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Case Group D - Distribution Strategy


16. IKEAs Global Strategy: Furnishing the World
DISCUSSION QUESTIONS: 1. What are IKEA's firm-specific advantages? Country-specific advantages? 2. What are the cu tura factors !hich ma"e e#pansion a$road in retai ing difficu t? What has made it possi$ e in IKEA's case? %. &escri$e ho! IKEA'' e#pansion has re-energi(ed mature mar"ets around the !or d and changed the competitive situation. ). *o! does the +, advertising campaign initiated $y IKEA overcome the entry $arrier of high advertising e#penditures? -. 'hou d IKEA e#pand further in the .nited 'tates or focus on other countries?

17. PE S.!"# I$!.: %ISE A$& &E!'I$E "F A PE S(PP') %E AI'E%


1. &escri$e the situation faced $y Wain!right !hen she /oined as CE1. 2. 'hou d Wain!right have offered a shareho ding position to Ama( Assess the rationa e $ehind this decision. What !ere the advantages and disadvantages of having Ama( as a partner? %. 0ets.com2s gro!th strategy re ied on heavy spending on mar"et communication and o! pricing. Critica y appraise this strategy. What a ternatives did Wain!right have? ). &o you thin" the creation of a $rand icon3 such as the soc" puppet3 !as an effective strategy for dra!ing customers to the !e$site? -. 1vera 3 !hat do you thin" are the main reasons for 0ets.com2s fai ure in the mar"et? *o! !ou d you have done things different y?

1*. he !hallenges Fa+ing e,ay in -..* / i0e 1or !hanges in Strategy2

1. What does a five-forces ana ysis revea a$out the nature and strength of the various competitive pressures e4ay faces? Are the competitive pressures facing e4ay and other on ine auction companies conducive to earning good profits? Why or !hy not? 2. What driving forces are operating in the on ine auction macro-environment? Is the com$ined impact of the driving forces i"e y to cause competitive pressures to strengthen or !ea"en? Are the driving forces acting to ma"e the industry more or ess attractive from the standpoint of future profita$i ity? %. What do you see as the "ey success factors for firms in the on ine auction industry? What differences do you see $et!een the K'5s for on ine auction mem$ers and the K'5s for on ine retai ers? ). What does a strategic group map revea a$out the positions of the ma/or p ayers in the on ine auction


Case Group D - Distribution Strategy

industry? Is e4ay in a good position on the map? Why or !hy not? Who are e4ay2s c osest competitors? -. What does a 'W1+ ana ysis revea a$out e4ay2s situation? 7ust ho! attractive is the company2s situation and position? 6. What is your assessment of e4ay2s financia performance and financia condition? Is the company in good financia shape? Why or !hy not? 8. &oes your !eighted competitive strength assessment for e4ay and its riva s revea that e4ay has a competitive advantage or a disadvantage in the on ine auction industry? What are the sources of the advantage or disadvantage? &oes e4ay have a sustaina$ e competitive advantage in the on ine auction industry? 9. *o! has e4ay2s competitive strategy evo ved throughout the company2s history? *o! have these changes impacted the nature of e4ay2s core $usiness and its customer $ase? :. What cha enges does 7ohn &onahoe3 e4ay2s ne! CE13 face in ta"ing over from ;eg Whitman? What strengths does he $ring to the ta$ e? 1<. 4ased on your ana ysis of the industry and e4ay2s situation3 !hat pro$ ems and issues does e4ay2s top management need to address? Which ones are top priorities? 11. What actions !ou d you recommend to ;r. &onahoe to improve e4ay2s competitive position3 especia y its mar"et position vis-=-vis "ey riva s3 its ong-term financia performance3 and its re ationships !ith "ey customers?

13. Wal4#art Stores5 In+. in -..* #anage0ents Initiati6es to rans1or0 the !o07any and !urtail Wal4#art ,ashing
&IS!(SSI"$ 8(ES I"$S
1. What impresses you a$out this company? What accounts for Wa -;art2s success over the past 2-> years? Is it a great strategy3 super$ strategy imp ementation and e#ecution3 or great eadership? What aspects of Wa -;art do you find unimpressive? 2. Which of the generic strategy is Wa -;art emp oying? What are the chief e ements of its strategy? %. Is Wa -;art2s strategy !or"ing !e ? What does the information in case E#hi$it 1 revea a$out the company2s strategic and financia performance during 2<<<-2<<9? ). What po icies3 practices3 support systems3 and management approaches under ie Wa -;art2s efforts to e#ecute the company2s strategy? -. What are its chief e ements and characteristics of Wa -;art2s cu ture? Why does the cu ture seem to $e so much stronger in 4entonvi e than out in the stores? 6. What is your assessment of ?ee 'cott2s transformation initiatives? Are the initiatives @sincereA or /ust ca cu ated to garner $etter 0B for Wa -;art? Are more transformationa initiatives needed? Why or !hy not? 8. What issues do ?ee 'cott and Wa -;art management need to address? 9. What recommendations !ou d you ma"e to ?ee 'cott?