stiffer turnaround strategy; employee exodus; competition from general supermarkets • Analyse the snack industry and the SWOT analysis; merchandise had an adverse impact on HMV’s revenue changing trends in the industry in 2005. Changes in musical tastes also • Pringles’ strategy vis-à-vis other brands affected HMV’s sales adversely. HMV Southwest vs JetBlue in the • Relationship between product hoped to improve its profitability by Changing Market differentiation, brand premium and initiating fresh price cuts and expanding its online product offerings. To reverse the pricing. Southwest Airlines and JetBlue were two downfall, HMV introduced various leading low cost airlines in the US. Both Industry Food & Beverage Industry initiatives. In late 2006, HMV had airlines adopted a similar business strategy Reference No. COM0147P revamped its online and offline offer, as to compete against each other in the LCC Year of Pub. 2007 well as its pricing, to turn itself around. market in the US. However in 2006, the Teaching Note Available two airlines faced increasing cost pressures Struc.Assign. Available Pedagogical Objectives due to high costs, increased competition and rising fuel prices. The case study Keywords • Business dynamics of HMV discusses Southwest Airlines and JetBlue’s Potato chips; innovative packaging; · Impact of changing consumer taste and strategies to overcome cost pressures and premium branding; Competitive Strategies preferences compete against each other buy Case Study; pricing strategy; frito lays; differentiating their services. impulse purchase; mini brands · Competition in music industry and its impact on HMV Pedagogical Objectives · HMV’s revitalizing strategies. • The case compares the business model Managing Diversity at Toyota Industry Music Industry of the two leading companies in the field Reference No. COM0145P Toyota Motor Corporation, a leading auto of low cost airlines i.e. Southwest Airlines Year of Pub. 2007 manufacturer has built its reputation for and Jet Blue Teaching Note Not Available quality on the idea of continuous • It evaluates various strategies adopted improvement and respect for people. In Struc.Assign. Not Available by the two companies to gain cost 2001, it has launched the Toyota Diversity Keywords competitiveness. Strategy, a ten year, multi-billion dollar sustainable commitment to minority Music retailer; waterstone; his master’s Industry Airline Industry participation in Toyota. The strategy is voice; EMI; Billionconsumers’ taste; Reference No. COM0148P based on minority participation, equal Competitive Strategies Case Study; Year of Pub. 2007 opportunity and inclusion. It also uses a revitalizing; competitiors; market share; Teaching Note Not Available mentoring programming called ‘champion online offering; new pricing and Struc.Assign. Not Available programme’. For Toyota diversity is not promotional efforts; cyclic game market; Keywords just a social responsibility but a business Ottaker;; Kiosksand imperative. It believes that its strategic supermarket Southwest airlines; jetBlue; low cost diversity plan reflected well on its business airlines; David neeleman; New Air; XM culture. satellite radio; Embraer; homesourced reservation system; Airbus A320; hobby H&M vs Zara: Competitive Pedagogical Objectives Airport; Morris air; Competitive Strategies Growth Strategies Case Study; Arizona One • HR; Diversity; Quality; Corporate The case compares the competitive growth responsibility; minority participation; strategies of two ‘fast fashion’ retailers –8
  • 9. H&M and Zara. Swedish retailer H&M has 2004, the broadcaster is facing more manufacturing and marketing of personal S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – Ibeen growing at an average rate of 20% scrutiny than at any other time in its computers (PCs) and related software and S T R A T E G Y – I S T R A T E G Y – Iannually in the past two decades. No other history - and is under pressure from all services to begin with, launched its MP3European retailer has expanded so quickly quarters to justify its existence and the player iPod in 2001. iPod was well receivedand so successfully beyond its own borders. license fee which primarily funds the by the market and continued to maintainAt the heart of Zara’s success is a vertically corporation. The BBC’s charter is coming its leadership position. iPod also became aintegrated business model spanning design, up for renewal in 2006 and its future, its significant contributor to Apple’s bottom-just-in-time production, marketing and funding and its role in general, is up for line, accounting for 40% of its revenues insales. Inditex and its flagship store Zara discussion and debate. People are 2005.have been growing at a furious pace. questioning the need for a license fee which funds services they either cannot receive The competitor companies — SanDisk,The two European retailers are known for or do not watch. The BBC is also under Samsung, Sony, Creative Technology andtheir ‘fast fashion’ had unique business pressure from the UK government because Toshiba largely shared the remainder ofmodels and growth strategies which have of the 2003 highly public row with the the portable player market. They tookenabled them to expand quickly and government and also from the media – aims at iPod several times but without muchsuccessfully beyond their own borders. including its commercial rivals. success. With the lucrative portable MP3With the European markets becoming music player market growing in size, thesesaturated, the two companies are looking Its commercial rivals are concerned that players were not wiling to call it a day yet.for ways to expand outside Europe and the BBC is encroaching into their territory. Despite the intense competition newestablish their hegemony in the U.S., in The rapid growth of the BBC’s online players like Microsoft were keen to entermany ways the world’s most important services together with the launch of digital the radio and television stations has elicited protests. Industry observers opine that the The case discusses the challenges faced byThe case outlines the growth strategy of charter’s review process has to find an Apple iPod amid increasing competitionthe two companies in the US, emphasizing answer to the ‘catch 22’ situation. The in the MP3 player market.the similarities and the differences in their charter renewal is expected to be a battleapproach. H&M has tailored its product over how to maintain the benefits of the Pedagogical Objectivesstrategy to fit the US market. It has headed public service broadcaster in a much morefor more upscale malls and busy downtown • The case discusses about the changing competitive environment. The BBC has business model of Apple Company incenters and decided to open smaller stores. been criticised for making programmes thatZara has decided against developing a the MP3 market. It evaluates the are not popular but are worthy, and it has product launching and productmanufacturing base in the US. However, it also been criticised if it has madehas followed the same business model and positioning strategies of Apple, and its programmes which reach millions of competitive strategies to faceproduct strategy that it followed in Europe. people. Aware that the renewal of theIts clothes are however priced higher in competition. charter will increase the spotlight, the BBCthe US than in Europe to take case of has decided to prepare itself for remaining Industry Music Player Industrysupply costs. relevant in the digital age. Will the outcome Reference No. COM0142P of its digital strategy justify the public Year of Pub. 2007Pedagogical Objectives funding of the BBC? Teaching Note Available Struc.Assign. Not Available• To compare the growth strategies and business models of fashion retailers – Pedagogical Objectives Keywords H&M and Zara • The case outlines BBC’s Royal Charter Apple ipod MP3 player; evolution of MP3• To understand how these European and traces BBC’s growth over the years playermarket; Apple’s entry in the MP3 companies are trying to expand beyond • It also discusses the challenges being faced player market; launch of 1st generation their borders. by BBC including its splintered audience ipods; launch of online media store iTunes;Industry Garmnet Industry competitors; Microsoft; SanDisk; • The case discusses BBC’s strategy to Competitive Strategies Case Study; Sony;Reference No. COM0144P remain relevant in the digital age. competing MP3 player; Zune; Sansa;Year of Pub. 2007Teaching Note Not Available Industry Media and Broadcasting launching of subsequent generations ofStruc.Assign. Not Available Industry iPod by apple; launching of iPod Nano Reference No. COM0143PKeywords Year of Pub. 2007H&M; Zara; Inditex; fast fashion; Teaching Note Not Available Home Depot vs B&Q: The BattleCompetitive Strategies Case Study; business Struc.Assign. Not Available for China’s Home Improvementmodel; supply chain; management; retail Keywords Marketstrategy; pricing; marketing strategy;concept store; shelf life; Spain; Sweden; BBC; BBC’s charter; digital strategy; BBC’s In 2006, China’s home improvementstore chain; expansion strategy license fee; audience profile; on screen market was estimated to be worth $50 marketing; broadcaster; public sector billion, growing at 20% annually. As of companies; debate; channel 4; Competitive 2006, various domestic and international Strategies Case Study; ITV players had a presence in the market. While BBC’s Challenge B&Q of UK was the market leader, othersIn 2006, the £4 billion- British such Home Mart, Home Way and Orient Home also had a stronghold. Besides,Broadcasting Corporation (BBC), a Apple’s Challenges in the MP3 Home-Depot of the US, the largest retailerdominant broadcaster in the United Player Market of home improvement products in theKingdom, operates several public TVchannels, a 24-hour cable news channel, world, was planning to enter China soon. The case is about challenges faced by Appledigital channels, national and digital radio In this scenario, analysts felt that the computers in the MP3 players market.networks, and an online news service. In market was ready for a fierce battle among Apple which is basically into design, various retailers. They also debated how 9
  • 10. China’s home improvement market would The case deals with how discounters are • To discuss the overview of the global shape up. making inroads into the European grocery digital TV market Competition and Strategy/Competitive Strategies market and the steps taken by the The case gives a brief account of the mainstream retailers to counter the attack. • To assess how the Korean companies evolution of home improvement market It also raises a question as to who would like LG and Samsung were trying to in China. It then discusses B&Q’s entry, dominate the grocery retailing market of overtake Sony, the Japanese major growth strategies and expansion in the Europe. country. It also talks about Home-Depot’s • To debate whether the Korean planned entry and the challenges it would companies will be able to dethrone the face in China. Pedagogical Objectives Japanese competitors. • To get an idea of grocery retailing in Industry Consumer Electronics Pedagogical Objectives Europe Reference No. COM0139K Year of Pub. 2006 • To understand the emergence and growth • To discuss the emergence of discount Teaching Note Not Available of China’s home improvement market retailers and how they made inroads into Struc.Assign. Not Available the European grocery market • To assess how B&Q entered China and Keywords established itself as the largest home • To evaluate the steps taken by the improvement retailer traditional retailers to compete against Digital television (TV); Liquid crystal discounters display (LCD); Plasma; Korean; Japan; • To understand how Home Depot’s entry Sony; Samsung; LG (Lucky Goldstar would impact China’s home • To argue who would dominate the Corporation); Competitive Strategies Case improvement industry in general and grocery retailing market of Europe. Study; Sharp; Matsushita; Flat TV; B&Q in particular Consumer electronics; Business strategy; Industry Retail • To discuss who would lead the Chinese Reference No. COM0140K Pioneer Corporation; Rear projection TV home improvement market – Home Year of Pub. 2007 Depot or B&Q. Teaching Note Not Available Industry Retail Struc.Assign. Not Available AMD: Challenging INTEL Reference No. COM0141K Keywords AMD, the second largest chip maker Year of Pub. 2007 challenged the market leader Intel with its Teaching Note Not Available Evolution of modern retailing; Grocery retailing in Europe; Discount retailers; server chips. AMD had been growing Struc.Assign. Not Available steadily in the server market with its Types of discount operators; Competitive Keywords Strategies Case Study; Leading discount Opteron chips. AMD’s revenue increased store operators; Top grocery retailers in in 2005 in comparison to 2003. In the Home improvement; Chinese home Europe; European grocery market size; server chip segment AMD had a market improvement market; B&Q; Kingfisher; Market size by geography; Top discount share of around 26% and the company was Home Depot; China’s retailing scenario; retailers in Europe 2005; Forecast of top aiming for a 40% global market share for China’s competitive landscape; Major grocery retailers; Convenience store; server chips by 2009. The case deals with players; Evolution of home improvement Hypermarket; Price difference between the background of both companies AMD market; Competitive Strategies Case Study; brands and private labels and Intel. It also gives an insight into the IKEA; Home Mart; Orient Home chip industry overview with the increasing competition between AMD and Intel. Digital TV War: Korea vs Japan Pedagogical Objectives Europe’s Grocery Market: Traditional Retailers vs The two Korean companies, LG and • To discuss the challenges faced by Intel Discounters Samsung were trying to overtake Sony and from AMD the other Japanese outfits in attaining Since early 2000s, discount retailers, which digital TV leadership. In 2005, Sony was • To understand the chip industry were once looked down upon as cheap the market leader in the LCD TV segment stores, were rapidly enhancing their and continued this status till 2006. But by • To understand the competitive scenario presence in Europe. Apart from catering the end of 2006, Samsung wanted to take in the processor industry and the to low income customers, the discounters the leadership status in LCD, Plasma and strategic initiatives taken by both the were increasingly attracting consumers rear projection TVs. They had set a target companies from all income levels. Between 1991 and of selling digital TVs worth $8.8 billion by • To debate whether AMD could eat away 2005, discount grocery retailers in Europe 2006. Whereas LG also aspired to become Intel’s market share or not. nearly doubled their store count. Also, by leader in both these product categories by 2005, discount stores were the fastest 2007. The case deals with the industry Industry Semiconductor expanding format across Europe. Analysts overview of the digital TV segment with Reference No. COM0138K forecast that discounters would enjoy the increasing competition between the Year of Pub. 2007 consistent growth in the region through Japanese and Korean manufacturers. Teaching Note Not Available 2010, gaining significant market share. Struc.Assign. Not Available This made the traditional grocery retailers Pedagogical Objectives Keywords worry about their future growth. In order to retain their dominance in the market, • To understand the emergence of flat AMD (Advanced Micro Device); Intel; the retailers decided to follow Head to Head panel television in the global TV Chip; Semi conductor; Microprocessor; combat strategies against the discounters. industry Server; Competitive Strategies Case Study; With both retailers and discounters Personal computer (PC); Dell; IBM • To understand the dominance of the fighting, analysts wondered how the (International Business Machines Korean and the Japanese manufacturers grocery market of Europe would shape up Corporation); Hewlett Packard (HP); in the Digital TV segment, globally in future.10
  • 11. Opteron; Business strategy; Lenovo; Boeing 787 Dreamliner which was due to browsing and pop-up window blocker S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – IRandom access memory (RAM); Pentium take the skies in 2007 was being built in a besides adding certain enhanced security S T R A T E G Y – I S T R A T E G Y – I virtual factory, which was spread across features. However, at the juncture of the continents. The prototype of the Microsoft’s latest release, Mozilla was aircraft was being built in several countries reported to release Firefox 2, an upgraded Microsoft’s Zune: Competitive (Japan, Korea, China, Australia, Sweden, version of its earlier web browser. The two Challenges for Apple’s iPod and Canada). Almost 70 percent of the back-to-back releases were found to heraldGlobal entertainment industry was heating Dreamliner was being built outside the a new era of strategic warfare between theup at the end of 2006. In the time of global United States. A350 was the answer of corporate entities fighting for theirmusic revolution when Apple’s iPod was Airbus to Boeing 787.The manufacturing dominance in the web browser market.ruling the roost in the portable digital music race between Boeing versus Airbus wasplayer segment, as it was almost evolving. Up to 60 percent of the Pedagogical Objectivesunchallenged and holding 76% market production work of A 350, which was due to be launched in 2010 would be done • To seek an overview of the competitiveshare in the US market since 2001. But at outside Continental Europe. That even landscape in the web browser marketthe end of 2006 Microsoft decided tolaunch Zune in the iPod segment to take contributed to the battle of racism and during the 1990son Apple’s iPod. It created a lot of interest corporate war between the US and Europe. • To understand and analyze theamong US nationals and immediately Zune Industry people started to apprehend that competitive strategies of Microsoft andhad made its mark by pricing aggressively the volume of the core manufacturing Mozilla over the yearsforcing Apple to reduce the iPod base activities that the two companiesmodel price by US $50. outsourced to other countries were so big • To analyse the future implications of that their national identity was fading away. Internet Explorer 7’s launch byThis case deals with the new product launch Microsoft and how they positioned Pedagogical Objectivestheir new product to challenge Apple and Industry Operating Systems andproblem associated with it. It also • To discuss the importance of outsourcing Utilities Softwareenlightens what reactive measure Apple in aerospace industry Reference No. COM0135Kmight take to counter the onslaught. The Year of Pub. 2007case also talks about the mixed reactions it · To analyse the core and peripheral Teaching Note Not Availablegot from the experts and users and discusses activities in aircraft manufacturing Struc.Assign. Not Availablethe probable outcome of Microsoft’s new · To discuss the implication of strategies Keywordsinitiatives to launch an iPod killer. taken by Boeing and Airbus to outsource outside Europe and America. Internet Explorer; Mircrosoft; Mozilla;Pedagogical Objectives Netscape Navigator; Web browsers; Safari; Industry Aircraft Manufacturing Competitive Strategies Case Study; Opera;• To understand the portable music player Reference No. COM0136K Open source; Windows XP; Windows Vista; industry Year of Pub. 2006 Downloadable applications; HTML Teaching Note Not Available (hypertext markup language); Phishing• To discuss the evolution of Apple’s iPod Struc.Assign. Not Available protection; Firefox 2; Integrated search• To analyse the challenge from Keywords window Microsoft’s Zune Competitive Strategies Case Study: Airbus;• To debate on Microsoft’s new initiative. Boeing; Global factories; Boeing 787 Toyota Motors in Emerging Dreamliner; A350; Aircraft manufacturer;Industry Digital Music Industry Outsourcing; Europe; America; Civil Markets (PartA)Reference No. COM0137KYear of Pub. 2007 aerospace market; Cyclical; Political In the year 2000, Toyota rolled out itsTeaching Note Not Available influence; Mitsubishi Heavy Industries multi purpose vehicle (MUV) ‘Qualis’ inStruc.Assign. Not Available (MHI); Kawasaki Heavy Industries (KHI); India which was an instant success. Ministry of Economy Trade and Industry Gradually It introduced Camry, Corolla andKeywords (METI) later in 2005, Innova. All these modelsMicrosoft; Apple; Zune; iPod; created success saga for Toyota Kirloskar.Entertainment industry; Portable digital Notwithstanding of its initial success,music player; Competitive Strategies Case Microsoft’s Internet Explorer 7: A Toyota could manage to have meager 5%Study; Business model; Positioning of new Competitive Response to market share in Indian passenger car market which remained far away from itsproduct; Product management; Mozilla’s Firefox?Competitive challenges; Pricing strategy; mission statement to grab 10% marketZune Marketplace; iTunes; ZuneZone; Microsoft Corporation launched the latest share in Indian passenger car market byDownloaded music version of its web browser, Internet 2010. Analysts predicted that unless Explorer 7, in October 2006. Some Toyota would enter into compact car industry analysts believed that the latest segment, it would unlikely to have that offering from Microsoft was more as a much market share. Airbus and Boeing: Building response to the pinch it was feeling in terms Planes in Global Factories of market share erosion since 2004, when The case deals with the decision dilemma in Toyota India operation. Would it pursueLots of fear and apprehension cropped up its nearest competitor, Mozilla its aggressive cost leadership strategy oramong the nationals of Europe and Corporation released Firefox 1 rather than follow the path of differentiation? WouldAmerica as both the continents’ prime a proactive market strategy. it follow the rule of the industry and try toaircraft manufacturer Airbus and Boeing Internet Explorer 7 was reported to include be best in the known path or would itwere transferring technical know-how to various features that were pioneered by reshape the industry dynamics byAsia that they were losing out the expertise Mozilla like integrated search window, tab introducing alternative fuel cars in a massto build the next generation aircrafts. scale? 11
  • 12. Pedagogical Objectives Competitive Strategies Case Study; EADS • To understand pricing strategies of the (European Aeronautic Defence and Space HD-DVD and Blu-ray formats. • To understand the macro and micro Competition and Strategy/Competitive Strategies Company) environment of Indian Automobile Industry Electronics Industry Reference No. COM0132B Year of Pub. 2006 • To discuss the entry strategy of Toyota Toshiba versus Sony: The Next Teaching Note Not Available Motors in India Generation DVD Format War. Struc.Assign. Not Available • To analyse Toyota’s strategy of adapting Who Would Set the Standard? Keywords localisation strategy while maintaining In the last week of March, 2006 Toshiba the company’s Global vision. HD-DVD and Blu-ray format Strategies; Corp. launched its first version of HD-DVD HD-DVD’s China Risk; technological Industry Automobile player, HD-XA1, priced at $799.Within warfare; Loss-leader Strategy; Competitive Reference No. COM0134K few weeks, on 18th April 2006, the Strategies Case Study; pricing strategies of Year of Pub. 2006 company launched another simpler version the HD-DVD and Blu-ray formats; Teaching Note Not Available of HD-DVD player, HD-A1 which was Hollywood Film Studios; marketing war of Struc.Assign. Not Available priced even lower at $499 with a per-unit technology formats; Betamax and loss of $200. According to analysts, the Keywords cost of the HD-A1 player was about $700 VHS(Video Home System) war; Toshiba Corporation; Analytical Optical Disc; Sony Competitive Strategies Case Study; Toyota; or more which included the internal Corporation Ltd; Entertainment Market Entry strategy; Late mover; Planned electronics, packaging and manufacturing obsolescence; Prius; Cost leadership; of the player. Toshiba’s marketing Differentiation; Indian automobile department intentionally undertook a industry; Price competition; Innova; substantial per-unit loss on the HD-A1 to Motorola’s Competitive Strategy: Camry; CBU (completely built unit); CKD boost sales and give the company’s HD- Will It Work? (complete knocked down); Midsize sedans; DVD platform (player and disc), a head start and build an early lead in the format In the 1990s, Motorola Inc. was the no.1 MUV (Multi utility vehicle) war over the Blu-Ray format technology mobile manufacturer in the global handset which was developed by Sony Corporation. market. In the mid 1990s, due to the The competitors of Toshiba were Sony and emerging popularity of digital mobile Boeing 747-8 – Airbus A380: The a few others using the rival Blu-ray format. industries, Motorola lost its no.1 position Big Fight Sony was scheduled to launch the Blu-ray in the global handset market. Nokia, a format player in September-October 2006 Finland based digital mobile manufacturer The global aviation market was strongly started growing and in 1997, with 22.5% with price tag of $999 or more. dominated by Airbus and Boeing. Both market share, surpassed Motorola and Airbus and Boeing had contrasting views Consumer electronics analysts and tech- grabbed the no.1 position. In 1998, under about the future of the aviation market. industry watchers remained glued watching Chris Galvin, Motorola planned on While Airbus promoted hub to hub method the movements of the two rivals Sony and restructuring which included the of air transportation and thus preferred Toshiba as they took a head-on-clash over introduction of a new section within the long haul flights, Boeing preferred point the race to establish the next-generation, company, job cuts, transforming Motorola to point method of air transportation. This high definition industry standard for Digital into a Net company and collaborating with case gives an idea about the contrasting Video Disc(DVD) players and discs. internet giants. In 2003, Motorola’s views of the two aircraft manufacturer Ultimately, there could be only one winner market share rose to 13% as compared to along with the future of commercial airlines. whose format would become the industry Nokia’s 34% but it failed to gain back its standard. Whether Toshiba’s apparent position. The company also had to face Pedagogical Objectives ‘loss-leader strategy’ would help to get an stiff competition from Siemens, Samsung early advantage for HD-DVD format and Sony Ericsson. In 2004, Ed Zander • To understand the market dynamics of remained to be seen. Most consumers were joined Motorola as CEO to succeed Chris civil aerospace industry expected to be neutral during the early Galvin. Zander adopted strategies of • To understand business model of Airbus stages of the format war; there would not diversification, product innovation, and Boeing be a winner immediately. In the times ahead, promotion, corporate culture and pricing. the answer would be known, but, till that With all these strategies, Motorola’s market • To analyse competitive position of time it was a marketing war of the share rose to 22.1% from 19% in 2005. Airbus vis a vis Boeing technology titans. Despite this, Motorola was unable to catch • To analyse the sustainability of the up with Nokia which retained its position contrasting business models of Boeing Pedagogical Objectives as the market leader with 36% market and Airbus. share. What could be the next strategy for • To understand the HD-DVD and Blu- Motorola to regain its position? Industry Aviation ray format Strategies adopted by Toshiba and Sony Reference No. COM0133K Pedagogical Objectives Year of Pub. 2006 • To understand that customers now can Teaching Note Not Available • To understand the impact of changing have opinions of formats in the future Struc.Assign. Not Available trends in the mobile industry • To understand HD-DVD’s China Risk Keywords • To analyse reasons behind Motorola’s • To understand the HD-DVD and Blu- inability to gain back its position in the Boeing; Airbus; Japan Airlines; Boeing 747- ray Market global handset industry 8 freighter; Boeing 747-8 passenger; Short haul service; 787 Dreamliner; Aerodynamic • To understand the concept of a loss leader • To analyse the strategies adopted by principle; Point-to-point; Hub-to-hub; strategy Chris Galvin British Airport Authority; Nippon Cargo • To analyse the strategies adopted by • To understand that technological warfare Airlines; Project 747-8; Mach number; Edward Zander. could lead to the market getting divided12
  • 13. Industry Mobile Handset U.S, in July 2006. It was for the first time devices in early 2000 and in 2001 it S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I that Toyota overtook Ford in its home diversified in to home and entertainment S T R A T E G Y – I S T R A T E G Y – IReference No. COM0131BYear of Pub. 2007 market. Toyota had earlier outsold Ford in segment with the launch of video gameTeaching Note Available terms of global sales. TMC which replaced console ‘Xbox’. After successfully buildingStruc.Assign. Available Chrysler as the No.3 in the Big 3 of the roots with Xbox and its later version of U.S car market, earlier in 2006, outsold Xbox 360, the company stepped into theKeywords Ford by a margin of 1,837 vehicles. What music player industry with its new projectGlobal Handset Industry Performance; were the factors that helped Toyota surpass ‘Zune’. Microsoft was gearing its resourcesMotorola’s declining market share; Nokia’s Ford? Was it American’s growing towards services, and integrating variousleading market share; Competitive preference for foreign models or Toyota’s devices to stop the dominance of Apple’sStrategies Case Study; Chris Galvin’s product quality and more fuel-efficient iPod.Strategy; Ed Zander’s Strategy; Product models or was it something else? And what were the factors that affected Ford’s sales Microsoft began to concentrate onInnovation; Collaboration; Pricing hardware, and was planning to play a biggerStrategy; Diversification; Corporate declines? This case discusses various reasons for Toyota’s achievement. role in product design. As the software wasCulture; Stiff competition in Worldwide becoming increasingly commoditised, itHandset Industry; Six sigma needed to find new revenue streams to keep Pedagogical Objectives growing. Would Microsoft succeed to get • To understand the relevance of more control over the new vertical marketsJapanese Luxury Cars overtake innovation as a growth strategy and for to dominate, before monopoly of itsAmerican Cars in the US Market competitive advantage Windows erodes?In the US luxury car market, two Japanese • To discuss the evolution of competition Pedagogical Objectivesautomakers, Toyota and Honda made a in the US automobile industry and themark for themselves and outperformed entry and expansion of foreign brands • To understand the Microsoft’sluxury cars made indigenously by American monopolized business in Operating • To analyse the market success of Toyota systems segmentautomakers like General Motors and Ford. and growing competition from its rivalsThe growing popularity of Japanese cars • To understand the importance of relatedin the US was evident by its high sales • To assess Ford’s moves to regain its diversificationfigures. In 2005, particularly, Lexus position and Toyota’s need to sustain(Toyota) sold 150,000 units, which was its growth. • To discuss the competitive strategiesmore than the sales of any other luxurycars in the US. Acura (Honda) was also Industry Automobile Industry • To analyse the relevance of verticaldoing fine in the US market. These Japanese Reference No. COM0129B integration cars were upsetting American Year of Pub. 2006 Industry Softwareautomakers. How had the Japanese luxury Teaching Note Available Reference No. COM0128Acarmakers been able to supersede US luxury Struc.Assign. Available Year of Pub. 2006cars on their home ground? Keywords Teaching Note Not Available Struc.Assign. Not AvailablePedagogical Objectives Toyota and Ford; Toyota’s sales; US car market; Toyota in the US; The Big 3; Ford Keywords• To understand the competitive scenario struggling; Competitive Strategies Case in the US luxury car market Study; Toyota ahead of Ford; Stock prices; Microsoft; Integration strategy; expansion Market share; SUVs and Hybrid cars; Fuel strategy; competitive strategy; market• To analyse critical success factors for leader; new product development; efficiency; American Customer Japanese luxury car manufacturers in the Innovation; core competencies; vertical satisfaction Index; Customer retantion US soil markets; product integration; software; rates; Ford - Looking to bounce back; Ford - Rejuvenation process computers; Xbox; Zune; Windows; DOS;• To assess the potential challenges to the Microsoft Office; application software; Japanese automakers in the US luxury system software; Competitive Strategies car market. Case Study; Web browser; operating systemIndustry Automobile Industry Vertical product integration atReference No. COM0130B Microsoft: Will it succeed?Year of Pub. 2007 The Microsoft Corporation (Microsoft) Home Depot- A StrategicTeaching Note Not AvailableStruc.Assign. Not Available with its global annual revenues of US $44.28 Dilemma billion had 71,553 employees in 102Keywords countries as on July 2006 and stood as The Home Depot Inc (Home Depot), an world’s second largest software company American retailer for home improvementUS Luxury Car Market; Luxury Cars; after IBM. Microsoft’s best selling products and construction products, the secondGeneral Motors and Ford; Japanese were the Windows Operating System for largest retailer in the United States, behindAutomakers; Toyota; Honda; Nissan and servers and single computers and the Office Wal-Mart, and third largest retailer in theBMW; Mean Selling Price (MSP); suite of productivity software. The world, was considering sale or spin-off orCompetitive Strategies Case Study; Quality company had gained more than 90% of Initial Public Offering of its supply HDImprovement; Pricing Strategy; Fuel market share in its segments of operating Supply. The new separate entity would faceEfficiency; Lexus, Acura; Eight-Speed system and web browser. heavy competition from market leaderTransmission; European competitors Wal-Mart and its next arch rival Lowe’s in With its first product Xenix, the operating retail market. system, the company developed successful software like Dos, windows, MS- Office. The decision was seen as a strategic move, Toyota Ahead of Ford in the US which would optimize shareholders value The company expanded its business to Web based software in the mid 90s, mobile ended and improve Home Depot’s commercialToyota Motor Corp. (TMC) surpassed Ford business a network of companies thatMotor Co. as the No.2 car maker in the 13
  • 14. provided pipes, concrete and lumber to Industry Automobile Industry including related customer services. Nokia professional builders. Reference No. COM0126A manufactured easy-to-use and innovative Competition and Strategy/Competitive Strategies Year of Pub. 2006 products like mobile phones, devices and Pedagogical Objectives Teaching Note Not Available solutions for imaging, games, media and Struc.Assign. Not Available businesses. • Understanding Corporate Restructuring Keywords Since 2000, the telecommunications, • Understanding Spin-off as a restructuring media and technology industry had focused tool. Entry strategies; Competitive strategies; on convergence of technology. Bringing Automobile Industry; Asia; Japanese together the media - print, TV, fixed-line Industry Retail automobile Industry; Competitive Reference No. COM0127A telephony with the new digital world of Strategies Case Study; Chinese Automobile the internet and mobility was a concept Year of Pub. 2007 Industry; Indian Automobile Industry; Car; Teaching Note Not Available with great potential. Nokia had made Geographic Expansion attempts to integrate various features in Struc.Assign. Not Available its mobiles and upgraded them. This case Keywords study discusses Nokia’s technology Pizza Hut: Pleasing ‘Indian convergence strategy and its attempts to The Home Depot Inc.; US retail; Home improvement Market; Spin-offs; Split-off; Palates’ become a market leader. Strategic Evolution; Competitive Pizza Hut Inc. is the world’s largest pizza Strategies Case Study; Wall-Mart; Lowe; Pedagogical Objectives chain with over 12, 500 outlets in more Strategic Inflection Point than 90 countries worldwide. In India, the • To understand the technology company has gained a firm footing over convergence trends in the mobile the years by imbibing Indian values and industry Ford vs. GM in Asia tastes in its restaurants and its menu, while • To discuss Nokia’s technology maintaining its international heritage and Routed around a century back, the convergence strategy for its mobile quality. The case discusses Pizza Hut’s automobile industry had been one of the handsets localisation strategy in India. How the most globalize and competitive of all company has tailored its menu, ambience • To discuss Nokia’s competitive industries. It had a global turnover of $ and even positioned itself to better appeal strategies. 1.66 trillion in the year 2003. The industry to the Indian consumers. The company was dominated by a small number of has used popular Indian celebrities and Industry Mobile Industry companies with worldwide recognition. In launched advertising campaigns Reference No. COM0124P the NAFTA region the Big three players accordingly. The case covers the menu, Year of Pub. 2006 (Ford Motor, General Motors, and Daimler positioning, outlook, and pricing of the Teaching Note Not Available Chrysler) constituted more than 60% share company in India and the competition it Struc.Assign. Not Available in the world automobile production in faces. Keywords 1980. During the 1990s the US auto industry faced a recession due to some Pedagogical Objectives Nokia Media Master; AMPS/TDMA; 3G; inherent problems of excess capacity, Tetra; WAP; W-CADMA; Nokia E series; higher price, inflation which made this • To understand Pizza Hut’s localisation Competitive Strategies Case Study; auto-player to move into the growing Strategy in India Symbian OS regions of Asia. Due to high population • To discuss the Advertising Strategy of and rapid economic growth the Asian Pizza Hut in India market had great potential for foreign auto manufacturer. Volvo in India • To discuss the Pricing Strategy of Pizza Hut in India AB Volvo is a Fortune 500 company based The case revolves around the two biggest auto manufacturer General Motors and Ford in Sweden. Its product portfolio consists • To discuss rising competition in fast food Motors, which were already geographically of commercial vehicles like cars, trucks, Industry of India and evaluate the future diversified, had also moved into the buses, construction equipment, marine and of Pizza Hut in the fast food Industry of growing region of Asia. The case talks about industrial engines, and aero engines. Its India. their entry strategies into the Japan, China high-end, high-performance cars, trucks and India as well as market positioning and Industry Fast Food Industry and buses are well known for their driver competitive strategies to win the Asian Reference No. COM0125P comfort and safety. Volvo entered India in market share. With cut-throat Year of Pub. 2006 1997 by establishing a subsidiary ‘Volvo competition from Japanese players and the Teaching Note Not Available India Ltd’. In 1998, it established Volvo domestic manufacturers will this players Struc.Assign. Not Available Trucks factory in Hoskote, near Bangalore be able to sustain their position as an in Southern India with an investment of Keywords $70 million. The company faced intense industry leader? Localisation strategies; Yum brands; Indian competition from established players like Tata Motors and Ashok Leyland. This case Pedagogical Objectives Pizza market; Masala Pizza; Competitive study discusses Volvo’s strategy for the Strategies Case Study; Vegiterian Pizza; • To discuss the Entry Strategies in Tandoori Pizza Indian market and how it became successful developing nations as a niche player. • To analyse competitive strategies of Pedagogical Objectives Ford and GM to compete with Asian Nokia’s convergence strategies rivals like Toyota and Suzuki • To understand the Indian commercial In 2006, Nokia based in Espoo (Finland) is vehicle market • To understand the importance of the world leader in mobile communications technological innovations and with a global market share of 34%. It • To discuss the entry strategy of Volvo marketing strategies. supplied mobile and fixed telecom networks in India14
  • 15. • To discuss Volvo’s strategy for the truck scenario had changed though and M&S was • To evaluate and compare the old and S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I and bus segment. no more the iconic brand it once was, rather, new advertising strategies of Benetton. S T R A T E G Y – I S T R A T E G Y – I it was less than one quarter of the size of industry.Industry Auto Industry Tesco - UK’s largest and most profitableReference No. COM0123P Industry Apparel Industry retailer in 2006. Could M&S once againYear of Pub. 2006 Reference No. COM0120P gain its position in the market?Teaching Note Available Year of Pub. 2006Struc.Assign. Not Available Teaching Note Available Pedagogical Objectives Struc.Assign. Not AvailableKeywords • To understand the factors leading to the KeywordsAB Volvo; SKF; Scania; Tata Motors; decline of Mark & SpencerCompetitive Strategies Case Study; Ashok Contrarian advertising; Sisley; Playlife;Leyland; Volvo Penta; Starbus • To discuss the strategies of Mark & Competitive Strategies Case Study; Spencer to revive its business Nordica; Rollerblade; Oliviero Toscani; • To discuss brand revival strategy of the James Mollison; Zara; fcuk; Changing the Mark & Spencer. Face of Entertainment Media Industry Apparel Industry Reference No. COM0121P LEGO in 2006: Keeping Up withLaunched in 2004, as a mock news show Year of Pub. 2006 the Changing Timeson the Internet, was a Teaching Note Not Availablebrand new concept. The show on the The case covers Lego’s product Struc.Assign. Not Availablewebsite was a combination of innovatively development strategies across the globe.combined humorous news reports, comedy, Keywords Lego was the sixth largest toyand video blog. Initially, manufacturing company in the world inwas not taken very seriously by the Marks & Spencer chargecard; Richard 2006.Since the beginning, the company’sindustry, but soon it had 300,000 viewers, greenbury; Competitive Strategies Case scope of product development had beennumerous advertisers and buy-out offers Study; Per Una Due; Stuart Rose; Simply immense, even as its product foundationfrom major TV networks. The case food stores had remained constant. With childrendiscusses the concept behind Rocketboom, turning away from traditional toys in favourits business model, creation of a new market of videogames and personal computerssegment, birth of competition and Benetton’s Advertising: Looking (PCs) in the late 1990s, Lego had resortedchallenges faced by the company. Beyond Toscani to several innovative products to keep up with the changing times. It had alsoPedagogical Objectives The Italy based, ¤1.765 billion-Benetton diversified into clothes, computer games, group S.p.A.(Benetton) is a garment and and Lego theme park to maintain its• To discuss the business model of apparel manufacturing company with a growth momentum. By 2004, Lego was Rocketboom presence in 120 countries around the world. running into losses.• To understand the dynamics of creating Benetton is known for its politically and a new market segment by a company culturally contentious advertising Pedagogical Objectives campaigns. The company is witnessing a• To evaluate the success factors of decline in sales since the late 1990s, despite • The concepts associated with product Rocketboom. formulating a change in its erstwhile development in the traditional & modern radically different approach to advertising. toy industryIndustry E-commerce Industry Its new advertising strategy, which is more • The concepts associated with changesReference No. COM0122P product-led, non-controversial, and affecting consumer behaviorYear of Pub. 2006 without politically or socially chargedTeaching Note Not Available issues, has failed to arrest the decline in its • The concepts related to product mixStruc.Assign. Not Available sales. Benetton’s net profit for the fiscal decisions in the toy industry.Keywords year ending in March 31, 2005, has fallen Industry Toy Industry by16.9 %, from ¤28 million, ($35 million) Reference No. COM0119PVideo blog; Andrew Baron; Competitive to ¤23 million, ($30.1 million), and Year of Pub. 2006Strategies Case Study; Amanda Congdon; revenue has dipped 0.8%, from ¤381Tivo; weblog Teaching Note Available million, ($476.6 million) to ¤378 million, Struc.Assign. Not Available ($495.2 million). Analysts wonder whether Benetton’s new advertising strategy, with Keywords Marks & Spencer: A Bright a far more conventional edge, will help it Automatic building bricks; Competitive Future? find its niche within the retail market, or Strategies Case Study; legoland theme parks; will it lead to a complete loss of identityM&S is a leading retailer of clothing, foods for the famed Benetton brand? Should play and learn; Lego Duplo bricks; DACTA;and home products in the United Kingdom. Benetton stick to its new advertising Lego Bionicle; Mattel; Hasbro; LegoM&S had ruled the retail world and reaped strategy or revert to the old one? mindstorm; Lego cybermasterprofits for years. By the end of 1998though, the company started facing Pedagogical Objectivesproblems. It went through a phase of bad Hasbro’s Product Line Strategy • To discuss the advertising strategy ofdecisions, complacency, and board room Benetton over the Yearsbattles which pushed it into a crisis thatlasted for several years. After selling off • To identify the reason behind the The case covers Hasbro’s product linesome of its stores and bringing about declining sales of Benetton strategy in the US. Hasbro is the secondchanges, in 2006, M&S was growing again largest toy maker in the US. Its productand regaining profitability. The market • To evaluate the new advertising strategy portfolio includes legendary toys and games adopted by the company such as Mr. Potato Head, G.I. Joe, Tonka 15
  • 16. Trucks, Playskool, Easy Bake Oven, Play strategy were only enough for becoming • To discuss how Embraer benefited by Doh, Transformers Scrabble, Monopoly the brand no.1 in India. entering new product segments and new Competition and Strategy/Competitive Strategies and Clue to name a few. The case covers markets the evolution of Hasbro’s product Line and Pedagogical Objectives • To analyse how Embraer rose to become the strategies undertaken by the company to meet the threat from electronic games • Booming consumer electronics retail in the second-largest regional jet and game consoles. The case discusses the India manufacturer in the world. product development strategies adopted by • Marketing and Branding strategies of Industry Commercial Aircraft Hasbro and evaluates the strategy Sony in India manufacturing reformulation undertaken by Hasbro with Reference No. COM0116K reference to product development, • Retail formats of Sony in India. Year of Pub. 2006 modification, product mix and product Teaching Note Not Available Industry Consumer Electronics and consistency. Struc.Assign. Not Available Appliances Retail Pedagogical Objectives Reference No. COM0117C Keywords Year of Pub. 2007 • The case discusses the changing Teaching Note Available Bombardier; Embraer; regional dynamics of the toy industry Struc.Assign. Not Available Commercial Jet; Boeing; Business Aviation. • The case outlines Hasbro’s product line Keywords strategy over the years Akio Morita; Sony Walkman; Sony World; Apple’s Foray in Retailing • The case discusses Hasbro’s competitive Sony Proshop Sony Exclusive; Sony Ericsson; Retailing; Samsung; LG; retail In 2001, Apple Computer Inc. (Apple) strategies, its new product launches and kiosks; Competitive Strategies Case Study; forayed in retailing as part of its initiative how these products have fared. differentiated retailing; Multi-brand outlet; to increase its brand awareness and Industry Toy Industry discount stores; dealer network showcase its Macintosh computers and Reference No. COM0118P operating system. Since then, the retail Year of Pub. 2006 stores functioned towards increasing the Teaching Note Available visibility of its products as well as Struc.Assign. Not Available Embraer in 2005 disseminating product knowledge through Empresa Brasileira de Aeronautica SA one-to-one customer interaction. In May Keywords 2006, Apple introduced its 147 th retail (Embraer) was established in 1969 by the Playskool; Milton Bardley; Competitive Brazilian government, to manufacture outlet in New York and its retail strategy Strategies Case Study; Mr Potato head; planes primarily for the Brazilian Air evolved from the traditional ‘store-front Romper room; Hasbro interactive; Furby Force. Later, Embraer began to export its sales approach’ towards a ‘techno- military planes to other countries. equivalent of the neighbourhood bar’, where Encouraged by the success of its military people could visit, meet friends, learn and have an enjoyable time. Sony India’s Retailing Strategies planes business, Embraer decided to manufacture commercial jets. It had The case, while providing a broad overview Sony, which was ranked first among become an ideal state-owned enterprise of the company, discusses Apple’s retail consumer electronic brands in the world, that served the regional and international initiatives both in the domestic as well as was struggling to become the leading brand aeronautical markets well. However, in the international market. in India. It faced tough competition from the late 1980s, Embraer found itself in Indian rivals like Videocon and Onida, and deep financial crisis and was eventually Pedagogical Objectives multinationals like LG, Samsung and pushed to bankruptcy. In order to revive Philips. To emphasize its brand name and the company, the Brazilian government • To discuss Apple’s retailing initiatives image, Sony India introduced ‘lifestyle privatised Embraer in 1994. With the as part of its strategy to increase product concepts’ by launching spacious and change of ownership, the company visibility, product availability and aesthetically designed ‘Sony World’ stores. restructured itself and entered new product customer interaction In these stores, Sony displayed its entire segments to gain the early mover product range in a single showroom and advantage. By the end of 2004, Embraer • To understand how a separate distribution targeted high-end customers in urban areas. was the second-largest regional jet channel would lead to increase in product Despite promoting its products through manufacturer in the world after awareness and product recall advertisements which amounted to 4-5% Bombardier Inc. of Canada, and registered • To understand Apple’s brand-building of the company’s annual turnover, it was net profits of US$380 million. The case initiatives through creation of company- only second in market share in its different discusses Embraer ’s troubles, its owned retail stores product segments. Sony introduced four turnaround strategies and new product different retail formats in order to development. • To discuss the success probability of differentiate their products, reinforce their Apple’s mass strategy. brand and serve different customer Pedagogical Objectives Industry Personal Computers segments. It began retuning its retail format Reference No. COM0115K in 2006, in order to reach the youth and • To understand how Embraer turned Year of Pub. 2006 the middle-class. To do so, the stores were around itself after emerging from Teaching Note Not Available launched under three brand names – Sony bankruptcy Struc.Assign. Not Available Digital Kiosks, Sony Walkman and Sony • To understand the impacts of Ericsson. As youth were more attracted unsuccessful product launches and losing Keywords towards small format stores in shopping consumer focus malls, the company hoped to find young Apple computer; Retailing; Distribution consumers visiting their showrooms. The • To discuss Embraer ’s new product channel; kiosk; Retail Stores. case discusses whether the changes in retail launches to fill the gap in its the product range16
  • 17. Samsung – Leading in the Digital announced its plans to develop the 7E7 • To analyse the initiatives taken by Wal- Age S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I Dreamliner. Analysts felt that if the A380 Mart for its revival. S T R A T E G Y – I S T R A T E G Y – I failed, it would become a burden as AirbusThe case deals with Korea-based Samsung, Industry Retail Department Stores had invested billion dollars on this of the leading global electronics Reference No. COM0112K This case study offers a discussion on thecompanies and synonymous with digital Year of Pub. 2006 factors that have driven Boeing and Airbustechnology. Samsung has strong presence Teaching Note Not Available to adopt different strategies and whetherfrom consumer electronics to Struc.Assign. Not Available Airbus would proceed with the hugesemiconductors. The case depicts in details, investment, amidst the uncertainty in long- Keywordsthe journey of the company from the term demand. The case provides a detailedlower-end consumer electronics account of the structure of the commercial Wal-Mart; Retail;Home Depot; Carrefour;manufacturer to upscale image with strong aircraft industry and the prevalent nature EDLP.brand identity. The case showcases the new of competition.brand-building principles of the Koreanconsumer electronics company that paid Pedagogical Objectives Digital TV Battle: LCD vs Plasmaoff with the entry into ‘Global 100 Brand’in the new millennium. The case describes • To understand the structure and There was a change in the global TVthe company’s three-pronged strategies – competitive forces of commercial industry due to the growing demand forquality, design and innovation. Finally, the aviation industry the flat TV sets. Buyers had a number ofcase highlights future challenges that can choices in deciding which flat panel TV • To analyse the factors and elements ofhinder the brand-building process of the they were going to buy. The LCDs were competitive strategy adopted by Boeingcompany. best suited for a maximum of 37 inches and Airbus TV screens. But there was debate about thePedagogical Objectives • To form and analyse SWOT of both the suitability of LCD and Plasma technologies companies for the larger screens. For a long time• To understand the concept of upward Plasma technology dominated the large TV stretching in brand management with • To form investment pay off matrix for section but now the LCD TV makers like specific reference to Samsung Airbus. Sony and Samsung were challenging Plasma• To understand the concept of mission Industry Aircraft manufacturing TV makers like Matsushita and LG. While statement and translation of this into Reference No. COM0113K Sony and Samsung had been betting with strategies Year of Pub. 2006 their 70inch LCD from 2007 onwards, Teaching Note Not Available Matsushita was fighting back by planning• To analyse the brand building principles Struc.Assign. Not Available to launch its new 103 inch Plasma TV by along with operational difficulties of the end of 2006. The debate was that brand building. Keywords whether LCD TV makers would be able to dethrone their Plasma TV competitors inIndustry Consumer Electronics Airbus; Boeing; A380; Super Jumbos; the giant TV market.Reference No. COM0114K Competitive Strategies.Year of Pub. 2006Teaching Note Not Available Pedagogical ObjectivesStruc.Assign. Not Available Wal-Mart’s Emerging Challenges • To understand the global digital TVKeywords market and its trend Wal-Mart, the largest retailer in the worldSamsung; Brand Value; Micro Processor; continued to grow with its EDLP (Every • To analyse the strategic initiatives takenDigital devices. Day Low Price) policy. However, the by both LCD and Plasma Manufacturers company experienced sluggish sales growth • To analyse the consumer behavior in and limited international expansions with the digital TV market challenges from the retail majors. Airbus vs Boeing – Contrasting Moreover, the company had been • To discuss about the emerging Views for the Future experiencing employee grievances with technologies in the TV market.Since its inception, Boeing had been high rate of employee turnover. In order Industry Consumer Electronicsenjoying a virtual monopoly in the to counter these problems Wal-Mart took Reference No. COM0111Kcommercial aircraft industry, but was few initiatives which would not only reduce Year of Pub. 2006threatened by the advent of the European employee turnover rate but would also add Teaching Note Not Availableaerospace company, ‘Airbus S.A.S.’ revenue to the company. The case gives Struc.Assign. Not Available(Airbus), in 1970. Since then, Airbus an insight into Wal-Mart’s history and thegradually achieved a leadership position in challenges that it faced over the years. It Keywordsthe market by dint of its innovative also gives an overview of the global retail market and the strategic initiatives taken LCD; Plasma; Digital TV; Sony; Samsung;technologies and government funding. For Sharp; LG.the first time in 2003, Airbus became the by the’s largest manufacturer of commercialaircrafts. The competition among the two Pedagogical Objectivescompanies, attained a new dimension in AMD vs Intel: Competitive • To understand the global retail industry2000, when Airbus announced the Challengesdevelopment of the world’s biggest • To understand the emerging challengespassenger plane – the A380. Airbus touted faced by Wal-Mart The competitive challenges between the topthe A380 as the future of commercial two chip maker Intel and AMD took a new • To understand the different categories dimension due to different strategicaviation, as it envisaged a huge demand for of retailers initiatives taken by both the companies.larger aircrafts. In contrast, Boeing asserted,that smaller and faster aircrafts would rule AMD not only attacked Intel with its server • To understand the policies followed bythe market. In keeping with this, Boeing chips but also challenged Intel by Wal-Mart 17
  • 18. diversifying into graphics chip category with The US Wireless Industry in 2005 • To discuss the various services offered its acquisition of Array Technologies by Google The wireless industry was among the most Competition and Strategy/Competitive Strategies Incorporated (ATI) Technologies in a $5.4 billion deal. But still AMD was worried with competitive industries in US. There were • To discuss the competition that the Intel’s antitrust practices. AMD blamed Intel scores of players all across the country that company faces from Microsoft, Yahoo with its illegal discount program due to which competed on poor margins. The market and other players AMD’s PC market share dropped in Japan had reached a level of saturation from • The likely future strategies of Google. .So the debate was that whether AMD could whereon it had become difficult for operators get rid of Intel’s monopolistic foul play. to grow further. In the new business Industry Internet information providers scenario, mergers and acquisitions had Reference No. COM0107K emerged as potential alternatives that Year of Pub. 2006 Pedagogical Objectives ensured, for the carriers a better market Teaching Note Not Available • To understand the global chip industry share. While some pro-consumer groups were Struc.Assig. Not Available apprehensive of the effects of consolidation, • To analyse the competition between the many industry observers found it a scope to Keywords top two companies in the processor accelerate technological advances by giving industry Search Engine industry; Google; MySpace. companies the resources to deploy high- • To analyse the antitrust practices of Intel. speed networks. However, there was also a simmering fear that too much consolidation Industry Microprocessor & DSP could choke off the competition that had The DVD Format War Reference No. COM0110K made wireless the most dynamic of all sectors. The case discusses the ongoing struggle Year of Pub. 2006 This case provides the readers with a broad between Toshiba and Sony, as regards the Teaching Note Not Available understanding of the US wireless market, new DVD (Digital Versatile Disk) formats, Struc.Assign. Not Available the competitive scenario therein, HD-DVD (High Definition) and Blue Ray. technological regulations, the standards and Keywords It provides the reader with an overview of the market trends. the existing market scenario and how the AMD; Intel; Microprocessor; Chip; two companies are moving ahead to push Semiconductor. Pedagogical Objectives their own proprietary formats. • To discuss the competitive scenario in the US wireless telecommunication Pedagogical Objective Verisigns Continuing Monopoly industry • To provide the readers a broad overview Verisign was a leading provider of a wide • To discuss the technological regulations of the existing DVD technologies and range of Internet-based services ranging and standards how Sony and Toshiba are pushing their from on-line payment processing to own formats against all others. domain name registry. The company • To discuss the possible synergies and challenges of mergers and consolidations. Industry Electronic Components owned the two popular top level domains Reference No. COM0106K (TLD’s), .com and .net that together Industry Wireless Year of Pub. 2006 accounted for nearly 53 percent of all Reference No. COM0108K Teaching Note Not Available TLD’s. Owing to the leverage it enjoyed Year of Pub. 2006 Struc.Assig. Not Available by virtue of being the largest player, Teaching Note Not Available Verisign was involved in several Struc.Assig. Not Available Keywords controversial issues that raised concerns about its business integrity and Keywords Sony; Toshiba; DVD; Storage; Blue Ray; professionalism. This case lays special HD-DVD. focus on some of the prominent anti- Verizon; AT&T; Nextel; sprint. competitive business practices of Verisign, like the Waiting List service, misleading Hyundai Motor: Facing cancellation notices and the Site Finder. It The Search Engine War: Can Challenges also provides the readers a broad overview Google Sustain The Lead? of the domain name business and the Hyundai Motor India limited (HMIL) started existing competitive scenario. Google has revolutionised the search its Indian operation in 1996. It launched engine industry. But in a regulatory filing Santro in B Segment, Getz in B+ Segment, Pedagogical Objectives with the Securities and Exchange Accent in C segment, Elantra in D Segment. Commission of US, Google has Over the years HMIL became the second • To discuss the business of domain names acknowledged in unequivocal terms, the largest car manufacturer of India. But from and the related market scenario increased threat to its leadership in the 2004 the company started to experience search engine business. The open admission the heat in both segment. Entry of foreign • To discuss some of the prominent anti- of the threats signals the intensifying car makers: Honda, Toyota and Ford along competitive business practices of Verisign, competition in the search engine market. with aggressive marketing and new product like the Waiting List service, misleading Analysts wonder whether Google will be launch of Maruti put Hyundai in trouble. Its cancellation notices and the Site Finder. able to maintain its technological lead over market share in all segment reduced Industry Security software its rivals. Also, is Google putting all its significantly. Hyundai planned to launch new Reference No. COM0109K eggs in one basket? Does Google need to models in all segments. It also revived its Year of Pub. 2006 look beyond search engines and move production process and planned to position Teaching Note Not Available towards a more diversified business model? some of its product differently. Along with Struc.Assig. Not Available this the management team of Hyundai was Pedagogical Objectives also trying to make a foray in overseas Keywords market. This case discuss in details about • To discuss the inception and growth of the success potential of HMIL’s strategy in Verisign; Entrust; ICANN; TLD. Google Indian market.18
  • 19. Pedagogical Objectives international markets so as to be always Year of Pub. 2006 S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I one step ahead of competitors in the fast- S T R A T E G Y – I S T R A T E G Y – I Teaching Note Not Available• To give a glimpse of Indian automobile paced Web world. Should Nortel shed Struc.Assign. Not Available market, major players, recent trends and weight and become smaller by reducing marketing strategy adopted by different product lines or should it merge with one Keywords companies of the major telecom players to become Amazon; Online retailing; e-commerce;• To understand the segmentation- bigger and better? Cross-selling; Management strategies; targeting-positioning strategy in Indian Digital programmes; Technological automobile market Pedagogical Objectives innovations; Jeff Bezos; Amazon Upgrade; Dot com companies; Search engines;• To discuss in details about the 4Ps of • To analyse Nortel’s performance vis-à- Software platform; Competitive strategies; marketing and its application in Indian vis the other major players in the Branded site; Buyer behaviour. automobile industry telecom industry and understand the problems facing the new chief executive• To discuss about the marketing strategy adopted by HMIL, key differentiator of • To discuss and analyse the strategic plan AOL’s Ad-based Business Model its strategy and how the company plan evolved to take Nortel out of the past to regain its lost market share with the accounting scam, increase global market ‘You’ve got mail!’ The celebrated jingle help of these strategies share and consolidate operations of the Internet users of the 90s was the worldwide. salutation which users got when signing• To understand the potential problems onto their America Online (AOL) account. of the strategy. Industry Consumer Electronics The caption was so popular that a movie Reference No. COM0104C with the same title was released during theIndustry Auto Manufacturing Year of Pub. 2006 90s. America Online, the largest InternetReference No. COM0105K Teaching Note Available Service Provider (ISP) in US in 2006,Year of Pub. 2006 Struc.Assign. Not Available offered dial-up and broadband internetTeaching Note Not AvailableStruc.Assig. Not Available Keywords access and a host of online services through its web portal. It was one of the mostKeywords NORTEL; Mike Zafirovski; Networks; renowned brands of the 1990s as it gave Spin-off; Fibre-optics; Digital; Telecom; Americans their first taste of the internet,Hyundai; sedan; PLC; Brand management. Internet; Strategy; Global; Ethernet; VoIP; e-mail, instant messaging and many more SMB; Cable Market; Wireless; Brand; online features. Strategy; Communication; Multimedia; The Future for Nortel: 2006 and Telephony; WiMax. But things began to change for AOL in the next decade. The turn of the 21st century Beyond saw the merger of the internet with variousIn October, 2005 Telecom equipment domains and created a demand for highmajor Nortel Networks Corporation named Amazon in 2005: Success and speed internet connections. AOL, whichMike S. Zafirovski as its new president and the Future Challenge could offer only a slow dial-up internetchief executive officer. Zafirovski had his access, was not able to fulfill the demands, the world’s leading onlinework cut out for him. To make sure Nortel of the consumers. It was also bombarded retailer had survived for nine long yearsfound level ground, after the accounting with heavy competition in the field leading without annual profits because it was guidedscandal and fraud of the past few years had to a gradual decline of the AOL subscriber by a long-term vision that put into placeshaken the international reputation of the base. strategies for research, and the developmenttelecom giant. The big question was of technology infrastructure. The In order to compensate the decliningwhether Nortel could register high company finally turned the corner by revenue from the internet serviceturnover, post satisfactory profits and posting profits for the first time in 2003. subscribers, AOL adopted anincrease market share to maintain its The case details the diversification of advertisement-based (ad-based) revenueposition as a major player in the telecom into a software developer for model and offered the AOL Content freesector. Or would the company lose market other online retailers. to general web users. Though this increasedshare and customer confidence, to the advertisement revenues of AOL, it didultimately settle at the second level of With its history of not posting profits, not stop the decline of its subscriber base.manufacturers in the industry? and having turned the corner recently, the However, this was not good news for AOL big question was whether Amazon wouldThe case traces the history of Nortel from as AOL’s subscribers accounted for 36% of survive the onslaught of major competitorsa builder of phones and fire alarm boxes at the unique visitors to its network of websites like eBay, and continue to retain the No.1the beginning of the last century to and generated 80% of the page views. To position while at the same time realiseoffering complete solutions for overcome this, AOL made available its reasonable levels of earnings to satisfymultiprotocol, multiservice, and global software, e-mail and security products free shareholders. This was the dilemma thatnetworking together with software and to all web users and decided to concentrate founder Jeff Bezos and his team had toservices in 2006. It discusses the global on broadband rather than on dial-up. activities of Nortel and its The case details the Internet accessperformance in the Cable market and Smalland Medium Enterprises as also the need Pedagogical Objectives industry, the online advertising industry and also briefs the prominent trends of thefor adequate Security Systems in the • To study Amazon’s expansion and internet users. It also details the variousexpanding telecom industry and the IT growth despite posting losses for many strategies adopted by AOL, the consumerworld. The threat from manufacturers in years perception of AOL and the challenges facedChina with their capacity to offer low • Make a SWOT analysis of Amazon and by AOL in reviving itself.prices is also analysed. The case concludesby taking a look at the challenges ahead evaluate its strategy for the future.for Nortel, the need to introduce new Pedagogical Objectives Industry On-line Retailproducts and services quickly into Reference No. COM0103C • To Evaluate AOL’s new business model 19
  • 20. • To discuss the position of AOL-Dial Up, Pedagogical Objectives this growing consumerism. The aggressive AOL Broadband and strategy was part of Carrefour’s decision • The case traces the Indian film theatres Competition and Strategy/Competitive Strategies to strengthen its position in promising Industry ISP and Web Portal and how Multiplexes started in India, markets while abandoning loss making Reference No. COM0102C their USP and its growth in India ones, put in place by its president, Jose Year of Pub. 2006 • Helps the students understand the Luis Duran, from 2005. It savored the Teaching Note Available business model adopted by the success achieved in China by offering Struc.Assign. Not Available Multiplexes. quality retailing experience and economy Keywords for millions of Chinese. Helping itself to Industry Entertainment grow among other foreign competitors by Internet Service Provider (ISP); America Reference No. COM0100C implementing ‘Very-Chinese’ qualities in Online (AOL); Time Warner; Online Year of Pub. 2005 its products, services, merchandising, Advertising; Google; Yahoo; Online trends; Teaching Note Not Available prices and ambience, Carrefour had truly Dial-up; Broadband; Cable; Consumer Struc.Assign. Not Available become a household name among Chinese Survey; Time Warner; DSL; Earthlink; retailers. It remains to be seen how it would Comcast; Unique Visitors. Keywords face up to the challenges posed by local Multiplex; Film Exhibition; Cinemas; retailers who would aggressively compete India; PVR; Entertainment Tax. for growing market share in the world’s Wahaha in 2004 fastest growing economy. From a humble beginning as a school run Pedagogical Objectives store in 1987, Hangzhou Wahaha established Carrefour in China: Savoring the itself as a major food and beverage enterprise Success The case anticipates familiarising the in China. Despite fierce competition from Carrefour, the world’s second-largest students on: international soft drink giants such as Coke retailer from France, initiated the idea of • The retailing industry in China and its and Pepsi, Wahaha held its own stand in the “hyper-market” in 1959, stressing the need local players domestic market. The case discusses in for mass-sales, low delivery cost and detail, the growth strategies adopted by everyday discount to achieve high sales • Carrefour ’s stature in China as the Wahaha to penetrate the domestic Chinese turnover. The reasons for its phenomenal leading foreign retailer market while highlighting the efforts taken success throughout the world were the by its founder, Mr. Zong Qinghou in • Carrefour’s entry strategies facilities it offered at its hypermarkets such establishing the company. as one-stop shopping, low selling price, • Carrefour’s branding methods to suit freshness, self-service and free parking. By Chinese tastes Pedagogical Objectives July 2006, it had 8,321 fully owned stores • Carrefour ’s growth strategies, its and more than 340 thousand employees To understand marketing, service, sourcing and HR worldwide. The sales reached 75 million policies • Food and Beverage industry of China euros and made it the largest retailer in Europe, the second-largest in the world and • How local retailers competed with • Growth of Wahaha and its competition largest foreign retailer in China. Carrefour and what are the plans for with large players like Pepsi and Coke. future expansion. When it decided to enter China, a joint Industry Food and Beverages venture with Chinese retailer Lin Hua was Industry Retailing Reference No. COM0101C formed and the first two stores were opened Reference No. COM0099C Year of Pub. 2005 in Shanghai and Beijing in late 1995 . By Year of Pub. 2006 Teaching Note Not Available October 2006, it operated 83 Teaching Note Available Struc.Assign. Not Available hypermarkets in 34 cities from Urumqi Struc.Assign. Not Available Keywords (in the Western reaches of the Middle Kingdom) to Harbin (near the Russian Keywords Hangzhou; Wahaha; Zong; Coke; Future border) to Kunming (in the South) by 2006. Carrefour China; Carrefour; Retailing cola; Danone; Sun Tsu. Carrefour also operated the Champion Industry in China; Entry strategy of supermarkets and Dia convenience stores. Carrefour in China; Growth strategy of Its 2005 turnover was about 1.7 billion Carrefour in China Competition in Chinese Multiplexes: An Emerging euros (US$2.2 billion) (including value- Retailing; Challenges to traditional Business Model in the Indian Film added tax), making China, Carrefour’s fifth- newscast; China Europe International largest market and by June 2006, was Exhibition Industry reporting a sales of 1259 million euros Business School; Hypermarket in China Gome & Shanghai Brilliance Group; Jean Multiplexes that offered a comfortable (US$1621 million) in mainland alone. Luc Chereau; Carrefour Quality Line; viewing experience revolutionised the way Carrefour expected its sales in China to Carrefour own brand; First line brand; Indian moviegoers experienced cinema. grow by 25% to 30% annually over the Frenchtouch brand. Movies were traditionally a pastime in India next five years. but with only around 12,000 cinemas, the Carrefour planned its expansion based on country faced a shortage of quality cinema halls. The advent of the modern multiplex two facts: growing Chinese retail sales, Screen Wars – LCD vs Plasma expected to grow by more than 11% per concept in the late 1990s, however, year to reach 10 trillion Yuan ($1.2 trillion; Plasma TVs had been ruling the market revitalised the growing patronage and large £680 billion) in 2010 and the increase in for 40 inches and larger screens to date, scale investments in the Indian film middle income households. Carrefour because Liquid Crystal Display (LCD) exhibition Industry. The case while detailing announced that almost half of the 100 makers faced quality problems when they the early scene in the film exhibition planned hypermarkets would be built in tried to make larger screens. The Plasma industry, discusses the emergence of the Asia, and an average of 23 would be in makers, in turn, could not reduce the size, multiplex model as a new business concept China each year until 2008, to cater to for the screens tended to lose brightness as in India.20
  • 21. they shrank. Plasma TVs in larger sizes LIC – FACING PRIVATE SECTOR player; Private insurers in India; S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – Iwere in fact cheaper to make, since the Privatisation; Competition; Marketing; S T R A T E G Y – I S T R A T E G Y – Iglass needed was less sophisticated and The case is about the various changes that Distribution channels in Insurance;cheaper than the glass used in LCD panels. happened in the Indian Life Insurance Bancassurance; Rural market; Strategy;But in 2006, the Korean, Japanese and sector after privatisation. Till Product innovation; Need based sellingTaiwanese companies, who were into the privatisation, Life Insurance Corporation approach; IRDA; Unit Linked InsuranceLCD technology, fought hard to gain of India (LIC) was the only company Plans-ULIP.ownership of the global television market. providing life insurance services in India.For a long time it was believed that the LIC sold its policies as tax instruments andLCD technology was suitable only for the not as products giving protection against risk. Most of the customers were under- DTH vs Cable TV – Sky Wars insmaller sized televisions and could notcompete with Plasma technology in larger insured with no flexibility or transparency Indiasizes. This belief changed with the in the services provided. Before the entry Home entertainment in India had come aintroduction of the seventh-generation of private players insurance penetration long way from the days when there was(G7) plants by various LCD manufacturers. and awareness was very low especially in only one national channel, Doordarshan, rural India.LCDs got larger and posed a big threat to to the age of satellite television and, now,companies such as Matsushita Electric The insurance sector opened up for the latest development called DTH (DirectIndustrial Co. (Panasonic) and Pioneer competition from private insurance to Home) technology. The entry of TataCorp. of Japan. These companies made companies with the enactment of the Sky with its DTH (Direct to Home)big Plasma screens. Plasma TV makers Insurance Regulatory and Development platform posed a threat to the cable T.Vcontrolled 88% of the market for 40-inch- Authority (IRDA) Act, 1999. As per the industry. DTH gained popularity becauseplus, thin-screen televisions. The cost of provisions of the Act, the IRDA was it provided hundreds of channels, 24x7both LCD and Plasma TVs came down. established on April 19th 2000. This marked with clear transmission quality, pay perThey achieved cost reduction by increasing the beginning of liberalisation of the Indian view films and programmes and a wholethe dimensions of glass substrates used, but insurance sector. By 2006, there were 14 set of choices hitherto unknown to thethe cost reduction effect was very small private insurers in India whose market Indian television viewer. As of 2006, therebeyond sixth or seventh generation plants. share was increasing every year. Innovative were three companies providing DTHCost reduction beyond that point would products, smart marketing and aggressive services in India – Doordarshan, Dishtvrequire cutting materials and other cost- distribution helped the private sector grow and the latest entrant Tata Sky. Some morethrough- volume production effects, within a very short period. Slowly but players like Reliance and Sun TV wereslowing the pace of production. As a result steadily, awareness about insurance was also expected to hit the market in the nearof this there was a price war between LCD increasing in India. The increase in future. With the Government of Indiaand Plasma TV manufacturers. Now the penetration and awareness could be having set the end of 2006 as the deadlinecustomers have a wide range of products attributed to the stiff competition to introduce CAS (Conditional Accessto choose from. This case captures the generated among public and private System), in selected metros and later alllatest developments happening in the players. over India, the scene would become moreworld of LCD and Plasma TVs and allows competitive. Cable operators have started As a result of competition posed by the pressurising the Indian government tofor discussion on how the future would take private insurers, LIC launched many newshape. speed up the process of changing the products, improved their services and analog technology to digital. Once cable is increased expenditure on advertising. The digitised, cable operators would also be in aPedagogical Objectives case facilitates discussion on the strategies position to provide programs in high to be adopted by LIC to stay ahead of quality.• To introduce the students to the competition. It could also be used to discuss Competition between LCD and Plasma the future of the Indian Life Insurance Apart from DTH, new emerging technology sector. technological advancements in TV viewing• To highlight the inherent advantages like Internet Protocol Television (IPTV) and disadvantages of both these systems Pedagogical Objectives and Cell Phone TV would also compete among themselves to get their share of• To underscore the technological • What are the strategies adopted by the market in the Indian home advancement in both LCD and Plasma private life insurers to grab market share entertainment industry. For IPTV one from LIC? would need a broadband connection as well• To detail how players in both streams were coming out with various new as a set-top-box and a personal computer. • How should LIC use its strengths to versions Considering the low PC penetration in maintain the market share it had in the India, IPTV might take some more time life insurance market?• To foresee the future of the TV market to gain popularity. The advancement in – which technology will have an edge • What is the future of life insurance in mobile telephone technology has resulted over the other? India? in mobile phones where channels could be viewed. But some of the main constraintsIndustry Technology • LIC could join with some private of mobile TV could be the prohibitive costReference No. COM0098C insurers. of the handset, the smaller size of theYear of Pub. 2006 Industry Insurance screen and the low penetration rate ofTeaching Note Available Reference No. COM0097C personal computers in India. On the whole,Struc.Assign. Not Available Year of Pub. 2006 the Indian customer would have moreKeywords Teaching Note Available options in terms of TV entertainment and Struc.Assign. Not Available the main deciding factor would be serviceLCD; Plasma; Flat screen; Televisions; support. The case allows for discussion onTechnology; Liquid Crystal Display; Keywords the present scenario of homeMarketing; Strategy; Brands; Product entertainment in India.innovation. Life Insurance Corporation of India – LIC; Life insurance industry in India; Monopoly 21
  • 22. Pedagogical Objectives growth and the shift of AMD from being a Pedagogical Objectives clone of Intel processors to becoming an • To introduce the students to the home • To discuss strategies to be adopted by a Competition and Strategy/Competitive Strategies innovator. The case also brings to light entertainment industry in India the fact that the battle between AMD and large multinational, to counter local Intel was now moving beyond processors players • To highlight the various technological advancements that happened in the field to a new battle over the entire platform • To discuss challenges faced by foreign of TV broadcasting and it remained to be seen as to who would companies in emerging markets. emerge the winner in the long run. • To throw light on various service Industry e-commerce providers and their services Pedagogical Objectives Reference No. COM0094C Year of Pub. 2006 • To discuss the emerging technologies in • To emphasise how a small player can Teaching Note Not Available home entertainment in India. become a dominant one Struc.Assign. Not Available Industry Home entertainment • To discuss AMD’s Growth Strategies Keywords Reference No. COM0096C encompassing Virtual Guerilla and Year of Pub. 2006 Customer Centric strategies. eBay; China; Taobao; e-commerce; Online Teaching Note Available Auction;; Yahoo; Struc.Assign. Not Available Industry Microprocessor competition; revenue model; Online Reference No. COM0095C payments; emerging markets; marketing Keywords Year of Pub. 2006 strategy; competitive strategies; Asian DTH; Cable TV in India; Satellite TV in Teaching Note Available markets; Chinese Internet market. India; Home entertainment in India; Struc.Assign. Not Available Strategy; Competition; Marketing; Keywords Service; Target customer. NTUC FairPrice in 2005 AMD; Intel; Microprocessor Industry; Semiconductor Industry; Virtual Guerilla NTUC FairPrice was a successfully run Strategy; Customer Centric Strategy; ATI; cooperative supermarket chain of NTUC AMD vs Intel – Strategies for (National Trades Union Congress) in Market Leader; Jerry Sanders; Paul Otellini; growth Intel’s restructuring efforts; Strategic Singapore. Started as a cooperative to Advanced Micro Devices (AMD), the partnerships; Innovator; R&D Expenses. moderate the cost of living in Singapore, global supplier of integrated circuits for it dominated the grocery retail market in personal and networked computing and Singapore. It returned dividends and other benefits regularly to its members and was communications, was the second-largest eBay in China involved in many community supplier of x86-compatible processors It was best known for its Athlon, Opteron, eBay Inc., the largest online auctioneer in development activities. FairPrice was run Turion 64, Sempron, and Duron lines of the world, entered China in 2002 by acquiring on sound business principles and the x86-compatible processors. The x86 a 33% stake in Shanghai’s online trading innovative strategies adopted enabled it to microprocessor markets had become website, for $30 million. In emerge a winner. The retail scene in extremely competitive as major 2004, eBay secured full ownership of Singapore was fast changing with increasing technological breakthroughs were taking EachNet and the site was renamed competition and varying consumer place and new products were being eBayEachNet. In 2005, eBay announced preferences. In this light, it was to be seen introduced. Taking advantage of the that it would invest $100 million into its how FairPrice would overcome changing scenario, AMD adopted strategies operations in China to ensure that it competition without sacrificing its social that helped it emerge a much stronger and dominated the market. eBay EachNet was objectives. more focused challenger to Intel, its closest facing fierce competition from, The case facilitates discussion on retail competitor and market leader. Intel, the a local Chinese online auctioneer, which strategies to be adopted by a supermarket world’s largest manufacturer of x86- had come into the scene in 2003. chain to face competition and varied compatible processors, monopolized the was launched by, consumer behaviour. It also provides for market till 1991, when AMD released its China’s biggest B2B website. Going by discussion on the role of cooperatives in Athlon processor. Over the years, AMD statistics, seemed to be moderating costs and in community focused on delivering innovative products competing very closely with eBay and some development. and technologies with customer needs in analysts felt that might even mind, proving to be a tough contender to overtake eBay. Meg Whitman, the president and CEO of eBay, said that China was a Pedagogical Objectives Intel. In July 2006, AMD planned to acquire Canadian graphics chip maker ‘must win’ for her company. The David vs • To discuss retail strategies of a Array Technologies Incorporated (ATI), Goliath battle turned into a high-profile one supermarket chain one of the top three graphic chip makers. in August 2005, when signed a Analysts felt that this acquisition would deal with Yahoo! According to this deal, • To discuss the role of cooperatives in empower AMD to compete with Intel Yahoo! would add its Yahoo!China business moderating costs and in community across a broader product portfolio, to and the two companies development. including home entertainment, mobile would work together to promote the Yahoo! Industry Retail computing, consumer electronics, high Brand in China. With eBay and Alibaba Reference No. COM0093C definition TVs and video games. The battle stepping up their operations, it was to be Year of Pub. 2005 between AMD and Intel was moving beyond seen who would dominate the online auction Teaching Note Not Available processors to a new battle over the entire scene in China. Struc.Assign. Not Available platform. The case allows for discussion on strategies Keywords The case gives an overview of the to be adopted by a large multinational, to competitive strategies of AMD and Intel counter local players. It also provides scope Supermarket chain; Cooperative; in the global microprocessor market. It for discussion on challenges faced by foreign Singapore; Retail Strategies; CSR converses in detail the establishment, companies in emerging markets. (Corporate Social Responsibility); Grocery22
  • 23. Trade; Exxon Mobil Alliance; Convenience The number of low-cost airlines halved to counter them, the possibilities and S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – IStores; Store formats; Country themed during 2006, out of which only 15 had application of the dual-core chip, the S T R A T E G Y – I S T R A T E G Y – Istores; Community development; more than 50 flights per day. The low cost challenges ahead and the diversificationsConsumer behaviour; Dairy Farm airlines also succumbed to stiff competition made.International; Carrefour; Competition. among themselves and some had to exit the market. Albeit challenging Pedagogical Objectives circumstances, Ryanair maintained sales growth of over 20% between 2000 and • The strategies taken by Intel, the leading DELL: PCs in Pieces? player in the chip market to consolidate 2005. It maintained lower fares evenThe case describes the challenges that the though fuel costs shot up and competition its brand positionDell’s Personal Computer (PC) business increased. With successful pricing and cost- • Intel’s strategies to retain the topfaces. The case aims at providing discussion cutting strategies, it maintained a cost gap position worldwide by successfullypoints regarding Dell’s present strategies of 64% compared to other scheduled fending off competition from otherin dealing with the changing PC market. airlines. The case discusses strategies and manufacturers.The case traces the growth of the PC operations of Ryanair to maintain highindustry and reasons for retardation of the efficiency at lower costs. Industry ITgrowth. It also intends to raise debate on Reference No. COM0090CDell’s business model and the viability of Pedagogical Objectives Year of Pub. 2006the model in today’s competitive scenario. Teaching Note Not AvailableThe case is designed to help understand • To study low-cost carrier industry in Struc.Assign. Not Availablethe PC industry, Dell’s position as a PC Europe Keywordsmaker, competition faced by Dell and • Ryanair’s cost-cutting and brandingimpact of its business model on the market strategies Intel; AMD; Branding; Cell Chip; Marketas well as on the prospects of its growth in leadership; Dual-core; Clock speed;other related areas. • Competition for Ryanair in Europe Microprocessors; Management Strategy; • Challenges faced by Ryanair to become Centrino; Samsung; Itanium; Paul Otellini;Pedagogical Objectives a leading player in the airline industry. Pentium; Mobile devices.• To understand the PC industry and Dell’s Industry Airline Industry position as a PC maker Reference No. COM0091C Google’s Desktop Search: A Year of Pub. 2006• To understand the competition faced by Teaching Note Available Threat to Microsoft? Dell Struc.Assign. Not Available Microsoft, the world’s largest software• To understand the impact of Dell’s company was a dominant player in the business model on the market as well as Keywords search market until the advent of Google, on the prospects of its growth in other Ryanair; Low-cost airlines in Europe; a search engine in 1998. With its desktop related areas. British Airways; EasyJet; short haul routes; search tool, Google attempted to pose aIndustry IT Hardware-Personal point to point flights; Skylight system; threat to Microsoft’s core activity of Computers Hertz Corporation; Buzz; Secondary controlling the users since the time theyReference No. COM0092C Airports and Third party contracts; Inviseo turned on their PCs. Google also wooedYear of Pub. 2005 Table; On board Advertising; Turn around away Microsoft’s employees creatingTeaching Note Not Available Time and Common Boeing fleet. further concern.Struc.Assign. Not Available The case explores the strategies followedKeywords by Google to outsmart Microsoft in the Intel: Leaping Ahead search market. The case opens upDell; Personal Computers/Pcs; PC Industry Everywhere? possibilities for further discussion onLaptops; Desktops; Michael Dell; Global Microsoft’s defensive measures to retainPC Market Dell Strategies ; Replacement Intel Corporation, the leading international its domination.Cycle; PC Price Wars Portable Computers. ic-chip maker began a fresh campaign on January 1st 2006 based on a new logo and the slogan, ‘Leap ahead’. Intel had entered Pedagogical Objectives the consumer goods market and • To discuss the threat posed by Google Ryanair: Flying High in a communications industry to make its Desktop to Microsoft’s core activity Competitive Atmosphere presence felt in almost every type of digital device manufactured and used • To discuss Microsoft’s defensiveThe airline industry in Europe underwent measures to retain its domination. commercially. But it had to facea transformation during the post competition from other manufacturers Industry Online Industryliberalisation era in the 1990s. The leading who had come up with the revolutionary Reference No. COM0089Clow cost airline in Europe – Ryanair, began ‘cell chip’. With challenges cropping up Year of Pub. 2005its operations in 1985 from Ireland. It was from different directions, Paul Otellini, the Teaching Note Not Availableable to establish itself in the UK and it president and CEO of Intel, needed to make Struc.Assign. Not Availableextended its wings to other parts of Europe. a strategic decision on whether to continueThe company focused on price conscious with the ‘Intel Everywhere’ policy or Keywordstravelers who travelled often to different rejuvenate the company’s core strengthparts of Europe for leisure and business. Microsoft; Google; Desktop search; of being the primary and dominant playerScheduled airlines like British Airways, Netscape Navigator; Browser war; Desktop in the international PC market.Lufthansa and Aer Lingus had to restructure war; Longhorn; Competition; Internettheir fare levels to compete with low cost The case traces the background of Intel, Explorer.airlines in Europe, and Ryanair in the obstacles faced and the measures takenparticular. 23
  • 24. Yahoo! – A Jack of All Trades? The case provides tremendous scope for manufacturer to one of the leading discussion on the effectiveness of Yamaha’s provider of software services in the world Over the years, Yahoo! had evolved from Competition and Strategy/Competitive Strategies strategies. There is also adequate room for a simple directory to a fully fledged media analysis on whether Yamaha can become a • To debate whether IBM’s Global and commerce powerhouse that dealt in global leader amidst tough competition, in Software Division can become the everything from financial information to a scenario where the demand for bikes in driving force behind IBM in the long personal ads. With 236 million registered developed market had flattened and run. users it had become a community site. tremendous growth was predicted in the Industry Information Technology Yahoo! interconnected its various online Asian market. Services services, in more ways than one. It had Reference No. COM0086 also expanded into entertainment with its Pedagogical Objectives Year of Pub. 2006 site offering film and video clips. Experts Teaching Note Available felt that in trying to morph into so many • To discuss the effectiveness of Yamaha’s Struc.Assign. Available things, Yahoo! was less a leader and more a strategies by which it made a come back novice. in Asian market Keywords The case allows for discussion on whether • To discuss the possibilities of Yamaha IBM’s Turnaround Middleware Market; e- Yahoo! should enter different areas of becoming a leader even though there was business on-Demand; IBM’s New Growth operations and what its future focus should tough competition. Platforms; On-Demand Computing; Open be. Software Strategy; Autonomic Computing; Industry Automobiles IBM’s purchase of PwC; IBM’s Business Reference No. COM0087C Pedagogical Objectives Transformation Outsourcing; IBM’s Year of Pub. 2005 Acquisitions. • To discuss whether Yahoo! should include Teaching Note Not Available various operations Struc.Assign. Not Available • To discuss the focus of Yahoo! in future Keywords Microsoft vs Google in 2005 Industry Internet and Online Business In 2005, Google is emerging as a major threat Reference No. COM0088C Yamaha Motor Company; Asian Motor to Microsoft’s dominance. Google has Year of Pub. 2006 bikes market Yamaha bikes; Management beaten Microsoft to launch successful Teaching Note Not Available reforms; Marketing strategies; Operational innovations like local-area search complete Struc.Assign. Not Available reforms; Cost reduction; Supply chain with maps and satellite photos, ways to management; Yamaha’s NEXT 50; System search inside a video file, and search designed Keywords Supplier(SyS); Technological innovation; for mobile phones. Google has emerged as a Yahoo!; Internet; Media; Internet Market restructuring; Yamaha Town new kind of foe for Microsoft as it gains the Advertising; e-commerce transactions; Saigon; Moto Grand Prix race; Valentino ability to attack the latter’s core business. Chinese Operations; Search Engines; Rossi. Google’s search lead also looks pretty Network optimisation; Diversification unassailable. Microsoft has supported the strategies; internet growth strategies; Ad launch of its search-related advertising ware; Revenue models. IBM’s Software Division: The New business in March 2005 with a $150 million Reliable Growth Engine? ad campaign and scores of other promotions. But the effort has generated IBM pioneered the global IT industry and little buzz, and Microsoft’s global market Yamaha Bikes in Asia: Can its dominated the mainframe and share, at about 13% of search requests, Regaining Lost Ground? minicomputer market since the mid-20th remains small. Microsoft has the option of Japan’s Yamaha Motor Company, one of century. However, with the global IT increasing its market share either by the biggest motor bike companies in the industry undergoing a paradigm shift from acquiring AOL or entering into a partnership world, faced numerous difficulties after the hardware to software, IBM faced a with AOL, though Google is doing its best Asian financial crisis. As currencies, stock slumpcline in the 1980s. Under the to thwart Microsoft. Coveted talent from markets and asset values in many countries visionary leadership of its erstwhile CEO academia, start-ups, and venerable tech plummeted, there was a major decline in Louis Gerstner, IBM regained its past glory companies that a decade ago flocked to the earning and purchasing powers of by revamping its organisation structure and Microsoft now seems more attracted to consumers. Yamaha’s motor bike segment shifting its focus to software and services. Google in the mid-2000s. Microsoft has lost accounted for nearly 60% of its total sales Despite the increased contribution of IBM’s several top minds to Google since 2003. but the company’s market share in the Asian Global Software Division to its total nations declined rapidly from 18% in 1999 revenue, as the IT industry worldwide faces Pedagogical Objective to 11% in 2003. Yamaha’s debts amounted a period of transition due to the emergence of services industry and emphasis on • The case can be used to do a SWOT to an astounding $2.3 billion in 2001. The customised services and custom care analysis of both Microsoft and Google demand for Yamaha bikes decreased and solutions, analysts are sceptical whether and discuss their growth strategy. inventories piled up. To counter all these difficulties, Yamaha initiated various IBM’s software business alone can become Industry IT (Information Technology) management plans, operational reforms it’s most dependable growth engine. Reference No. COM0085P and exclusive marketing strategies and Year of Pub. 2005 from 2003 began to show tremendous Pedagogical Objectives Teaching Note Not Available improvement in its financial position. The Struc.Assign. Not Available • To analyse the role of software and case discusses these strategies in detail to services in the Global Information Keywords show how Yamaha made a comeback in Technology Industry the Asian bike market. It also enables Chris Payne; Netscape; MSN; Software; comparison with the performance of • To understand the traditional business Competition. competitors like Honda and Suzuki. model of IBM and discuss its transformation from being a hardware24
  • 25. Anheuser-Busch: Brewing a competitors such as Lenovo and Acer. This Business Model; Post Office Ltd.; Parcel Fresh Image S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I resulted in lower average selling prices for force Worldwide; single daily delivery S T R A T E G Y – I S T R A T E G Y – I Dell’s products and adversely impacted its system.Anheuser-Busch is a leading American operating margins. With Dell encounteringbrewer with 50% market share. It offers problems on various fronts, its share price30 beverages in the US beer market. declined to $29 in October 2005; it’s lowestBudweiser, Bud Light, Michelob, Bacardi Federated Department Stores – in two years, leading to the question ofare some of its well-known brands. whether Dell’s direct business model could Focusing on National BrandsHowever, in 2004, Anheuser-Busch’s ensure further success in the changing Federated Department Stores (FDS) is onerevenues seemed to have stagnated as the scenario. of the America’s leading upscaleUS beer industry saw flat consumption department retail stores that offer a rangetrends, decline in volumes and higher costs. Pedagogical Objectives of merchandise, including apparel,Beer’s share of the US alcoholic beverage accessories (handbags, jewelry andmarket had declined. The case study • To discuss the trends in the US PC market cosmetics), home furnishing, and otherdiscusses how Anheuser-Busch used consumer goods. This case discusses in • To understand how Dell had achievedinnovative advertising to enhance the depth the growth of FDS and its constant growth through its Business model.image of the beer, create brand awareness efforts to unite the US department storeamong consumers and to differentiate their Industry Electronics industry. This case emphasises the FDS’sproducts in the beverage market. Reference No. COM0083B 306-171-1 focus towards building Bloomingdale’s and Year of Pub. 2006 Macy’s as its two national brands byPedagogical Objectives Teaching Note Not Available renaming all of its regional stores. This Struc.Assign. Not Available case also tries to understand the business• To discuss the dynamics of the US beer Keywords strategy of the company and its future industry plans.• To discuss the strategies adopted by Dell Inc.; Michael Dell; Personal computer; Anheuser-Busch to make a comeback. Desktop; Note Book; Consumer Pedagogical Objectives Electronics; Directbusiness model; Acer;Industry Beverage industry Gateway; Hewelett-Packard; Apple • Study the origin and growth of the USReference No. COM0084P Computers; Sony; BestBuy; Windows Department Store industryYear of Pub. 2006 Media Center; XPS.Teaching Note Not Available • Discuss the strategies adopted by FDS toStruc.Assign. Not Available sustain in the competitive retail marketKeywords Royal Mail Group: Gaming up • The pros and cons of FDS’s effort to unite its department stores into twoAnheuser-Busch; Brewing industry; Light with Competition national brands – Bloomingdale’s andbeer; Changing beer market; Spirits; Royal mail Group, a public limited company Macy’sBudweiser; Bud-Light; SABMiller; had been providing postal services for overSpeciality brewers; Grolsch; Adolph Coors; • Discuss ‘the four priority’ business 360 years in the UK. The group operated strategy of FDS and suggest what otherGrupo Modelo; Corona; Bacardi. under the brands, Royal Mail, Post Office features it has to focus on. and Parcelforce Worldwide and was known for offering value for money and high Industry Retailing/Departmental store Dell Inc.: Facing Formidable quality customer service. In 2000, the Reference No. COM0081B Challenges in the US Consumer group reported a loss of £240 million which Year of Pub. 2006 Market continued till 2003. So, the government Teaching Note Not Available had asked Postcomm (regulatory body) to Struc.Assign. Not AvailableDell, in 2005, was the No.1 seller of PCs liberalise the postal market in three stages(desktops and notebooks) worldwide with starting from 2003. Royal mail also Keywordsa 17.8% market share and $50 billion in underwent major restructuring in 2003, US Department stores; Bloomingdale’s;annual revenues. The company’s direct under the leadership of Allan Leighton, Macy’s; National Brand; Macy’sbusiness model which eliminated the need chairman of Royal Group and chief department stores; differentiatedfor middlemen was a major factor executive, Adam Crozier. assortments; simplified pricing; shoppingcontributing to this success. However, with experience; marketing strategy; JC Penny;the corporate PC growth declining from Pedagogical Objectives Kohl’s corp.; Business strategy; Terrydouble digits in the 1990s to single digits Lundgren; 2001, Dell entered the consumer PC • The state of postal services in the UKsegment with its Dimension desktop and • Business model of Royal mail groupInspiron notebook line in and the consumerelectronic segment with digital TV, MP3 • Restructuring initiatives of Royal mail Amazon in 2006player and Axim handhelds in 2003. group. Inc. (Amazon), a fortune 500Consumer business was seen as a key company and a leading on-line retailer, Industry Postal Servicesrevenue driver by Dell’s management which posted revenues of $8.4 billion in 2005. Reference No. COM0082Bannounced an ambition plan to increase Amazon sustained its existence, despite the Year of Pub. 2005revenues to $80 billion by 2008. fact, that it was not making profits for Teaching Note Not AvailableHowever, 2005 proved to be a challenging Struc.Assign. Not Available almost a decade since its inception. Ityear for Dell. Not only did the company recorded profits for the first time in historystruggle in the consumer electronics Keywords of its existence in 2003.segment leading to the withdrawal of MP3 Royal mail; Postal services in the UK; Post Since inception, it focused on building anplayers but even in its core PC segment, watch; Allan Leighton; Adam Crozier; online retail experience for the customers,Dell was cornered by traditional rivals such Universal Service Obligation; Bulk Mail; which included greater selection,as Hewlett-Packard and Gateway and new 25
  • 26. competitive pricing, convenience and The case tracks the journey of Pepsi and challenges lying ahead of Adidas will be to sophisticated information search. It compares its current position to that of first achieve synergies resulting by the Competition and Strategy/Competitive Strategies offered wide range of products covering 1990s. It highlights the strategic moves of acquisition and then set its best foot forward 31 categories including apparel, toys and Pepsi, which led it to overcome cola to directly confront the market leader and games, electronics, videos, kitchenware, trenches and outperform its biggest maintain the lead over the domestic sporting goods, jewelry and online auctions. competitor Coke. Nevertheless, the favourite. It had become a platform offering a place success, would Pepsi be able to sustain its to businesses and individuals to trade their performance? Pedagogical Objectives products. Pedagogical Objectives • To analyse the sportswear industry in By 2006, it faced competition from an China on the basis of Michael Porter’s array of online retailers. The online • To highlight the first-mover advantage five force model commerce industry had unique players like enjoyed by PepsiCo by venturing in food Yahoo, Google and E-bay offering range business • To discuss the competitive strategies of products overlapping each other. With adopted by various marketers in China increasing growth of e-commerce and • To discuss the leader and challenger strategies • To discuss the opportunities and competition in the on-line retail industry, challenges for Adidas in China. would Amazon, be able to sustain its original • To discuss the competitive strategies and thrust on research and development and diversification strategies of PepsiCo. Industry Athletic footwear and apparel technological innovations? Would it be able Reference No. COM0078A to sustain its No.1 position as an online Industry Food & Beverage Year of Pub. 2005 retailer and also remain profitable? Reference No. COM0079A Teaching Note Available Year of Pub. 2005 Struc.Assign. Not Available Pedagogical Objectives Teaching Note Not Available Keywords Struc.Assign. Not Available • To understand the nature and structure Athletic sportswear industry; Adidas; Nike; of the online retail and commerce Keywords Li-Ning; Reebok; China; Sport scenario in industry PepsiCo; Coca-Cola; Pepsi-Cola; Frito- China; Franchising; Olympic games; • To discuss the unique business model Lay; Business Strategy; Strategic consumer behaviour; consumer adopted by Amazon Management; Diversification; Brand segmentation; brands; celebrity Portfolio; Globalisation; Competitive endorsement; competition; competitive • To discuss the competitive growth strategy; Business ethics; Snack food; strategy; Porter ’s five force analysis; strategies followed by Amazon growth; cola wars. acquisition. • To discuss the issues and challenges faced by Amazon Adidas in China: Jockeying for The US Automobile Industry’s • To debate whether Amazon can sustain its leadership position in the industry. Supremacy New Platform for Competition, The ‘American’: What’s The case describes the athletic sportswear Industry e-commerce industry scenario in China with the ‘American’ Anyway? Reference No. COM0080A Year of Pub. 2006 Germany-based sportswear manufacturing For almost a century, the US was proud of Teaching Note Not Available giant Adidas in focus. China, the world’s its three largest automobile companies – Struc.Assign. Not Available most populated country was fast emerging General Motors, Ford and Chrysler, as the next economic superpower and (collectively called the Big Three). Ford Keywords sporting industry in China was flourishing. was the first to introduce the concepts of Adidas had entered the Chinese market in mass production, moving assembly line and Innovation; Peripheral Vision; Growth early 1990s through agents and by 1993 ‘$5-day’, which became the industry norm. Strategies; Competitive Advantage; On- China had become the manufacturing hub line retail industry; Business Model; GM, one of the biggest companies in the for its products. Adidas did not have their Amazon; e-commerce; Diversification. world, had to its credit the first US company own retail stores in China and their products to generate $1 billion a year. Chrysler, on were sold through franchisees. It faced stiff the other hand, was known for its competition from Nike, the world’s No.1 innovative capabilities. The automobile PepsiCo in 2006 sportswear manufacturer and Li-Ning, the industry was itself one of the most Chinese company. Sensing the huge On December 12th 2005, for the first time important industries in the US. Receiving possibilities of growth, and opportunities in the rivalry of over a century, PepsiCo thrown open by the upcoming Olympic more than the average salary and with (Pepsi) surpassed its biggest foe Coca-Cola Games in Beijing in 2008, the major generous healthcare and pension benefits, (Coke) in market capitalisation. It had industry players, both international and employees considered it a privilege to work much higher operating revenue than Coke. domestic had geared up to reap maximum for the Big Three. However, the Big After having tough time in mid 1990s, benefits. Three’s demesne was gradually invaded by Pepsi finally got increasing sales and foreign competition, especially from cheering investors. The case provides a background to analyse Japan. Initially establishing a base by the sportswear industry in China on the exporting to the US, the Japanese According to the analysts, the chief reason basis of Michael Porter’s five force model carmakers gradually setup their own for Pepsi’s outstanding performance was and the company Adidas by its competitive production facilities, employed Americans its aggressive diversification. Though strategies. The demographic profile and and responded to the changing tastes and started as a beverage company, Pepsi now segmentation of the Chinese consumers preferences of the consumers in a better held No.1 position in snack food business has been described in the case. The decision and faster way. Over a period of time, the with its Frito-Lay division and ranked No.3 of Adidas to acquire Reebok will catapult US consumers no longer considered these in overall food & beverage industry. its market share but will still fall short of foreign companies as ‘foreign’. With However, Coke still continued to sell more the market share held by Nike. The falling market shares, increasing legacy soft drink than Pepsi.26
  • 27. costs, the significance of the Big Three television programmes like The Amazing AMD launched Athlon, a 64-bit desktop S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – Ideclined significantly in the eyes of Race, CSI: Miami, Without a Trace, Two microprocessor with superior performance S T R A T E G Y – I S T R A T E G Y – Iconsumers, investors and the government And A Half Men, Cold Case and Survivor. compared to similar Intel microprocessors.alike. Amidst these conditions, Ford came However, CBS faced considerable AMD followed it up with a 64-bit serverup with a promotional campaign challenges from its competitors like ABC microprocessor called, Opteron. AMDemphasising on its American legacy. and FOX. Moreover, broadcast TV consistently came out with superiorToyota also launched a campaign striving networks are losing revenues from products compared to Intel and steadilyto showcase its ‘Americanism’. In addition, advertising to other forms of media and started gaining market share. Intel realizedthe retirees of the Big Three formed a facing increasing competition from new that a company that was one-tenth its sizegrassroots association in order to persuade digital media such as Internet, DVDs, PVRs, was a serious threat to its leadershipthe US consumers to buy only ‘American’ VOD, etc. It is being debated whether position. In an effort to contain marketto save the jobs of millions of Americans Tellem would be able to counter such losses and regain its lost glory, Intelworking at the Big Three. In the light of challenges successfully in the future. implemented extensive changes includingthis new platform of competition, the restructuring and re-branding. Meanwhile,question arises as to whether it is possible Pedagogical Objectives AMD was also trying to build on itsto define what is ‘American’ at all. previous successes and depose Intel from • To discuss about the competitive nature its leadership position in thePedagogical Objectives of US broadcast TV network industry microprocessor industry.• To identify and discuss the strategic • To discuss about the competitive strategies adopted by Nancy Tellem for Pedagogical Objectives inflection points in the US automobile industry CBS Paramount Television Network • To identify and analyse the strategic Entertainment Group inflection points in the microprocessor• To discuss how the once dominant Big industry Three lost to their Japanese counterparts • To discuss about the potential threat posed to traditional media by new digital • To discuss the growth strategies of Intel• To understand the advantages built and media such as Internet, DVDs, PVRs, and AMD over the years sustained by the Japanese companies VOD, etc. over the Big Three • To discuss the reasons underlying Intel’s • To debate whether CBS Paramount failure in anticipating the threat from• To explore the relevance of ‘patriotism’ Television Network Entertainment AMD as a platform for competition Group, under the leadership of Nancy Tellem, would be able to meet the • To discuss the strategies implemented• To analyse what ‘Americanism’ means challenges successfully in the future. by AMD to gain a competitive edge over in one of the most globalised industries. Intel Industry Media and EntertainmentIndustry Automobile Reference No. COM0076 • To discuss whether the new initiativesReference No. COM0077 Year of Pub. 2006 taken up by Intel and AMD respectivelyYear of Pub. 2006 Teaching Note Not Available will enable them to gain a sustainableTeaching Note Not Available Struc.Assign. Not Available competitive advantage over the otherStruc.Assign. Not Available Keywords • To discuss what strategies Intel and AMDKeywords must adopt, in the light of changing US Broadcast TV Network Industry; ABC market dynamics.US automobile industry; Detroit’s Big Inc.; FOX Broadcasting Company; NBCThree; General Motors Ford Daimler Inc.; Reality TV Shows; Fall Season; Cable Industry SemiconductorChrysler; Toyota Honda Nissan; Keep TV; New Distribution Technologies; Video- Reference No. COM0075America Rolling Legacy costs Healthcare; On-Demand (VOD); Consolidation in TV Year of Pub. 2006Competitive Advantage; Bold Moves Network Industry; Viacom; Leslie Teaching Note Availablecampaign; Segmentation Targeting and Moonves; New Digital Media; Business Struc.Assign. AvailablePositioning (STP); Brand Image; Industry Models of Entertainment Companies.Life Cycle; Lean Production Total Quality KeywordsManagement; William Edwards Demingand Joseph M. Juran; Downsizing Intel AMD; Semiconductor industry;operations Layoffs; UAW (United Auto Intel vs AMD: AMD has the Last Microprocessor market; StrategicWorkers); Emotional Branding. Laugh? inflection points; Growth strategy; Competitive strategy; Branding The birth and evolution of the Restructuring; Competitive advantage microprocessor industry is synonymous Market share; Gordon Moore; Robert Nancy Tellem’s Competitive with the history of Intel. From a company Noyce; Andrew Grove;Paul Otellini; Jerry Strategies for CBS Paramount that manufactured memory chips in the Sanders; Hector Ruiz; Intel Pentium; Television Network 1970s, Intel transformed into a Itanium; Xeon; Centrino; AMD OpteronEntertainment Group: The Future microprocessor-manufacturing Athlon Dual Core; Dell HP Sun Challenges powerhouse that dominated the Microsystems; Platform strategy. microprocessor industry and dictated termsCBS Paramount Television (CBS) captured to the PC industry. One of the main factorsthe top position for the 2005-2006 season responsible for Intel’s meteoric rise was its Automobile Safety: Japaneseamong the US broadcast TV networks, ability to respond to the market withunder the dynamic leadership of Nancy innovative products. Until the late 1990s, Manufacturers Lead the WayTellem (Tellem), president, CBS Intel had a complete grip on the Road accidents are resulting in increasingParamount Network Television microprocessor market with more than number of injuries and deaths every yearEntertainment Group. Under Tellem’s 80% share. No rival could compete with globally. Realising the magnitude of theleadership, CBS became US’ most watched Intel’s technological and marketing clout. problem, the World Health OrganisationTV network on the strength of successful Then in 1999, a small company named (WHO) in 2004, classified ‘road traffic 27
  • 28. injuries’ as a public health concern. The preferences of consumers towards low-cost Pedagogical Objectives world over, governments in association beverages like wines, and spirits. Further, • To understand the movie exhibition Competition and Strategy/Competitive Strategies with the automobile industry players are in the 1980s, increasing health concern taking a slew of measures to ensure vehicle among consumers transformed the US beer business in India and the factors that led as well as pedestrian safety. Though the industry as traditional beers like ales and to the inception of the multiplex US and the European automobile lagers were replaced by light lager beers concept in India manufacturers had initially installed some and other health drinks. Under such • To discuss the growth strategies of PVR safety devices in the vehicles and had circumstances, Anheuser-Busch, the leading in the Indian multiplex business invested heavily in safety research, the brewer in the US, started losing market Japanese auto manufacturers like Honda, share to other big brands like SABMiller • To analyse the competitive strategies Toyota, Mazda and Nissan have stolen a and Coors, small-scale local breweries and of PVR’s competitors and debate on march over them by commercializing imported brands like Heineken. To fend strategies that might support PVR to safety-related features in their automobiles. off competition, the company launched a sustain its leadership in the Indian With state-of-the-art technology like GPS, series of new products, acquired new brands multiplex industry. adaptive cruise control, conversational and entered into partnerships with other Industry Movie Exhibition speech interface etc., the Japanese breweries to increase its market share. Reference No. COM0072 manufacturers have clearly taken a lead Year of Pub. 2006 over other automobile manufacturers. Pedagogical Objectives Teaching Note Not Available However, there are certain issues such as Struc.Assign. Not Available cost-efficacy and affordability of the safety • To understand the landscape of the US devices that still need to be addressed. beer industry and the changing consumer Keywords tastes and preferences ‘Movies First’; Village Roadshow; Cinema Pedagogical Objectives • To analyse the reasons behind the Europa; THX certified cinemas; PVR • To understand the magnitude of the declining sales of beer in the US and an (Priya Village Roadshow) Bangalore; Gold worldwide problem of deaths and injuries increase in the consumption of wine, Class; PVR Pictures; ICICI (Industrial Credit caused due to road accidents spirits and other flavoured alcoholic and Investment Corporation of India) beverages Advantage Fund; PVR Movies First; Adlabs • To discuss the initiatives taken by various Films; IMAX Dome; Fame Adlabs; Shringar governments and automobile • To discuss whether the competitive strategies of Anheuser-Busch would help Cinemas; Inox Leisure; Fun Multiplex. manufacturers in ensuring vehicle and pedestrian safety it to sustain its leadership in the US beer market. • To discuss the new safety initiatives of McDonald’s in UK: The Industry Brewers the Japanese automobile industry Reference No. COM0073 Competitive strategies • To debate upon the cost-efficacy and Year of Pub. 2006 Since its launch in 1974, McDonald’s has the possible legal repercussions of the Teaching Note Available maintained its profitability by offering its safety initiatives. Struc.Assign. Not Available regular menu of burgers and french fries to Industry Automobile Keywords its customers in the UK. However, since Reference No. COM0074 2001, McDonald’s has been drawing Year of Pub. 2006 Landscape of US beer industry; Different increased criticism as consumers in UK held Teaching Note Not Available categories of beer; Anheuser-Busch’s McDonald’s responsible for causing obesity. Struc.Assign. Not Available competitive strategies; SABMiller; Besides, the company also began to face Consumer preferences in US; Brand stiff competition from ‘trendy’ outlets like Keywords advertising strategies; Beer brands of Starbucks and Subway that offered Anheuser-Busch; Market segmentation of ‘healthy’ food. McDonald’s added salads Automobile safety designing; National beer industry; Mergers and acquisitions in to its menu, which, the company felt, would Highway Traffic Safety Administration the beer industry; Global expansion change its image from being a junk food (NHTSA); Euro New Car Assessment strategies of Anheuser-Busch. retailer to a healthy food provider. It also Programme (NCAP); The Haddon Matrix; changed the appearance of its stores to Intelligent Transport System (ITS); compete in the highly competitive UK fast Advanced Safety Vehicle (ASV); PVR Cinemas: Competitive food market. Emergency response system; Adaptive cruise control; Active safety technology; Strategies of the Indian Cineplex Pedagogical Objectives Automated Highway System (AHS); Global Pioneer Positioning System (GPS); Vehicle • To understand the competitive landscape Dynamics Integrated Management (VDIM) Priya Village Roadshow (PVR) is the largest of UK’s fast food retailing industry System; Total Human Model for Safety cinema exhibition player in India, which (THUMS); Nissan safety shield; Mazda’s introduced the concept of multiplexes in • To analyse the reasons behind smart safety technologies. the country in 1997 and redefined the McDonald’s rapid growth in UK’s fast movie viewing experience of the Indian food market and its decline since the audience. In 2004, the company also dawn of the 21st century diversified into movie distribution. With The Changing Consumers’ Tastes many firsts to its credit, PVR opened • To discuss whether a change in in US Beer Market: Anheuser- multiplexes in the National Capital Region McDonald’s image would help the Busch Company’s Competitive (NCR) of India and other metros like company to rebuild the same trust, which it enjoyed prior to 2001. Strategies Mumbai, Bangalore and Hyderabad in 2006. However, since the turn of the 21st century, Industry Fast Food & Quick Service Since the 1970s, the US beer industry had PVR has been facing stiff competition from Restaurants been hit by the rising costs of preparation other players, who have equal investment Reference No. COM0071 and preservation of beer and the shifting capabilities and similar expansion plans.28
  • 29. Year of Pub. 2006 FedEx in China: The Competitive customer data is analysed to get a deeper Strategies S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I understanding of their purchasing S T R A T E G Y – I S T R A T E G Y – ITeaching Note AvailableStruc.Assign. Not Available behaviour. The retailer also implemented The expansion of the postal industry in a ‘customer first’ strategy to deliver higherKeywords China has attempted to keep pace with value to its customers coupled with anFast food industry in the UK; Challenges the rapid growth of the country’s enhanced shopping experience.faced by McDonald’s in the UK; Brand economy. The transformation of therepositioning; Competition in the UK’s industry from offering basic services to Pedagogical Objectivesfast food industry; McDonald’s competitors state-of-the-art express delivery servicesin the UK; Wimpy; Pret a Manger; KFC; has taken place in less than half a century. • To understand the need for Kroger’sStarbucks; Burger King; Subway; While China Post dominates the postal transition in its business model from beingTurnaround strategy; Core competences services market, global courier companies price-led to being customer-centricin the fast food industry; Changing trends have established a major presence in the • To analyse whether such transition wouldin the UK’s fast food industry; McDonald’s fast growing courier and express delivery help Kroger or go against it, as byrevival in the UK. segment of China. FedEx has been the most wavering between price-led and successful player amongst them. The customer-led business models, Kroger company’s strategic alliances with major might lose its strategic focus. domestic companies, a large distribution Lowe’s, AMD, Target et al.: The network and fast delivery services offers a Industry Grocery Retail Second-mover Advantage? unique advantage over competitors DHL, Reference No. COM0068 UPS and TNT in China. Year of Pub. 2006In the world of business, the pioneer or the Teaching Note Availablefirst-mover in an industry often fails tostand up to the competition from its Pedagogical Objectives Struc.Assign. Not Availablefollower or the second-mover due to its • To discuss the critical success factors in Keywordsfailure to constantly innovate or to take the courier service industry of Chinatimely and effective competitive decisions. Customer relationship management;The first-movers tend to cling on to their • To discuss the growth and challenges of Relevance marketing; 80:20 rule; thetime-tested strategies, which yield positive FedEx in China Pareto Principle; Top retailers in the US;results when they are the sole entity in a Business model of leading retailers; Cost • To discuss the strategies adopted by leadership strategy; Competition in theparticular market – a phenomenon known FedEx to gain a competitive edge in the retail industry; Wal-Mart; Safeway; Tesco;as ‘active inertia’. This leads to a decline Chinese market. Kmart; Challenges faced by retailers;in their financial position and sometimesput their existence in jeopardy. The Industry Express Delivery Services Customer behaviour.second-movers, on the other hand, have Reference No. COM0069been found to gain from the experiences Year of Pub. 2006of the pioneer and take full advantage of Teaching Note Not Available Hyundai in China: Thethe pioneer’s weaknesses and strategic Struc.Assign. Not Available Competitive Strategiesmistakes. Keywords Ever since 1978, when China started thePedagogical Objectives Postal and courier services market; transformation from a controlled- Logistics and express delivery services; economy to a market-oriented one, it has• To understand the challenges that a experienced one of the fastest growth rates. China Post; Competitive strategies; pioneer faces in any industry and the Helped by booming demand, the country’s Market entry strategies; DHL; TNT; factors that determine the sustainability automobile industry has experienced the United Parcel Service (UPS); Strategic of its leadership fastest growth rate in the world since the alliance; Joint venture; World Trade• To analyse the various constraints of Organisation (WTO) accession; State 1990s. Many of the global automobile the first-movers, which are taken Postal Bureau; Sinotrans; Wholly-owned manufacturers entered China to take advantage of by the second-movers to subsidiary; Competitive advantage. advantage of its huge customer and strengthen their positions resource base. Hyundai Motor Company was one of the late entrants in the Chinese• To discuss how the first-movers can market. It adopted a combination of protect their lead in an industry by Kroger’s Customer-centric strategic alliances, in-depth market keeping competition at bay. Business Model: The Competitive research, quality manufacturing and Strategies competitive pricing to establish itsIndustry Discount Retailing presence in the country.Reference No. COM0070 For many years, the third-largestYear of Pub. 2006 supermarket group in the US, Kroger, hasTeaching Note Not Available been competing to gain market share from Pedagogical ObjectivesStruc.Assign. Available world’s No.1 retailer, Wal-Mart. Following • To discuss the critical success factors in Wal-Mart’s price-led business model, the Chinese automobile industryKeywords Kroger tried to attract customers andFirst mover’s disadvantage; Second mover’s increase its sales. However, it failed as its • To discuss the market entry strategiesadvantage; Wal-Mart vs Target; Motorola cost reduction could not match its price of Hyundai in Chinavs Nokia; Intel vs AMD; Sony vs Samsung; reduction. Realising that it was difficult to • To discuss the strategies that HyundaiHome Depot vs Lowe’s; Marketing myopia; compete on the basis of price alone, in adopted to gain a competitive edge inActive inertia; Value innovation; Pioneer- 2002, along with Dunnhumby (a the Chinese market.Migrator-Settler map; New Value Curve; specialised provider of database‘Caffeine-induced Oasis’; Core competency management and analytical services), Industry Automobiledevelopment. Kroger formulated a customer-centric Reference No. COM0067 strategy for itself. According to this, Year of Pub. 2006 29
  • 30. Teaching Note Not Available IKEA in China: Competing where it could not establish itself due to Struc.Assign. Not Available through Low-Cost Strategies the strong presence of European Competition and Strategy/Competitive Strategies automakers. But analysts are doubtful about Keywords With a simple mission statement “to create its success, as the European automakers Chinese automobile industry; Competitive a better everyday life for the Chinese have already established themselves in the strategies; Hyundai Motor Company; people”, IKEA entered China in 1998. high-end luxury segment in American, General Motors Volkswagen; Kia Motor Initially it faced challenges due to high duty European and Japanese markets. Corporation; Price cutting; Mid-size car rates and the strict quotas levied by the market; Joint ventures; Strategic alliances; Chinese government. To attract customers Pedagogical Objectives Beijing Hyundai; Sonata Elantra Accent; in China, IKEA adopted a low-cost strategy and started offering quality furniture at • To understand the evolution and the Market entry strategies; Brand image; dynamics of the luxury car market Market research; Premium car segment. discounted prices. Although, IKEA tasted success in China, analysts are sceptical • To discuss the strategies adopted by whether the price-reduction strategy of Toyota in establishing Lexus as a luxury IKEA would benefit it in the long run amidst brand in the US HP into Digital Printing: Charting a stiff competition and the changing New Competitive Landscape customer preferences. • To discuss the rationale behind Toyota’s change in competitive focus to target Founded in 1938 by two Stanford engineers, the high-end luxury segment in the US, Bill Hewlett and David Packard, HP became Pedagogical Objectives Europe and Japan well-known in the computer industry, • To understand the impact of customer manufacturing a range of computers from preferences on the furniture retailing • To debate whether Toyota would be desktop machines to microcomputers. It industry in China successful in establishing itself in the also became popular for its wide range of high-end luxury segment in the face of personal desktop printers in the 1980s. • To discuss how IKEA gained competitive increasing competition from established After establishing itself in the printer advantage by differentiating its products names in the high-end luxury segment. industry, HP started shifting its focus more and maintaining a cost leadership in the Industry Auto manufacturing towards imaging and printing products. It furniture retailing industry of China. Reference No. COM0064 launched photo printers for consumers to Industry Home furnishings & Year of Pub. 2006 print at home and later acquired Snapfish, Housewares Retail Teaching Note Available a leading online photo website to expand Reference No. COM0065 Struc.Assign. Not Available in the digital photo printing market. In Year of Pub. 2006 2006, HP launched it photo-printing kiosks Teaching Note Available Keywords to further penetrate into the digital photo Struc.Assign. Not Available Toyota; Lexus; LS 460; Luxury cars; Stand- printing market. But there remain doubts about HP’s chances of gaining leadership Keywords alone brand; Customer service; BMW; in a market already dominated by Kodak Mercedes-Benz; Competitive focus; Price and Fuji. Global furniture retailing industry; competitiveness. Furniture retailing industry in China; Customer preferences in China; Foreign Pedagogical Objectives furniture retailers in China; Domestic Amgen, the World’s Biggest • To discuss the reasons behind the choice furniture manufacturers in China; Price of furniture in China; B&Q; Customer Biotechnology Group: The of various mediums of digital photo printing by consumers spending habits in China; Supplier countries Competitive Strategies of IKEA; IKEA’s global operations. Since its inception in 1980 as Applied • To discuss the logic behind HP’s strategy to penetrate into the digital photo Molecular Genetics Incorporated, Amgen’s printing market growth to become the world’s largest Toyota’s Lexus: The Changing biotechnology company with sales of • To discuss the challenges HP might face Competitive Focus $12.4 billion in 2005 has been in the digital photo printing market phenomenal. Through its innovations, A shift in customer preferences in the early acquisition of companies like Immunex and • To discuss the chances HP has in the 1990s towards luxury cars prompted many other operational strategies, Amgen has digital photo printing market in the Japanese automakers to launch their own avoided the dual menace of sluggish growth presence of already established players luxury brands. In 1989, Toyota launched and stiff competition that has hit many like Kodak and Fuji. Lexus, which quickly overtook American pharmaceutical and biotechnological Industry Digital Photo Printing and European automakers to become the behemoths. Reference No. COM0066 number one selling luxury brand in the US. Year of Pub. 2006 To counter competition from Lexus, Pedagogical Objectives Teaching Note Not Available American and European automakers Struc.Assign. Not Available launched sportier and lower-cost versions • To highlight the strategies adopted by of their cars. Lexus’s market share began Amgen to become the biggest Keywords to fall and it launched sportier versions of biotechnology company in the world in its cars to stay in the game. It also launched a relatively short span of 25 years Hewlett-Packard (HP); Digital photo the Lexus brand in Japan in September printing; Kiosks; HP Photosmart Express • To focus on the global biotechnology 2005. But Lexus was still trailing behind Station; Snapfish; On-line photo services; industry and the competitive landscape European automakers in the high-end Retail photofinishers; Home printing; of Amgen luxury segment in the US. To establish itself Albertsons; Kodak; Fuji; Inkjet technology; in this segment, Lexus launched the LS • To discuss the competitive strategies Dye sublimation process. 460 in 2006 and also decided to adopted by Amgen to retain its aggressively pursue European markets leadership.30
  • 31. Industry Biopharmaceuticals & Wrigley vs Cadbury Schweppes: Industry Retailing The Competitive Strategies in S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I Biotherapeutics Reference No. COM0060Reference No. COM0063 chewing Gum Market Year of Pub. 2005Year of Pub. 2006 Teaching Note AvailableTeaching Note Not Available Wrigley, with a global market share of Struc.Assign. Not AvailableStruc.Assign. Not Available 35.4%, is the world’s largest manufacturer and marketer of chewing gums. For the KeywordsKeywords first time in its history, its dominance was Wal-Mart; Target; Image differences;Global biotechnology industry; Acquisition threatened when confectionery giant Competitive responses; Cost leadershipof Immunex; Blockbuster Cadbury Schweppes forayed into the strategy; Low-price strategy; Promotionalbiopharmaceuticals and drugs; Strategic manufacturing of chewing gum in 2002 and strategy; Low profile image; Upscaleacquisitions of Amgen; Patents of Amgen; quickly acquired a market share of 26% image; Brand perception; Brand building;Biotechnology drug development process; worldwide. In response, Wrigley also Idea leadership.Amgen’s acquisitions and partnerships; diversified into confectionery, the coreResearch and development expenditure of business of Cadbury Schweppes.Amgen; Eranasp; Neupogen; Enbrel; Volkswagen in China: TheEpogen; Molecular biology. Pedagogical Objectives Growth Challenges • To understand the competitive strategies adopted by Wrigley and Cadbury By 2003, China had become the world’s The Container Store’s Customer Schweppes fastest growing major automobile market. Service:Recruitment and Industry experts opined that China would • To discuss their abilities to sustain and soon emerge as the fourth largest auto- Training as Competitive enhance their respective positions in the market after the US, Japan and Germany. Advantage global chewing gum market. Volkswagen, China’s largest automaker inThe storage and organisation segment 2003, with a 37% market share, stood to Industry Candy and Confectionsforms a part of the home furnishing gain from the expanding market. However, Reference No. COM0061industry and, over time, the Container Store the second quarter of 2004 witnessed an Year of Pub. 2006has become synonymous with this niche abrupt slowdown in the sales of automobiles Teaching Note Availableretail category. The Container Store was in China. Volkswagen also faced increased Struc.Assign. Not Availableestablished in 1978, and though many new competition from companies like Generalplayers entered had the storage and Keywords Motors and Toyota. In a bid to maintainorganisation segment, none were as its position in the Chinese market, Global chewing gum market; Competitive Volkswagen plans to increase itssuccessful as the Container Store. The strategies; Growth strategies; Acquisition investments in the country to 5.3 billioncompany’s unique recruitment and training strategies; Marketing strategies; Brand euros (US$6.5 billion) by 2008.policy, corporate culture and philosophy positioning; Product promotion strategies;give it an un-replicable advantage over its Joyco; Altoids; Life savers; Doublemintcompetitors. Pedagogical Objective chewing gums; Spearmints; Trident Splash; Hollywood. • To discuss Volkswagen’s growth in thePedagogical Objectives Chinese market and the strategies it• To understand how the training and adopted to deal with the increasing recruitment programs of The Container Wal-Mart vs Target: Image competition and the changing economic scenario of the country. Store give it a competitive advantage Difference and Competitive• To discuss The Container Store’s Responses Industry Automobile Manufacturing employee-related programmes and how Reference No. COM0059 Although both Wal-Mart and Target started Year of Pub. 2004 they have become a competitive in 1962 as discount retail stores, the Teaching Note Not Available advantage for the company companies evolved over the years to Struc.Assign. Not Available• To discuss the challenges the company project completely different images. While faces in sustaining its unique business Wal-Mart developed an ‘every day prices’ Keywords model. image, Target projected an ‘upscale image’. Volkswagen (VW); China; Automobile However, both the retailers were trying toIndustry Home Furnishing and industry; China’s automobile industry; change their image with Wal-Mart trying Housewares Shanghai Volkswagen Automotive to shift towards a more upscale image,Reference No. COM0062 Company; FAW-Volkswagen Automotive while Target trying to project an image ofYear of Pub. 2006 Company Limited; Growth strategy; VW a retailer selling quality products at lowTeaching Note Available joint ventures in China; Growth challenges prices.Struc.Assign. Available in China; VW expansion plans in China; FDI (Foreign Direct Investment) inKeywords Pedagogical Objectives Chinese auto sectorRetail industry; Home furnishing and • To understand the development of Wal-housewares industry; Training and Mart and Target over the years, therecruitment policies; Competitive difference in image projected by the two Virgin Mobile in USA:advantage; Human resource management; companies and the image makeover Differentiating Growth StrategiesStorage and organisation products; strategies being adopted by them as aEmployee empowerment; Performance part of their competitive response to Virgin Group, the British conglomerateappraisal; Employee turnover; Wal-Mart each other which operates in various businesses fromtarget; Kip Tindell; Garrett Boone; Niche airlines to bridal services, started Virgin • To discuss whether the image makeover Mobile USA (Virgin) in July 2002. Virginmarketing; Specialty stores; Teamwork. would be beneficial for Wal-Mart and targeted the under penetrated youth Target. 31
  • 32. segment in the US market and was able to Local loop unbundling; Major Internet Pedagogical Objectives enrol two million customers by mid-2004. service provider in France; Low-cost • To understand the competition between Competition and Strategy/Competitive Strategies Analysts termed this performance as a huge telephony solutions; French telecom success, considering the point that the market; Fibre-optic network; VoIP (Voice the two leading retailers, Tesco and services were targeted at the low-income over Internet Protocol); Freeplayer ASDA, along with the differences in the youth market. software; Altitude Telecom; WiMAX strategies adopted by them (Worldwide Interoperability for Microwave • To discuss the sustainability of Pedagogical Objective Access); DSLAM (Digital Subscriber Line competition squarely based on price Access Multiplexer). • To discuss Virgin Mobile’s entry strategies • To discuss the desirability of counter into a seemingly matured US mobile strategies under such circumstances. market. The Competitive Strategies of Industry Retailing Industry Wireless Telecommunications Ryanair Reference No. COM0055 Reference No. COM0058 Year of Pub. 2005 Year of Pub. 2004 While most of the world’s traditional Teaching Note Available Teaching Note Available airlines are finding it tough to survive, Struc.Assign. Not Available Struc.Assign. Available Ireland-based Ryanair is able to make profits consistently. The low cost model Keywords Keywords of the airline is helping the company to Tesco; ASDA; UK retail industry; Wal- Virgin Mobile; Virgin Group; Wireless offer low fares and thereby attract large Mart; Sainsbury’s; Competitive strategies; Telecommunications; Telecommunications numbers of travellers who would otherwise Cost-cutting strategies; Acquisitions; in USA; Mobile virtual network operators not have travelled by air. Retailing battle; Cost competitiveness; (MVNO); Telecom resellers; Youth brands; Objectives; Customer service; SMILES Marketing to young America; Sprint PCS; Pedagogical Objectives marketing campaign. Demographic segmentation; Wireless • To discuss how Ryanair is keeping costs carriers in USA. low and getting ahead of the major airlines in Europe Samsung vs Sony: From • To discuss the broad spectrum of Benchmarking to Outsmarting The Power of a Start-up competition that runs through the Company: Can Iliad Group airlines industry. In the mid-1990s, Samsung was known as a low-cost manufacturer of electronic Unsettle the Monopoly of France products that imitated Sony’s models. Hit Telecom? Industry Airline hard by the Asian financial crisis in 1997, Reference No. COM0056 By 2004, Iliad Group (established in 1987) Year of Pub. 2003 the company implemented a turn around had become France’s second largest player Teaching Note Not Available under the leadership of its chief executive in the Internet and telecommunications Struc.Assign. Not Available officer, Jong Yong Yun. By 2005, Samsung services market (after France Telecom) had transformed itself from being a with a turnover of US$670.3 million. Iliad Keywords copycat to a manufacturer of high quality, started as an Internet service provider and cutting edge electronic products. In the Low-cost airlines; Ryanair; easyJet; process, it also overtook Sony as the world’s transformed itself into a full-fledged Competition in Europe’s airline industry; Internet and telecommunications most valuable consumer electronics brand. Cost management; Consolidation; Ryanair company, incorporating advanced vs easyJet; Michael O’Leary; Europe’s low technologies through its own network. cost airlines; Discount airline; Cost-cutting Pedagogical Objectives Though the Group’s goal was to compete at Ryanair; Low frills airline; Ryanair’s • To understand the turnaround strategies with rivals like AOL and Wanadoo in advertisements; Ryanair’s airport deals; of Jong Yong Yun, the evolution of the Internet services, it offered tough Samsung brand and the diminishing power competition to the state-owned monopoly, of Sony France Telecom and revolutionised the French telecom market. • To discuss Samsung’s ability to maintain Tesco vs ASDA: UK’s Retailing its leadership in the global consumer Pedagogical Objectives Battle electronics industry even without a ‘Walkman-like’ iconic product in its • To understand the rapid expansion of The competitive scenario of the UK retail industry changed with the entry of Wal- stables. Iliad Group in France Mart through its purchase of ASDA in Industry Memory Chips and Modules • To discuss the threats posed by its 1999. ASDA intensified the competition Reference No. COM0054 competitive strategies to the monopoly through its strategy of ‘every day low Year of Pub. 2005 of France Telecom. prices’. It quickly established itself as the Teaching Note Available low price retailer. However, focus on Struc.Assign. Available Industry Internet and On-line Services quality and customer service helped Tesco Providers to become the leading retailer in the UK. Keywords Reference No. COM0057 To compete with ASDA in terms of low Samsung Electronics; Sony; Paranoid Year of Pub. 2006 prices, Tesco also started to greatly reduce corporate culture; Jong Yong Yun; Reverse Teaching Note Available their prices. This counter strategy of Tesco engineering turn around strategy; Struc.Assign. Not Available helped it hold a major market share of the Benchmarking; Brand building; Master Keywords retail market, leading ahead of its brand strategy; Brand value; Digital competitors. On the other hand, ASDA in television technology; Memory chips; France Telecom; Telecommunication spite of providing low prices, saw its market sector of France; Free Internet services; Liquid Crystal Display (LCD); Mobile share continuously decrease in the year phones; Asian financial crisis Freebox; Broadband Internet services; 2005.32
  • 33. Samsung vs Sony: The leading players in the global consumer and gas exploration and production; Competitive Collaboration S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I electronics industry. Corporate governance at Shell; Reserve S T R A T E G Y – I S T R A T E G Y – I reporting scandal at Shell; CompetitiveIn 2004, Sony, the iconic consumer Industry Electronics strategies of Shell; Restructuring at Shell.electronics giant, formed S-LCD, a joint Reference No. COM0052venture with Samsung Electronics to Year of Pub. 2005manufacture large-sized LCD (Liquid Crystal Teaching Note AvailableDisplay) panels for its television division. Struc.Assign. Available Reforms at Bombay StockPrior to Sony, Samsung had also entered Exchange, Asia’s Oldest Stock Keywordsinto strategic alliances with other Exchange: The Competitivecompetitors like Apple, Intel, Motorola, Samsung; LG (LG Electronics); Global StrategiesDell, HP and Nokia. With huge investments branding; Vertical integration; Culturalin research and development, Samsung, marketing; CDMA (Code Division Multiple The Bombay Stock Exchange (BSE), whichwhose portfolio does not include blockbuster Access) technology; GSM (Global System is the largest stock exchange in Asia,brands like Sony’s Trinitron and Apple’s for Mobile Communication); Consumer witnessed a profound transformation in itsiPod, aims to displace its competitors (who electronics market; Chaebol; DRAM business operations. From being a regionalare also its customers and partners) from (Dynamic Random Access Memory); stock exchange, it has emerged as one oftheir leadership position. Digital technology. the important institutions for transferring savings into investments, in the country. Between 1990 and 2003, BSE witnessed aPedagogical Objectives series of stock market scams, which• To understand the strategy of Royal Dutch Shell Plc.: The involved more than 5,000 rupee crores of competitive collaboration Competitive Strategies investors’ money. BSE faced criticism from industry experts, analysts, policy makers• To discuss how Samsung is using this In mid-2005, Royal Dutch/Shell Group, the and politicians for being non-transparent, strategy to gain a leadership position in world’s third-largest oil company, has unregulated and taking inadequate measures the global consumer electronics industry. undergone a massive restructuring. For for investors’ protection. To overcome nearly a century, Royal Dutch/Shell wasIndustry Memory Chips and Modules these challenges, BSE launched a series of one of the most renowned companies ofReference No. COM0053 measures in the late 1990s and with the the world, for its long-term planning,Year of Pub. 2005 advent of reforms, BSE witnessed notable technical capabilities and collegialTeaching Note Available developments in many areas such as: (1) management style. Shell was once viewedStruc.Assign. Available trading; (2) operations; (3) management; as a textbook case of a multinational and (4) addressing investors’ grievances. behemoth, with far-flung operations,Keywords The Government of India also took steps Anglo-Dutch heritage and a twin board to corporatise the stock exchange, therebySamsung; Sony; Consumer electronics; structure. Its old corporate slogan, ‘You separating trading, ownership andCompetitive collaboration; Collaborative can be sure of Shell’, seemed a mere management. Finally, on the August 9 thcompetition; Strategy; Strategic alliance; statement of fact. But the waters changed 2005, BSE created history by convertingJapan; South Korea; Samsung Electronics; from the mid-1990s. First, the company itself into a corporate entity, therebyDell; Apple; Jong Yong Yun; Global brand; has faced agitations from forming BSE Limited.Nokia. environmentalists and human rights activists. During the consolidation phase, its competitors seized the lead and grew Pedagogical Objectives bigger. In 2004, the company was Samsung vs LG: Similar Goals, • To understand how BSE has emerged embroiled in an oil reserves reporting Dissimilar Strategies scandal. All these perils were analysed to (from a regional stock exchange) to Asia’s largest stock exchangeBy the end of the fiscal year 2004, Samsung, be the upshot of the once hailed twin boardthe largest South Korean conglomerate, structure. As a result, in 2005 the company • To understand the issue of failure ofreported a profit of US$10 billion, while was restructured and was rechristened as corporate governance at Asia’s biggestits global and domestic competitor LG (LG Royal Dutch Shell Plc. stock exchangeElectronics) could make US$1.5 billion. • To discuss the competitive strategiesSince its inception, the leadership position Pedagogical Objectives adopted by BSE to overcome theof Samsung in dynamic random access challenges and competition faced by a • To understand the nature and intensitymemory technology and its strategic entry National Stock Exchange and other of the recent troubles of the companyinto the consumer electronics industry global stock exchanges.brought it on a par with other global leaders • To discuss how the company tried tolike Sony and Philips. The rise of the tide over such trying times and are the Industry Stock Marketscompany as the 21st largest global brand in sustainability of those strategies. Reference No. COM00502004 was due to its cutting edge technology, Year of Pub. 2005innovative designs and savvy marketing. Industry Oil and Gas Exploration and Teaching Note Not AvailableLG, which was late to enter the industry, Production Struc.Assign. Not Availableintends to emerge as a strong international Reference No. COM0051 Year of Pub. 2005 Keywordsbrand in the footsteps of Samsung.However, LG is considered to be a laggard Teaching Note Not Available Bombay Stock Exchange (BSE); Nationalin the consumer electronics industry with Struc.Assign. Not Available Stock Exchange; Over The Counterits short product life-cycles and ever Keywords Exchange of India (OTCEI); Securities andchanging technologies. Exchange Board of India (SEBI); Royal Dutch/Shell Group; Royal Dutch Shell Government of India; Competition;Pedagogical Objective Plc.; Shell transport and trading; Royal Corporatisation; Financial markets; Stock Dutch Petroleum; Exxon-Mobile; British broking; Stock market scams; Financial• To discuss how LG, as a market follower, Petroleum (BP); Oil and natural gas; Oil sector reforms; Controller of Capital Issues is making efforts to become one of the 33
  • 34. (CCI); Margin trading; On-line trading; • To discuss both Sony’s and Microsoft’s NTT DoCoMo vs KDDI: The Price Economics, politics and business efforts to popularise on-line gaming, War Competition and Strategy/Competitive Strategies environment; Strategy and general which experts say would be the next management. battlefield. The biggest mobile player in Japan, NTT DoCoMo, was losing out in the race for Industry Video Games 3G (third generation) mobile services. Reference No. COM0048 The company reduced its earnings Progressive Corp: The Auto Year of Pub. 2004 forecast for the fiscal year 2004, in the Insurer’s Competitive Strategies Teaching Note Not Available light of a fierce price war besetting the Struc.Assign. Not Available mobile services market of Japan. Progressive Corporation, the No.3 auto insurer in the US has been in the race to Keywords DoCoMo’s immediate rival in the capture a substantial market share from its domestic market, KDDI, had initiated a rivals, State Farm and Allstate. Video game console industry; Cyclical price competition in November 2003 by nature of industry; Game software business; offering lower priced 3G services, which Progressive’s tailor-made insurance Sony PlayStation; Microsoft Xbox; had enabled KDDI to add more subscribers services for its customers made it one of the leading auto insurers in the US. Nintendo’s GameCube; Electronic Arts than DoCoMo. To increase its subscriber However, due to cutthroat price Incorporated; Game royalties; Console base, DoCoMo slashed its tariff and also competition from its rivals, Progressive’s sales; Backward compatibility; Price cuts; initiated its efforts to come out with growth faced some difficulties in early 2004. Microsoft’s XNA; Electronic innovative technologies for which it had Entertainment Expo (E3); On-line gaming. been well-known in the Japanese telecom industry. Pedagogical Objectives • To discuss the competitive strategies Oracle’s Bid for PeopleSoft: Pedagogical Objective adopted by Progressive Corporation to PeopleSoft’s Combat Strategies • To discuss NTT DoCoMo’s strategies sustain its position in the market PeopleSoft, Inc., the second-largest to fight the price war and regain its • To discuss how competitive the company enterprise software provider in the world, innovative edge in the Japanese mobile can be in the future. had been thwarting the hostile takeover services industry. Industry Insurance attempt made by the Silicon Valley database Industry Wireless Communication Reference No. COM0049 giant, Oracle Corporation, since mid-2003. Services Year of Pub. 2004 But Oracle has been relentlessly making Reference No. COM0046 Teaching Note Not Available unsuccessful attempts to take over Year of Pub. 2004 Struc.Assign. Not Available PeopleSoft. Though its previous takeover Teaching Note Not Available attempts failed, on November 19th 2004, Struc.Assign. Not Available Keywords Oracle met with some success when a majority of PeopleSoft’s shareholders Keywords Auto insurance market in the US; Progressive’s innovative services to its expressed their support to its offer. Despite NTT DoCoMo; KDDI; Price war; Mobile customers; History of Progressive the shareholders’ support for the bid, Oracle services in Japan; CDMA2000 (Code Corporation; Top ten insurers in the US; still has to wait for the approval from the Division Multiple Access); W-CDMA Immediate response vehicle; Autograph; Delaware’s Chancery Court for elimination (Wideband-Code Division Multiple Working of Concierge Claims Service; of the final barrier – the ‘Poison Pill’ and Access); 3G services; Competitive scenario Financials of Progressive Corporation; the invalidation of the Customer Assurance in the Japanese cell phone market; i-mode; Market shares of Progressive and its Program, provisions inducted by PeopleSoft FOMA (freedom of mobile multimedia competitors; Awards received by to prevent the takeover. access); FeliCa; Smart chips; Telecom Progressive Corporation. deregulation in Japan. Pedagogical Objectives • To discuss Oracle’s hostile takeover bid PlayStation vs Xbox: The Battle efforts, and PeopleSoft’s combat Netflix: The US DVD Rental for Supremacy strategies to thwart the bid Company’s Competitive Growing at a pace of 11% CAGR • To discuss the potential advantages and Strategies (compound annual growth rate) and fast disadvantages to the two companies, Los Gatos (California)-based Netflix Inc., surpassing the revenues of Hollywood, the their shareholders and customers, in the was the world’s first and largest on-line video game industry has baffled the media event of Oracle’s success. DVD rental firm. The company, with its and entertainment observers. Led by Sony’s Industry Software Products and innovative business model, emerged as a PlayStation series of consoles, the industry Services strong player in the DVD rental industry. has weathered the slump of the late 1990s Reference No. COM0047 The convenience of ordering on-line and that lowered everything from Internet Year of Pub. 2005 savings from late fees of the traditional stocks to computer sales. The booming Teaching Note Not Available video rental companies helped the industry caught the sights of Microsoft, Struc.Assign. Not Available company garner a huge customer base. As which launched its Xbox console in the the on-line DVD rental model gained late 2001. Analysts believed that the arrival Keywords popularity, Netflix began to pose a threat of Xbox would end the supremacy of Sony’s to the established players like Blockbuster PeopleSoft Inc. (PeopleSoft); Oracle PlayStation. Inc. and Hollywood Entertainment Corporation (Oracle); Enterprise Software products and services; Enterprise Resource Corporation. Gradually, traditional video Pedagogical Objectives Planning (ERP) Software; Database rental companies like Blockbuster and software products and services; Hostile retail giants like Wal-Mart and • To discuss the strategies adopted by Sony also entered the on-line and Microsoft to capture market share takeover; Combat strategies; Poison pill; Customer Assurance. rental bandwagon.34
  • 35. Pedagogical Objectives Microsoft vs Windows Pedagogical Objectives S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I• To discuss the innovative business model Legal proceedings were started against • To understand the strategies being of Netflix and how the business model Microsoft in the early 1990s, looking into adopted by both Microsoft and Google posed a threat to traditional video rental possible anti-trust violations by the stores • To discuss whether Google could become Redmond-based software giant. This a formidable competitor for Microsoft culminated in Justice Jackson ordering• To understand the initiatives taken by in the future. Microsoft to be broken into two, in 2000. Netflix to retain its market share in the An appeals court judgement overruled Industry Information Technology light of the increasing competition from Justice Jackson’s verdict, but upheld the Reference No. COM0042 much bigger rivals like Blockbuster and view that Microsoft had indeed used its Year of Pub. 2006 a threat of substitution from video-on- monopoly position to further its own Teaching Note Available demand services. interests and to kill competition. By the Struc.Assign. AvailableIndustry Internet Retail end of the 1990s, Microsoft’s legal woesReference No. COM0045 had taken on a transatlantic dimension, KeywordsYear of Pub. 2005 with the European Commission also Bill Gates; Microsoft Corporation; GoogleTeaching Note Not Available investigating alleged monopolistic Inc; Search engine; Software development;Struc.Assign. Not Available practices by Microsoft. The EC verdict, in Business diversification; Business March 2004 asked Microsoft to break up reorganisation; Antitrust lawsuits;Keywords Windows- Microsoft’s operating system- Monopoly; Open source code operatingNetflix’s business model; Competition so as not to include software add-ons. The system; Market for operating systems.from Blockbuster Inc; On-line DVD rental verdict is still up for; Business model innovation;Threat of substitution; Competition from Pedagogical Objectives Microsoft in the Mobile Phonevideo-on-demand services. • To discuss the possible spin-offs for Industry: Strategies and Microsoft’s future ChallengesMozilla: Microsoft IE’s Challenger • To discuss the backdrop of the legal Since the early 1990s, handset verdicts based on build on facts from the manufacturers started selling high-endIn 1998, when Microsoft was fast past to build up possible future business mobile devices. As the market for thesebecoming a near-monopoly in the browser scenarios. high-end mobile devices is increasing everymarket, Netscape created and year, the software has become one of thereleased the programming source code for Industry Computer Software Reference No. COM0043 most strategic parts in this context andits Communicator software to the open gained prominence. This attracted thesource community. The Mozilla project’s Year of Pub. 2004 Teaching Note Not Available attention of Microsoft to gain a footholdobjective was to develop a good browser Struc.Assign. Not Available in the growing market for mobile software.quickly. After 32 months and severalreleases, Mozilla, its Internet application Keywordssuite, and Firefox, its standalone browser, Pedagogical Objectiveshave become very popular with Internet Microsoft versus Windows; Monopoly; • To discuss Michael E Porter ’s Fiveusers. Mozilla’s browsers have become Anti-trust violations; William H (Bill) Forces Model with specific focus onfamous for being clutter- free and Gates; Steven Ballmer; Justice Thomas intense competition and types ofinnovative, and word-of-mouth marketing. Penfold Jackson; Mario Monti’s Microsoft competition namely, company specific, verdict; European Competition group specific and network-basedPedagogical Objectives Commission; Windows operating system; US Justice Department; Business ethics; • To understand the challenges for• To discuss whether the technically Microsoft Internet Explorer versus Microsoft to successfully enter the superior, open-source community Netscape Navigator; Microsoft Windows mobile software market backed Mozilla can upstage IE (Internet Media Player versus Real Media Player; Explorer) in the light of Microsoft IE’s Microsoft rulings; American software • To discuss how Microsoft overcomes the security loopholes industry. hurdles to establish itself in the mobile business• To discuss the current hurdles and future opportunities for Mozilla • To discuss the company’s strategy of Microsoft vs Google: The Clash expanding into mobile software business• To discuss possible future scenarios in of Unequals? and its intention to change the erstwhile the browser market. approach of staying vertically integrated Microsoft is the largest software company into horizontally integrated model.Industry Software in the world with revenues of $39.8 billionReference No. COM0044 Industry Mobile Handset Industry in 2005. However, the company has beenYear of Pub. 2004 Reference No. COM0041 facing increasing competition from Google,Teaching Note Not Available Year of Pub. 2005 the number one search engine in the world.Struc.Assign. Not Available Teaching Note Not Available Google has been diversifying its businesses Struc.Assign. Not AvailableKeywords into software development, posing a direct challenge to Microsoft. The increasing KeywordsMozilla; Firefox; Microsoft Internet threat from Google has driven Microsoft toExplorer (IE); Netscape; Browser wars; reorganise its business structure from seven Mobile handset industry; Microsoft;Security problems in IE; Mozilla business units to three units. Several analysts Microsoft’s entry strategies; Nokia;Foundation; Bugzilla; Mozilla extensions; see this as a move to make the company Symbian Group; Handset manufacturers;Longhorn project; Standalone browsers; more agile and competitive to counter the Competition; Competitive strategies;Mitchell Baker. threat from Google. Mobile software; Vertical integration; Horizontal integration. 35
  • 36. Microsoft and the Threat of Linux Live; eBay’s competitors; Meg Whitman’s Pedagogical Objectives management style; eBay’s fraud protection When open source software was gaining • To discuss how Renault offered a luxury Competition and Strategy/Competitive Strategies programme; eBay’s global operations. momentum during the early 1990s, little car at lower price did the industry giants realise the menace • To discuss the factors that enabled the posed by the plethora of software communities that collaborated to produce Low-cost Carriers in USA: Pricing success of Logan. ‘free’ software. The emergence of the Pressures for Major Airlines Industry Automobile Manufacturing Internet further strengthened the Reference No. COM0037 The entry of low-cost carriers into movement, which ultimately yielded a Year of Pub. 2006 commercial aviation had a legacy of factors finished product in the form of Linux. Teaching Note Not Available – both environmental and operational – When giants like IBM and Dell started using Struc.Assign. Not Available that contributed to their business models. Linux for their servers, they seemed to have an answer to Microsoft’s dominance If the Airline Deregulation Act of 1978 Keywords helped them scale their operations, their in the operating systems market. Logan; Luxury car; No frills car; Renault; ‘no-frills’ approach eased their entry strategies. The success of their business Nissan; Competition; Expansion; Dacia; Pedagogical Objective model can be inferred from the fact that Growth; Price; Market shares; Samsung; they survived one of the worst downturns Europe. • To discuss whether Microsoft will eventually have to ‘open’ its code to (the September 11 terrorist attacks) in the retain its dominance in the market. history of commercial aviation, while the major airlines were desperately seeking for L’Oreal’s Business Strategy Industry Information Technology bankruptcy protection. Reference No. COM0040 Established in 1909, L’Oreal, the French Year of Pub. 2004 Pedagogical Objectives cosmetic company, had become the world Teaching Note Not Available leader in the cosmetic market by 2003. Struc.Assign. Not Available • To discuss how the low cost carriers The L’Oreal group marketed over 500 exerted an enormous pricing pressure on brands, consisting of more than 2,000 Keywords the major airlines with their low fare, products. Its products included make-up, Microsoft; Linux; GNU (Gnu’s not Unix); point-to-point services perfume, hair and skin care products, which Open source; Proprietary Software; Richard were tailored according to the consumer • To discuss the major airlines’ fight-back, Stallman; IBM and Linux; Shared source needs. The company believed in the which eventually extended their initiative; Red Hat Linux. strategy of innovation and diversification. operations to the low-cost segment. In 2003, though the L’Oreal group was Industry Commercial Aviation ranked number one in the US cosmetic Reference No. COM0038 market, it faced tough competition from Meg Whitman’s Competitive Year of Pub. 2004 Estee Lauder and Procter and Gamble Strategies for eBay Teaching Note Available (P&G). This made the group refocus its Struc.Assign. Available business strategy. It came up with products eBay was founded in 1995 by a young catering to the beauty needs of different computer programmer, Pierre Omidyar, in Keywords ethnic groups and genders. Silicon Valley, USA. Unlike most other on- line companies, which started in the 1990s, Low-cost carriers; The major airlines; eBay had been profitable right from the Airport hubs; The 1978 Airline Pedagogical Objective first month of its launch. However, the Deregulation Act; Southwest Airlines; • To discuss the various strategies company witnessed its maximum growth People Express Airlines; New routes and implemented by the L’Oreal group to be under its current chairman Meg Whitman, new airlines; Operating revenues; the market leader in the global cosmetic who joined in 1998. By 2003, Whitman Operating costs; The grip of bankruptcy; market and how the group is trying to made eBay the world’s largest on-line Major carriers adopting the low-cost sustain that position by refocusing its auction company with 5,000 employees model; In-flight food services; JetBlue’s strategy. serving 62 million registered users globally. savvy approach; Delta’s Song and United’s Ted; Union concessions. Industry Cosmetics Industry Pedagogical Objective Reference No. COM0036 Year of Pub. 2004 • To discuss how Meg Whitman, in just Logan: No-frills Luxury Car from Teaching Note Not Available five years, transformed eBay from an Struc.Assign. Not Available ordinary auction site to an e-commerce Renault powerhouse. Keywords Logan, the new car launched on September Industry Internet Auctions 24th 2005 by Italian auto major Renault, is L’Oreal; Laboratories Garnier; Research Reference No. COM0039 cited as the cheapest luxury as well as value- and development; Innovation and Year of Pub. 2003 for-money car. It is engineered and designed diversification; Lindsay Owen-Jones; Teaching Note Not Available mainly to cater to Central and Eastern Mass-market channels; Professional Struc.Assign. Not Available Europe, Africa and West Asia, that cannot products division; Black American culture afford expensive Western Europe cars. and learning; Soft-Sheen and Carson brand; Keywords Logan provides basic features without Different ethnic groups; Business strategy; resorting to any added and expensive Estee Lauder; Procter and Gamble; Global History of eBay; AuctionWeb; On-line features which are known to be used less cosmetic market; Personal care products; auctioning; Transactions on eBay; Meg frequently but escalate prices Maybelline. Whitman, CEO of eBay; Stock prices of disproportionately. Logan was a surprise eBay; Growth of eBay under Meg Whitman; hit in the markets that it was meant for eBay’s customer service; Voice of the and also in those in which it was not. Customer on eBay; eBay University; eBay36
  • 37. Kinetic Group (India): Gearing were threatened by the entry of Wal-Mart restructuring strategy; Yun’s open-style up for the Future S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I stores, Kroger and other department stores management; Bureaucracy in Samsung; S T R A T E G Y – I S T R A T E G Y – I into its region. Yun’s business model for SamsungSince the early 2000s, motorcycles were Electronics’ 3Ps; Samsung Electronics’the fastest moving segment of the Indian Pedagogical Objective brand image; Corporate culture; Samsung’stwo-wheeler industry and in 2002-2003 it VIP centre.accounted for about 76% of the overall • To discuss the differentiation strategiesmarket. In order to take advantage of this adopted by Jungle Jim’s to combat thetrend many players, traditionally scooter increasing competition.and moped makers, had entered this Hyundai: Tomorrow’s Toyota? Industry Retailingmarket, dominated by Hero Honda, TVS Hyundai Motor Co., associated with shabby Reference No. COM0034Motors and Bajaj Auto (which together automobiles that regularly became laughing Year of Pub. 2005controlled about 86% of the motorcycle stock in the late night television talk shows Teaching Note Not Availablesegment). One such player was Kinetic of the US, has stunned the auto world by Struc.Assign. Not AvailableGroup, which had been a dominant player occupying the number two slot in thein the gearless scooters and mopeds Keywords ‘2004 Initial Quality Study’ of J.D. Powersegment. Since 2001, Kinetic had launched and Associates. Hyundai trailed behinda number of motorcycles for customers Jungle Jim’s International Market; Wal- Toyota, the long time industry leader inwanting different value propositions: price; Mart stores; Kroger; Retailing; quality, by just one point. The newly earnedfuel efficiency; design; and after sales Differentiation strategies; Speciality food; respect for Hyundai has helped in increasingservice etc. However, at the end of 2003, Competition; Inventory management; its sales, to earn a spot in the global bigit had less than 2% of the motorcycle Stock Keeping Units (SKU’s); Vendor league. In 2004, Hyundai became numbermarket. management; Buying behaviour; Speciality seven in worldwide auto sales. This has consumer; Differentiation strategies; Low encouraged Hyundai to declare its ambition cost strategy; Core competencies.Pedagogical Objective of overtaking Toyota in quality parameters by 2008 and become the fifth-largest car• To discuss how Kinetic plans to increase maker by 2010, banking on its quality. its market share in motorcycles, in Jong Yong Yun, Samsung addition to strengthening its portfolio Electronics’ CEO: Competing Pedagogical Objective of scooters and mopeds. through Catastrophe CultureIndustry Automobile Manufacturing • To discuss whether the new found qualityReference No. COM0035 Jong Yong Yun, Samsung Electronics’ chief improvement at Hyundai is for real andYear of Pub. 2004 executive officer since December 1996, whether the strategies that Hyundai isTeaching Note Not Available has restructured Samsung by defying following will help in overtakingStruc.Assign. Not Available traditional Korean corporate culture of Toyota. hierarchy and lifetime employment. Yun Industry Automobile ManufacturingKeywords instilled a sense of ‘perpetual crisis’ among Reference No. COM0032 his employees and encouraged them toKinetic Group; India two-wheeler industry; Year of Pub. 2005 come up with innovative products thatJoint ventures and alliances; Research and Teaching Note Not Available according to him, were necessary fordevelopment; Competitive growth Struc.Assign. Not Available Samsung’s survival. His emphasis was onstrategies; Brand building; Global expansionstrategy; Motorcycles; Market quality products with unique designs and Keywords effective brand promotions. In 2004,penetration; Market share; Organic and Hyundai; JD Power Associates; Initial Samsung surpassed Sony to earn profits ofinorganic growth; Product design; Product Quality Study; Quality improvements of $9.4 billion over revenues of $72 billion.segmentation and positioning. Hyundai; Six Sigma campaign in Hyundai; Still, Yun felt that to compete in the global market, Samsung’s products needed to be Santa Fe; Hyundai’s quality problems in transformed into brands like that of US; Hyundai’s sales in US; BrandingJungle Jim’s International Market Apple’s iPod or Sony’s Walkman. problems of Asian auto makers; Quality vs Wal-Mart: Jungle Jim’s problems of non-Japanese automakers. Differentiation Strategies Pedagogical ObjectivesJungle Jim’s International Market, situated • To understand the growth of Samsung Honda’s Eighth-generation Civic:in Fairfield, Ohio, about 20 miles north of Electronics The Competitive StrategiesCincinnati, is a sprawling specialty food • To discuss how a change in leadershipmarket in a theme park-like atmosphere. Since its introduction in 1972, the Honda and organisational culture helps toWith more than 285,000 square feet of Civic has remained a major attraction to enhance a company’s area all under one roof, and food young customers with its sporty look andfrom 72 countries, US National Association Industry Memory Chips and Modules low-cost. Honda’s attempt to make thefor the Specialty Foods Trade recognises Reference No. COM0033 car appealing to all ages cost the Civic itsit as one of the best international food Year of Pub. 2005 design and compactness, which in turnstores in the US. Its exotic offerings like Teaching Note Not Available prompted loyal customers to defect todried lotus blossoms, pigs’ heads, baby Struc.Assign. Not Available Honda’s competitors. Alarmed by the rapidoctopus salad, canned blue corn fungus, decline in sales, Honda launched its newostrich eggs and many more, attract more Keywords eighth-generation Civic in Septemberthan 50,000 people every week. Jungle Jim’s Kun-Hee Lee; Traditional culture at 2005.has carved a niche for itself by the dual Samsung; Jong Yong Yun; Samsungemphasis on shopping as entertainment Electronics’ brand value; Lee’s new Pedagogical Objectivesand specialty foods. Though the strategy management initiative; Samsunghas insulated Jungle Jim’s from the price • To understand the evolution of the Civic Electronics’ design culture; Jong Yong Yun’swars, it is only to some extent and its sales over the years 37
  • 38. • To discuss Honda’s competitive strategies Gillette’s Challenges and Industry Entertainment and Games to fend off its competitors in the highly Strategic Responses Software Competition and Strategy/Competitive Strategies competitive US compact car segment. Reference No. COM0028 Although Gillette, in its 102-year corporate Year of Pub. 2005 Industry Automobile Manufacturing history, had been a dominant player in the Teaching Note Not Available Reference No. COM0031 razor and blade market, competition Struc.Assign. Not Available Year of Pub. 2005 loomed in the form of Schick’s ‘Quattro’ Teaching Note Not Available in late 2003. The Quattro, with its superior Keywords Struc.Assign. Not Available technology was a direct attack on the most Atari; Electronic Arts; Competitive Keywords successful razor line of Gillette – the strategies; Sony; Strategic alliance; Mach3. Though Gillette, with its research Microsoft; Market share of Sports Honda Motor Company; Honda Civic and development muscle, could quickly videogames; Low cost strategy; Top sports generations; Civic in US; Competitive improvise Mach3, to a battery powered licenses in US; ESPN (Entertainment and strategies of Civic; Compact car market in M3Power, much was still to be seen as to Sports Programming Network); Sega; US; Eighth generation Civic; Toyota whether Gillette’s move could help it to Diversification strategies of Take-Two; Motors; Controlled Vortex Combustion retain the coveted position in the razor FIFA Soccer; Video game industry’s value Chamber (CVCC) engines; US Clean Air and blade market. chain. Act; Saturn ION; Safety cars; Hybrid cars. Pedagogical Objective • To understand the strategic attack of EADS in America: The Google: Challenges Ahead Schick on Gillette and Gillette’s counter Competitive Strategies Established in 1998, Google is perceived defensive strategies. EADS (European Aeronautic Defence and as one of the most successful Internet start- Industry Cosmetic and Skin Care Space company) North America Inc., the ups Silicon Valley had ever seen. In its Reference No. COM0029 US subsidiary of EADS the world’s second initial years, Google virtually had no Year of Pub. 2004 largest aerospace and defence company, competition and hence became the ‘chosen Teaching Note Not Available operates through its 12 subsidiaries in 21 search engine’ among the Internet users. Struc.Assign. Not Available states of the US. Since its formation in The success of Google prompted the likes 2003, EADS North America has opened of Yahoo! and Microsoft to launch their Keywords new aircraft manufacturing plants, formed own search engines, thereby intensifying Gillette; Energizer Holdings Incorporated; partnerships with US defence companies the competition. Many more search Schick; M3Power; Quattro; Oral-B; like Northrop Grumman and Raytheon, to engines followed suit as they saw an Gillette Sensor; Duracell; Refillable razor fend off competition from Boeing and opportunity to generate revenues through business; Gillette Mach3; Gillette Safety Lockheed Martin, and has also acquired the search results. Whether Google can Razor Company; Gillette altra shaving companies like Racal Instruments, which weather the competition and still remain system; Shaving products; Revlon; specialises in testing aerospace and defence dominant is a question that is of interest Progressive blade geometry. equipment. to many, especially in the wake of its plans for an Initial Public Offering. Pedagogical Objectives Pedagogical Objectives Electronic Arts vs Take-Two: The • To highlight the competitive strategies Competitive Strategies in the US of EADS • To discuss how Google and the search Videogame Market engine industry have evolved over the • To discuss the strategies of EADS to years In 2004, Electronic Arts, United States’ foray into the US defence market, the leading videogame software publisher and largest in the world. • To discuss the revenue generation model manufacturer, started witnessing stiff adopted by the search engines like the Industry Commercial Aircraft competition from Take-Two Interactive, Pay-Per-Click (PPC) advertising that Manufacturing which ventured into the sports videogame provided better returns on advertising Reference No. COM0027 market with a low-priced football expenditure compared to other forms Year of Pub. 2005 videogame, ESPN NFL2K5, competing of on-line advertisements Teaching Note Not Available directly with Madden NFL, the high-priced Struc.Assign. Not Available • To discuss how PPC has attracted football game from Electronic Arts. To competition to the search engine space. fend off competition, Electronic Arts Keywords reduced prices of its products and also signed Industry Information Technology exclusive deals with some of the major Global aerospace and defence industry; Reference No. COM0030 sports leagues in the US. In response, Take- World’s biggest defence market; Strategic Year of Pub. 2004 Two also signed a semi-exclusive deal with partnerships in the defence industry; Teaching Note Not Available Major League Baseball (MLB) to produce Acquisitions in the defence industry; Global Struc.Assign. Not Available baseball videogames as well as acquiring a industrial strategy; Greater European Solution; Transatlantic co-operation; Keywords videogame development studio. European Union; Lobbying for military Google; Search engines; Overture; Yahoo!; Pedagogical Objectives activities; US Department of Homeland Microsoft; Pay-Per-Click; (PPC); How Security; Deepwater programme. pay-per-click works; Google; Overture and • To provide a landscape of the videogame PPC; Competition in search engine industry in the US market; Traditional view; Distribution for Dr. Reddy’s Tussles with Pfizer • To discuss the competitive strategies search engines; Google’s Initial Public adopted by Electronic Arts and Take- Offering (IPO); Google’s acquisitions. Dr. Reddy’s Laboratories are a leading Two Interactive to establish their Indian pharmaceutical company and a well- supremacy in the industry. established player in the global generics38
  • 39. and bulk drug manufacturing business. It Industry Television Cable and Pedagogical Objective S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – Iwas the first Indian pharmaceutical S T R A T E G Y – I S T R A T E G Y – I Broadcastingcompany that received approval from the Reference No. COM0025 • To discuss the strategies adopted by DHLUS Food and Drug Administration (FDA) Year of Pub. 2003 to increase its market share in India byto market a generic version of Eli Lilly’s Teaching Note Not Available repositioning itself as a niche, industrydrug, Prozac, under a 180-day marketing Struc.Assign. Not Available specific, solutions provider.exclusivity. However, in 2002, Pfizer Industry Express Delivery Serviceschallenged Dr Reddy’s intentions to market Keywords Reference No. COM0023its yet-to-launch branded generic version Disney Channel; Walt Disney; Tween; Kids Year of Pub. 2004of Norvasc (for example AmVaz of Dr channels; Basic cable; Programming Teaching Note Not AvailableReddy’s) in US courts. strategy; Anne Sweeney; Lizzie McGuire; Struc.Assign. Not Available Raven; Hilary Duff; Commercial-free;Pedagogical Objective Child stars; ABC Cable Networks; Cable Keywords operators; Pay channel. Global logistics service providers; Logistics• To discuss Dr Reddy’s defense against Pfizer’s challenges. service providers in India; International air express service providers; Deutsche PostIndustry Pharmaceutical DHL in USA: The Competitive AG; History of express industry in India;Reference No. COM0026 Strategies Courier industry in India; CompetitiveYear of Pub. 2004 strategies of DHL India (Dalsey, HillblomTeaching Note Not Available By the end of 2004, DHL (Dalsey, Hillblom and Lynn); Companies in the express andStruc.Assign. Not Available and Lynn) had a 40% market share in both logistics industry in India; DHLs Europe and Asia and only 7% in the US, its international operations; Services providedKeywords by DHL in India apart from global services. single largest market for expressDr. Reddy’s Laboratories Limited; Pfizer distribution. It invested $1.2 billion in theInc; US Food and Drug Administration US to set up new sort centres and drop boxes and take on its rivals FedEx (Federal(FDA); Branded generics; Abbreviated New Dell vs GatewayDrug Application (ANDA); Patent Express Corporation) and UPS (Unitedchallenges; Indian pharmaceutical industry; Parcel Service), which together held 78% Dell Computers Limited, in its 20 years ofUnited States Court of Appeals for the of the US parcel market. its existence, is considered as a pioneer inFederal Circuit; 505 (b) (2) application direct marketing. The company has alwaysprocess, paragraph IV filing; American Pedagogical Objectives focused on improving its supply chain bypharmaceutical industry; Exclusive reducing costs through direct selling. Dell’smarketing rights; Generic drug • To highlight DHL’s expansion plans in mission is focused on the concept of themanufacturers; Business strategy; Norvasc; US direct-to-market strategy. The company’sAmlodipine Besylate; Amlodipine Maleate; • To discuss the competitive strategies of direct model has become a globalOff-patent drugs. DHL to fend off its rivals. benchmark in supply chain management, and many other organisations worldwide Industry Express Delivery Services have incorporated it to improve their Reference No. COM0024 supply chains. Gateway Incorporated also Disney Channel’s Competitive Year of Pub. 2005 started its business as a direct seller of Strategies Teaching Note Available computer systems. However, by the year Struc.Assign. Available 2000, the focus of the company shiftedDisney Channel was one of the earliest from ‘direct marketing’ to ‘research andchannels for kids to appear on American Keywordstelevision. The channel originally started development’.as a pay channel in 1983 and catered to a DHL (Dalsey Hillblom Lynn); US parcelcomparatively small segment of the market; FedEx (Federal Express Pedagogical Objectivesmarket. It was not until 1993 that the Corporation); UPS (United Parcel Service); Express delivery; Logistics; Deutsche Post; • To discuss the growth strategies of Dellchannel started transforming itself into a Airborne Express; Danzas Group; Freight- and Gateway over timebasic cable network. However, thetransformation had its own challenges in forwarder; Strategic parts centres; Express • To discuss how Dell’s efficient andterms of programming and distribution logistics centres; Drop-boxes; Regional sort responsive supply chain enabled it tostrategies. Besides, the channel was free centres; New DHL lead the market without spending toofrom commercials and the only revenue it much on research and development andgenerated was from cable operators. how weaknesses in Gateway’s supply DHL in India: The Competitive chain made it lag behind, in spite ofPedagogical Objectives Strategies launching numerous new products in various categories.• To understand the Disney channel’s Since its entry into India in 1979, DHL transformation under the stewardship of (Dalsey, Hillblom and Lynn) has studied Industry Computer Hardware its president, Anne Sweeney the industry requirements in India and was Reference No. COM0022 aware of the growth potential of the Year of Pub. 2004• To discuss the channel’s unique Teaching Note Not Available segmentation strategy and the revenues logistics industry. Despite being the market leader in the INR 800 crore Indian express Struc.Assign. Not Available the channel generated through merchandising its shows like ‘Lizzie and logistic industry with a market share Keywords McGuire’ and ‘That’s So Raven’ of 65%, due to increased competition, DHL is trying to grow further to consolidate its Dell Computers Limited; Michael Dell;• To highlight how Disney Channel leading position in the industry by Supply chain management; Direct acquired a distinct status in the Walt exploring new niche markets. marketing; Disintermediation; e- Disney Group. Commerce; Just-in-time; Quick ship programme; Tedd Waitt; Gateway 39
  • 40. Computers; Cow-spotted boxes; Beyond car market in China. By 2004, major Year of Pub. 2004 the box; Gateway Country Stores; Research carmakers like Volkswagen, Toyota, Ford, Teaching Note Not Available Competition and Strategy/Competitive Strategies and development; Rolls Royce of laptops. GM, and Mercedes-Benz were operating in Struc.Assign. Not Available China. Even Italy’s Ferrari and Maserati expanded their operations. What once was Keywords an unexplored market soon became Daiei vs Aeon: Contrasting Coca-Cola; Coke; Beverage; Change; competition-frenzy and model-conscious. Bottlers; Restructuring; Reorganisation; Retailing Strategies of the Added to this, in 2004, the Chinese CEO succession; Mergers and acquisitions; Japanese Retailers government increased the import quota of Contamination scares; Lawsuits; Daiei, which had been the largest retailer cars and decreased the permit fee on Accounting; Corporate social initiatives; in Japan since 1972, lost its number one imported cars. This came as a shot-in-the- eKO management; Racial discrimination. position to Ito-Yokado in 1999 and had arm to many more carmakers who were accumulated debts to the tune of ¥2.4 planning to foray into China. trillion by 2000 due to the collapse of the Coca-Cola: The Battle on Non- bubble economy. Since then, it has been Pedagogical Objectives carbonated Front implementing various restructuring • To trace the various factors that strategies and has been bailed out twice, In the light of the increase in public’s health contributed to the increase in receiving ¥640 billion of assistance from consciousness in the 1990s, coupled with competition in the China’s luxury car the banks. It still carried a debt of over 1 the mounting concerns regarding the market trillion yen in 2004 with UFJ (a Japanese harmful effects of carbonated soft drinks, bank) being the major creditor providing • To discuss how the luxury carmakers are non-carbonated beverages and bottled ¥400 billion. On the other hand, Aeon had vying to attract the new generation water markets grew in leaps and bounds. emerged as the largest retailer in Japan with Chinese. Coca-Cola was a mute witness to the total revenues of ¥3.5 trillion in February stagnating growth of its carbonated 2004. It had become the leading contender Industry Automobile Manufacturing beverages market while its non-carbonated for sponsorship in Daiei’s rehabilitation Reference No. COM0020 segment started contributing significantly Year of Pub. 2004 programme undertaken by the Industrial to its growth. Revitalisation Corporation of Japan and Teaching Note Not Available Struc.Assign. Not Available aims to become one of the world’s top 10 Pedagogical Objective retailers by 2010. Keywords • To discuss the strategies adopted by Pedagogical Objective China’s luxury car market; Competition Coca-Cola to move into the non- in China’s luxury car market; China’s carbonated arena after decades of • To discuss the contrasting growth booming car market; Luxury cars in China; focusing exclusively on carbonated strategies of Daiei and Aeon, with Aeon China’s economic landscape; China’s rich drinks. gaining a strong foothold in the highly class; GM (General Motors); BMW; competitive Japanese retail market that Industry Carbonated Beverages Toyota; Ford; GM and DaimlerChrysler; was once dominated by Daiei. Reference No. COM0018 Nissan; Ferrari; Rolls Royce; Maybach; Year of Pub. 2004 Bentley Motors. Industry Retailing Teaching Note Available Reference No. COM0021 Struc.Assign. Available Year of Pub. 2005 Teaching Note Not Available Coke’s Changing Fortunes: The Keywords Struc.Assign. Not Available Need for Change Global beverage market; Carbonated Keywords The Coca-Cola Company, the world’s beverages market; Growth of non- leading soft drink company, is engaged in carbonated beverages market; Diet drinks; Retailing strategies; Daiei; Aeon; Japanese Coca-Cola’s strategies for non-carbonated changing its leadership, strategies, and retailing industry; Bubble economy; brands; Bottled water market; Pepsi’s non- molding its culture. After a slew of Speciality store operations; Supply chain carbonated brands; Dasani; Coca-Cola’s controversies due to strained relations with management; General merchandising; ‘project mother ’; Coca-Cola’s its bottlers, contamination scares and legal Distribution efficiency; Price promotional efforts of non-carbonated battles since the 1990s, the company’s competitiveness; Product differentiation; brands; Coca-Cola’s challenges in the non- performance took a severe beating. Coca- Japan’s Wal-Mart; Industrial Revitalisation carbonated market; Top non-alcoholic Cola is now trying to change its structural Corporation of Japan; Rehabilitation beverage makers in the world; Coca-Cola’s ‘hardware’ as well as its behavioural programme; Worldwide Retail Exchange future plan for growth. ‘software’ to regain its past glory. (WWRE). Pedagogical Objectives Coach Inc.: Lew Frankfort’s Competition in China’s Luxury • To discuss the company’s efforts to learn Competitive Strategies Car Market from its mistakes and cope with the changing contexts Since 2000, Coach Inc., which has been With the arrival of new generation synonymous in the US with heavy, tough Chinese, who are more enterprising and • To discuss the contemporary unlined leather bags, has been posting an ambitious, the pattern of expenditure on management models like ‘learning average 12% growth rate in net income. luxury goods has changed. By early 2004, organisation’, ‘individualised In 2003, Coach was the largest maker and the country emerged as the world’s fastest- corporation’ and ‘change masters’, in retailer of leather accessories in the US growing and third-largest car market after the 21st century global economy. and was creating waves in the global the US and Japan. Even the government Industry Carbonated Beverages market for luxury leather goods and policy of fixed permit fee on all imported Reference No. COM0019 accessories. The man behind the rapid cars has encouraged the growth of luxury40
  • 41. growth of Coach has been its CEO, Lew Christie’s: The 240 Year-old Year of Pub. 2004 Auction House’s Competitive S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – IFrankfort, who put the company back on S T R A T E G Y – I S T R A T E G Y – I Teaching Note Availabletrack after its sales started plummeting in Strategies Struc.Assign. Availablethe mid-1990s. Christie’s, along with Sotheby’s, has KeywordsPedagogical Objective dominated the auction industry since its Charles Schwab competitive strategy; inception. However, the emergence and Investment banking; Discount broker;• To discuss the competitive strategies of increasing popularity of on-line auctions Commissions on brokerage; Brokerage Lew Frankfort to transform Coach from is posing a serious challenge to the trade; No-fee mutual fund supermarket; a staid maker of leather handbags into a traditional auction firms. To counter the Schwablink; e-Commerce; E*Trade; fashion brand selling the latest designed competition from on-line auctioneers, as Ameritrade; David Pottruck; On-line multistyled bags, clothes, shoes, jewellery well as regain the top slot in the auction broking service; Schwab equity rating; and leather accessories. industry from Sotheby’s, Christie’s has Securities and Exchange Commission;Industry Accessories adopted several strategies. Internet Brokerage Company; E.Schwab.Reference No. COM0017Year of Pub. 2004 Pedagogical ObjectivesTeaching Note Available • To highlight the evolution of Christie’s Carrefour: CompetitiveStruc.Assign. Available as an iconic auction house Strategies During ChallengingKeywords Times • To discuss the competitive strategies ofCoach Inc.; Lew Frankfort; Louis Vuitton; Christie’s to fend off increasing France-based Carrefour is by far the largestGucci; Leather accessories; Tommy competition from the on-line retailer in Europe. With its hypermarketHilfiger; Hamptons flap satchel; Brand auctioneers and regain the top slot from chain established in 30 countries, Carrefourbuilding strategies; Competitive strategies Sotheby’s in the auction industry. is the world’s second-largest retailer afterof Coach Incorporated; Brand image Wal-Mart. However, economic recession Industry Auctiontransformation; Sara Lee; Women’s in its home-market of Europe has caused Reference No. COM0015fashion accessories; Prada; Fashion Carrefour’s sales to decline, while the Year of Pub. 2005retailing; Luxury brands in leather market share of its rival discount chains Teaching Note Not Availableaccessories. continues to grow. Struc.Assign. Not Available Keywords Pedagogical Objectives Cisco vs Juniper: Router Wars Christie’s; Auction industry; Sotheby’s; • To focus on the competitive strategies Competitive strategies; Art market employed by Carrefour in trying to retainIn May 2004, Cisco Networks (Cisco) recession; Differentiation strategies; On- and enhance its market sharelaunched its much awaited top-of-the-line, line auctioneers; eBay; Price fixing; Edhigh-end router code-named ‘Huge Fast • To discuss the competence of Carrefour Dolman.Router’ (HFR). Cisco dominated the to wade through challenging times.Internet router business as the primarysupplier of routing technology to Internet Industry RetailingService Providers (ISPs) and large Charles Schwab’s Competitive Reference No. COM0013companies. HFR was launched at a time Strategies Year of Pub. 2005when Cisco was facing intense competition Teaching Note Not Availablefrom a much smaller company named The deregulation of the US fixed rate Struc.Assign. Not AvailableJuniper Networks (Juniper). Though Cisco brokerage system in 1975 saw the birth of Charles Schwab, one of the world’s largest Keywordsremained a dominant force in the overallnetworking market, it was losing ground discount-brokerage houses. It was Carrefour; French retail market; Europe’sto Juniper in the most expensive, high- considered a pioneer in implementing the largest retailer; Wal-Mart; Hypermarket;end router segment – core routers. latest technologies in the field of financial French government regulations; Galland services. Charles Schwab was set up on the Law; Discount chains; European retail fundamental principle of offering a highPedagogical Objectives rankings; Carrefour Japan; Pricing strategy; quality service at an affordable price, which Produits Carrefour Internationaux; Ed;• To discuss how Juniper became a major revolutionised the brokerage business. hard discounter chain; Competitive competitor to Cisco Leveraging on its innovative services, it strategies; Turnaround. became the number one on-line brokerage• To discuss how Cisco planned to regain house. In its journey, the company had to the lost market share. adopt some key strategies, which re-defined its basic values. Boston Scientific vs Johnson &Industry Networking IndustryReference No. COM0016 Johnson: Battle for the StentYear of Pub. 2004 Pedagogical Objectives MarketTeaching Note Not Available • To discuss the soundness of the First-mover advantage in a virgin marketStruc.Assign. Not Available competitive strategies adopted by is crucial for a pharmaceutical company asKeywords Charles Schwab it invests billions of dollars on research. Introducing a new product first would resultCisco and Juniper; Core and edge routers; • To understand the innovative services in a quicker financial break-even and evenJohn Chambers; Carrier routing system - that enabled Charles Schwab to become profit for the company. Stent, a medical1; Huge fast router; Routing architecture; the leading on-line brokerage firm. device that obviated open-heart surgeries,Networking industry; Junos. turned out to be one of the hottest products Industry Banking and Financial Services for the pharma and medical device Reference No. COM0014 companies in the US. Though Johnson & 41
  • 42. Johnson pioneered the stent market and definition variants of the standards Netflix has embraced the VOD dominated it, the company lost its lead to definition DVDs – Blu-ray and HD-DVD technology to counter to fend off Competition and Strategy/Competitive Strategies other players such as Guidant, Medtronic from Sony and Toshiba respectively, claim declining sales. and Boston Scientific. Just when the high-end performance and a major up-grade Industry Video Rental and Sales industry was on the point of oblivion, from the standard definition DVD. Reference No. COM0010 Johnson & Johnson came back with Year of Pub. 2005 ‘cypher’ in 2003 – a drug-coated stent. It Pedagogical Objectives Teaching Note Not Available instantly became a leader, surpassing • To understand the origins of the present Struc.Assign. Not Available Boston Scientific and other players. In record time, Boston Scientific responded standards war in the videodisc market, Keywords with its own drug-coated stent, ‘taxus’ in the comparison of the formats, and the March 2004 and displaced Johnson & strategic positioning of the two Blockbuster Corp.; Product life cycle; Johnson from its leading position. companies – Sony and Toshiba Industry life cycle; Video store industry; Video rentals and video on demand; Mature • To discuss whether cost competitiveness industry; Business model; Strong consumer- Pedagogical Objectives and ease of up-gradation of Toshiba’s focus; Declining industry; Consumer and • To discuss the market forces that operate technology can overpower the buyer behaviour; Innovative alternative in the stent market technological edge of Sony technological threat; On-line stores for • To analyse the influence of the hardware video sales and rentals; Life cycle • To discuss the battle for dominance extension; Viacom split-off; Growth between Boston Scientific and Johnson manufacturers and the Hollywood studios, on the possible outcome of the options and strategies. & Johnson and the factors that shape the competitive positions of the standards war. incumbent companies Industry Consumer Electronics Reference No. COM0011 Best Buy and Circuit City’s • To discuss the critical factors that help Revenue Models: Threat from Year of Pub. 2005 companies to wade through a volatile industry Teaching Note Not Available Wal-Mart? Struc.Assign. Not Available Best Buy, Wal-Mart and Circuit City are • To discuss the importance of first-mover advantage in the pharmaceutical Keywords the top three consumer electronics retailers in the US. Over the years, Best Buy and industry. The standards war; High Definition-DVD Circuit City have built a reputation for Industry Video Rental and Sales (HD-DVD); Sony’s Blu-ray disc; Toshiba’s selling quality goods along with high value Reference No. COM0012 HD-DVD; World standard for the high customer assistance at the point of sale. Year of Pub. 2004 definition DVD; Lack of inter- However, due to commoditisation, profits Teaching Note Available compatibility; Battle for dominance; at the retailers are fed not by the low Struc.Assign. Available Entertainment industry; Hollywood margins on electronics goods but by studios’ stake; India health; National health commissions earned on warranties sold Keywords policy; Technological superiority; Low- along with the goods. Wal-Mart, although cost advantage. a leading electronics retailer, only started Coronary stent; Boston Scientific; Johnson & Johnson; Palmaz-Schatz stent; Drug selling warranties in October 2005. coated stents; Bare metal stents; The NIR stent; The cypher launch; The taxus Blockbuster Corp. in a Mature Pedagogical Objectives launch; Medinol’s Kobi Richter; Guidant; Video-Store Industry: Options • To highlight the importance of warranty Medtronic; Role of Federal Drug and Strategies revenues to the bottom lines of Best Administration (FDA); Clandestine Blockbuster was one of the strongest Buy and Circuit City facility; Patent infringements and lawsuits. entertainment brands in the US and a • To discuss the threat posed by Wal-Mart leading global provider of in-house videos, to the revenue models of Best Buy and DVDs and video games on rent, with more Blu-ray vs HD-DVD: The Format than 9,000 stores across North and South Circuit City. War Between Sony and Toshiba America, Europe, Asia and Australia. Over Industry Consumer Electronics and the past few years, new technology such as Appliances Retail The ‘War of Standards’, considered, as the Video On Demand (VOD) and the Reference No. COM0009 battle for dominance between two non- availability of movies for purchase at low Year of Pub. 2005 compatible technologies is not new to the prices on-line and at discount stores such Teaching Note Not Available American entertainment industry. The as Wal-Mart and Best Buy had sapped some Struc.Assign. Not Available most prominent one happened in the of the demand for rentals. Blockbuster saw 1970s, when Sony Corporation’s Betamax its business model coming under heavy Keywords videotape format competed with VHS pressure and found its business labelled as Best Buy; Circuit City; Wal-Mart; Revenue (Video Home System), which was promoted an industry in decline by experts. model; Consumer electronics retailer; by Victor Company of Japan Limited (JVC). In 2005, a new format war between Sound of Music; Extended warranties; two non-compatible types of high- Pedagogical Objectives Warranty sales commission; Securities and definition videodisc, hit the consumer Exchange Commission (SEC); Warranty • To enable the reader understand the DVD week; Upscale image; Product care plan; electronics industry. This time, the rental market in the US competing companies are again the Down-market image; Concept I store. consumer electronic giants from Japan – • To discuss the options and strategies for Sony and Toshiba, who want their own Blockbuster, as it still puts its future at standards to be the default standards for stake on traditional DVD rentals in- the high definition DVD. The high stores and on-line, while rivals like42
  • 43. BBC vs Emap: The Commercial continued success of Bratz has been sending share; New product development; Radio Battle S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I shockwaves through Mattel. Challenges for AvtoVAZ. S T R A T E G Y – I S T R A T E G Y – ITraditionally the BBC has dominated the Pedagogical Objectivesradio-broadcasting sector in the UK. Thepublicly funded BBC dwarfed commercial • To discuss the challenge for Barbie from Apple’s ‘Low-end’ Strategy: Theradio stations, which intended to challenge Bratz, in the tween segment Payoffsthe BBC in the wake of the success of the In early 2005, for the first time in its • To discuss if Barbie can ward off thedigital radio broadcasting. The BBC has history, Apple Inc. entered the low-end Bratz challenge and remain relevant toalso invested heavily in digital radio. The market by introducing its cheapest digital the tween girl market.advent of digital radio has fragmented the music player, iPod Shuffle at $99 and aradio audience, adversely affecting the Industry Toys and Games ‘headless’ Mac Mini at $499. However,advertisement revenue of the commercial Reference No. COM0007 analysts observe that with these newradio stations. Analysts opine that only Year of Pub. 2003 products Apple is likely to run the risk ofthose media groups, which have cross- Teaching Note Not Available cannibalisation and might also face severeselling ability and adequate scale to Struc.Assign. Not Available competition from established players likenegotiate good deals with the advertisers, Dell, HP (Hewlett-Packard) and Sony inwould survive these challenging times or Keywords the low-end market.will be lost in the consolidation wave that Barbie; Bratz; Tween; Mattel; US toyis sweeping the British radio-broadcasting industry; Fashion dolls; MGA Pedagogical Objectivessector. In this aspect, East Midlands Allied Entertainment; NPD Group; Best-sellingPress (Emap) plc., a leading radio and toys; Barbie Rapunzel; Robert A Eckert; • To describe Apple’s product strategymagazine group, has an edge over its Isaac Larian; Age compression; My Scenecompetitors. It is believed that Emap would • To discuss the payoffs of Apple’s entry Barbie; Flavas. into the low-end market.challenge the BBC in digital radiobroadcasting. Industry Personal ComputersPedagogical Objectives AvtoVAZ, the Russian Car Maker: Reference No. COM0005 Year of Pub. 2005 Facing Up the Foreign Teaching Note Available• To study the trends in the UK radio Competition Struc.Assign. Available sector AvtoVAZ is the largest passenger carmaker Keywords• To discuss the strengths of Emap to in Russia having one of the biggest challenge the mighty BBC. production lines (144 km) in the world. Apple’s low-end strategy; Apple’s product Till the end of the 20th century, AvtoVAZ strategy; Apple product matrix; Apple’sIndustry Radio Broadcasting and dominated the Russian market with 90% iPod Shuffle; Mac Mini; Mac’s market Programming market share. By the turn of the 21 st share; Apple’s Internet strategy; Apple’sReference No. COM0008 century, Russia’s car market began booming digital hub strategy; Sales of iPod Shuffle;Year of Pub. 2005 due to a healthy economy and high export Mac Mini’s major competitors; Apple’sTeaching Note Not Available revenues, triggering off high purchasing sweet spot; MP3 market; Apple’sStruc.Assign. Not Available power and the demand for new lifestyles. challenges in the low-end market; GlobalKeywords Due to huge demand for cars, many foreign PC (Personal Computer) market carmakers started foraying into Russia, andRadio broadcasting in Britain; Profile of with customer preference shifting toBBC (British Broadcasting Corporation);East Midlands Allied Press (Emap) plc.; foreign cars AvtoVAZ started losing market Aldi: The German Wal-Mart? share.Digital radio broadcasting in Britain; Selling what customers want is differentChanging landscape of radio in Britain;Competitive scenario in British radio; Pedagogical Objectives from selling what retailers want their customers to buy. Keeping the offeringPrivate radio companies in Britain; • To highlight the growth of AvtoVAZ in simple and satisfying the customers’ basicCompetition for BBC in the domestic the protected centrally planned Russian necessities has gone a long way in Aldi’smarket. economy success. The hard discounter with a powerful business model is threatening to change • To discuss the competitive strategies of the global retailing landscape. the company to fend off foreign Barbie vs Bratz: Competition in competitors in its domestic market and the Tween Girl Market to regain it’s lost market share. Pedagogical ObjectiveBarbie, introduced by toymaker Mattel in Industry Auto Manufacturing • To discuss the business model of Aldi1959, has been the most popular fashion Reference No. COM0006 from the perspective of the 4Psdoll ever created. Barbie fascinated Year of Pub. 2005 (Product, Place, Price and Promotion).generations of little girls and Mattel has Teaching Note Not Available Industry Grocery Retailsold over a billion Barbies since its Struc.Assign. Available Reference No. COM0004inception. However, its undisputedleadership in the fashion doll market has Keywords Year of Pub. 2004 Teaching Note Availablebeen facing a challenge since January 2002 AvtoVAZ, the Russian car maker; Struc.Assign. Availablefrom Bratz, a rival fashion doll from MGA Expansion strategies; Growth strategies;Entertainment. MGA Entertainment Competition; Lada car models; Russian car Keywordssuccessfully marketed its Bratz to the tween industry; CITIC Prudential; Generalgirls, a marketing niche that Mattel has Motors; Ford; Cost reduction; Acquisitions Grocery retailers; Hard discounting;been struggling for years to target. The and partnerships; Import tariffs; Market Characteristics of a hard discounter; 43
  • 44. McCarthy’s 4P (Product, Place, Price and Pedagogical Objectives Promotion) model; Zone model of • To discuss the dynamics of the Core Competency and Competitive Advantage differentiation; Private labels of discount stores; Radio frequency identification commercial aircraft industry (RFID) chips; Aldi’s strategies to keep its • To understand the market factors that Nintendo’s Innovation Strategies: prices low; Aldi Sud; Aldi Nord; Kelloggs; have driven Boeing and Airbus to adopt A Sustainable Competitive Discount retailers. different approaches Advantage? • To understand the resulting shift in the The history of the video game industry manufacturing practices at both the Albertsons’ Competitive companies. belongs to Nintendo, a Japan-based Strategies hardware and software manufacturer. Industry Aerospace Industry Through a series of hit products that Albertsons, the second-largest supermarket Reference No. COM0002 established many memorable characters chain and the fifth-largest drugstore in the Year of Pub. 2004 like Mario and Donkey Kong, Nintendo US, is among those that pioneered the ‘dual Teaching Note Not Available garnered almost 90% market share. branding concept’ by transforming its food Struc.Assign. Not Available However, when Sony entered the industry stores to ‘food and drug’ combination in the 1990s, Nintendo’s position started stores. Stiff competition from domestic Keywords to dwindle. Nintendo’s market share and foreign players and lower profit Boeing; Airbus; A380 SuperJumbo; 7E7 plunged drastically as the preferences of margins, prompted the company to focus Dreamliner; Two philosophies; McDonnell gamers shifted from simple fun games to on its dual branding concept, apart from Douglas; European Aeronautic Defense and technically superior gamers offered by adopting other strategic measures. Space Company; SARS (Severe acute Sony and Microsoft, which entered the respiratory syndrome); Unfair trade market in 2001. Why did Nintendo, which, Pedagogical Objectives practices; Government subsidies; Rise of at one point of time was almost Airbus; Risk sharing partners; Financing synonymous with video games, fail to • To discuss the methods adopted by protect its territory? Moreover, all the the A380. Albertsons to differentiate itself from defence strategies of the Japanese player its competitors continuously flopped in front of the technological prowess of its competitors. • To discuss Albertsons’ business strategies. Adidas vs PUMA: Marketing War When the company was almost falling like Industry Grocery Retail for Football World Cup 2006 a house of cards, it launched Wii, a console Reference No. COM0003 with an unconventional design. Though Wii Year of Pub. 2004 The Football World Cup has become a was not directly competing with Sony’s Teaching Note Not Available mega event watched by viewers from across PlayStation or Microsofts Xbox, it Struc.Assign. Not Available the globe. As a result, the event offers managed to steal substantial market share excellent marketing opportunities for and fans of both the players. What was so Keywords global sportswear manufacturers. The two unique about Wii? How did it impact the German sportswear manufacturers, Adidas industry? Can Nintendo sit back and relax Albertsons; Jewel-Osco; Dual branding; and PUMA, have been fine tuning their Sav-on; Super Saver; Neighbourhood while its competitors are strategising to marketing strategies for Football World win back their customers? Besides all this, marketing; Unicru; Shaw and Star; Six sigma Cup 2006 and are confident that the mega quality programme; Supermarket chain; the case delves into the sustainability of event will bring them opportunities to Nintendo’s new found competitive American Stores Company; Personal fulfill their strategic objectives. However, shopper system; Shop ‘n’ scan; Preferred advantage, considering the fact that the critics are sceptical about the companies’ life span of a console is short. savings card; Food and drug store. success of their endeavour. Pedagogical Objectives Pedagogical Objectives Airbus and Boeing: Divergent • To understand the nature of the video Growth Plans • To enable understanding the profile of game industry Adidas and PUMA, the competitive Since its inception, Boeing enjoyed a virtual landscape in the sportswear industry and • To analyse the sources of competitive monopoly in the commercial aircraft the marketing strategies that the two advantage in this industry industry. But the advent of the European companies have adopted for Football • To understand Nintendo’s strategy aerospace firm, ‘Airbus Industrie’, in 1970, World Cup 2006 behind launching Wii posed a major threat to Boeing’s dominance in the commercial aircraft • To discuss whether the two companies • To analyse the sustainability of market. Over the years, Airbus gradually would be able to achieve their objectives. Nintendo’s strategy. made its ground riding on government Industry Sportswear funding and innovative technologies. For Industry Video Games Reference No. COM0001 the first time in 2003, Airbus became the Reference No. CCA0041 Year of Pub. 2005 world’s largest manufacturer of commercial Year of Pub. 2009 Teaching Note Not Available aircrafts by surpassing Boeing in market Teaching Note Available Struc.Assign. Not Available share. Competition among the two reached Struc.Assig. Available a new dimension when Airbus announced Keywords Keywords the A380 Superjumbo. Airbus touted the Adidas; PUMA; Football World Cup 2006; A380 as the future of commercial aviation, Nintendo, Video games industry, Sportswear; Salomon; Adidas-Salomon; as it saw a huge demand for larger aircrafts. Innovation, Competition, Sony, Microsoft, three division structure; Marketing war; In contrast, Boeing asserted that smaller Value Chain, Business model, Consumer Competitive landscape; Nike; Reebok; and faster aircrafts would rule the market behaviour, Industry Dynamics, Herbert Hainer; Jochen Zeitz; and announced its plans to build the 7E7 PlayStation, Competitive Strategy, Endorsements. Dreamliner. Technology, Critical success factors44
  • 45. China’s Manufacturing Edge: Is it Teaching Note Available Nokia vs. Motorola (A): Fight for Losing? Market Share – Flight of Margins? S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I Struc.Assig. AvailableThis case, set in 2008 end, attempts to Keywords In a short span of time the mobile handsetexplore a debate on whether China is losing China, MNCs, Yuan, GCI, Competitive industry has seen phenomenal growth andits competitive edge as a preferred Advantage, Comparative Advantage, Deng a paradigm shift. The success parametersmanufacturing destination. Since China’s Xiapong, Chinas Competitiveness, GDP, have changed and the incumbent handsettransition from a planned economy under PPP, Manufacturing Sector makers have to adjust to still be in thethe leadership of Deng Xiaoping into a reckoning. The growth rate is howevermarket economy in 1978, there was a rapid forecast to slow down and there is fiercegrowth in the Chinese economy. Leveraging battle among the players to gain a biggeron its strength of 1.3 billion people, eBay in China: Strategies and market share, even if that means sacrificingincluding 100 million cheap labours, China Challenges profit margins.promoted labour-intensive mass eBay a world leader in the online auction Nokia, the market leader has seen its marketmanufacturing. Coupled with the open door industry entered China in 2002. It faced share fall due to lack of foresight. Throughpolicy, China’s strategy of becoming the severe competition in the Chinese market product innovation, Motorola wants toworld’s factory floor was quiet successful. from a local player- operated reclaim the top position it lost to Nokia.Within 20 years, China became the by, China’s largest B2B Asian handset makers too want and areseventh-largest economy in terms of GDP, operator. eBay also faced restrictions in becoming stronger. Quickest adjustment tothe most favoured nation for FDI and the operation of its payment service, Pay market needs is all that matters.emerged as the world’s superpower in Pal. The Chinese Government imposed Meticulously surveying the industry, thismanufacturing. With competitive regulations requiring domestic control over case discusses the much-needed strategies.advantages in labour, raw material and supply financial services companies like Pay Pal.chain, China was ranked 40th in GlobalCompetitiveness Index, an index that ranks After nearly five years of operation in Pedagogical Objectives China, eBay was left with only 29% marketcountries based on their competitiveness. • To understand the trends and the critical share as against Taobao’s 67%. eBay triedHowever, how sustainable is Chinas success factors in the global mobile to adopt its US model in its Chinesecompetitiveness? By 2003, China was handset industry, and how did this change operations, although with some alterationsfinding it hard to retain MNCs. Rising labour their strategies to suit local needs.costs, spiralling raw material prices andappreciating Yuan, is forcing many In December 2006, eBay announced a joint • To understand the concept of value chaincompanies to shut down their branches in venture with TOM Online, China’s popularChina and move out for better alternatives. • To do the scenario analysis for the wireless operator and looked forward to aCan China remain globally competitive mobile handset industry revival in its Chinese operations. The casewhile other low-cost countries like India facilitates discussion on whether eBay • To analyse the standing of Nokia vis-à-and Vietnam are offering better would be able to establish itself in the vis Motorola.manufacturing advantages to MNCs? Some Chinese market. The case can be used toof the companies, however, still prefer China teach courses on Strategy and to Industry Telecommunicationas the destination of choice owing to factors specifically discuss challenges faced by Reference No. CCA0038like large consumer market, supply chain Year of Pub. 2007 global players in China.advantages and relatively low raw material Teaching Note Availableprices. Moreover, to avoid the challenge of Struc.Assig. Available Pedagogical Objectivesrising cost, companies are changing their Keywordsstrategies, investing on higher technology • To analyse the business model of eBayand training employees. Even China is Trends in the Global Mobile Handset • To analyse the dynamics of onlineshifting from mass manufacturing labour- Industry; Critical Success Factors in Mobile auction industry in chinaintensive industries to high-tech industries. Handset Industry; Basis for IndustryThe case explores the opportunities and • To understand the factors behind eBays Segmentation; Value Chain Analysis; Totalchallenges that China would face as its failure in capturing substantial market Product Concept; Core Competency &competitive equation is shifting. share in china Competitive Advantage Case Study; VRIO framework; Relevance of concept of • To analyse whether eBay would be ablePedagogical Objectives market share; market share vs. to establish itself in the chinese market profitability; Nokia vs. Motorola; telecom• To understand the factors that make a after its joint venture with TOM online. operators; Samsung; LG Electronics; Sony country economically competitive Ericsson Industry E Commerce globally Reference No. CCA0039C• To understand the factors that made Year of Pub. 2007 China competitive Teaching Note Not Available Nokia vs Motorola (B): Fight for• To analyse the economic benefit and Struc.Assig. Not Available Market Share – Flight of Margins? social cost to china’s economic Keywords Motorola, ranked second in the mobile development and the sustainability of handset industry, launches its fashionable eBay; Business Strategies; Online Auction China’s competitive advantage ultra-slim phone, RAZR. It is a terrific hit Industry; Chinese Internet Market; E• To analyse whether China is losing its Commerce Market; Re entry Strategies; and becomes iconic. Motorola inches competitive edge and measures that Strategy Management; eBayEachNet; closer to Nokia, to topple it from the top China should take to regain/retain its PayPal; eBays Stragegy; Core Competency position. Both slog it out for market share, competitive edge. & Competitive Advantage Case Study; at the cost of their average selling prices TOM Online; Alibaba; Meg Whitman; and operating margins. DebatingIndustry Manufacturing Taobao Motorola’s strategy, this case discussesReference No. CCA0040 whether it can beat Nokia.Year of Pub. 2009 45
  • 46. Pedagogical Objectives Competency & Competitive Advantage • To learn from the company’s growth Case Study; Meg Whitmen strategy how it generated growth, • To understand product innovation and Core Competency and Competitive Advantage maintained margins and managed the growth strategies with respect to the product portfolio MOTO RAZR 3M : Cultivating Core Industry Electronics • To analyse the parameters of Competency Reference No. CCA0035P competition in the mobile handset Year of Pub. 2007 industry, and see the standing of Nokia In 2006, the $ 21.2 billion 3M is the Teaching Note Not Available and Motorola with regard to them epitome of high-technology/low- Struc.Assig. Not Available technology business with over 50,000 • Understand the concept of market share products ranging from Post-it Notes and Keywords and profitability. Scotch tape to transdermal patches of nitroglycerin and optical films. 3M owes 3M; innovation; core competancy; inter- Industry Telecommunication segmnet technology sharing; intellectual Reference No. CCA0037 its formidable strength to its unusual property; 3M Lttice; technology sharing; Year of Pub. 2007 corporate culture, which has comfortably fostered innovation and interdepartmental Core Competency & Competitive Teaching Note Available cooperation, backed by a massive research Advantage Case Study; Scotch brand tape; Struc.Assig. Available and development budget. extending technology; post it notes; Keywords market architecture; competitive When George Buckley (Buckley) joins as platform; Scotch Brite; 3M Scotchshield; Product innovation; mobile handset the CEO of 3M in December 2005, the six Sigma industry; MOTO RAZR; growth Strategies; company is facing criticism from analysts concept of market share and profitability; and investors over anemic revenue growth operating margins; Core Competency & that has slowed to between 1 and 5 % Competitive Advantage Case Study; Battle of the Titans: Lowes vs through parts of 2004 and 2005, even average selling price; Nokia vis-à-vis while the broader markets have been Home Depot Motorola expanding. Buckley realises that he needs The do-it-yourself market was beginning to generate growth, maintain premium to take shape after the Second World War. margins and strategically manage the The post-war economy also gave rise to eBays Competitive Strategies in company’s portfolio – all without driving another form of competition: large, chain- China out 3M’s culture of innovation on which owned hardware stores known as home both the company’s fame and its long centers and resulted in an upsurge of the $4.5 (eBay) is one of the history of success rests. He plans to develop Do-It-Yourself (DIY) market. Lowe’s was largest online auctionand shopping website a growth strategy which is based on and a dominating player in the home where people and businessman buy and sell enhances 3M’s core competency. improvement market. When Home Depot goods and services worldwide. eBay also opened its warehouse stores, it was an own PayPal, Skype, and Eachnet. eBay Buckley realises that there is a need to demystify 3M and understand the workings instant hit and other companies copied the has a global customer base of 181 million. format. Lowe’s also tried copying the The company has 31 websites across the of the ‘3M Lattice’. 3M’s technology portfolio and process capability are at the format in order to prevent downfall of its globe, from Brazil to Germany to China. business. Lowe’s effort paid off. In 2000, core of its unique business model. These eBay was losing market share in China. To technology platforms are the threads that Home Depot’s glory started fading and boost traffic in the worlds second-biggest weave together the company’s diverse Lowe’s was gaining momentum especially Internet market, the company decided to businesses. According to Buckley, 3M’s in the American home improvement form a partnership with Beijing-based Tom fundamental core competency lies in market. To revamp itself, Home Depot Online Inc. With the deal, eBay sought to applying coatings to backings. To grow its was investing on store modernization and establish its leadership in ecommerce core business, the company intends to build also in attracting women customers. On market in China. The case discusses the on 3M’s strengths through constant the other hand, Lowe’s was expanding initiative taken by the company to regain reinvention, even stronger key customer aggressively into new markets and the its market share. partnerships, customisation, solving company also had plans to enter Canada. customers needs, entering niche segments With the home improvement market reaching its saturation, analysts wondered Pedagogical Objectives and capturing new segments.Buckley intends who would sustain. Stiff competition was to build scale increase market share, • The online auction market in China emphasize localisation and build long term another major challenge, so the question competency. The idea is to defend created was who would succeed? • eBay’s localisation strategy markets against new entrants, using dual • Challenges faced by eBay in China branding in the upper middle market; Pedagogical Objectives emphasize product localisation using a • To discuss about the retailing industry • eBay’s venture strategy to establish its mixture of brands and local acquisitions; and housing market in the US leadership in e-commerce market. thoughtfully extend private labeling and Industry Service Industry accurate capacity planning. He has identified • To provide an overview of the various Reference No. CCA0036P core product categories for building scale. strategies adopted Home Depot and Year of Pub. 2007 Lowe’s Teaching Note Not Available Pedagogical Objectives • To analyse the competition between Struc.Assig. Not Available • To examine the working of 3M, a Home Depot and Lowe’s. Keywords company with diversified business Industry Home Improvement presence Reference No. CCA0034B Online Auction; shopping website; EachNet; PayPal; Skype; Taobao; China; • To study how the company used its Year of Pub. 2006 Market Share; Virtual Feedback forum; Core technological prowess to enhance Teaching Note Available business opportunities Struc.Assig. Available46
  • 47. Keywords group of over 200 privately held opposing each other, the alignment to co- S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I companies. It has been involved in more promote their software was intriguing to S T R A T E G Y – I S T R A T E G Y – IHome Improvement market; Core brand extensions than any other major many.Competency & Competitive Advantage brand in the past 20 years. FounderCase Study; Home centers; Home Depot; promoter Richard Branson has extended The case describes how free softwareLowe’s; US retailer; Home Depot vs the Virgin brand to diverse and distinct movement evolved over years and howLowe’s; HR initiatives; Technology enabled businesses such as airline, cola, mobile Linus Torvalds developed Linux, a Unix-supply chain; International Expansion; phone, retail chain, financial services, cars, like OS on Linux Kernel which was freelyFrontrunner; data warehousing and trains, amongst others. According to available and openly editable. The well analysts, the resulting portfolio of documented rivalry between Microsoft and different corporate entities breaks every Open Source software was presented by the case and it compares both Linux and Internal Branding and HRM at established strategic guideline for brand Windows – as operating software. The Virgin extension. The case enables students to efficiency derived by the Microsoft-Novell discuss the brand extension strategiesThe case covers Virgin’s innovative human adopted by Virgin and the role played by alignment by way of virtualization,resource (HR) practices and internal Branson, evaluate Virgin’s business model interoperability, patent coverage and webbranding exercise. A diversified group, with reference to core brand values, services for managing physical and virtualVirgin has over 200 privately held management practices, factors servers for the users of Microsoft Windowscompanies. Founder promoter Richard contributing to its failures or success and and Novell’s Linux seemed to be immense.Branson (Branson) has extended the Virgin the financial ramification of its strategy; The case also outlines the possibility ofbrand to diverse and distinct businesses such and discuss the future prospects of Virgin’s Novell being dissolved into the Microsoftas airline, cola, mobile phone, bridal wear, brand extension, its new foray’s and the amalgam, as many industry analysts haveretail chain, financial services, cars, jeans, future role of its promoter. pointed to such earlier partnerships andtrains, and books amongst others. As deals.Branson extends brand Virgin to new and Pedagogical Objectivesunrelated area, Virgin’s human resource Pedagogical Objectivesmanagement, leadership and brand values • Understand the dynamics of the Virgin Group • Competitive strategies in softwareplay a key role in maintaining its core brand industryvalues. The case enables students to discuss • Discuss the brand extension strategiesVirgin’s innovative HR practices and • Dynamics in Operating and Server adopted by Virgin and the role played byinternal branding strategy, evaluate its network software Industry Richard Branson, its promoterHRM model with reference to recruitment,work culture and role of leadership and • Evaluate Virgin’s business model with • Ethics in software industryspread of core brand values. reference to core brand values, • Development of Proprietary and Free management practices, factors operating software.Pedagogical Objectives contributing to its failures or success and the financial ramification of its strategy Industry Software• Understand the dynamics of the Virgin Reference No. CCA0031C Group • Discuss the future prospects of Virgin’s Year of Pub. 2007 brand extension, its new foray’s and the Teaching Note Not Available• Discuss its innovative HR practices and future role of its promoter – Branson. Struc.Assig. Not Available internal branding strategy Industry Service Industry Keywords• Evaluate Virgin’s HRM model with Reference No. CCA0032P reference to recruitment, work culture Year of Pub. 2006 Microsoft-Novell alignment; Microsoft; and role of leadership and spread of core Teaching Note Available Novell; Linus OS; Windows OS; FOSS; GNU brand values Struc.Assig. Not Available – Free OS project; Halloween documents; OpenSUSE; Core Competency &• Discuss the future prospects of Virgin’s Keywords Competitive Advantage Case Study; HRM model and its internal branding Virgin Atlantic; Virgin retail; Virgin Rail; Virtualisation; Interoperability exercise. Virgin Direct; Virgin Lightships; StagecoachIndustry Service Industry Group; T-Mobile network; CoreReference No. CCA0033P Competency & Competitive Advantage Steel Authority of India: FacingYear of Pub. 2006Teaching Note Available Case Study; Virgin Mobile; NTL-Telewest; New Challenges Virgin ColaStruc.Assig. Not Available The Indian steel industry was the thirdKeywords fastest growing steel industry in the world next only to China. The demand for IndianRichard Branson; Virgin Atlantic; Core Microsoft – Novell Alignment: steel was growing at 8-9 % as against aCompetency & Competitive Advantage The Future of Linux global average of 5-6 %. By 2006, with aCase Study; Virgin retail; Virgin Rail; Virgin Microsoft entered into a working current capacity of 38 million tonnes perDirect; Virgin People; Virgin blue; Virgin agreement with Novell on November 2nd annum (MTA) the Indian Steel IndustryVillage 2006 to build, market and support a series was the 8th largest producer of steel in the of new solutions to make both their world. With capital investments of over products to work together. Both had their Rs. 100,000 crore, the Indian steel industry provided direct/indirect employment to Virgin in 2006: Managing Brand versions of OS and other server software, over 2 million people. Over the years, India Extensions but Microsoft was proprietary software produced international quality steel of whereas Novell dealt with Linux, freeThe case covers Virgin’s brand extension software developed over years of research almost all grades/varieties and had also beenstrategies across the globe. In 2004, the and contributions by millions of software a net exporter of steel, though in smaller$8.1 billion Virgin Group is a diversified enthusiasts. As they were principally quantities. 47
  • 48. On November 4 2005, the Indian India Limited – SAIL; National Steel Policy The Great ‘Wal’ of China: Strong Government gave its approval for the S.K. Roongta; Tata Steel; Mittal-Arcelor’ Enough? Core Competency and Competitive Advantage National Steel Policy (NSP), which aimed plans for India; Joint ventures of SAIL; at hiking production to over 100 Million Natsteel; SAIL’s growth by expansion; Wal-Mart, the Bentonville, Arkansas based Tonnes Per Annum (MTA) to make the SAIL’s growth by consolidation; Coking US Corporation expanded into China in Indian steel industry globally competitive coal requirement; SAIL’s Joint development 1996. On entry Wal-Mart not only faced in terms of cost, quality and product mix. of coal mines; Essar Steel; Cost cutting at intense competition from other foreign The NSP anticipated achieving 100 MTA SAIL’s manufacturing; Foreign acquisitions retailers such as Carrefour and Metro, but by 2019-20 from 38 MTA in 2004-05. On of SAIL; SAIL’s short term strategies also from domestic players like China the demand side, the strategy was to create Resources Enterprise, Hualian and the additional demand for steel through Bailian Group. Even while making the promotional efforts, awareness creation Chinese adapt to American kind of stores, and strengthening the delivery chain, Coca-Cola Sticks to Carbonated Wal-Mart built a strong vendor base especially in rural areas. On the supply side, Beverages localising most of its offerings. Wal-Mart the strategy was to create additional also extended its low pricing strategy to capacity, remove procedural and policy In December 2005, for the first time in China. bottlenecks in the availability of inputs history, Coca-Cola had a market capitalisation which was lower than that The case while detailing the expansion of such as iron ore and coal, make higher of its arch-rival Pepsi. The company’s Wal-Mart to China provides a scope for investments in R&D and human resource market value was $97.9 billion, compared discussion on the strategies adopted by it development and improvise infrastructure to $98.4 billion of Pepsi. This sparked a and its rivals in the competitive Chinese such as roads, railways and ports. The core debate among the analysts about the future retail industry. The case also discusses the of this vision was Steel Authority of India of the world’s largest beverage company. challenges faced by Wal-Mart. Ltd. (SAIL), one of Indian government’s ‘Navratna’ public sector undertakings Only five years back, the market value of (PSU). SAIL’s impeccable record in Coke was three times that of Pepsi. Since Pedagogical Objectives supporting the country’s infrastructural the mid-1980s, Coke concentrated on its • Analyse Wal-Mart’s strategy vis-à-vis growth by innovative metallurgical core business of carbonated soft drinks, local retailers in China products like special alloy steels, was being which generated huge profits for the challenged by its own ageing plants and company. However, in the mid-1990s, • Understand the initiatives taken by Wal- increasing competition. S.K. Roongta, carbonated drinks witnessed slow growth Mart to tackle competition and generate CMD affirmed that by going the merger as the consumers’ preference shifted to business volumes for compounded and acquisition way that other steel sports and energy drinks. Realising the growth. manufacturers preferred, SAIL would also changing trend, Pepsi quickly expanded into non-carbonated drinks, snack foods Industry Retail look for steel plants to acquire. Expressing and restaurant businesses, while Coke stuck Reference No. CCA0028C confidence about SAIL’s opportunities in Year of Pub. 2005 facing up to the new challenges, the SAIL to its cola business. By 2000, Pepsi had a diverse product portfolio which reduced its Teaching Note Not Available CMD confirmed,"We are able to maintain reliance on cola business. The case attempts Struc.Assign. Not Available our market share despite new producers coming up in nineties and we shall continue to highlight Coke’s dependence on Keywords to do so.” carbonated drinks and elaborates on Pepsi’s gradual expansion into other businesses. Wal-Mart; China; Retail Industry; The case also discusses the trends in the Logistics; Sourcing; Infrastructure; Pedagogical Objectives snack and soft drink industries and raises a Competitive Advantage; Market • The case anticipates familiarizing the question regarding how Coke would Environment; Carrefour; Metro; US students on reinforce its leadership position in a slow Model; Globalisation; Localisation WTO; growth market. Shenzhen. • Steel Industry in India and SAIL’s stature in it Pedagogical Objectives • The evolution of SAIL over the years Tata Motors’ Rs. One - Lakh Car • To discuss Coke’s strategies to reduce its • The dynamics of Indian and Chinese reliance on beverages Project: Opportunities & Steel industries Challenges • To analyse Pepsi’s strategy of • The growth route adopted by other diversifying into non-carbonated drinks In May 2006, Tata Motors, India’s largest Indian steel makers and snacks automobile company, announced its first plant to manufacture a small car costing • SAIL’s short term and long term • To understand the repercussions of approximately Rs.1 lakh, causing uproar strategies relying on a single product in the Indian automobile industry. Ratan • Challenges for SAIL • To understand the benefits of an Tata said that the car would create a new extensive product portfolio paradigm in low-cost personal transport, • SAIL’s growth and consolidations plans carve out a new market segment and reach to reach the targets set by NSP. Industry Carbonated Beverages the broader base of the pyramid. Reference No. CCA0029K Industry Steel Year of Pub. 2006 Apart from kindling the interests of millions Reference No. CCA0030C Teaching Note Not Available of future car owners in India, the Rs.1 lakh Year of Pub. 2007 Struc.Assign. Not Available car project of Tata Motors initiated debates Teaching Note Available in the industry about the feasibility of such Struc.Assig. Not Available Keywords a low priced car and its conformity to the safety and emission standards. Established Keywords Coke; Pepsi; carbonated beverages. auto manufacturers felt that Tata Motors’ Core Competency & Competitive project was too ambitious when viewed Advantage Case Study; Steel Authority of against the inevitable price increase of steel48
  • 49. and other raw materials in future. They also • Tata Motors and its various products Industry Online Company S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – Iopined that it would be very challenging for S T R A T E G Y – I S T R A T E G Y – I Reference No. CCA0026Pthe Tatas to retain the price tag. But Ratan • Possibilities for a Rs. One lakh car in Year of Pub. 2006Tata went ahead with the strategic alliance India Teaching Note Not Availablewith Fiat Auto SpA, constructing an • Various challenges such a car would face Struc.Assign. Not Availableassembly plant in West Bengal and looking in the Indian marketfor never-before moves like using Keywordsreengineered plastics and adhesives instead • Opportunities available for the car in Yahoo!; Terry Semel; Online brandof welding metal components to keep the India and markets abroad advertising; Social media; Broadband;car light and affordable. Tata was confident • Technologies and components going Search; Yahoo News; Yahoo Users; Flickr;that his one-lakh car would appeal to the into car making. Konfabulator; Strategy; Yahoo TV;masses, as did his Indica, and would sell in Business Model; Hyperlinks; Blogs.sufficient volumes. Industry Automobile Industry in India Reference No. CCA0027CThe engine for the small car project Year of Pub. 2006codenamed Project X3, was likely to be a Teaching Note Available Toys “R” Us: A “Category Killer”Euro IV compliant, 30-35 bhp, 700cc Struc.Assign. Not Available Killed?petrol engine, The car would have‘continuously variable transmission (CVT) Keywords US-based ‘Toys R Us’ (TRU) was not onlytechnology. Italian design house, IDEA, one of the first toy supermarkets in the Tata Motors; Rs. One lakh Car; Project world but also the No.1 toy retailer in US.which worked with Tata Motors on Indica X3; Indian Automobile Industry; Growth The company was known as a categorywill be designing the aesthetic andaerodynamic model. The other cost- strategy of Carrefour in China; IDEA killer and had ruled the market for years.cutting measure related to the intensive Designer for Tata Motors’ cars; In the late 1990s though, when discountuse of plastics on the body of the car. Reengineered Plastics for interiors; Tata giants Wal-Mart and Target entered theDevelopers for the project were Motors plant; Singur; West Bengal; Two market, TRU started facing problems. The wheeler and Four wheeler Industry in India; company tried to compete with discountersexperimenting on carbon-fiber composites Export possibilities for small cars; Small but its strategies did not work favourablyfrom renewable resources which would offera strong but incredibly lightweight cars; Tata Ryerson and Tata Motorfinance; and it faced financial problems. Thealternative. The company was considering Quadricycles; Aerodynamics and aesthetics situation was so severe that the company3-4 sites to produce the ‘people’s car’, in small car; Automobile consortium in was considering completely selling off itswhose engines and power-train would be India. toys business. The case details thedeveloped in-house. Tata was also reported circumstances that led TRU into problemsto be in talks with the TVS, the Hero and and forced the company to take somethe Kinetic Motor groups to co-invest in Yahoo! – Eyeing the Next Big major decisions. Finally, the case discussesthe assembly facilities in other locations. Thing on Internet the actions taken by the company and itsTata Motors reasoned that by 2008, the plans for the future.launch year of small car, the top-end price After the dismal financial performance infor motorcycles would be Rs. 70,000 to the early 2000s, Yahoo! (Yahoo) is on its Pedagogical ObjectivesRs. 80,000. Hence, a car priced at Rs. 1 way back to profitability in 2003. Underlakh would be a perfect and safer the guidance of Terry Semel (Semel) CEO • To discuss the way TRU revolutionisedalternative. Tata also eyed the possibilities Yahoo, the portal is on the way to becoming the toy retail industry by selling a wideof exporting to south East Asian countries the largest media company in the world. range of toys in one place and becominglike Vietnam, Malaysia and Indonesia. With the spread of broadband, brand a category killer, thereby literally wiping advertising is steadily becoming the largest of small toy stores and departmentAs of 2006, the annual size of the global source of revenue for online companies. As market was around 50 million units, of advertisers flock to Yahoo, Semel has a toughwhich the Asian numbers, excluding Japan • To discuss the concept of specialty task of convincing traditional media, which retailing, get an overview of the US toyand Korea, might be under three million is responsible for most of its content, toindicating the unsaturated nature of the market and competition in the market. continue their relationship with market in Asia. Added to this would be • To discuss the factors that led to athe market of the high priced two wheelers. Semel believes that “Social media” where downfall in the company’s fortunes.A perfect entry price for these populous content is generated by users themselves,countries would be in the range of $2,000- through their photo and video blogs, Industry Toy Retail Industry3,000 which would open up these markets podcasts and hyperlinks, is the “next big Reference No. CCA0025Pand buildup unprecedented volumes. While thing” on the internet both for the user Year Of Pub. 2005India had the engineering skills and and the advertiser. As Semel makes Teaching Note Not Availableinnovative industry leadership, China could investments to make social media a reality, Struc.Assign. Not Availablebe a source for mass manufacturing. An he wonders if his bet will pay off. With so much content being generated in Yahoo, Keywordsalliance which synergizes these abilitiescould create opportunities dethroning will Yahoo be able to maintain the fine Toys R Us; Specialty toy retail; ToyJapan and Korea as automobile leaders in balance between guiding the user to the industry;; Online toy sellers;Asia. A huge market thus developed would most relevant content and its own content? Category killer; Big box stores.have scope for not only Tata Motors, butother players from both the nations. Pedagogical Objectives • To discuss Yahoo’s growth McDonald’s in 2005: SustainingPedagogical Objectives the Growth Momentum • To discuss the competition and changingThe case anticipates familiarising the markets When James R. Cantalupo (Cantalupo) diesstudents on: unexpectedly, the McDonald’s board acts • To discuss Yahoo’s new growth Strategy• The Indian automobile industry swiftly to execute a succession plan that in changing environments. 49
  • 50. Cantalupo himself has put into place. Pedagogical Objectives that Diamonds and De Beers had become However, within months of assuming synonymous with each other. But events • The case outlines Microsoft’s rise, its Core Competency and Competitive Advantage office, Charlie Bell (Bell) discovers he is in the early half of 2000s the monopoly terminally ill and the board offers the job product portfolio and its growth strategy was displaying signs of cracking up. There to James A. Skinner (Skinner), the person • The case discusses Microsoft’s new were new sources coming up, it was difficult being groomed by Bell for the job. The product launches and comparative to control the supplies, the industry was strategy launched by Cantalupo to turn performance of these products against getting integrated vertically, new men like around McDonald’s, which has been the market rivals Lev Leviev were taking De Beers on their struggling in the 1990s, is smoothly own turf and worse the African nations for implemented and even carried forward by • It discusses the reasons behind the producers of diamonds were playing his successors. Despite tZZZZhe Microsoft’s declining profitability. hardball with De Beers. The case examines unexpected departures of its CEOs, four Industry IT(Information Technology) how De Beers built up the monopoly, the CEOs in as many years, McDonald’s Reference No. CCA0023P challenges it was facing in 2004 and whether continues to flourish. The case discusses Year of Pub 2006 it could overcome those challenges. It also McDonald’s succession strategy. Teaching Note Not Available examines whether these emerging cracks McDonald’s prefers to recruit its CEOs Struc.Assign. Not Available indicated decrease in prices of diamonds. from within the organisation rather than from outside. All the McDonald’s CEOs Keywords Pedagogical Objectives have been company veterans, working their way to the top. The case also traces Microsoft; Bureaucratic; Multi-layered; Bill • Can discuss the Monopoly in the McDonald’s growth strategies under its Gates; Ballmer; Operating System; X-Box; diamond industry various CEOs. Small business accounting ; Longhorn; MSN Search; Digital TV; Microsoft Windows; • Can take a look at the Marketing Microsoft Office; Revenue; Technology. strategies of De Beers Pedagogical Objectives • Take a look at how politics and industry • The case discusses McDonald’s succession interact with each other. strategy. McDonald’s prefers to recruit Sirius Satellite Radio: Catching • Role of Governments in fostering cartels its CEOs from within the organisation Up in US Satellite Radio Market rather than from outside. All the • Can examine the economics of the McDonald’s CEOs have been company Sirius Satellite radio Inc., was one of the industry. veterans, working their way to the top two satellite radio providers in the US market. The company had better financial Industry Diamond Industry • The case also traces McDonald’s growth and technical backing as compared to its Reference No. CCA0021B strategies under its various CEOs. only competitor XM Radio. Certain Year of Pub 2004 Industry Retail-Food decisions taken up by the company was Teaching Note Not Available Reference No. CCA0024P the cause of its setback, which allowed its Struc.Assign. Not Available Year of Pub. 2005 competitor to gain a lead in the US market. Keywords Teaching Note Not Available Further, the competition for the company Struc.Assign. Not Available compounded with the entry of new Diamond Industry; De Beers in Soviet technologies such as HD Radios, Union; DeBeers in US; Diamonds Forever; Keywords Podcasting, internet radios. Sirius made Monopoly and Competition; Central James Cantalupo; Charlie Bell; James efforts to catch up with competition in Selling Organization (CSO); Lev Veviev; Skinner; Ray Kroc; Fred Turner; Michael the US market, with better marketing Investment Diamonds; Blood Diamonds; Quinlan; Jack Greenberg; Growth; strategies and innovative contents. Artificial/Synthetic Diamonds; Diamond Competition. Cartels; Integration in Diamond Industry; Pedagogical Objective Diamond Retailing. • To discuss about the US satellite radio Aging Microsoft? era and the radio architecture in Sirius. BPO: Will India sustain its Microsoft, the largest technology company Industry Radio Broadcasting & advantage? in the world, has become bigger, slower Programming and less profitable than it was five years Reference No. CCA0022B By the end of 1990s, India was looked upon ago. The company relies on Windows and Year of Pub 2005 as a prominent outsourcing destination for a suite of desktop applications for 80% of Teaching Note Not Available IT projects. The availability of sufficient sales and 140% of profits. Newer products Struc.Assign. Not Available IT resources, quality manpower at cheap – the Xbox videogame machine, the MSN cost and the key geographical location Keywords benefited India. online service, the wireless and small- business software, have collectively Sirius Satellite Radio Inc.; Satellite Radio The seeds of Business Process Outsourcing accumulated losses worth $7 billion in four Technology; XM Satellite Radio Inc.; US Industry were sown in India, by British years. Analysts point out that Microsoft, Satellite Radio Market; Agere; David Airways, HSBC and GE in 1990s. Gradually with $40 billion in sales and 60,000 Margolese; Joseph P Clayton; Mel the industry grew, as many MNCs employees, had grown multi-layered and Karmazin; Recapitalisation at Sirius; AM; outsourced their IT related lower end jobs bureaucratic. Despite the restructuring FM Radio; HD Radios; Pod Casting; to India. With the growing hype of job exercise undertaken by Steve Ballmer Internet planning at Sirius; Sirius’s alliance attractiveness in the industry, the salary (Ballmer), Microsoft seems to be steeped with automakers. levels of employees increased, which was in bureaucracy. Ballmer plans to launch considered to be a hurdle for the prospects several new products and upgrade the of country. Also, India had to face existing ones. Will Ballmer’s plan succeed in rejuvenating Microsoft’s fortunes and De Beers: End of Monopoly? competition from countries like Philippines, South Africa and China who boosting employee morale? De Beers for long had enjoyed a monopoly were growing fast. What steps would Indian in the diamond industry. It was to the extent50
  • 51. companies take to revive India’s future in consumers and would Yum be successful in Pedagogical Objectives S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – IBPO industry was to be seen. sustaining its competitive position remains S T R A T E G Y – I S T R A T E G Y – I to be seen. • To understand the search engine industryThe case discusses the various parameters structureon which India had gained competitiveadvantage in past. Further, it explains Pedagogical Objectives • To discuss the competitive growthfactors on which the competing countries strategies followed by the market leader • To analyse the Chinese fast food industry Google and the market challenger Yahoowere trying to turn the trend towards them. • To discuss the growth strategies and • To analyse the business models followedPedagogical Objectives competitive strategies adopted by Yum by both competitors and their core Brands in China in evolving as the competencies• To study the various parameters that market leader resulted in the success of BPO industry • To discuss the competitive advantages in India • To identify the challenges that Yum Google and Yahoo had over each other Brands needs to overcome to continue• To study the emerging threats to the its dominance and stay ahead of • To debate on who will dominate the BPO industry in India competitors like McDonald’s and other industry in future and what shape will local favorites. the industry take.• To analyse the competitive advantage of other countries, that competed with Industry Fast Food Industry Industry Information Technology India for their share in the industry Reference No. CCA0019A Reference No. CCA0018A Year of Pub. 2006 Year of Pub. 2006• To analyse the future prospects of the Teaching Note Not Available Teaching Note Not Available India in the global BPO industry arena. Struc.Assign. Not Available Struc.Assign. Not AvailableIndustry Information Technology Keywords KeywordsReference No. CCA0020AYear of Pub 2006 Yum; China; KFC; Pizza Hut; Taco Bells; Innovation; Peripheral Vision;Teaching Note Not Available Long John Silver’s; A&W All-American Diversification in related Industries;Struc.Assign. Not Available foods; McDonald’s; Quick Service Challenging the Leader; Growth Strategies Restaurants; franchisees; strategy; of an Innovator; Competitive Advantage;Keywords localization; supply chain management; Search Engine Industry; Yahoo; Google;Business Process Outsourcing; IT; ITES; human resource management; competitive Search Engine Industry.India; Outsourcing; High talent pool; Value strategy; market leader; new productchain; Cost advantages; IT infrastructure; introduction; healthy nutrition value; multi-branding; bird-flu.NASSCOM. Asia: The Destination for Medical Tourism Yum Brands in China Yahoo and Google: Fight for Asia had emerged as the destination for Dominance medical (healthcare) tourism capitalisingIn 2005, Kentucky, US based YUM! on advantages of “lower cost skilledBrands, Inc. was the world’s largest quick In July 2005, the search engine industry personnel, cultural factors, naturalservice restaurant (QSR) company based ratings showed that the number of searches endowments and unique forms of medicine.”on the number of system units. Yum on Google, the industry leader, had The targeted consumers were patientsdeveloped, operated, franchised and increased by 6%; where as that of Yahoo’s from developed nations where medicallicensed nearly 34,000 restaurants in more had increased by 9% on Q-to-Q basis. treatments were expensive and the waitingthan 100 countries. Four of its restaurant Though Google had 36% market share in lists long. By providing medical servicesbrands KFC, Pizza Hut, Taco Bell and Long Web search in 2004, Yahoo was catching to foreign customers, these countries wereJohn Silver’s were the global leaders of the up fast with 27% market share. not only generating valuable foreignchicken, pizza, Mexican food, and quick- exchange, but were also creating Till 2004, Google had been the undisputed employment opportunities. Thailand wasservice seafood categories, respectively. leader in the search engine industry. A wave the leader in the region, followed byOutside the US, Yum opened three new of mergers, acquisitions, and personnel Singapore and Malaysia and India as therestaurants every day including one changes shook up this ever-volatile preferred destinations for medicalrestaurant per day in China where it was industry and Yahoo emerged as a threat to treatment.the market leader. Google’s dominance. Yahoo was a fullThe case provides the basis for analysing fledged media and information company The benefits of foreign exchange,the sunrise Chinese fast food industry with whereas Google was technology savvy and employment and growth in nationalYum as the focus. The successful strategies was known for its innovation led growth. income, which extended well beyond theadopted by Yum such as localization, With different strengths and philosophies, medical, travel and tourism sectorsowning its supply chain management, the two companies were competing attracted government interest across Asia,effective human resource management etc aggressively in the same market. and efforts to attract medical tourists addedcontributed to its evolution as the market to the growth of the industry. The case describes the growth strategiesleader in China. The challenges Yum faced followed by both players. Google’s Though Asian countries provided cheaperin China were stiff competition from innovation driven growth strategy and medical services, they were also perceivedMcDonald’s and other international and Yahoo’s diversified business model to by some as being manned by low qualitylocal players, growing concerns related to dominate the industry has been compared doctors who provided poor qualitylack of healthy nutrition values of fast food and contrasted. The case highlights the treatment. Pricing of the treatments andand outbreak of bird flu epidemics. Yum competitive advantages Yahoo and Google packages across the region varied. Expertshad plans to introduce its two other fast have in their respective areas. The case opined that the over emphasis on thefood brands, Long John Silver’s and A&W ends with a debate on who would rule the foreign patients who offered higherAll American Food in China. How search industry. revenue compared to domestic patients cansuccessful would these be with Chinese 51
  • 52. be detrimental to public healthcare services to commercial venture in 1998. The user • To understand how a newcomer can in the home country. Despite the issues friendly simplicity and innovative image of challenge and unsettle an established Core Competency and Competitive Advantage and challenges, the region had vast Google was a phenomenal success. By 2005, player. opportunity for growth. Google was a search engine industry leader Industry Microprocessors, and with its innovations in technology and The case describes the growth and reasons new software products, it posed a threat to Microcontrollers & DSPs of the Asian region as a preferred the software giant, Microsoft. Reference No. CCA0015 destination for Medical/Healthcare Year of Pub. 2006 Tourism and the importance of the The case talks about the competitive Teaching Note Not Available healthcare tourism industry in the Asian advantage Google had in terms of Struc.Assign. Not Available economies. The case details the issues and Innovation and technology. The Case challenges for the countries in servicing focuses on the strategies Google used to Keywords the patients. The case ends on the become the market leader in Search Engine Advanced micro devices; Global discussion whether such emphasis on Industry and how it is becoming a threat microprocessor industry; Intel; AMD’s healthcare tourism was diverting the for the market leader (Microsoft) in customer centric innovations; Server; attention and resources of the government Software Industry. It highlights the desktop and notebook processors; from the domestic healthcare needs, challenges faced by Microsoft due to its Competition between AMD and Intel; especially public health. With such lack of peripheral vision. Innovations by AMD; AMD’s core values; competition and challenges, would Asian Competitive advantages of AMD. countries be able to capitalize on the Pedagogical Objectives opportunity and at the same time fulfill the social obligation of healthcare at home? • To discuss and discover the core competency and competitive advantage Nucor Corp.’s ‘Performance- Pedagogical Objectives of Google over its rivals driven’ Organisational Culture: Employee-driven Competitive • To understand the strategies followed by • To discuss the growth and reasons of the the market leader and the market Advantage? Asian region as a preferred destination for Medical/Healthcare Tourism and the challenger of the industry The ninth-largest steel producer in the importance of the healthcare tourism • To confer the peripheral vision Google world, Nucor, began life as a car industry in the Asian economies displayed by venturing into related manufacturer later diversifying into industry (software development) manufacturing nuclear testing and • To analyse the issues and challenges for electronics equipment and ultimately steel the countries in servicing the medical • To analyse and debate on the outcome joist manufacturing. The success of the joist tourist patients of such rivalry in the industry and in manufacturing business led the company • To debate whether such emphasis on related industries. to invest in a new experimental mini-mill healthcare tourism was diverting the technology that used scrap steel to produce Industry Information Technology attention and resources of the steel. With the help of the new technology Reference No. CCA0016A government from the domestic and a unique organisational culture, the Year of Pub. 2005 healthcare needs, especially public health company became the second largest Teaching Note Not Available producer of steel in the US. The Struc.Assign. Not Available • To debate whether with such organisational culture encompassed an competition and challenges, Asian Keywords egalitarian workplace and a decentralised countries will be able to capitalise on organisational structure. The company’s the opportunity and at the same time Innovation; Peripheral Vision; compensation system is strictly based on fulfill the social obligation of healthcare Diversification in related Industries; performance, which helped keep at home? Challenging the Leader; Growth Strategies productivity levels high in addition to of an Innovator; Competitive Advantage; boosting employee morale. The company’s Industry Medical Tourism/ Healthcare Core competency culture has helped increase net income Tourism from $311 million in 2000 to $1.3 billion Reference No. CCA0017A in 2005. But the company’s expansion Year of Pub. 2006 Teaching Note Not Available AMD’s Technological plans overseas and a rigid work culture are Struc.Assign. Not Available Innovations: Converting raising doubts about its sustainability. Capabilities into Competitive Keywords Pedagogical Objectives Advantages Marketing; Destination marketing; • To discuss the role of mini-mill AMD always remained in the shadow of Marketing strategy; Market positioning; technology in the success of Nucor Intel until the launch of its Athlon and Niche market; Public and private sector Opteron processors. Although AMD holds • To discuss how Nucor created a unique involvement; Business strategy; Strategic less than 20% of the global microprocessor organisational culture that fostered management; Core competence; First market vis-à-vis Intels’s 80%, the technical equality mover advantage; Cost advantage; Service; superiority of its products has been accepted Hospitality; Patient feedback; • To discuss how Nucor developed a by the industry. With Hector Ruiz at the Competition; Asian economies; India; competitive advantage by adopting a helm, the company has initiated renewed Singapore; Malaysia; Thailand. performance-based compensation effort in continuing its commitment to customer-centric innovation. system • To discuss the challenges that Nucor Google- Emerging Threat to Pedagogical Objectives might face in an ever-competitive steel Microsoft Monopoly industry. • To highlight the changing competitive Google Inc. started as a research project by dynamics of the global microprocessor Industry Steel Industry Larry Page and Sergey Brin was converted market Reference No. CCA001452
  • 53. Year of Pub 2006 display), which displays information in right Keywords S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I and left viewing directions. Being a global S T R A T E G Y – I S T R A T E G Y – ITeaching Note AvailableStruc.Assign. Available leader in LCD technology, Sharp has also British Broadcasting Corporation (BBC); developed another variety of LCD, which Internet content provider; On-line contentKeywords can be switched between wide and narrow market; Newspaper readership in UK; viewing angles. With a turnover of 2,539 Mandatory TV licence fee in UK;Nucor; Organisational culture; Kenneth Competitive strategies for BBC; John Birt;Iverson; Daniel DiMicco; Lean billion yen by March 2005, Sharp expects additional revenue of about 10 billion yen BBC Worldwide; BBC News Online;management structure and decentralised; UK Internet demographics;management structure; Bonus and from these two innovations by 2006. Content production system of BBC;performance-based compensation; Independent review of BBC Online; MarketIntegrated mills and mini-mills; chief Pedagogical Objective operations of BBC Online; Interactiveexecutive officer (CEO) compensation; technology in BBC.Share the pain; No-layoff policy; • To discuss growth strategy andCompetitive advantage; Core competency innovations of Sharp.and strategic intent. Industry Electronic Components Reference No. CCA0012 Apple’s New Operating System, Year of Pub. 2005 ‘Tiger’: Riding on The Success of Mittal Steel’s Knowledge Teaching Note Available iPod? Management Strategy: Giving it Struc.Assign. Available On April 29th 2005, Apple launched Tiger, a Competitive Edge Keywords its latest operating system. With 200 features, Tiger is the most advanced,Starting from the late 1980s, Mittal Steel Competitive advantage; LCD (liquid crystal powerful and user-friendly operatinghas acquired and turned many steel plants display); Integrated circuits; Consumer system for the Apple’s Mac users to date.around, across the globe. Through its electronics; Optoelectronics; Competitive With innovative features like Spotlight andknowledge management program, which edge; Texas Instruments; Component Dashboard, Tiger is poised to change thewas established in the mid-1990s, the best technologies; High density television way people use computers across the world.practices across the group are shared among (HDTV); Microelectronics; While some opine that Apple has launchedits various plants for improvisation of Semiconductors; Optical communication Tiger ‘about time’ when the company ismanufacturing processes for cost system. basking in the success of iPod, others arereduction. Mittal Steel, whose turnover was sceptical whether the company can make$22 billion in 2004, increased its Tiger as successful as iPod. Besides, Appleproduction capacity from 20 million tons Using Online Presence to Gain is also expected to face competition fromto 70 million tons between 2002 and 2005and became the biggest steel company in Competitive Advantage: The Microsoft, which is expected to come outthe world. BBC Way with ‘Longhorn’, an advanced version of its operating system Microsoft XP. Since its on-line foray in 1998, BritishPedagogical Objective Broadcasting Corporation (BBC) has over Pedagogical Objectives• To highlight the importance of the years transformed its on-line venture from a news and programme support • To discuss the product innovative knowledge management program and its strategies of Apple contribution towards the success of service to UK’s leading-content based Mittal Steel. website. By 2004, it had 525 websites with • To discuss the possible competition from over two million pages of content. Its Microsoft.Industry Steel Production contents span society and culture, soapsReference No. CCA0013 and teen chat to science and nature. With Industry Personal ComputersYear Of Pub. 2005 its broader news content enhanced by audio Reference No. CCA0010Teaching Note Not Available and visual aids, BBC attracts a majority of Year of Pub. 2005Struc.Assign. Not Available newspaper readers, both online and offline. Teaching Note Not Available The viewership of BBC’s news website Struc.Assign. Not AvailableKeywords increased from 1.6 million weekly users in 2000 to 7.8 million users in 2005. This KeywordsMittal Steel; Laxmi Nivas Mittal; Growthstrategies; Ispat International; Knowledge has led to a 30% decline in total newspaper Apple; Tiger; iPod; Operating system;management; Turnaround strategies; Cost readership since 1990 and their on-line sites Technology; Innovation; USA; Strategy;cutting; Largest steel producer; Low cost are believed to face extinction due to the Windows; Longhorn; Macintosh; Personalsteel producer; Mittal Steel’s business rapid decline in advertising revenues. computer; Digital music; Steve Jobs; iTunes.model; Acquisitions; Family business;Competitive advantage; Operations; Pedagogical ObjectivesKnowledge integration. • To discuss the competitive strategies of North America’s Largest BBC Independent Oil & Gas Company, EnCana: Building Sharp: Building Competitive • To discuss the potential challenges that Competitive Advantage through Advantage Through Innovation BBC On-line might face due to rapid increase in various content service ‘Unconventional’ MeansSince its inception in 1912, Sharp providers. EnCana Corporation (EnCana) evolvedCorporation has traditionally been known from being a virtually unknown entity to Industry Television and Internetfor its new categories of ‘never seen before’ North America’s largest independent oil Content Povidersproducts. The latest in its innovations was and gas company. Under the leadership of Reference No. CCA0011unveiled in July 2005, when the company chief executive officer, Gwyn Morgan, Year of Pub. 2005started the mass production of the world’s EnCana developed a strategy of focusing Teaching Note Not Availablefirst ‘dual-function LCD’ (liquid crystal exclusively on extraction of Struc.Assign. Not Available 53
  • 54. ‘unconventional’ or difficult to bring out Year of Pub. 2005 create a digital hub. In the fourth quarter oil and gas at a time when 90% of the Teaching Note Not Available of 2004, Apple released its third generation Core Competency and Competitive Advantage world’s hydrocarbon needs were being met Struc.Assign. Not Available iMAC - the iMAC G5 that resembled the by conventional sources. Over the years, iPod in aesthetics and endorsed it with a EnCana obtained the technology and Keywords tagline ‘From the makers of iPod.’ expertise necessary to profitably develop Audi AG; Mercedes Benz; Bayerische unconventional sources of energy. The Motoren Werke (BMW); Marketing Pedagogical Objective company also acquired substantial land network problems; High profile customers; resources making it the largest holder of German high-end car manufacturer; • To discuss the pros and cons of Apple’s land in the North American region. With Volkswagen; August Horch; Sports utility strategy of leveraging iMAC G5 on the the existing reserves of unconventional oil vehicles (SUV); Big Hairy and Audacious halo effect of the iPod. and gas estimated to be more than twice Goal (BHAG); Martin Winterkorn; Industry Personal Computers the amount of conventional sources, Structural problems and cultural clashes; Reference No. CCA0006 EnCana was poised to achieve Morgan’s Premium automobile brand; High Year of Pub. 2005 vision of becoming a ‘global super- performance luxury cars; JD Power & Teaching Note Not Available independent’ oil major. Associates Inc’s rankings. Struc.Assign. Not Available Pedagogical Objective Keywords • To highlight the evolution of EnCana Toyota in China: Selling at ‘China Apple Computer Inc.; Microsoft Windows; by building competitive advantage. Price’ iPod flat panel iMAC’s; iTools; PowerMac; Halo effect; PC clones; Cross-licensing; Industry Oil, Gas & Energy Toyota has always strived to be a cost and Digital hub and digital lifestyles; Retail Reference No. CCA0009 quality leader. In 2005, Toyota’s new cost- store productivity; Portable music device Year of Pub 2005 cutting initiative comes from China and market; Bundled software package; Steve Teaching Note Not Available its ‘China Price’ has become its new Jobs. Struc.Assign. Not Available benchmark to cut the cost of its auto components further. For this, Toyota has Keywords planned certain cost-cutting strategies that are likely to come across certain Digital Animation: India’s EnCana Corporation; Largest independent energy company; Alberta Energy hindrances. Competitive Advantage Company; Growth expansion and Although computer graphics had been used reorganisation plan; Unconventional oil Pedagogical Objectives in Hollywood motion pictures since the exploration and discovery; PanCanadian late 1970s, it was only towards the end of Energy Corporation; Unconventional oil • To discuss Toyota’s cost management strategies the 1990s that the animation industry and gas energy resources; Acquisition and entered Indian markets. With the growing merger divestment sell-off; Proven oil and • To discuss the challenges for Toyota’s popularity of India as an outsourcing gas reserves; Competitive advantage; Focus new initiatives. destination for technology orientated on core operations; Global super- work, the US and European animation independent oil major; Oil and gas Industry Automobile Manufacturing studios found it profitable to outsource low- exploration rights; Takeover target and Reference No. CCA0007 end work to Indian animation studios like challenges; Rising oil prices OPEC resources. Year Of Pub. 2005 ‘Jadoo Works’, ‘Toonz India’ and ‘Maya Teaching Note Not Available Entertainment Limited’. Despite Struc.Assign Not Available increasing competition from its southeast Audi’s BHAG: To Match the Keywords Asian rivals like Taiwan, The Philippines Exclusive Image of Mighty Benz Toyota production system; Benefits of lean and China, India’s animation industry is expected to grow by 30% to $1.5 billion and BMW – Can it Achieve? manufacturing; Toyota’s CCC21 by 2008. Audi is the high-end German automobile (Construction of CostCompetitiveness for manufacturer and one of the world’s the 21st century); Keiretsu; The Single Pedagogical Objective premium automotive brands. It is a 99% Minute Exchange of Die; Toyota’s cost- subsidiary of Volkswagen, Europe’s biggest cutting strategies; Global Body Line; • To discuss how India emerged as a car maker. The ‘Big Hairy and Audacious Toyota’s component suppliers; favorite destination for companies Goal’ (BHAG) of Audi is to match the Competition in China’s automobile outsourcing animation and digital image of the mighty Benz and BMW. To industry; Sourcing and manufacturing auto content creation work. achieve its goal, the company has adopted parts in China; Toyota’s purchasing Industry Motion Picture Production several growth strategies expanding its philosophy. and Distribution products and markets. Though Audi has Reference No. CCA0005 been successful to a certain extent in Year of Pub 2004 achieving its goal, according to analysts, it iMAC G5’s Success: iPod’s Halo Teaching Note Not Available has yet to overcome several other Effect Struc.Assign. Not Available challenges. In the first quarter of 2004, the sales of Keywords Pedagogical Objectives iPod, Apple Computer Inc.’s most popular digital music player, exceeded that of its Indian animation; SFX (special effects); • To discuss the transformation of Audi Computer graphics; Jadoo Works; Maya unique Macintosh desktops. The increase from an ordinary brand to a luxury brand Entertainment; Outsourcing to India; in total revenues of Apple and the steady sales of iMAC, introduced in the late 1990s India’s competitive advantage; 2D • To discuss the challenges for Audi. animation; 3D animation; Pentamedia during company’s restructuring, was attributed to iPod, which had been an Graphics; Toonz Animation; Cartoon Industry Automobile Manufacturing important spoke in Apple’s strategy to Network; Padmalaya Films; Global Reference No. CCA000854
  • 55. animation industry; IFC (International resulted in a slew of high quality, low cost Year of Pub. 2004 S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – IFinance Corporation). cars from Japan that put enormous S T R A T E G Y – I S T R A T E G Y – I Teaching Note Not Available competitive pressures on carmakers from Struc. Assign. Not Available other nations, especially the ‘Big Three’ (GM, Ford and Chrysler) of the US. Keywords Building Competencies: The Korean Way Chemical Industrial and Pharmaceutical Pedagogical Objectives Laboratories; CIPLA; Generic drugs and‘The East Asian Miracle’, that is how patented drugs; Medecins Sans Frontieres; • To discuss the competitive advantages World Health Organisation; World TradeKorea’s impressive growth performanceover the last four decades is usually of the Japanese Lean production system, Organisation; Yusuf Hamied; Indiandescribed. The case study focuses on the which resulted in the production of high Patents Act 1970; General Agreement onconditions of dynamic industrial changes quality, low cost cars Trade and Tariffs (GATT); Abbreviated newthat helped Korea to catch up with the • To discuss how Japanese manufactures drug application; Zidovudine; Productindustrialised nations in the world. gave competition to the ‘Big Three’ of patents and process patents; Doctors US. Without Borders; Pharmaceutical valuePedagogical Objectives chain; European Commission. Industry Automobile Manufacturing• To discuss the development of Reference No. CCA0003 innovation in a changing environment; Year of Pub. 2004 from dependence upon knowledge Teaching Note Available Taiwan’s Competitive developed abroad, to research as a Struc.Assign. Available Advantage in Liquid Crystal foundation for innovation Displays (LCDs) KEYWORDS• To discuss how the developing countries Liquid Crystal Display (LCD) technology can use the model that Korea followed Toyota production system; Lean first hit the consumer market in the 1960s (the government policies and foreign production; Toyota; Honda; Nissan; in the form of watches, calculators etc. By technology transfer) to catch up with Japanese automobile industry; Kanban; Big the late 1990s, it was widely used in three; Mass production; Lean supply chain; notebooks, PCs, cell phones, personal the developing world. Benefits of lean production; Philosophy digital devices and so on. LCD TVs withIndustry Automobile Manufacturing behind Toyota production system (TPS); their premium price tag represented aReference No. CCA0004 Lean design and development; Kaizen; Just- relatively small segment of the overallYear of Pub. 2004 in-time. television market even in 2003. However,Teaching Note Not Available LCD TV production was expected to go upStruc.Assign. Not Available in 2004. Consequently, prices were likelyKeywords Cipla ‘s Generic Competence to drop to levels affordable to the average customer by 2005. Since the late 1990s, aBuilding competencies; South Korea’s Thanks to the Indian Patents Act 1970, vast majority of LCD products such aschaebols; Duplicative and creative Indian pharmaceutical companies became notebook PCs, cell phones, personal digitalimitation; Technology transfer; Reverse adept at reverse engineering. Minimal devices were made in Asia. As in 2003engineering; Research and development; expenditure on R&D, low labour costs and Taiwanese manufacturers dominated theHyundai; Samsung; LG; Automobile low input costs due to availability of cheap notebook computer industry. This gaveindustry; Semi-conductor industry; indigenous raw materials contributed to Taiwanese LCD-makers a competitiveImitation to innovation; Learning by lower production costs. These factors advantage in the booming LCD TVdoing; learning by research; South Korean contributed to the Indian pharma industry business. However, Korea and Japanexports; Investment driven state; Low cost becoming ‘generics’ driven. The growing dominated the LCD business. Taiwan trailedinvestments; Technology assimilation; problem of AIDS across the world, Japan in LCD technologies. Besidesbuilding. especially in poor countries of Africa, called Taiwan, with its high cost of land and labour for an urgent need of producing affordable was losing its competitive advantage as a drugs to combat the disease. Chemical manufacturing base to China. Industrial and Pharmaceutical Laboratories Competitive Advantages of (CIPLA), the third largest pharmaceutical Japanese Automobile Pedagogical Objective company in India and one of the leading Manufacturers generics producers, offered to supply certain • To discuss the competitive landscape in AIDS drugs to these countries, at about a Asia in the LCD business, with specificDespite a late entry in the global automobile tenth of the price offered by references to the competitive advantageindustry and the devastation caused by the multinationals. This move by CIPLA sent of Taiwan in the technology.two World Wars, Japan’s automobile the big pharma players across the worldindustry witnessed a rapid growth that Industry Electronic Components scurrying to lower their prices and to stoptransformed the country into the world’s Reference No. CCA0001 generic versions of their drugs being sold.leading automobile manufacturer by the turn Year of Pub. 2003of the 21st century. One of the major reasons Teaching Note Not Availablebehind this success had been the radical Pedagogical Objectives Struc.Assign. Not AvailableJapanese production system, devised by • To discuss the factors that made IndianTaiichi Ohno of the Toyota Motor Keywords Pharmaceutical industry generic drivenCompany. The ‘Toyota Production System’ Taiwan; Taiwan’s competitive advantage;or the ‘Lean Production System’, as it was • To discuss how CIPLA utilized Indian Taiwan and LCD; Small and mediumcalled, focused on the elimination of waste Patents Act 1970 to offer drugs at lower enterprises; Cluster; Liquid crystal display;at every step of the manufacturing process, prices and thereby challenging the big Thin film transistor; Plasma display;empowered employees to take decisions for pharma companies of the world. Samsung; LG Philips; AU Optronics; Sharp;solving problems and helped to build Korea; Volatility; OBM. Industry Pharmaceutical Industryconducive relations between the Reference No. CCA0002manufacturers and their suppliers. This 55
  • 56. Pedagogical Objectives Year of Pub. 2007 Teaching Note Not Available • The case discusses the key factors Corporate Strategy Struc.Assig. Not Available driving the printer industry FOPP, UKs Music Retailer (B): The Keywords Costs of Overexposure? • The case analyses the competitors move vis-à-vis HP in the printer industry demand provider; s/w This case is a very good illustration of as a service; end-of s/w slogan; CRM amd what competition does to even an • The case also evaluates the strategies ERP industry; packaged player-SAP; established company. While Case A deeply adopted by HP to stay ahead in the highly oracle; Corporate Strategies Case Study; dwells on the effectiveness of Fopps target competitive market. on demand players-sieble; netsuite; open market selection and its positioning Industry Electronic Industry source players-sugarCRM; business model- strategy thereafter, Case B helps discuss Reference No. COS0065P team edition; professional edition; how valid was Fopps decision to go out Year of Pub. 2007 enterprise edition; Appexchange platform; of business. This case is an antithesis to Teaching Note Not Available extension beyond CRM; the analysis carried out in Case A. While Struc.Assig. Not Available AppExchnage mobile; launch of unlimited Case A stimulates discussion on Fopps edition; pertner edition; mashup with positioning to reach a particular Keywords google; salesforce.coms geographical community, Case B helps in critically extention Hewlett- Packard; HP Laset jet printer; examining the reasons for the music Corporate Strategies Case Study; HP chains closure. Students are also Thinkjet; HP Desk Jet; HP officeJet; encouraged to choose among the three Xerox printers; Lexmark printers; All-in- Managing Product Recall: The available exit options. one printers; multi function printers; HP Dell Way edgeline; Hp inkjet printers; HP Pedagogical Objectives photosmart; Total print management; HP In August 2006, Dell announced a recall of Web JetAdmin; HP OpenView 4.1 million laptop batteries made by Sony • To analyse the reasons for Fopps and fitted in its laptop computers. Dell business model failure said that the faulty batteries might, in rare • To debate and evaluate the surviving cases, overheat and ignite. The recall was’s Million termed as the largest in the history of options available for Fopp. Subscriber Dream consumer electronics and raised fears about Industry Entertainment the safety of laptop computers. The Reference No. COS0066 The case study is about a US based on- demand CRM (Customer Relationship incident also raised questions about Dell’s Year of Pub. 2007 product quality and came as a blow to its Teaching Note Available Management) solution provider company – The company’s flagship efforts to refresh its image and customer Struc.Assig. Available service. In such a scenario, analysts offering is Salesforce automation suite Keywords (SFA) which enables customers to manage wondered how Dell was planning to deal their sales function. with the problem and save its reputation. Music Retailing; Customer Segmentation; Customer Targeting; Niche Marketing; The case study is about the competitive The case primarily discusses how Dell plans Corporate Strategies Case Study; Fopp; strategy of, which is based to manage the entire recall process. It also Bankruptcy; Exit Options; Virgin Records; on the concept of SaaS (Software As a discusses the battery overheating problem HMV; Over Exposure; Unfocussed Growth; Service). SaaS meant offering software as and the recalls announced due to the Positioning a service on subscription basis and not as a problem. product like a software package. Pedagogical Objectives The case study discusses the ERP industry Hewlett-Packard’s Strategy in to which’s competitors • To discuss the impacts of battery recall Printing Business originally belonged to and who have entered on Dell CRM arena also. The case analyses • To understand the strategies adopted by Hewlett-Packard (HP) based in California, vis –a –vis its competitors Dell to recall the batteries US is a global technology solutions and discusses the initiatives launched by provider serving individual consumers, the company to grow beyond CRM to enter • To analyse how Dell handled the entire businesses and institutions. The company other business domains and achieve its recall process followed a strategy of innovating and million subscriber dream and achieve upgrading its products to increase its • To debate whether Dell would be able to revenues of $1 billion by 2007.The case market share. It provided a full range of win back the goodwill of the customers also discusses about the future potential of high-tech equipment, including personal or not. CRM and ERP industries. computers, servers, storage devices, printers, and networking equipment. HP Industry Personal Computers sold over 10,000 different products in the Pedagogical Objectives Reference No. COS0063K electronics and computer field. Since the Year of Pub. 2007 • To discuss strategies adopted by Teaching Note Not Available 1980s, HP’s imaging and printing business vis-à-vis its competitors had been a major contributor to its Struc.Assig. Not Available profitability. But as competition increased • Discuss the initiatives launched by the Keywords with the entry of new manufacturers and company to grow beyond CRM and enter price undercutting HP had to revamp its other business domains Dell; Laptop computer; Battery recall; printers with affordable technologies. The Lithium-ion battery; Sony; Apple • To discuss the future potential of CRM Computer; Notebook battery; Battery case study discusses HP’s strategy to and ERP industries. overheating; CPSC (Consumer Product innovate in order to maintain its market leadership. Industry IT (Information Technology) Safety Commission); Rechargeable lithium Reference No. COS0064P battery; Notebook market share; Corporate56
  • 57. Strategies Case Study; Dell customer underperforming German stores to the core part of its identity and re-branded S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – Iservice; Dell battery programme; PC county’s leading retail chain Metro AG. itself as ‘Beyond Petroleum’ suffered from S T R A T E G Y – I S T R A T E G Y – I(personal computer) market share Wal-Mart which used to operate 85 the worst oil spill. It was later revealed hypermarkets across Germany by, admitted that to put more and more emphasis on that it would incur a roughly US $1 billion cost competitiveness the company failed pretax loss on the deal of its 2007 fiscal to take proper preventive measures toWal-Mart’s Exit from South Korea year. Ever since entering the US retail giant check the corrosion of the oil field.Wal-Mart, the world’s largest retailer was had struggled to capture the cut-throat Analysts opined that though the companygrowing at a rapid pace with more than German retail market. Analysts perceived still believed about its ‘green’ ethos and6100 stores world wide, their net sales that US Model of business was not effective values, it needs to be aligned with thereached to more than US $312.4 billion in Germany besides that they failed to business philosophy that the company(bn) for the year ended in Jan 31, 2006. understand the customer want, and also practiced in the field.Wal-Mart was pursuing aggressive German labor law. Analysts also thought that limited critical mass, insufficient square This case gives in detail about Prudhoe Bayinternational expansion since 1990, but meter productivity and too aggressive incidence, its impact on BP’s ‘green’this strategy was apparently not applicable pricing policy and above all cut throat positioning and environment friendlyto the country of South Korea. The world competition from the local competitors image, strategy taken by BP to win backlargest retailer was pulling out of the like Aldi, Metro AG might cause Wal-Mart’s its ‘green’ image and how the companypeninsula-where it’s wholly owned “Wal- downfall in Germany. planned to prevent similar incidents inMart Korea” arm had struggled since 1998 future without affecting its costas they failed to attract the local customers. This case deals with the detail analysis why competitiveness.The management said that it had agreed to Wal-Mart failed in Germany and its decisionsell its 16 South Korean outlets to Shinsegae,a local retailer, for $882 million after Wal- to exit from Germany was strategically Pedagogical Objectives correct or not.Mart incurred a loss of US $10.58 million • To discuss the importance of integratedin the year 2005, on sales of US $ 802 strategy in the context of Prudhoe Baymillion. Shinsegae was South Koreas largest Pedagogical Objectives incidencediscount store chain and also used to run • To understand the global retail marketthe countrys third-ranked department • To analyse the implication of thestore chain E-Mart. This case gives an idea • To discuss about Wal-Mart’s initiatives Prudhoe Bay disaster in BP’s corporateabout the failed strategy of Wal-Mart, in Germany imageglobally the largest retailer. • To analyse Wal-Mart’s failure in • To discuss the importance of damage Germany control initiatives in the context of BP.Pedagogical Objectives • To argue on its decision to exit from Industry Oil and Gas• To understand the global retail market Germany. Reference No. COS0060K• To discuss about Wal-Mart’s strategic Year of Pub. 2007 Industry Retail initiatives in South Korea Teaching Note Not Available Reference No. COS0061K Struc.Assig. Not Available• To analyse Wal-Mart’s failure in South Year of Pub. 2006 Korea Teaching Note Not Available Keywords Struc.Assig. Not Available• To argue on its decision to exit from Corporate Strategies Case Study; British South Korea. Keywords Petroleum (BP); Alaska Tundra region; Trans Alaskan pipelines; Prudhoe Bay;Industry Retail Wal-Mart; Retailer; Hypermarket; Aldi; Atlantic Richfield Company; Castrol;Reference No. COS0062K Metro AG; Wertkauf; Corporate Strategies Conoco Phillips; Pigging; Ultra sounding;Year of Pub. 2006 Case Study; Interspar; Arkansas; Germany; Couponing; Corrosion; BeyondTeaching Note Not Available Western Europe; Acquisition; Discount Petroleum; BP Exploration (Alaska) Inc;Struc.Assig. Not Available food retail; Pricing policy; German antitrust North Slope law; Every day low pricesKeywordsWal-Mart; Retailer; Wal-Mart Korea; BAE Systems Exits CommercialShinsegae; Discount store chain; E-Mart; BP: Trying to Win Back its ‘Green’ Aircraft ManufacturingPull-out; Carrefour; Tesco; Warehouse Imageformat; E-Land; Corporate Strategies Case Hampshire, UK-based fourth largestStudy; Strategy; Everyday low prices; Since March 2006, British Petroleum’s defense and aerospace company, BAEKorea Makro; Dry goods (BP) pipeline at Alaska Tundra Region, Systems decided to sell its 20% Airbus stake which connected Prudhoe Bay (the biggest for £1.87 billion to EADS. Airbus was going oilfield of US) and Trans Alaskan Pipelines through crisis due to the delivery delays of was virtually collapsed. Surveillance team Wal-Mart’s Exit from Germany jointly operated by BP and government super jumbo A380. Moreover, the valuation of BAE’s stake was much lowerThe world’s largest retailer, Wal-Mart was officials revealed that the six miles long £1.87billion, half of what BAE expected.growing at a rapid pace with more than pipeline connecting the oilfield and the In the industry of defense and aerospace,6100 stores world wide, with the net sales Trans Alaskan pipeline was severely governments played a major role byreached to more than US 312.4 billion for corroded. This led to the decision to close funding the projects or also at times beingthe year ended in Jan 31, 2006. Since 1990, down the oilfield. This incident reduced oil the major customer. BAE’s sale of Airbus’Wal-Mart was pursuing aggressive transportation through the pipeline to one stake marked an end of Britain’sinternational expansion, but the strategy fourth, affected BP’s top-line and bottom- contribution in European commercialwas apparently failed in the country of line and led to a severe PR disaster for the aircraft manufacturing and thereby led toGermany. Wal-Mart was about to take the company. Analysts often wondered how a pressure from the government. In addition,reverse turn in July, 2006 by selling its company like BP, which made ‘green’ a BAE was considering focusing on American 57
  • 58. defense market. The proceeds from the With interests in both the Web properties, Teaching Note Available sale of its Airbus stake were expected to be how would Google strike a balance of Struc.Assig. Not Available Corporate Strategy invested in developing its American interests to leverage significant returns, or business. Many analysts viewed BAE’s step keep the conflict of interests away? Keywords a wrong move. BAE’s decision to quit Hot rolled coils; Ruias; Hazaria; Corporate commercial aircraft market altered its Pedagogical Objectives Strategies Case Study; Floating rate notes; relations with the home government. DR grade pallets • To discuss the Corporate Strategy and The case aims to discuss the corporate goals Conflict Management and steps taken by the company in line with its strategy. • To analyse the impact of Business Fixing Rivalry and Emergence of a New Business Indian Marriages Online Pedagogical Objectives Model. In the traditional Indian society, marriage Industry Digital Media & Entertainment • To understand defense and aerospace was considered as a relationship between Reference No. COS0058A industry and factors affecting it families rather than just two individuals Year of Pub. 2006 and the society did not prefer dating or • To understand the markets for military Teaching Note Not Available free mixing of the sexes. Marriages arranged aircrafts and challenges Struc.Assig. Not Available by families were thus the preferred form • To understand Corporate strategies and Keywords of marriage in the society. Strategic Planning process. (BMC) whereas, Google; You Tube; MySpace; News was an Indian online marriage portal trying Industry Defense and Commercial Corporation; Video Sharing and Hosting to preserve the sanctity of the institution Aerospace Web site; Corporate Strategies Case Study; of marriage while leveraging the power of Reference No. COS0059A User Generated Content; Social Networking technology and the Internet. The case Year of Pub. 2006 Web site; Web Search Engine; Internet discusses the Indian set-up, norms of the Teaching Note Not Available Advertising; Emerging Media Opportunity; society, BMC’s business model and its Struc.Assig. Not Available Corporate Strategy; Conflict Management; growth strategies. It also focuses on the Game Theory; Competitive Strategies; rising competition, changing Indian Keywords Diversification Strategy; Mergers and scenario and the scope of online portals. BAE Systems; Airbus SAS; Boeing co.; Acquisition EADS; Commercial Aircraft Pedagogical Objectives Manufacturing; Defense industry; Commercial Aerospace Industry; Corporate Financial Re-engineering at • To understand the cultural environment Strategies Case Study; Markets; US and UK of India with respect to Marriages Essar Steel markets; Other markets; Industry Exit; • To discuss the Business Model of British Government; MoD; Strategic Essar Steel Ltd. (Essar Steel) is the largest Decision Making; American Defense integrated producer of steel in Western Industry; Transatlantic strategy; Sale of India with a capacity of 4.6 million tonnes • To discuss the growth strategy of Airbus stake; Commercial aircraft projects; per annum (mtpa). Essar diversified its Britain’s Future in commercial aircrafts business by expanding into various sectors. The simultaneous launch of several • To discuss rising competition amongst projects during the 1990s pushed the group various online Indian portals engaged in towards a liquidity crunch. To tide over the business of Fixing Marriages Online. YouTube versus MySpace - the financial crisis, Essar Steel decided to Googles Dilemma avail the option of CDR to get out of the Industry E-commerce Industry Reference No. COS0056P Both, and debt trap and strengthen its balance sheet. Year of Pub. 2006 were the front-runners in the ‘user The case discusses Essar Steel’s financial Teaching Note Not Available generated content’ Web site category, crises and its reengineering. It also discusses Struc.Assig. Not Available which witnessed a significant growth in the how financial problems affected the year 2005-06. Google, the Web search liquidity of Essar Steel and the several Keywords giant, signed a revenue sharing deal with financial strategies formulated by Essar Indian Matrimonial market; Corporate MySpace in August 2006. MySpace owned Steel to tide over the problems. It also Strategies Case Study; Marriages in India; by News Corp, was the number one among helps to evaluate the reengineering strategy desi match maker; Swayamvar; Veri profile; social networking Web sites. In October undertaken by Essar Steel to repay the debt 2006, Google announced acquisition of and expansion of related projects. YouTube, the leader in free video hosting and sharing Web sites, in a $1.65 billion Pedagogical Objectives stock deal. Foster’s Group – A New product • To discuss the expansion strategy of Portfolio Google also had presence in social Essar Steel networking Web site category through Foster’s Group is a leading manufacturer and shared a small market share • To understand the factors lead the Essar of internationally acclaimed brands Foster’s in the free video hosting and sharing Web Steel towards financial crises Lager, Victoria Bitter and Crown Lager and site category • To evaluate the re-engineering Strategy wine brands like Penfolds, Rosemount and adopted by Essar Steel to overcome its Wolf Blass. It was the world’s third most The race to gain maximum number of widely distributed brand. Since 2000, sales eyeballs had brought MySpace and YouTube problems. of international brands had fallen. In a bid into competition with each other. Analysts Industry Steel Industry to increase its sales revenue and market wondered whether Google’s deal with Reference No. COS0057P share, Foster’s decided to consolidate its YouTube would lead to conflict with Year of Pub. 2006 beer and wine business. This case study MySpace and intensify business rivalry. discusses the reasons behind the fall in sales,58
  • 59. its consolidation strategies and its attempts Keywords break even. In 2005, Poste Italiane had S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – Ito become a major player in the wine revenue of US$20,485.2 million and a profit S T R A T E G Y – I S T R A T E G Y – Isegment. Buzz marketing; Viral marketing; tremor; of US$433.5 million. In recognition of its Corporate Strategies Case Study; exemplary turnover, the company was vocalpoint; Steve knoxPedagogical Objectives placed in the list of Fortune 500 companies for the first time in 2006. The case details• To discuss the changing characteristics the various restructuring strategies of the of the global wine industry Lenovo-IBM – Managing two CEO’s. It also provides a brief• To discuss Foster’s Groups strategy to Transition description of the postal service sector of consolidate the beer business the European Union. In December 2004, Lenovo, China’s• To discuss Foster’s Groups strategy to leading personal computer manufacturer Pedagogical Objectives enter the premium wine segment. acquired IBM’s PC division for $1.75 billion. The deal created a $13 billion • To discuss the companys poor financialIndustry Beverege Industry company with 8% share of the worldwide position in the 1990s and the reasonsReference No. COS0055P PC market. The take over involved the behind themYear of Pub. 2006 integration of IBM’s operations andTeaching Note Available • To discuss the corporate restructuring employees by Lenovo. This case studyStruc.Assig. Not Available strategies of its CEOs, Corrado Passera discusses how Lenovo has managed the and Massimo SarmiKeywords integration and the strategies it is adopting to compete in the global market. • To discuss the companys diversificationBeringer Blass wine estate; Carlton & into financial servicesUnited beverages; Lensworth Group; Pedagogical ObjectivesCorporate Strategies Case Study; Scottish • To discuss the HR strategies pertaining& Newcastle; SAB Miller; Mildara Blass; • To understand the Chinese personal to such restructuring.Rosemount; Penfolds; Lindemans computer industry scenario Industry Financial services • To discuss the Lenovo-IBM merger and Reference No. COS0052K its implications on the global personal Year of Pub. 2006 P&G’s Buzz Marketing computer industry Teaching Note Not Available Struc.Assig. Not AvailableThe $57 billion - Procter & Gamble (P&G) • To discuss Lenovo’s strategy to make awas the worlds No.1 maker of household comeback. Keywordsproducts. It had always been a frontrunner Industry IT (Information Technology) Post Italiane; Corporate restructuring;in marketing. It had invented the concepts Reference No. COS0053P Mission; Vision; Banking Industry; Parcelof brand, brand management and the ‘Soap Year of Pub. 2006 Delivery.Opera’. The company had recently Teaching Note Availableresorted to ‘Buzz/Word-of-mouth Struc.Assig. Not Availablemarketing’ as its latest experiment toattract consumers. P&G had set up Tremor Keywords Posco: Moving Towards Rawand Vocal point wherein it encouraged Materialteens and moms respectively to talk to Legend Computers; Think Vision; Thinkpeople, about everything - from the Pad; Corporate Strategies Case Study; Think South Korea based POSCO, the fifth largestproducts to anything under the sun. The Vantage; Think centre; Aptiva; Netvista; steel producer of the world, planned to setinitiative was turning out to be a huge Lenovo 3000 series; Think centre E series; up a steel plant of 12 million tonnes persuccess, once again making P&G the V series annum (mtpa) at Paradeep, India. This U$pioneer for moving away from traditional 12 bn investment is POSCOs firstmediums of marketing and opening up new investment outside its home country, Korea. The company chose India as itsavenues. The case discusses P&G’s previous Poste Italiane: A Story of raw-material source due to her high qualitymarketing innovations, the business Corporate Metamorphosis iron-ore reserves. The company plannedmodels of Tremor and Vocal point and theoppositions that it faced from certain In 1990s, Poste Italiane, the largest to produce primary steel in India andsegments. company of Italy, was facing huge financial transport the semi-finished steel to its losses. It was one of Europes most inefficient manufacturing facility in Korea. Analysts opine that the new initiatives will helpPedagogical Objectives companies and was synonymous with long queues at the post offices, not so polite POSCO to compete more effectively with• To understand the concept of Buzz clerks at the customer interaction help desks BaoSteel, Mittal Steel and Arcelor in the marketing and late delivery of mails. However, efforts South-East Asian market. But a group of directed towards financial and operational analysts are skeptical whether POSCO can• To discuss various marketing initiatives successfully leverage its U$12 billion revival of the company started in 1998 when by P&G investment as it envisaged. The case Corrado Passera (Passera) took over as the• To discuss the business model of Tremor CEO of the company. Passera undertook a provides a scope to students for discussing and Vocalpoint number of strategies to restructure the the recent trends in the global steel industry. organization and diversified into financial It also analyzes how POSCO plans to• To evaluate the factors behind the services. In 2002, Massimo Sarmi (Sarmi) leverage its investment and the challenges success of Tremor and Vocalpoint. succeeded Passera as the next CEO. He it might face to accomplishing its further strengthened the company’s objectives.Industry FMCG IndustryReference No. COS0054P operation by reinforcing the financialYear of Pub. 2006 division and upgrading the information Pedagogical ObjectivesTeaching Note Available technology infrastructure. From 2003, such • To discuss the trends and pattern ofStruc.Assig. Not Available corporate makeover strategies had started global steel industry delivering results, when it attained its first 59
  • 60. • To discuss how control over raw material Keywords Pedagogical Objectives act as a key growth driver in global steel Multi-fibre arrangement; Exports; Quota. • The case traces the growth of Canon, Corporate Strategy industry discusses its innovations and success • To discuss the value chain of the global strategy. It outlines why the deal is steel industry important to all the players, and what is EDS in 2005: Jordan’s Challenge at stake for them • To discuss the key growth factor in global EDS, the second largest global technology steel industry • The case also discusses the Canon’s services company in the world has been in efforts to maintain market leadership • To discuss how steel companies plan to a financial mess since 2001. After three in existing product categories, through integrate backward years of putting out fires, Michael Jordan enhancement of product development (Jordan) CEO EDS, who had been brought • To discuss the key factors that a steel capabilities and product price in two years ago to turn EDS around, has company judge before investing and plan competitiveness. It also discusses finally unveiled a plan to revive growth. to leverage it. Canon’s efforts to carve a place for itself He has cut costs and streamlined processes, in the flat-screen-TV market. Industry Steel but the changes have not been visible in Reference No. COS0051K the firm’s balance sheet. Industry Digital camers,TV, Photocopier Year of Pub. 2006 Reference No. COS0048P In 2005, Jordan has come up with a novel Teaching Note Not Available Year of Pub. 2006 idea of selling EDS as the leader of a Struc.Assig. Not Available Teaching Note Not Available federation dubbed the Agility Alliance. The Struc.Assign. Not Available Keywords 10 key partners in the group push each others’ products. Jordan hopes his new Keywords POSCO; primary steel making; secondary initiatives would succeed in reviving growth steel making; value chain analysis; slab. otherwise EDS may enter a “downward Canon; Fujio Mitarai; digital camera; spiral”. Can Jordan turn around EDS by excellent global corporation; three 2006? regional headquarter system; SED technology; photocopiers; TV; Japan; Indian Textile Industry: optics; strategy; call system of production; Implications After MFA Phase out Pedagogical Objectives Join Logistics System. In January 2005, with the phase out of the • The case traces EDS’ growth, its decline Multi Fibre Agreement (MFA), the quota and Jordan’s turnaround strategy of system in the world textile market came cutting costs and streamlining processes Infosys Foundation: In For a – (but the changes have not been visible to an end. In the post quota era, Indian Systematic Service textile exports were expected to increase in the firm’s balance sheet.) from US$15 billion in 2005 to US$50 Infosys Foundation, the philanthropic arm • It also discusses EDS’ new strategy, the billion by 2010. India had the advantage of Infosys Technologies Ltd. (Infosys), was advantages of the agility alliance and of low cost labour, availability of raw founded in 1996 with an aim to serve the persisting challenges before the company. materials in abundance, and society it operates in. The primary focus encouragement by the government. India Industry IT (Information Technology) areas of the Foundation were health care, also had a significant presence in the global Reference No. COS0049P social rehabilitation and rural uplift, textile market. However, India lacked Year of Pub. 2006 learning and education, and preservation infrastructure and modern technology. The Teaching Note Not Available of art and culture in India. The case study case discusses the opportunities and Struc.Assign. Not Available tries to give a holistic account of the challenges for the Indian textile industry specific efforts made by the Foundation in Keywords this direction. The case also discuses the in the post quota era. It also throws light on the strategy adopted by Indian textile EDS;Michael Jordan; Strategy; Growth. philanthropic nature of Infosys’ social majors and small and medium enterprises initiatives and exemplify them from a wider and discusses whether the removal of the perspective. MFA will be a gain or a loss for the Indian Canon in 2006 – At Crossroads? textile industry. Pedagogical Objectives In 2006, Canon is the world’s largest selling • The areas in which the Foundation Pedagogical Objectives digital camera company. Fujio Mitarai works (Mitarai) Canon’s CEO since 1997 has • The case discusses the opportunities and single-handedly transformed the unwieldy • The potential areas in which the focus challenges for the Indian textile industry debt-laden company into one of Japan’s of the Foundation can be concentrated. in the post quota era most profitable companies. However, Mitarai’s success has brought him new Industry Not Applicable • It also enlightens on the strategy adopted Reference No. COS0047B by Indian textile industry challenges. It needs to maintain its lead in existing product categories and look for Year of Pub. 2005 • The case also discusses whether the new areas of growth. To address the latter, Teaching Note Not Available removal of the MFA will be a gain or a Mitarai has made heavy investment in a Struc.Assign. Not Available loss for the Indian textile industry. new technology called surface-conduction Keywords electron-emitter display, or SED, which he Industry Textile believes will enable Canon to carve a place Corporate Philanthropy; Philanthropy in Reference No. COS0050P India; Health care; Social; rehabilitation; for itself in the flat-screen-TV market. To Year of Pub. 2005 Rural uplift; Learning and education in maintain market leadership in existing Teaching Note Not Available product categories, Canon is focusing on India; Preservation of Indian art and Struc.Assign. Not Available enhancing each business’s product culture; Systematic service; Foundation; development capabilities and product price Infosys Technology; Sudha Murthy. competitiveness.60
  • 61. Warehouse clubs in the US • Having been successful in the CDMA McDonald’s Localization Strategy:Brand Unification, Menu S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I market, would LG be able to compete S T R A T E G Y – I S T R A T E G Y – IWarehouse clubs in the US registered aphenomenal growth during the last decade effectively in the GSM market? Diversification?of 20th century and the early decade of Industry Mobile Handset McDonald’s, the world’s leading fast-foodthe 21st century. Costco, Sam’s club and Reference No. COS0045B retailer with 30,000 restaurants in 119Berkley and Jansen (BJ’s) were the three Year of Pub. 2005 countries, has successfully maintained itsleading warehouse clubs in the US. Teaching Note Not Available global brand identity by standardizing itsWarehouse clubs operated as no-frills, self- Struc.Assign. Not Available principles and service quality but customizingservice format which offered lower prices Keywords its offerings across the globe. The highlightas compared to other retailers. It offered a of McDonald’s localization strategy has beennarrow assortment of branded food and LG; Indian Telecom; LG Electronics India its foray into Asia where it has survived andgeneral merchandise items within a wide Ltd; GSM Segment; CDMA Segment; has repeatedly proved itself vis-à-vis otherrange of product categories. Customers Nokia; Samsung; Indian mobile Handset big food retailers who have failed due towere limited to members who paid an Industry; Benq Reliance Infocomm; Tata their inability to adapt to Asia’s diverseannual fee. Warehouse clubs redefined Teleservices; Chinese Handset Market; cultures, tastes and temperaments.discounting and many retailers were Global Player in India.interested in its business model. Pedagogical ObjectivesPedagogical Objectives Master Card in 2005 • To understand the importance of adaptation to local culture, tastes and• The state of wholesale club industry in MasterCard, the world’s second largest preferences for global food retailers the US credit card association announced plans for • To understand how McDonald’s has• Business strategy of warehouse clubs. its IPO by early 2006. It faced stiff maintained uniform brand identity across competition from the market leader VisaIndustry Retail the globe while customizing its menu to and other rivals. The IPO was announcedReference No. COS0046B suit local tastes at a time when various lawsuits filed by itsYear of Pub. 2005 rivals and its merchants were ongoing. Also • To analyse whether McDonald’sTeaching Note Not Available the US credit card industry was going localization strategy would prove to beStruc.Assign. Not Available through a wave of consolidation. a disadvantage in case the brand loses itsKeywords unique American appeal. The case describes the industry structure of the credit cards, the present organization Industry Fast Food & Quick ServiceWarehouse clubs; Costco; Sam’s Club; BJ’s; structure of MasterCard and the proposed RestaurantsMerchandising; Business Model; Wholesale one after the IPO. The case also describes Reference No. COS0043club industry; Discounting; No-frills; Self- the competitive landscape of the industry Year of Pub. 2006service formats; Membership; Distribution; and the critical factors affecting it. The Teaching Note Availablesupply chain; Retail in the US; Same store core of the case is the proposed IPO of Struc.Assign. Availablesales. MasterCard which is looked upon by analysts as a move by MasterCard to regain Keywords its dominance, insulate itself against the ‘I’m lovin’ it’; Balanced and active LGEIL in the Indian Handset lawsuits and evolve with a new organization lifestyles; Localisation strategies of Market structure. McDonalds’s in Asia; McDonald’s ‘HappyIn 2003-2004, the Indian mobile handset Price Menu’ in India; Food studios; Pedagogical Objectives McDonald’s on the move; Localising theindustry with a growth of 568% was thesecond largest market after China. There on-line world; The McDonald’s way; The • To understand how card credit industrywere around 20 handset companies in the 5P’s (product, price, promotion, place, operatesGSM segment and around 10 players in the people) of McDonald’s; The QSCV (quality,CDMA segment. LG, a Korean player • To understand survival strategies service, cleanliness and value) Principle;entered the Indian market with the CDMA Menu customisation; Flexible operating • To understand brand management platform.segment in collaboration with the serviceoperators, Reliance Infocomm and Tata • To debate issue related to corporateTeleservices. LG Electronics India Ltd., governance.(LGEIL) captured 66% market share in the Industry Credit Card Industry Philips Electronics NV: WeighingCDMA segment compared to Samsung who Reference No. COS0044A the Strategic Options forhad a market share of only 15.2%. Having Year of Pub. 2006 Semiconductor Divisiontasted the initial success in the CDMA Teaching Note Not Availablemarket, LGEIL entered the GSM market. The semiconductor industry is considered Struc.Assign. Not AvailableThe case gives in-depth information on the a highly volatile industry. There aretelecom environment in India, and the Keywords frequent changes in technology, whichgrowth of the handset market in India. The constantly influence demand and discusses on the various initiatives taken MasterCard; Visa; Initial Public Offering Philips failed to sustain its semiconductorby LG in the GSM market. (IPO); credit cards; competition; industry division in the light of these fluctuations. structure; consolidation; financial The huge investment requirement and the institutions; restructuring; organizationPedagogical Objectives volatile earnings further compounded their structure; debit cards; corporate problems. In 2005, Philips Electronics• The nature and characteristics of the governance; electronic payment systems; decided to separate its chip division as an Indian mobile handset market credit card history; Discover. independent legal entity. The company has• LG’s strategy to retain its position in the options to go for an IPO, merger or a the CDMA market spin off. Analysts speculate that a merger might be the one chosen in the end. 61
  • 62. Pedagogical Objectives company, has focused on its core business Keywords of express delivery. Although, the growing • To understand the reasons underlying Honda; Acura; Legend; Toyota; Lexus; Corporate Strategy international trade and increasing demand Philips’ decision to divest its for custom-made services have driven Luxury car market; US; Japan; BMW; semiconductor division various dominant players like DHL, UPS Mercedes; Audi. • To discuss the different strategic options and TNT to establish themselves as a available to Philips for consideration. ‘one-stop shop’ for all the logistics requirements of their customers, FedEx Big Media’s ‘On-demand’ Industry Semiconductors has limited itself to the small package and Entertainment: What’s the Reference No. COS0042 light freight markets. This policy of the Business Model? Year of Pub. 2006 company has raised doubts about the Teaching Note Not Available prudence of its decision. In the past, nearly every dollar that Struc.Assign. Not Available television networks used to earn came from Keywords Pedagogical Objectives commercials. However, with the fragmentation of the market, advertisers Philips; Semiconductor industry; IPO • To highlight the changing trends in the were growing reluctant to pay for a general (initial public offering); Merger; Spin-off; global express parcel delivery industry audience who were tuning out from their Europe; Competition; Expansion; messages. As a result, top US television • To discuss the rationale behind FedEx’s Electronics market; Recovery plans; networks like NBC Universal, CBS decision to stay tuned only to its core Research and development; Investments; Broadcasting and ABC had abandoned their business. Acquisition. age-old policies and practices of Industry Express Delivery Services broadcasting, to make available their top Reference No. COS0040 shows via video on demand (VOD) services. At the end of 2004, there were 7.5 million Porsche’s Investment in Year of Pub. 2006 Teaching Note Not Available cable-based VOD users worldwide, and the Volkswagen: Moving Away from Struc.Assign. Not Available number was expected to grow to 13 million 911? by the end of 2005 and 34 million in 2009. Keywords But one thing was missing – the business In October 2005, German luxury sports- car maker Porsche, increased its stake in Federal Express; Global express delivery model. mass-market car maker Volkswagen to industry; Transportation services; One- 18.53%, with an option to acquire an stop shop for all logistics services; Supply Pedagogical Objectives additional 3.4%. Porsche’s chief executive chain and warehouse management; Role • To highlight the trend of on-demand officer Wendelin Wiedeking maintained of express delivery service; United Parcel entertainment and the challenges faced that the move was to protect its business Service; DHL and TNT; Frederick Smith; by the industry in the absence of a model and to give the company long-term International trade and globalisation; Hub business model stability. Analysts were sceptical about the and spoke model; Third party logistics profitability of this venture and more about providers; Key stages in express delivery; • To discuss the feasibility of a business the risk that Porsche’s image could suffer Federal ground; Competitive strategies. model for the on-demand service from close association with Volkswagen. companies. That voiced diversification meant that Industry Broadcasting Porsche faced the same threats of brand Honda: As Acura in USA and as Reference No. COS0038 dilution, rising costs and lower margins as Legend in Japan? Year of Pub. 2005 bigger car makers. Teaching Note Not Available In late 2005, Honda announced that in Struc.Assign. Not Available Pedagogical Objective 2008, it would launch Acura, its highly successful brand in the US market, in Japan. Keywords • To discuss the future of the Porsche- By launching Acura, Honda plans to foray Volkswagen alliance and the challenges into the Japanese luxury car market that On-demand entertainment; Video on faced by Porsche as it moves away from has been dominated by the US and Demand (VoD); Business model; Revenue its ‘911’ (luxury sports car) image. European carmakers. However, analysts are model; Market fragmentation; sceptical about the success of Acura amidst Cannibalisation; Customer retention; Industry Automobile intense competition in the Japanese car Distribution network; 20-120 rule; Free on Reference No. COS0041 market and Japanese loyalty to imported Demand (FoD). Year of Pub. 2006 Teaching Note Available brands like BMW, Mercedes and Audi . Struc.Assign. Available Pedagogical Objectives Infineon, The German Keywords Chipmaker’s Troubles: The • To highlight the competitive landscape Porsche; Volkswagen; Automobile; Luxury of the luxury car market in Japan Strategy Dilemma sports car maker; Mass-market car maker; • To discuss Honda’s strategy to win a share Uncertainty loomed over the German Diversification; Diversification risk; Brand in the domestic luxury car market of chipmaker Infineon, as the market for management; Positioning; Alliance. Japan. DRAM (Dynamic Random Access Memory) chips were on a long-term Industry Automobile Manufacturing decline. Squeezed by tough competition FedEx, The US Express Parcel Reference No. COS0039 from Asian competitors and declining prices Carrier: Rationale Behind its Year of Pub. 2006 of memory chips, Infineon decided to Strategic (Non) Expansion Teaching Note Not Available withdraw from the memory chip business, Struc.Assign. Not Available which contributed 40% of its revenues. Since its inception in 1971, FedEx, the world’s leading express transportation62
  • 63. Pedagogical Objective Canada. Since its inception in 1966, Best Keywords S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I Buy has grown through customer S T R A T E G Y – I S T R A T E G Y – I• To discuss the concern of Infineon’s orientation by developing many concept Global personal computer PC (personal stakeholders and the strategic dilemma stores. However, due to competition from computer) industry; US PC industry; Direct facing the company, as withdrawal from specialty retailers and discount retailers in marketing at Dell; Virtual integration at the memory product business would the US, Best Buy’s market share started Dell; Competitors of Dell; Converging reduce Infineon to a much smaller eroding. To fend off competition, in 2004, digital technologies; Price competition for company manufacturing logic chips. Best Buy developed a new customer centric Dell; Product differentiation at Dell; Global segmented stores model in selected expansion at Dell; Hewlett and Packard;Industry Semiconductors markets, which were designed to target Apple; Dell’s kiosks in US malls; SupplyReference No. COS0037 specific consumer segments like women chain management at Dell; Dell’s customerYear of Pub. 2005 and urban youth. satisfaction.Teaching Note Not AvailableStruc.Assign. Not Available Pedagogical ObjectivesKeywords Interpublic (USA), the World’s • To highlight the growth strategies of Third Biggest Marketing ServicesInfineon Technologies; Chipmaker; DRAM Best Buy(Dynamic Random Access Memory) chips; Group: The Perils of RecklessValue chain; Spin-off; Market saturation; • To discuss the ‘customer centricity’ Global ExpansionPricing pressure; Memory chips; Logic chips; model of Best Buy as a tool to sustain itsResearch and development. future growth. Since 2002, after the class action lawsuits against it and the investigation by US Industry Electronics and Appliances Securities and Exchange Commission on Retail its accounting irregularities, Interpublic Cartridge World, The Australian Reference No. COS0035 Group, the world’s third largest marketing Cartridge Refilling Company’s Year of Pub. 2005 services company, has been struggling to Business Model: Can it Sustain? Teaching Note Not Available make its records consistent with the US Struc.Assign. Not Available GAAP. In September 2005, InterpublicDigital-based inkjet and laser printing is being restated its earnings for the period 2000-done at an increasing rate worldwide. Coupled Keywords 2004, which led to the reduction of $514with the high cost of ink cartridges, million in its earnings. The accounting woes Best Buy; Customer centricity model;manufacturing inkjet cartridges has become stemmed from reckless global expansion Growth strategies; The segmented stores;an extremely profitable business for printer initiatives of Interpublic in countries like Customer focus; Concept stores; Supermanufacturers. However, the exorbitantly Azerbaijan, Bulgaria, Kazakhstan, Ukraine store format; Speciality retailers; Discounthigh cost of ink cartridges has resulted in and Uzbekistan, where accounting retailers; Competition; Acquisitions;customers shifting to the concept of practices are different from those in the Competitive advantage; Customerrefilling ink cartridges that are done at half US. The company lost clients like GM, orientation; Brad Anderson; Servicethe cost of a new cartridge. Cartridge World, Unilever and Bank of America, which Australian company that operates in affected its brand equity and increased itsmany countries through franchise stores, debt burden.leads this business model. Dell’s Dilemma: Corporates or Pedagogical ObjectivePedagogical Objectives Consumers? • To discuss the negatives of reckless global• To discuss the new business model Since its inception in 1984, Dell has been expansion by a corporate and the adopted by Cartridge World a pioneer of direct selling of computers to resulting factors which could affect a large enterprises on a global scale. While• To discuss whether Cartridge World, corporate’s brand image. large enterprises contributed 85% to its leveraging on its new business model, revenue, retail consumers contributed the Industry Advertising and Marketing can compete with big printer rest. However, since late 2005, with the Reference No. COS0033 manufacturers like Hewlett Packard. personal computer (PC) consumer market Year of Pub. 2005Industry Printing Imaging Equipment outpacing the corporate market in growth, Teaching Note Not AvailableReference No. COS0036 Dell is striving to focus more on the Struc.Assign. Not AvailableYear of Pub. 2006 consumer markets through innovative product offerings. KeywordsTeaching Note Not AvailableStruc.Assign. Not Available Interpublic; Global expansion; Marketing Pedagogical Objectives services; Inorganic growth strategy;Keywords Acquisition; Sarbanes Oxley Act; US GAAP • To highlight the growing importance ofBrick and mortar concept; Competitive (generally accepted accounting principals); the consumer markets for the global PCadvantage; Cash cow; Low cost strategy; Marketing communications companies; industryQuality; Competition; Franchising; Lowe Worldwide; WPP; Omnicorp;Business model; Customer service; Business • To discuss the strategies of Dell to Strategy.ethics; Hewlett-Packard (HP); Canon; balance between its traditional enterpriseCompetitive strategy. market and the new technology savvy consumers. The Changing Style: Versace’s Industry Information Technology Veracity? Best Buy’s ‘Customer Centricity’ Reference No. COS0034 Founded in 1978 as a small boutique in Model: The Segmented Stores Year of Pub. 2005 Milan, Versace grew over the years through Teaching Note AvailableMinneapolis-based Best Buy is a leading Gianni’s ‘daring design innovations and Struc.Assign. Availableconsumer electronics retailer in the US and clever publicity’, clocking revenues of 63
  • 64. $533.8 million by 1997. However, with John Browne; Russian oil industry; Chinese • To discuss the challenges that it might the murder of Gianni Versace in 1997, the oil industry; Indian oil industry; Sinopec; face in a highly competitive industry in Corporate Strategy company started witnessing declining sales, Hindusthan Petroleum Corporation Ltd; transition. accumulating debts that touched £83 Government subsidy; Mergers. Industry Retailing million by the end of 2003. However, under Reference No. COS0029 Giancarlo Di Risio, who was appointed as Year of Pub. 2005 the new chief executive officer (CEO) in Google’s Grand Moves: Are they Teaching Note Not Available September 2004, Versace witnessed a 21% increase in retail sales in the first quarter Strategic? Struc.Assign. Not Available of 2005. The company expects to break To widen its revenue base, Google has Keywords even by 2007. recently diversified into a variety of businesses ranging from wireless Internet US coffee retail market; US music industry; Pedagogical Objectives access and mobile devices to operating Global expansion of Starbucks; Competitive advantage of Starbucks; systems and e-commerce. However, despite • To understand the growth of Versace Product lines of Starbucks; Starbucks’ brand having the highest brand recognition, with under Gianni 300 million users worldwide, Google is facing extension; Music record labels; Breakeven stiff competition from other search giants of revenues at media bars; Third place • To discuss the restructuring strategies experience at Starbucks; Starbucks’ adopted by his sister Donatella and the like Microsoft and Yahoo!. Additionally, the maturing of the paid search listings market customers; Starbucks Hear Music coffee new CEO to revive Versace after the houses; Starbucks Hear Music media bars; death of its founder. might prove to be a limiting factor for the Antigone Rising; Genius Loves Company future growth of the company. Industry Apparel Reference No. COS0032 Pedagogical Objectives Year of Pub. 2005 Dell’s Service Business: Teaching Note Not Available • To highlight the expansion strategies of Duplicating the Low-Cost PC Struc.Assign. Not Available Google Model Keywords • To discuss the potential benefits that By following its Dell Direct or Low-Cost Google might accrue from its expansion Gianni Versace; Donatella; Restructuring PC Model, Dell became the number one initiatives in the future and its imminent strategies; Italian fashion industry; Medusa seller of personal computers. For its challenges. logo; Apparel market; Family-run businesses; services business, Dell went on to duplicate Design innovations; Advertising strategies; Industry Internet Search and Navigation the model and the business posted a profit Richard Avedon; Competitive strategies of Reference No. COS0030 of $3.7 billion with a 30% growth rate in Versace; Entrepreneurship; Giancarlo Di Year of Pub. 2005 2005. The company was confident that Risio; Divestments of Versace products lines; Teaching Note Available the model was successful for its services Importance of customer research. Struc.Assign. Available business and analysts expected this business to double in size by 2010. However, critics Keywords were sceptical about the future of Dell’s services business and the applicability of BP - John Browne Bets on Asia: Global search engine industry; Yahoo!; the model. The Strategic Logic Microsoft; eBay PayPal; Expansion strategies of search engines; Business To fuel its growth, BP (British Petroleum) strategies of search engines; Market entry Pedagogical Objectives started expanding its operations in Asia, strategies; Services and products; • To enable understanding the intricacies especially in the lucrative markets of China Acquisitions; Diversification; Froogle; of the Dell Direct Model and the way and India. BP entered into joint venture Revenue model; Competitive strategies; Dell was duplicating it in the services deals in the downstream sector, with local Search engine war; Google IPO (Initial business companies in both these countries. Public Offering). However, BP was not granted significant • To highlight the challenges that lay access in the domestic oil industry in these ahead for Dell’s services business countries, especially in the upstream sector. Starbucks’ Music • To discuss whether Dell’s services Also, the margins on the downstream operations were lower than the upstream (Mis?)Adventure business would be as successful as its operations. hardware business and the appropriate During the 1990s, due to customer demand, of its business model. Starbucks started selling compilation CDs Pedagogical Objectives of the music that it played in its stores. By Industry IT Services the turn of the 21st century, Starbucks Reference No. COS0028 • To explore the strategic logic behind BP’s acquired a CD catalogue company, launched Year of Pub. 2005 expansion into Asia an FM music channel, opened music media Teaching Note Not Available • To discuss the potential of such an bars in 45 of its stores in Seattle and Austin Struc.Assign. Not Available expansion and the future of BP in Asia. and successfully released and marketed new albums of established as well as aspiring Keywords Industry Energy artists. However, Starbucks faced stiff Dell’s service business; Dell Direct; Dell’s Reference No. COS0031 competition from music and non-music low-cost PC model; Dell effect; Dell’s build- Year of Pub. 2005 retailers who offered on-line music at lower to-order system; Michael Dell; Managed Teaching Note Not Available prices and user-friendly technology. services; Support services; Professional Struc.Assign. Not Available services; Deployment services; Financial Keywords Pedagogical Objectives services; Training and certification services. BP (British Petroleum); Downstream • To understand the strategies adopted by operations; Upstream operations; Lord Starbucks to foray into music retailing64
  • 65. Siemens’ Troubled Mobile Phone Sanyo’s founder and son of the current pricing strategy; New market entrants; Business: Options and Strategies S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I chairman Satoshi Iue was appointed as the Chery; Global automobile industry; Joint S T R A T E G Y – I S T R A T E G Y – I president. The new appointments came as venture; Shanghai Automotive CorporationThe mobile phone division of Siemens AG, a surprise to many’. First Auto Works (FAW); Flexible toolingthe German electronics major, is the fourth and lean manufacturing; Operationallargest producer of mobile handsets in the Pedagogical Objective flexibility; Price war; Market But since 2001 it has been constantlyreporting losses quarter after quarter. The • To discuss the revival prospects of Sanyo,company’s efforts to revive the division’s with an inexperienced CEO at the helm.fortunes failed to yield any substantial result Paul Otellini’s ‘Right Hand Turn’and the division has grown to be the Industry Consumer Electronics Strategy: Leading Intel in a New‘Achilles heel’ for the European giant. Reference No. COS0026 Direction? Year of Pub. 2005With the appointment of the new Chief Teaching Note Not Available By the turn of the 21st century, Intel’sExecutive Officer (CEO), Klaus Kleinfeld, Struc.Assign. Not Available challenges included the Internet bubblea decision on the mobile division has become burst, rival AMD outperforming Intel andthe top priority. The troubled unit poses Keywords various product delays and cancellations.four possible options for the new CEO – Sanyo Electrical Company; Consumer Amidst these challenges, Paul Otellini insale, closure, joint venture or a turnaround. electronics; Corporate governance; Chief November 2004 was appointed as fifth executive office (CEO); Management Chief Executive Officer (CEO) of Intel.Pedagogical Objectives Otellini shifted Intel’s focus from speed of reshuffle; Leadership; Tomoyo Nonaka;• To understand the growth of Siemens’ Toshimasa Lue; Succession planning; microprocessors to its performance using mobile phone division, the factors Change management; Turnaround; dual core processors indicating a ‘right hand responsible for its decline and the Restructuring strategies; Sales decline; turn’ for Intel. With the introduction of strategies adopted during the troubled Original equipment manufacturer; Sluggish dual core chips and Paul Otellini as the times economic conditions. new CEO, in May 2005, Intel attempts to take on rival AMD and steer itself as a• To discuss the various options available ‘growth company’. for the CEO to make a decision on the future of the loss-making mobile unit. VW’s and GM’s Loss in China: First Pedagogical Objectives Mover’s Disadvantage?Industry Mobile Electronics, • To understand Intel’s challenges in the Communications During the 1960s and the 1970s, China 21st centuryReference No. COS0027 lacked the technical expertise to facilitateYear of Pub. 2005 mass production of automobiles. The • To discuss Intel’s new strategy for growthTeaching Note Not Available Government of China made a policy of in 2005, under the leadership of PaulStruc.Assign. Not Available encouraging foreign car makers through Otellini, against the backdrop of the 50-50 joint ventures with the indigenous competitive semiconductor industry.Keywords producers. Among the first to enter into Industry Microprocessors,Siemens Information and the Chinese market through this mode Microcontrollers, DigitalCommunications; Mobile electronics were Volkswagen (VW), in 1984, and Signal Processingproducts and services; Information and General Motors (GM), in 1995. Though Reference No. COS0024Communication Mobile (ICM); VW and GM made huge profits and large Year of Pub. 2005Turnaround and survival strategies; market shares in China in their early years, Teaching Note Not AvailableRestructuring plan; cost-cutting efforts; they lost out eventually to new entrants Struc.Assign. Not AvailableHeinrich von Pierer and Klaus Kleinfeld; like Hyundai and a Chinese companySiemens Communications Group; Siemens named Chery. Despite their position as the KeywordsAG mobile division; Loss-making division; incumbents, they failed to customise their cars according to the shift in their customer Intel’s product launch strategy; PaulEU economic recession; overcapacity; segment, from the government-owned Otellini at Intel; Intel-AMD price war;Nokia; Sony Ericsson; Motorola; BenQ; institutions to individuals. It was opined Global semiconductor industry; HeatRevival options and strategies; Telecom that GM and VW have procrastinated cost- generated by Intel’s processors; AMD’sequipment and services; Turnaround cutting and other measures for too long. technological advantages over Intel; Intel’sspecialist; Divestments and spin-offs. dual core processors; Otellini’s ‘two-in-a- box’ management strategy; Paul Otellini’s Pedagogical Objectives ‘right hand turn’ strategy; Reorganisation Reviving Sanyo: Experimenting • To discuss how complacency can tumble at Intel; Dell’s Intel only strategy; with an Inexperienced CEO the fortunes of a company and dampen Leadership style; Moore’s Law. the first mover’s advantageSanyo Electric Company, Japan’s third-largest consumer electronics maker • To discuss whether it proves beneficialwitnessed the company’s biggest financial to be a forerunner or a follower in the Sir Howard Stringer at Sony:decline in its 58-years of history for the new markets. Delivering ‘American Results’ foryear ended March 31 st 2005, as it reported a Japanese Company? Industry Automobile Manufacturinga loss of $1.1 billion. The grave financial Reference No. COS0025 In the early 21st century, Sony, Japan’sposition in turn spurred a change in the Year of Pub. 2005 most innovative company and the world’stop management. Tomoyo Nonaka, a Teaching Note Not Available most valuable consumer electronicsformer TV journalist, with little knowledge Struc.Assign. Not Available company, was in a crisis. Its foray intoabout electronics and no management music, motion pictures, and financialexperience was appointed as the new Keywordschairman and chief executive officer services, had left the company facing a(CEO), while Toshimasa Iue, grandson of Volkswagen; General Motors; First mover’s diverse spectrum of increasingly advantage; Customisation; Competitive competitive rivals. Sony’s brand value was 65
  • 66. on the decline as products like Apple’s iPod • To discuss the potential of the new Accenture’s Grand Vision: (portable digital music player) and advertisement model of AOL to boost ‘Corporate America’s Superstar Corporate Strategy Samsung’s LCD (liquid crystal display) TVs its revenues. Maker’ leaped ahead in terms of quality and demand Industry Telecommunications and Media in an industry, which had been dominated Accenture is a leading management Reference No. COS0022 by Sony for almost half a century. A consulting, technology services and Year of Pub. 2005 restructuring plan, ‘Transformation 60’, outsourcing firm. While traditional Teaching Note Not Available was implemented by the then chief management consulting was the main Struc.Assign. Not Available executive officer Nobiyuki Idei to revive business for Accenture, areas like systems Sony’s flagging business by 2006, the year Keywords integration and outsourcing became the key of Sony’s 60th anniversary. However, in growth sectors for the company. However, 2004, Sony’s core electronics business, AOL (America Online Inc); On-line its broad geographic and market which constituted almost two-thirds of the subscription; Ad revenues; Yahoo; MSN; diversification increased competition. To company sales, incurred losses. Nobiyuki Google; On-line ad industry; Pay-per-click; become the industry leader, the new chief Idei resigned from his post and for the first Adwords; Cost-per-click;; executive officer, William Green time in the history of Sony, a non-Japanese, Video on demand; AIM (AOL Instant developed a grand vision for Accenture, non-engineer, Sir Howard Stringer was Messenger) video; AOL Instant Messenger; ‘Corporate America’s Superstar Maker’. appointed the head of Sony. Clickthrough rates. Pedagogical Objectives Pedagogical Objectives • To discuss Accenture’s grand vision, its The New York Times: Balancing • To understand the problems at Sony, the competitive advantages, its strategies rise of Sir Howard within Sony, the Profitability And Traditional and the future challenges reasons for Sir Howard’s appointment Journalism as the head of Sony and the challenges • To discuss whether Accenture would be The New York Times (Times), which has able to achieve its grand vision. facing Sir Howard and Sony been credited with one hundred and eleven Pulitzer prizes and revered for its authentic Industry Management Consulting and. • To discuss whether Sir Howard will be journalism, is faced with several challenges. Outsourcing able to revive Sony’s fortunes. Arthur Sulzberger Jr, publisher of the Times, Reference No. COS0020 Industry Electronics and Entertainment is faced with the challenge of justifying Year of Pub. 2005 Reference No. COS0023 huge investments made for revamping the Teaching Note Not Available Year of Pub. 2005 printed editions, and the expenses incurred Struc.Assign. Not Available Teaching Note Available from investigative reporting and finding Struc.Assign. Available Keywords new revenue streams for the company. The solution for increasing profitability Accenture; Grand vision; William Green; Keywords might lie in its on-line version and the Management consultancy; Business process Sony Corporation; Masaru Ibuka and Akio company is debating on the issue of levying outsourcing (BPO); Systems integration; Morita Leadership; Tokyo Tsushin Kogyo a subscription fee for viewing its on-line Leadership development programme; Totsuko; Global consumer electronics content. Arthur Andersen & Co; Consulting business; industry; Audio and video electronic Competitive advantage; Business and devices; Sony Computer Entertainment Pedagogical Objectives services portfolio; Diversification; Most Inc; Business model legacy innovation; Admired Knowledge Enterprises (MAKE) Failed synergies of content and devices; • To understand the viability of authentic Awards; Strategy; Accenture Sensor Video tape format war Betamax vs VHS; journalism while pursuing the objective Telemetry Rapid Deployment Toolkit. Sony Ericsson; Aiwa; MGM; Cineplex; CBS; of increasing profit margins Nobuyuki Idei and Sir Howard Stringer; • To discuss whether The New York Times Walkman; Trinitron TV; Cybershot; should be charging its on-line visitors Building Business in China: The PlayStation; World’s smallest, largest, first, best; Sony Pictures; Music Television; for both its current and archive sections. Shui On Way BMG; Transformation 60 restructuring Industry Newspaper Publishing The rapid growth in China’s construction plan. Reference No. COS0021 industry since the late 1990s provided Year of Pub. 2005 several opportunities for construction Teaching Note Not Available firms to expand their operations in the Struc.Assign. Not Available AOL’s Ad Revenues: A New country. Vincent Lo, the chairman of Shui Business Model Keywords On Group, a Hong Kong based construction enterprise, first entered the Chinese market By the end of September 2004, the The New York Times; Printing and during the mid-1980s. Over the next few subscriber base of AOL (America Online publishing industry; Competition in the years, he began to invest on the Chinese Inc), the world’s largest Internet access newspaper industry; Strategic partnerships Mainland, buying cement plants and provider, had reduced from 26 million to between companies; Strategic decision developing high-end commercial and 22.7 million. AOL began to lose the making by management; On-line news residential centers. He spent a lot of time industry leadership to Yahoo!, MSN and channels; On-line subscription fees; On- building relationships with Chinese Google; its ad revenue for the second quarter line advertising; Print edition and on-line officials, which earned him the nickname, of 2004 being $221 million against Yahoo’s versions of newspapers; Significance of ‘King of guanxi’. Vincent Lo’s most $467 million. advertisement revenues;; successful venture in China has been the The New York Times Digital Company; development of Shanghai’s premier Pedagogical Objectives Strategic investments in print and on-line entertainment district, Xintiandi. editions; Business models of The New York • To highlight the troubles faced by AOL Times; The Washington Post.66
  • 67. Pedagogical Objectives Keywords the McDonald’s Corporation. McDonald’s S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I became the focal point for a number of S T R A T E G Y – I S T R A T E G Y – I• To highlight the realities of doing Nike; Onitsuka Tiger Company; Blue anti-obesity lawsuits and controversial business in China Ribbon Sports; Bill Bowerman and Phil documentaries. In response to this Knight; Jogging wave; Performance shoes; backlash, McDonald’s embarked on a• To discuss how Vincent Lo has capitalised Sports celebrities; Adidas and soccer; on his knowledge of the country’s mission to change its menu offerings to Acquisitions; R&D centre (research and include a range of ‘healthy’ food items like customs and traditions to build his development); Air Jordan; The ‘just do it’ business in the country. salads and juices. Despite such efforts, campaign; Footlocker. sceptics raised serious concerns about theIndustry Construction Industry genuineness of the health benefits of theReference No. COS0019 new additions and on the sincerity of theYear of Pub 2005 Bloomberg’s Dilemma: Growth company’s commitment to the cause ofTeaching Note Not Available or Sale? promoting a healthy lifestyle.Struc.Assign. Not Available In November 2001, after Bloomberg’s Pedagogical ObjectiveKeywords founder Michael Rubens Bloomberg left theMainland China; Regulatory framework; company to become the New York City • To discuss the issue of corporate socialChina’s construction industry; Building Mayor, a new management team took over responsibility among fast foodrelationships; Shui on Group; Chinese the reins of the media and financial- companies.Ministry of Construction; Ministry of information conglomerate. By all Industry Fast Food & Quick ServiceUrban and Rural Construction; State- accounts, Michael Bloomberg had placed Restaurantsowned enterprises; Foreign construction his firm in the hands of a management Reference No. COS0016firms; Business opportunities; Xintiandi team that did not seem to be inclined to Year of Pub 2004Entertainment District; Vincent Lo; change much or take big risks, in marked Teaching Note AvailableEngineering design and consulting firms; contrast to the situation when Michael Struc.Assign. AvailableCommercial housing projects; Chinese real Bloomberg was at the helm. Also theestate. competition increased from other players Keywords in the industry such as Reuters, Thomson Corporation and Dow Jones. McDonald’s; Go active; Obesity; Super size me; McLibel trial; McSalad Shakers;Nike’s New Discipline:Balancing Premium salads; McDonald’s calories; Pedagogical Objectives Creativity and Business Sense Subway; Panera bread; Schlotzsky’s; Happy • To discuss the challenges faced by Meals; Anti-obesity; Fastfood chains;Beaverton, Oregon-based Nike Inc, has Bloomberg after Michael Bloomberg left McDonald’s balanced lifestyles platform.achieved what most brands in the world the companyhave failed. As an athletic footwear andsports apparel manufacturer, Nike’s brand • To discuss the initiatives taken by thehas spread through generations of sport company to counter the measures taken indiOne: The Indian ‘Premium’and leisure activity. Over the years, the by its competitors. Hotel for the ‘Bottom of thebrand had become synonymous with sport Pyramid’ Industry Information Collection andcelebrities like Michael Jordan and Tiger Delivery Tata group’s Indian Hotels CompanyWoods. Nike’s belief in a performance shoe Reference No. COS0017 Limited (IHCL), India’s largest luxury hotelbacked by high-value advertising enabled Year of Pub. 2004 chain launched its first ‘no-frill’ hotelit to gain an edge over competitors like Teaching Note Not Available named indiOne in Bangalore. indiOne, aAdidas and Reebok. But the company had Struc.Assign. Not Available stand-alone brand created without the Taj-its share of ups and downs due to supply tag, aimed to provide a comfortable, clean,chain failure and outmoded designs. Added Keywordsto this were the allegations of labour and safe stay at an affordable price for theexploitation in its Asian factories. But the Bloomberg; Michael Bloomberg; Market middle-class traveler. The hotel providedcompany rebutted its critics by emerging data industry; Reuters; Tom Glocer; single and double rooms just for INR 900as the leader in the athletic footwear Thomson Financial; Dow Jones; The and INR 950 ($19.45 and $20.54)segment. In the fiscal year that ended May Bloomberg Professional; Terminals; Peter respectively. This was considered to be a31 st 2004, the company posted a 15% T Grauer; Reuters’ 3000; Bloomberg-lite; landmark innovation in the traditionalrise in sales reaching $12.3 billion. Lex Fenwick; Bloomberg law; Bloomberg Indian hospitality industry that had been anywhere. over the years targeting foreign tourists and had ignored the huge potential of itsPedagogical Objectives domestic tourists, who were predominately• To discuss Nike’s marketing and from the middle-class segment. Moreover, McDonald’s Menu: Makeover or advertising practices in the light of the industry faced the brunt of low customers’ fast changing preferences Make-up? occupancies and declining average room By the turn of the 21st century, obesity had rates (ARRs) as Indian tourism went• To discuss how the company has, over through a bad phase due to September 11 the years, produced some of the best been categorised as a global epidemic and studies conducted by the ‘Centre for Disease terrorist attacks, the attack on the Indian shoe technologies. Parliament House and escalating tension Control and Prevention’ of the US showedIndustry Footwear that nearly 30% of the American in the Indo-Pak relations. So when theReference No. COS0018 population was suffering from obesity and majority of the luxury hotels were tryingYear of Pub. 2004 related health problems. Weight Watchers to boost their occupancy rates and ARRsTeaching Note Available and other social groups blamed the calorie- by introducing discount schemes andStruc.Assign. Available rich food as the prime cause of obesity and loyalty programmes, IHCL launched a began to target fast-food companies like budget hotel, which was affordable to the Indian middle-class traveler. 67
  • 68. Pedagogical Objectives Whole Foods Markets: Growth Pedagogical Objective • To discuss how IHCL has positioned Dilemmas • To discuss the growth dilemmas faced Corporate Strategy itself in the budget category without Whole Foods Markets Inc (Whole Foods), by Imagi International and its endeavour diluting the image of its flagship Taj started in 1980 in Texas, US, successfully to prove to its shareholders that show brand tapped the growing interest of American business was more fun and profitable than consumers in ‘organic foods’, and went on making Christmas trees. • To discuss the potential opportunities that companies have in serving the to emerge as the world’s largest organic Industry Multimedia and Entertainment population at ‘the bottom of the foods retailing chain by 2000. With Reference No. COS0012 pyramid’. operations spread across North America Year Of Pub. 2004 and the UK, the chain is popular for its Teaching Note Not Available Industry Leisure products, philosophy and growth. But Struc.Assign. Not Available Reference No. COS0015 competition is increasing from similar store Year of Pub 2004 chains, regional food retail chains and also Keywords Teaching Note Not Available the world’s leading retail chains. Whole Imagi International Holdings Limited; Struc.Assign. Not Available Foods’ growth is credited to its founder Hong Kong animation industry; Zentrix; John Mackey, who is now facing the Keywords Father of the Pride; Computer graphics challenges of withstanding the growing animation; Christmas tree business; indiOne; Tata group; Indian hotel industry; competition from global giants and Greenland Investment Holdings Limited; Luxury hotels; Cost efficiencies; Branding; retaining the good show of the company Carlyle Group; DreamWorks SKG; Francis India’s middle class; Domestic traveller; in terms of growth and profits. There are KAO; Boto International Holdings Roots Corporation Limited. other challenges in the form of employee Limited; Growth strategies; Siegfried and unrest, sourcing bottlenecks, and protests Roy’s show; Media and entertainment from consumer interest organisations. industry. Hutchison’s Gamble in the Pedagogical Objectives European 3G Cellular Market Since the beginning of the 21st century, the • To discuss the inception and growth story Bikram Yoga: Doing Yoga the European telecom companies had invested of Whole Foods from a single store to a McDonald’s Way? market leading chain of stores $250 billion in licence fees and Yoga, a traditional Indian approach to infrastructural development to offer 3G • To discuss the profile of the organic physical fitness, mental peace and spiritual (third generation) cellular services. They foods market and the industry dynamics, bliss, has been in the public domain for were betting on a technology that had not along with the competitive scenario for more than five thousand years. The 20th been developed to an extent where the Whole Foods. century witnessed the rise and spread of operators could provide full-fledged 3G Yoga in several forms and styles, around services to their customers. Consequently, Industry Food Retailing, Grocery Reference No. COS0013 the world. Especially in the US, the most of these companies got into huge popularity of Yoga turned it into a debts and write offs. Under such Year of Pub. 2004 Teaching Note Not Available multimillion dollar business. It raised circumstances, Hutch started its 3G services concern when one such style - Bikram in Europe. Struc.Assign. Not Available Yoga - sought copyrights and set forth a Keywords franchising business model. Pedagogical Objective Organic foods; Natural foods; Whole foods; • To discuss the factors which prompted John Mackey; Organic farming; Wal-Mart; Pedagogical Objectives Hutch to make huge investments in the Competition in the US grocery market; • To discuss the controversy about Bikram 3G service in Europe and what is at stake Rise of organic foods; USDA (United States Yoga in the wake of its protection as an for its first commercial 3G service in Department of Agriculture) organic intellectual property the continent. labeling; National organic standards; Wild oats markets; Growth challenges. • To discuss the issue of commodification Industry Consumer Electronics and and commercialisation of Yoga. Appliances Reference No. COS0014 Industry Not Applicable Year of Pub. 2004 Imagi International Holdings Ltd Reference No. COS0011 Teaching Note Not Available (HK): The Growth Dilemmas Year of Pub. 2004 Struc.Assign. Not Available Teaching Note Available Boto International, a Hong Kong-based Struc.Assign. Available Keywords company was the largest manufacturer of artificial Christmas trees and festive Keywords Hutchinson Whampoa Limited; Third products and supplied its products to stores generation (3G) cellular services; European Bikram Yoga; Bikram Choudhury; Yoga in like Wal-Mart, Kmart and Target. In 2002, telecommunication industry; Mobile America; Intellectual property rights; Sun Boto’s management sold the profitable telephony in Europe; NTT DoCoMo; Valley conference; Copyright protection; Christmas tree business to finance its Generations of mobile telephony; 3G McDonald’s franchising model; animation start-up called Imagi mobile telephony in Europe; Commodification; Commercialisation; International. With no experience in the Telecommunication license fees in Europe; Brand strength; Patanjali’s Ashtanga Yoga; field of animation, it was a challenge for Losses of European telecom companies; Alternative health treatment; Patents and Imagi’s management to make it one of the Hutchinson’s telecom services in Europe; trademarks top players in the Hong Kong animation Telecom tariff war in Europe. industry.68
  • 69. JetBlue Airways: Neeleman’s strategy. His focus was in the digital trinity competitive market and the company’s Future Bet S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I of image capture (cameras), services (on- focus on joint ventures more than on S T R A T E G Y – I S T R A T E G Y – I line photofinishing sites, kiosks and R&DDuring the period 2001-2003, when the minilabs) and image output (printingsix major network carriers in the US had paper). • To discuss the multiprolonged strategiccollectively lost $21 billion, the low cost approach for growthairline JetBlue had managed to increase its Pedagogical Objectives • To discuss the multifaceted strategiesprofits from $38 million to $103 million. adopted by Nicholas Piramal IndiaIn spite of the overall industry malaise, • To discuss the growth strategies adopted Limited to cope with the on-comingNeeleman, the airline’s founder made an by its current chairman and CEO Daniel implementation of international patentaggressive plan to increase the fleet size Carp for its digital imaging business law from January 1st 2005from 57 Airbus A320s to 290 and the • To discuss Kodak’s future outlook • To discuss the problems that NPIL wouldemployee strength to 25,000 by 2010(from 6,000 in 2003). • To discuss the threat posed by camera have to face in the future with its adopted phones to the digital still camera strategies.Pedagogical Objectives industry in the short and long-term. Industry Pharmaceutical Industry• To discuss the strategies adopted by Industry Photographic and Optical Reference No. COS0008 JetBlue to keep costs low and compare Equipment Manufacturers Year of Pub. 2004 them with other low cost carriers such Reference No. COS0009 Teaching Note Not Available as Southwest Airlines Year of Pub. 2004 Struc.Assign. Not Available Teaching Note Not Available• To discuss the development of the work Keywords Struc.Assign. Not Available culture at JetBlue and its significance in Survival strategy - Nicholas Piramal India differentiating the airline from its other Keywords Limited (NPIL); Indian pharmaceutical competitors industry; Generic drugs; Drug price controls; Kodak; Digital imaging; Daniel Carp;• To discuss the challenges the airline might Traditional film business; Digital service; Business strategy; Joint ventures; alliances face due to the rapid expansion and its Competitive scenario; On-line and partnerships; International patent law; comparison with People Express Airlines photofinishing sites; Kodak’s new Indian Patent Act, 1976; Product, process initiatives; Entertainment imaging group. patents; Mergers and acquisitions; Organic,• To discuss the challenges the airline inorganic growth strategy; Research and might face by diversifying its fleet with development; New chemical entities the Embraer jets and the probable (NCE); Marketing and branding; Trade unionisation threats it might face due to Nicholas Piramal India: Survival related aspects of intellectual property this strategy Strategies for International Patent rights; General agreement on trade and Law Regime tariffs (GATT).• To discuss the challenges it might face from the other major airlines once the The Indian pharmaceutical industry is on industry becomes more stable. the verge of a major turnaround with the proposed implementation of International Expedia: The Changing BusinessIndustry Airlines Patent Law (IPL) from January 2005 ModelReference No. COS0010 onwards. This means that India’sYear Of Pub. 2004 Having started as an on-line travel agent pharmaceutical companies will have toTeaching Note Not Available for the airline companies in 1994, Expedia strictly adhere to product patent laws andStruc.Assign. Not Available increased its offerings and became the not the process patent laws that it has world’s leading on-line travel agent inKeywords followed to date. Indian companies were reverse engineering the patented drugs and, 2002. The success of Expedia wasJetBlue Airways; Low cost airlines in the with minor changes in the process, launched attributed to the shift in its business modelUS; Cost management by low cost carriers; them in the domestic markets at cheaper from ‘commission model’ to ‘merchantUS airlines industry after September 11, rates. The enforcement of the law would model’.2001; Brand building by JetBlue Airways; necessiate the Indian companies toOperations of JetBlue airways; HR (human complete with global pharma majors to Pedagogical Objectivesresource) practices at JetBlue Airways; Core stay in business. Thus, Indian companiesvalues of JetBlue Airways; Low cost versus • To discuss how Expedia reinvented its have increased investments in research andtraditional airlines in the US; Growth plans business by creating multiple profit development (R&D), joint ventures andof JetBlue Airways; The challenges ahead centers like hotel bookings, car rentals, also have elaborated their marketingfor JetBlue Airways. etc. efforts. • To discuss the unique concepts that the Pedagogical Objectives company has innovated to help it to Kodak: Betting on Digital come out from the travel slump after • To discuss the impact of international Imaging the September 11 downturn. patent law on the Indian pharmaceuticalEastman Kodak, a 130 year old company industry and how NPIL planned to meet Industry Travel Agencies and Servicesis undergoing a radical transformation due the product patent challenge Reference No. COS0007to the rapid convergence of traditional Year of Pub. 2004 • To discuss the various efforts taken by Teaching Note Not Availablephotography with consumer electronics. Nicholas Piramal India Limited (NPIL) Struc.Assign. Not AvailableFaced with the threat of worldwide decline to stay competitive in the post-2005in photographic film sales, as well as the Keywords periodgrowing popularity of digital cameras,Daniel Carp, the chairman and CEO of • To discuss the strategic approaches Expedia; Business model; CommissionKodak, had announced a new growth followed by NPIL to face the global model; Merchant model; On-line travel 69
  • 70. agent; Travel business; Dynamic one electric utility company. In 2002 and Keywords packaging; Business travel industry; Richard 2003, the company was listed on the Industrial Credit and Investment Corporate Strategy Barton; Travelocity; Metropolitan Travel; BusinessWeek’s tally of 50 best performing InterActiveCorp; USA Networks companies in the Standard and Poor’s Corporation of India (ICICI); ICICI Bank; Incorporated; Newtrade Technologies; stock index. Reverse merger; Largest private sector Expert searching and pricing. bank; Retail banking; Retail portfolio; Expansion; Consolidation. Pedagogical Objectives • To discuss the strategy a company could Coke’s Relationship with Bottlers: follow in a mature industry Merck: The Cost of Going Alone To ‘Revive and Sustain’ • To enable discussion as to how a For generations, Merck & Co was The Coca-Cola Company (Coke), the company can leverage on its core considered the jewel of the pharmaceutical world’s leading soft drink company, has its competency in its endeavor to become industry. However, it was under Roy success tied to its global bottling system. the number one company in its industryl. Vagelos, who became the CEO in 1985, As the company’s executives wielded more Industry Utility and Energy that the company produced many power and control over their bottling Reference No. COS0005 breakthrough drugs. While the company partners and neglected the partners’ Year of Pub. 2004 emerged as the icon of consumer interests, their relationships strained and Teaching Note Not Available healthcare, Vagelos was dubbed as the ‘Jack the company’s performance got affected. Struc.Assign. Not Available Welch of the pharmaceutical industry’. On introspection, the company realised Particularly, Merck’s overwhelming the need to revive its relationship with its Keywords research power left many rival companies bottlers and government regulators struggling. However, the mid-1990s sent worldwide to sustain its success. Exelon Corporation; Peco Energy most of the pharma majors in the US into Company; Unicom Corporation; John W a dry spell due to expirations of patents. Pedagogical Objectives Rowe; Corbin A McNeill Jr; Utility Even for Merck, the year 2000 meant the companies; Nuclear fleet; Cost cutting; • To discuss some of the changes Coke expiration of five of its blockbuster drugs Mergers and acquisitions; Purchasing made in rebuilding the strained and the company had no new drugs in its method of accounting; Sithe Energies; relationships with its bottlers research pipeline. While most of the American Energy Company; Wholesale pharma companies either merged or bought • To discuss the importance of maintaining market and retail market; Dynegy ideas from small biotech firms to fill their good relationships with partners, and Incorporated; Rate freeze. pipeline, Merck remained stuck to its ideal taking their interests into account while of developing its drugs in-house. designing policies. ICICI: Too Big to Fail? Pedagogical Objectives Industry Beverages Reference No. COS0006 Into the fifth decade of its existence, the • To facilitate discussion on how Merck, Year of Pub 2004 Industrial Credit & Investment Corporation under Vagelos, became the world-leader Teaching Note Not Available of India (ICICI) had evolved to become a in consumer healthcare Struc.Assign. Not Available behemoth in the Indian financial system. With a presence in almost every financial • To discuss why Merck was reluctance to Keywords look for a merger partner, when most market segment and numerous subsidiaries, Coke’s bottling operation; Consolidation it is the bank with the second-largest asset of the pharma majors have benefited of bottlers; Coca-Cola Enterprises (CCE); base in India. Expansions and from the synergies of mergers. Acquisitions and mergers; Douglas Daft; diversifications had however raised Industry Pharmaceutical Distribution channels; Coca-Cola servings; questions about the rationale behind the Reference No. COS0003 Contamination scares; Coke concentrate; expansion. When a simple rumour of a Year of Pub. 2004 Financial wizardry; Donald Keough; cash crunch could cause panic withdrawals Teaching Note Not Available Roberto Goizueta; Douglas Ivester; The running into one and a half crores in just Struc.Assign. Not Available Coca-Cola Company (Coke); Hellenic three days, it was time to stop and Bottling Company; Restructuring; 49% consolidate their position, thought experts. Keywords solution. Ray Gilmartin; Roy Vagelos; Zocor; Pedagogical Objectives Patent-expiration; Streptomycin; • To discuss the meteoric rise of ICICI in Schering-Plough; Vioxx; Mevacor; Pfizer; Exelon’s Business Strategy:John India Vasotec; Pharma mergers. W Rowe’s Way • To discuss whether the company should When the going gets easy every company strive for better results in the markets it gets going and dares to venture into operates in or should go for newer Genentech’s Business Strategy unrelated businesses. Growth charts, easy opportunities as and when they present Genentech, the pioneer of the money and stock market bubbles make the themselves biotechnology industry and one of the executives at many companies think that world’s leading biotech companies, was nothing could go wrong with them. This • To discuss the possible problems because of bringing all the subsidiaries under one founded in 1976. The company in its early case provides insights into the strategy of years, aspired to become a blockbuster- an electric utility Exelon, which did not umbrella organisation. producing giant but was unsuccessful. When fall into herd mentality, stuck to its basics Industry Banking & Financial Services Arthur D Levinson took over as the CEO and went from strength to strength. Exelon Reference No. COS0004 in 1995, he shifted Genentech’s focus to Corporation, one of the largest electric Year of Pub 2004 targeted therapies from blockbusters. In utility companies in the United States has Teaching Note Not Available 2002, it was the top US seller of branded been implementing its cost cutting and Struc.Assign. Not Available anti-tumor drugs. It outperformed big acquisition strategy, to become the number70
  • 71. pharma companies such as Novartis and cross-selling its products through its S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – IAstraZeneca in this segment. In 2003, the various companies, each selling some S T R A T E G Y – I S T R A T E G Y – Icompany’s market cap of about $30 specialized products.billion was bigger than most big pharma Industry Banking & Financial Servicesplayers. According to analysts, the exciting Reference No. COS0001thing about the company was not its stock Year of Pub. 2003price or its growing supremacy in the cancer Teaching Note Not Availablesegment; rather it was the company’s Struc.Assign. Not Availableunique strategy unlike other players in theindustry. KeywordsPedagogical Objective Housing Development and Finance Corporation; HDFC; Development• To discuss Genentech’s business strategy financial institution; Indian housing of shifting its focus to targeted therapy scenario; Universal banking; Interest and drugs unlike the big pharmaceutical interest rate; Industrial Credit and companies and how it paid off to Investment Corporation of India Ltd; transform it into a behemoth in the ICICI; Subsidiaries; mergers and global pharmaceutical industry. acquisitions; Core competencies; Credit Information Bureau (India) Ltd; CIBIL;Industry Pharmaceutical Industry Mutual fund; Statutory liquid and cashReference No. COS0002 reserve ratios; Cross-selling.Year of Pub. 2004Teaching Note Not AvailableStruc.Assign. Not AvailableKeywordsGenentech; Business strategy;Biotechnology industry; Research anddevelopment; United Statespharmaceutical industry; Avastin; ArthurD Levinson; Big pharma; Targetedtherapies; Rituxan; Herceptin; Food anddrug administration; United States Food andDrug Administration; Blockbuster drugs;Biologics license application. HDFC’s Business ModelIn the late 1990s, to exploit the synergiesbrought by universal banking, major banksin Europe and America merged to formleading banks in the world. The trend ofconsolidation hit even the Indian markets.In 2002, Industrial Credit and InvestmentCorporation of India Ltd (ICICI), one ofthe leading development financialinstitutions in India, reverse merged withits subsidiary ICICI Bank, to become thesecond largest bank in India. However,Housing Development and FinanceCorporation (HDFC), India’s leadinghousing finance company in terms ofdeposits and loan disbursements, positioneditself as a group of companies with eachsubsidiary offering specialised products. Itfocused on generating synergies of universalbanking by cross-selling its products acrossits subsidiaries without actually merginginto a single entity.Pedagogical Objectives• To highlight the emerging trend of universal banking in Europe and America and the rise of consolidation in the Indian banking industry• To discuss HDFC’s strategy to generate the synergies of universal banking by 71