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S T R A T E G Y – I

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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 Mars

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• 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
and Coke or of companies in other 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; Aircraft
Industry Confectionery Industry Manufacturing Industry; Airbus Boeing; need or else altering them. Firms that shape
Reference No. COM0168B Dreamliner; A350 XWB; European Union; customer needs in new directions
Year of Pub. 2008 Subsidies; A330; Competitive Strategies Case dramatically increase the customer value
Teaching Note Available Study; Bombardier; Commercial Aircraft proposition and improve business systems
Struc.Assign. Available – a strategy best described as market-
driving. Many pioneering companies follow
Keywords this strategy and are hugely successful. Case
The Coffee War: McDonald’s vs (B) discusses how an Indian hotel, The Park
Business Rivalry; US Chocolate Industry; Starbucks – a pioneer of ‘boutique’ hotels in India –
Competitive Strategies Case Study;
followed this strategy to create a small but
Chocolate Retailing; Gourmet Chocolates; Companies can stick with their competitive
exclusive chain of sleek designer boutique
M&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 the
Over the decades, Airbus and Boeing, the this strategy and are hugely successful. Case
boutique hotels segment. The case is a good
two 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 with
intensity of the rivalry between the two followed this strategy to create a small but
breakthrough innovations and deeply
companies 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 Objectives
being designed with new composite
material is meant to set industry standards. and bizarre. But the hotel’s chairperson, • To understand the boutique hotel concept
As according to the company, this aircraft Priya Paul, fought for her idea and her and its uniqueness among the other
would help airliners save fuel costs. The transformational leadership qualities has formats, and also highlight its success
aircraft is also intended to be tons lighter seen the hotel chain create a niche in the factors in India
than other models. Airbus, on the other boutique hotels segment. The case is a good
side, with its A350 XWB intends to offer illustration of a hotel chain with a market- • To discuss The Park’s positioning, before
the 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’s
Show and the Dubai Air Show held in 2007, reshaped business systems. repositioning
A350 claims to give a stiff competition to • To discuss the framework in creating and
787. 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 food
industry observers inquire, if Airbus would service industry of the US Industry Hospitality Industry
beat the time advantage or bank on the • To analyse the core competencies of Reference No. COM0165
strength of the A350, or better still use the McDonald’s and Starbucks Year of Pub. 2008
time to their advantage and modify the Teaching Note Available
aircraft to being user friendly. • To understand the rationale of Starbucks Struc.Assign. Available
and McDonald’s expansion
Keywords
Pedagogical 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 fastest
Industry Aircraft Industrys
Dilution; Competitive Strategies Case
growing PC market, in 1998. Though it
Reference No. COM0167B
Study; Product Offering Enhancements;
was a late entrant, Dell initially did well
Year of Pub. 2008
Core Competencies; Breakfast Segment
through its direct selling business model

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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 industry
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• 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
incumbents); who is better equipped to
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 the
Industry Fast Food Industry
from multi-national retailers? US in terms of revenue in 2004, had its
Reference No. COM0161A
Year of Pub. 2007 Industry Retail presence in film production and music
Teaching Note Available Reference No. COM0160 distribution and popular cable networks like
Struc.Assign. Available Year of Pub. 2007 MTV and BET in its portfolio.
Teaching Note Available
Keywords With the digitisation, all media companies
Struc.Assign. Available were shifting their focus to new digital
Fast Food Industry; Menu Innovation;
Keywords formats, as digital media content could be
Advertising; Breakfast Market; Brand accessed on a variety of devices. Viacom
Reinvention; Demographic Trends; Wal-Mart in China; Carrefour in China; also recognised the importance of digital
Competitive Strategies Case Study; Brand Metro AG in China; Tesco PLC in China; media convergence, and changed its course
Differentiation, Social Networking, Wumart Stores, Inc.; Lianhua Supermarket of business to accommodate digital media
McDonalds, Burger King, Reimaged Holdings Co. Ltd.; Competitive strategies offerings in its services. However, Viacom
Restaurants, Fast Casual Segment; Drive of retailing companies; Protectionism in was neither the first mover nor the leader
Thrust; Jack In The Box; Healthier Food China in retailing; Territorial restrictions in the field of digital media. It had to face
Options 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 learn
This is the last case in China’s retail industry about new media platforms such as DVR,
VOD, iPod, Mobile TVs and the Internet
series. While case (A) looks at the Nintendo’s Competitive
competitive landscape of China’s retail as media offering different content
Strategies in Gaming Console
industry, case (B) helps analyse the
competitive responses to Chinese
Market • The case deals with the emerging media
platforms due to changing customer
consumer behavior. Case (C) presents a a Nintendo Co. Ltd., one of the leading preferences
gallery of competitive strategies. From producers of video games in the world, is
what has been learnt in cases A and B, C facing severe competition from Sony and • It raises debate as to the possible
helps know which company stands a better Microsoft. Nintendo’s last launch, the strategic options available to Viacom in
chance 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 Entertainment
they still do - immediately, remotely or market share in November 2006 the Reference No. COM0158A
forever? If strategy is all about creating company has launched Wii videogame Year of Pub. 2007
unique advantages, this case is much more console. The case discusses Nintendo’s Teaching Note Available
than how companies deploy different positioning, segmentation, pricing, Struc.Assign. Available
strategies to become unique. Should marketing and product launch strategy of
companies enter China with their time- Wii. The Case further debates whether Keywords
tested business models? Or should they go Nintendo can sustain the success of Wii or
for new business practices? How the local not. Viacom Inc; Cable Networks; Entertainment
players (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; Business
competitors (new entrants)? Can both co-
exist? Or would they exit with the entry of • To analyse the causes for decline of
foreign players? The big picture would be Nintendo in Electronic Gaming Console
how intensified competition can catapult Industry Mattel: Competitive Strategies in
an industry.
• To analyse Nintendo’s strategy for the US
launch of its new console Wii to recover
Pedagogical 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

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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,

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software, games and personal computers. promotion; Morale boosting; Service Japan based leading automaker worldwide

S T R A T E G Y – I
Since the 1990s, Best Buy followed ‘the quality; Online selling; Store extension and which offers a product portfolio including
bigger the better’ strategy which helped it new openings passenger cars, sport-utility vehicles
grow but with increasing competition the (SUVs), minivans and trucks. It also
company felt the need to consolidate its manufactures automotive parts,
position. This case study discusses Best components and accessories.
Yahoo vs Google: The
Buy’s strategy to overcome competition.
Challenge The case study talks about the dynamics of
the US auto industry as of 2006-07 and
Pedagogical 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 in
Industry Retail By 2005, Yahoo has become much more its business and expanding its operations in
Reference No. COM0153P than a portal; it is a full-fledged media the US .It had become the second largest
Year of Pub. 2007 company. During 2006, Google’s player in the US in 2006. The case study
Teaching Note Available dominance in search continues to give it a discusses Toyota’s success in the US market
Struc.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 the
Keywords 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 from
Audio 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 increasing
Reward zone; Competitive Strategies Case Pedagogical Objectives
Study; RFID tag; Studio D; Escape; Ask A the pressure on Yahoo. As analysts
Blue 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 US
ASDA: 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 automobile
ASDA 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, it
sold groceries, apparel, CDs, books, videos, Pedagogical Objectives Industry Automobile Industry
Reference No. COM0150P
and other household items. ASDA, which • The case discusses the critical success Year of Pub. 2007
was taken over by Wal-Mart in 1999, had factors in the IT industry Teaching Note Available
used the formula of Every Day Low Prices Struc.Assign. Available
(EDLP) to gain market share in the British • The case outlines Yahoo and Google’s
retail market. The initiative proved growth strategy Keywords
successful 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 up
adopted 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 care
Industry Retail models in the IT industry; advertising products for men, women, children and babies
Reference No. COM0152P strategy; electronic mail; Competitive under the Gap, Banana Republic, Old Navy
Year 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’s
Struc.Assign. Not Available design CEO in October 2002 has been heralded for
his cost- cutting strategies that have restored
Keywords
financial discipline in the company. But
Supermarket 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 steered
money; Changing management; Business
management; Business strategies; Greg
Industry Gap toward its customers’ tastes. Realising
Benneman; Aggressive price; Competitive The Case study is about business strategies his mistakes, Pressler has changed his
Strategies 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
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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; hmv.co.uk; 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
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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
been growing at an average rate of 20% scrutiny than at any other time in its computers (PCs) and related software and
annually in the past two decades. No other history - and is under pressure from all services to begin with, launched its MP3
European retailer has expanded so quickly quarters to justify its existence and the player iPod in 2001. iPod was well received
and so successfully beyond its own borders. license fee which primarily funds the by the market and continued to maintain
At the heart of Zara’s success is a vertically corporation. The BBC’s charter is coming its leadership position. iPod also became a
integrated 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 in
sales. 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 and
their ‘fast fashion’ had unique business pressure from the UK government because Toshiba largely shared the remainder of
models and growth strategies which have of the 2003 highly public row with the the portable player market. They took
enabled them to expand quickly and government and also from the media – aims at iPod several times but without much
successfully beyond their own borders. including its commercial rivals. success. With the lucrative portable MP3
With the European markets becoming music player market growing in size, these
saturated, 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 new
establish their hegemony in the U.S., in The rapid growth of the BBC’s online players like Microsoft were keen to enter
many ways the world’s most important services together with the launch of digital the market.
market. radio and television stations has elicited
protests. Industry observers opine that the The case discusses the challenges faced by
The case outlines the growth strategy of charter’s review process has to find an Apple iPod amid increasing competition
the 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 battle
approach. H&M has tailored its product over how to maintain the benefits of the Pedagogical Objectives
strategy to fit the US market. It has headed public service broadcaster in a much more
for more upscale malls and busy downtown • The case discusses about the changing
competitive environment. The BBC has business model of Apple Company in
centers and decided to open smaller stores. been criticised for making programmes that
Zara has decided against developing a the MP3 market. It evaluates the
are not popular but are worthy, and it has product launching and product
manufacturing base in the US. However, it also been criticised if it has made
has followed the same business model and positioning strategies of Apple, and its
programmes which reach millions of competitive strategies to face
product strategy that it followed in Europe. people. Aware that the renewal of the
Its clothes are however priced higher in competition.
charter will increase the spotlight, the BBC
the US than in Europe to take case of has decided to prepare itself for remaining Industry Music Player Industry
supply costs. relevant in the digital age. Will the outcome Reference No. COM0142P
of its digital strategy justify the public Year of Pub. 2007
Pedagogical 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. 2007
Teaching Note Not Available Industry Media and Broadcasting
launching of subsequent generations of
Struc.Assign. Not Available Industry
iPod by apple; launching of iPod Nano
Reference No. COM0143P
Keywords Year of Pub. 2007
H&M; Zara; Inditex; fast fashion; Teaching Note Not Available Home Depot vs B&Q: The Battle
Competitive Strategies Case Study; business Struc.Assign. Not Available for China’s Home Improvement
model; supply chain; management; retail Keywords Market
strategy; pricing; marketing strategy;
concept store; shelf life; Spain; Sweden; BBC; BBC’s charter; digital strategy; BBC’s In 2006, China’s home improvement
store 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, others
In 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 retailer
dominant broadcaster in the United
Player Market of home improvement products in the
Kingdom, operates several public TV
channels, a 24-hour cable news channel, world, was planning to enter China soon.
The case is about challenges faced by Apple
digital 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
www.ibscdc.org
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
www.ibscdc.org
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
Random access memory (RAM); Pentium take the skies in 2007 was being built in a besides adding certain enhanced security
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 herald
Global entertainment industry was heating Dreamliner was being built outside the a new era of strategic warfare between the
up at the end of 2006. In the time of global United States. A350 was the answer of corporate entities fighting for their
music 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 was
player segment, as it was almost evolving. Up to 60 percent of the Pedagogical Objectives
unchallenged 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 competitive
share in the US market since 2001. But at
outside Continental Europe. That even landscape in the web browser market
the end of 2006 Microsoft decided to
launch Zune in the iPod segment to take contributed to the battle of racism and during the 1990s
on Apple’s iPod. It created a lot of interest corporate war between the US and Europe. • To understand and analyze the
among US nationals and immediately Zune Industry people started to apprehend that competitive strategies of Microsoft and
had made its mark by pricing aggressively the volume of the core manufacturing Mozilla over the years
forcing Apple to reduce the iPod base activities that the two companies
model 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 by
This case deals with the new product launch Microsoft.
by Microsoft and how they positioned Pedagogical Objectives
their new product to challenge Apple and Industry Operating Systems and
problem associated with it. It also • To discuss the importance of outsourcing Utilities Software
enlightens what reactive measure Apple in aerospace industry Reference No. COM0135K
might take to counter the onslaught. The Year of Pub. 2007
case also talks about the mixed reactions it · To analyse the core and peripheral Teaching Note Not Available
got from the experts and users and discusses activities in aircraft manufacturing Struc.Assign. Not Available
the probable outcome of Microsoft’s new · To discuss the implication of strategies Keywords
initiatives 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. COM0137K
Year of Pub. 2007 aerospace market; Cyclical; Political In the year 2000, Toyota rolled out its
Teaching Note Not Available influence; Mitsubishi Heavy Industries multi purpose vehicle (MUV) ‘Qualis’ in
Struc.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 and
Keywords (METI) later in 2005, Innova. All these models
Microsoft; 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 its
product; Product management; Mozilla’s Firefox?
Competitive challenges; Pricing strategy; mission statement to grab 10% market
Zune Marketplace; iTunes; ZuneZone; Microsoft Corporation launched the latest share in Indian passenger car market by
Downloaded 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 pursue
Lots of fear and apprehension cropped up its nearest competitor, Mozilla
its aggressive cost leadership strategy or
among the nationals of Europe and Corporation released Firefox 1 rather than
follow the path of differentiation? Would
America as both the continents’ prime a proactive market strategy.
it follow the rule of the industry and try to
aircraft manufacturer Airbus and Boeing Internet Explorer 7 was reported to include be best in the known path or would it
were transferring technical know-how to various features that were pioneered by reshape the industry dynamics by
Asia that they were losing out the expertise Mozilla like integrated search window, tab introducing alternative fuel cars in a mass
to build the next generation aircrafts. scale?

11
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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 divided

12
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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
Reference No. COM0131B that Toyota overtook Ford in its home diversified in to home and entertainment
Year of Pub. 2007 market. Toyota had earlier outsold Ford in segment with the launch of video game
Teaching Note Available terms of global sales. TMC which replaced console ‘Xbox’. After successfully building
Struc.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 the
Keywords Ford by a margin of 1,837 vehicles. What music player industry with its new project
Global Handset Industry Performance; were the factors that helped Toyota surpass ‘Zune’. Microsoft was gearing its resources
Motorola’s declining market share; Nokia’s Ford? Was it American’s growing towards services, and integrating various
leading market share; Competitive preference for foreign models or Toyota’s devices to stop the dominance of Apple’s
Strategies 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 on
Innovation; Collaboration; Pricing hardware, and was planning to play a bigger
Strategy; Diversification; Corporate declines? This case discusses various
reasons for Toyota’s achievement. role in product design. As the software was
Culture; Stiff competition in Worldwide becoming increasingly commoditised, it
Handset 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 markets
Japanese Luxury Cars overtake innovation as a growth strategy and for to dominate, before monopoly of its
American Cars in the US Market competitive advantage Windows erodes?

In the US luxury car market, two Japanese • To discuss the evolution of competition Pedagogical Objectives
automakers, Toyota and Honda made a in the US automobile industry and the
mark for themselves and outperformed entry and expansion of foreign brands • To understand the Microsoft’s
luxury cars made indigenously by American monopolized business in Operating
• To analyse the market success of Toyota systems segment
automakers like General Motors and Ford.
and growing competition from its rivals
The growing popularity of Japanese cars
• To understand the importance of related
in the US was evident by its high sales • To assess Ford’s moves to regain its diversification
figures. In 2005, particularly, Lexus position and Toyota’s need to sustain
(Toyota) sold 150,000 units, which was its growth. • To discuss the competitive strategies
more than the sales of any other luxury
cars in the US. Acura (Honda) was also Industry Automobile Industry • To analyse the relevance of vertical
doing fine in the US market. These Japanese Reference No. COM0129B integration strategy.
luxury cars were upsetting American Year of Pub. 2006
Industry Software
automakers. How had the Japanese luxury Teaching Note Available
Reference No. COM0128A
carmakers been able to supersede US luxury Struc.Assign. Available
Year of Pub. 2006
cars on their home ground? Keywords Teaching Note Not Available
Struc.Assign. Not Available
Pedagogical 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 system
Industry Automobile Industry Vertical product integration at
Reference No. COM0130B Microsoft: Will it succeed?
Year of Pub. 2007
The Microsoft Corporation (Microsoft) Home Depot- A Strategic
Teaching Note Not Available
Struc.Assign. Not Available
with its global annual revenues of US $44.28 Dilemma
billion had 71,553 employees in 102
Keywords 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 improvement
US Luxury Car Market; Luxury Cars; after IBM. Microsoft’s best selling products and construction products, the second
General Motors and Ford; Japanese were the Windows Operating System for largest retailer in the United States, behind
Automakers; Toyota; Honda; Nissan and servers and single computers and the Office Wal-Mart, and third largest retailer in the
BMW; Mean Selling Price (MSP); suite of productivity software. The world, was considering sale or spin-off or
Competitive Strategies Case Study; Quality company had gained more than 90% of Initial Public Offering of its supply HD
Improvement; Pricing Strategy; Fuel market share in its segments of operating Supply. The new separate entity would face
Efficiency; Lexus, Acura; Eight-Speed system and web browser. heavy competition from market leader
Transmission; 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 commercial
Toyota Motor Corp. (TMC) surpassed Ford
business a network of companies that
Motor Co. as the No.2 car maker in the
13
www.ibscdc.org
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 India

14
www.ibscdc.org
• 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
and bus segment. no more the iconic brand it once was, rather, new advertising strategies of Benetton.
it was less than one quarter of the size of industry.
Industry Auto Industry
Tesco - UK’s largest and most profitable
Reference No. COM0123P Industry Apparel Industry
retailer in 2006. Could M&S once again
Year of Pub. 2006 Reference No. COM0120P
gain its position in the market?
Teaching Note Available Year of Pub. 2006
Struc.Assign. Not Available Teaching Note Available
Pedagogical Objectives Struc.Assign. Not Available
Keywords
• To understand the factors leading to the Keywords
AB Volvo; SKF; Scania; Tata Motors; decline of Mark & Spencer
Competitive 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; Gap
Rocketboom.com: Changing the Mark & Spencer.
Face of Entertainment Media Industry Apparel Industry
Reference No. COM0121P LEGO in 2006: Keeping Up with
Launched in 2004, as a mock news show
Year of Pub. 2006 the Changing Times
on the Internet, Rocketboom.com was a
Teaching Note Not Available
brand new concept. The show on the The case covers Lego’s product
Struc.Assign. Not Available
website was a combination of innovatively development strategies across the globe.
combined humorous news reports, comedy, Keywords Lego was the sixth largest toy
and video blog. Initially, Rocketboom.com manufacturing company in the world in
was not taken very seriously by the Marks & Spencer chargecard; Richard 2006.Since the beginning, the company’s
industry, but soon it had 300,000 viewers, greenbury; Competitive Strategies Case scope of product development had been
numerous advertisers and buy-out offers Study; Per Una Due; Stuart Rose; Simply immense, even as its product foundation
from major TV networks. The case food stores had remained constant. With children
discusses the concept behind Rocketboom, turning away from traditional toys in favour
its business model, creation of a new market of videogames and personal computers
segment, birth of competition and Benetton’s Advertising: Looking (PCs) in the late 1990s, Lego had resorted
challenges faced by the company. Beyond Toscani to several innovative products to keep up
with the changing times. It had also
Pedagogical 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 industry
Industry E-commerce Industry
Its new advertising strategy, which is more • The concepts associated with changes
Reference No. COM0122P
product-led, non-controversial, and affecting consumer behavior
Year of Pub. 2006
without politically or socially charged
Teaching Note Not Available
issues, has failed to arrest the decline in its • The concepts related to product mix
Struc.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. COM0119P
Video blog; Andrew Baron; Competitive to ¤23 million, ($30.1 million), and
Year of Pub. 2006
Strategies Case Study; Amanda Congdon; revenue has dipped 0.8%, from ¤381
Tivo; 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 identity
M&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; Lego
M&S had ruled the retail world and reaped strategy or revert to the old one? mindstorm; Lego cybermaster
profits for years. By the end of 1998
though, the company started facing Pedagogical Objectives
problems. It went through a phase of bad Hasbro’s Product Line Strategy
• To discuss the advertising strategy of
decisions, complacency, and board room
Benetton over the Years
battles which pushed it into a crisis that
lasted for several years. After selling off • To identify the reason behind the The case covers Hasbro’s product line
some of its stores and bringing about declining sales of Benetton strategy in the US. Hasbro is the second
changes, in 2006, M&S was growing again largest toy maker in the US. Its product
and 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
www.ibscdc.org
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
range

16
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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
Dreamliner. Analysts felt that if the A380 Mart for its revival.
failed, it would become a burden as Airbus
The case deals with Korea-based Samsung, Industry Retail Department Stores
had invested billion dollars on this model.
one of the leading global electronics Reference No. COM0112K
This case study offers a discussion on the
companies and synonymous with digital Year of Pub. 2006
factors that have driven Boeing and Airbus
technology. Samsung has strong presence Teaching Note Not Available
to adopt different strategies and whether
from consumer electronics to Struc.Assign. Not Available
Airbus would proceed with the huge
semiconductors. The case depicts in details, investment, amidst the uncertainty in long- Keywords
the journey of the company from the term demand. The case provides a detailed
lower-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 Korean
consumer electronics company that paid Pedagogical Objectives Digital TV Battle: LCD vs Plasma
off 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 TV
the company’s three-pronged strategies – competitive forces of commercial industry due to the growing demand for
quality, design and innovation. Finally, the aviation industry the flat TV sets. Buyers had a number of
case highlights future challenges that can choices in deciding which flat panel TV
• To analyse the factors and elements of
hinder the brand-building process of the they were going to buy. The LCDs were
competitive strategy adopted by Boeing
company. best suited for a maximum of 37 inches
and Airbus
TV screens. But there was debate about the
Pedagogical 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 in
Industry Consumer Electronics Airbus; Boeing; A380; Super Jumbos;
the giant TV market.
Reference No. COM0114K Competitive Strategies.
Year of Pub. 2006
Teaching Note Not Available
Pedagogical Objectives
Struc.Assign. Not Available Wal-Mart’s Emerging Challenges • To understand the global digital TV
Keywords market and its trend
Wal-Mart, the largest retailer in the world
Samsung; Brand Value; Micro Processor; continued to grow with its EDLP (Every • To analyse the strategic initiatives taken
Digital 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 Electronics
enjoying a virtual monopoly in the to counter these problems Wal-Mart took
Reference No. COM0111K
commercial aircraft industry, but was few initiatives which would not only reduce
Year of Pub. 2006
threatened by the advent of the European employee turnover rate but would also add
Teaching Note Not Available
aerospace 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 the
gradually achieved a leadership position in challenges that it faced over the years. It Keywords
the 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 company.
world’s largest manufacturer of commercial
aircrafts. The competition among the two Pedagogical Objectives
companies, attained a new dimension in AMD vs Intel: Competitive
• To understand the global retail industry
2000, when Airbus announced the Challenges
development of the world’s biggest • To understand the emerging challenges
passenger plane – the A380. Airbus touted faced by Wal-Mart The competitive challenges between the top
the A380 as the future of commercial two chip maker Intel and AMD took a new
• To understand the different categories dimension due to different strategic
aviation, 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 by
the market. In keeping with this, Boeing chips but also challenged Intel by
Wal-Mart
17
www.ibscdc.org
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
Verisign's 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
www.ibscdc.org
Pedagogical Objectives international markets so as to be always Year of Pub. 2006

S T R A T E G Y – I
one step ahead of competitors in the fast- 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 the
Industry Auto Manufacturing
Year of Pub. 2006 90s. America Online, the largest Internet
Reference 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 internet
Teaching Note Not Available
Struc.Assig. Not Available Keywords access and a host of online services through
its web portal. It was one of the most
Keywords 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 various
In October, 2005 Telecom equipment domains and created a demand for high
major Nortel Networks Corporation named Amazon in 2005: Success and speed internet connections. AOL, which
Mike S. Zafirovski as its new president and the Future Challenge could offer only a slow dial-up internet
chief executive officer. Zafirovski had his access, was not able to fulfill the demands
Amazon.com, the world’s leading online
work cut out for him. To make sure Nortel of the consumers. It was also bombarded
retailer had survived for nine long years
found level ground, after the accounting with heavy competition in the field leading
without annual profits because it was guided
scandal and fraud of the past few years had to a gradual decline of the AOL subscriber
by a long-term vision that put into place
shaken the international reputation of the base.
strategies for research, and the development
telecom giant. The big question was of technology infrastructure. The In order to compensate the declining
whether Nortel could register high company finally turned the corner by revenue from the internet service
turnover, post satisfactory profits and posting profits for the first time in 2003. subscribers, AOL adopted an
increase market share to maintain its The case details the diversification of advertisement-based (ad-based) revenue
position as a major player in the telecom Amazon.com into a software developer for model and offered the AOL Content free
sector. Or would the company lose market other online retailers. to general web users. Though this increased
share and customer confidence, to
the advertisement revenues of AOL, it did
ultimately 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 would
The case traces the history of Nortel from as AOL’s subscribers accounted for 36% of
survive the onslaught of major competitors
a builder of phones and fire alarm boxes at the unique visitors to its network of websites
like eBay, and continue to retain the No.1
the beginning of the last century to and generated 80% of the page views. To
position while at the same time realise
offering complete solutions for overcome this, AOL made available its
reasonable levels of earnings to satisfy
multiprotocol, multiservice, and global software, e-mail and security products free
shareholders. This was the dilemma that
networking together with software and to all web users and decided to concentrate
founder Jeff Bezos and his team had to
services in 2006. It discusses the global on broadband rather than on dial-up.
address.
business activities of Nortel and its
The case details the Internet access
performance in the Cable market and Small
and Medium Enterprises as also the need Pedagogical Objectives industry, the online advertising industry and
also briefs the prominent trends of the
for adequate Security Systems in the • To study Amazon’s expansion and internet users. It also details the various
expanding telecom industry and the IT growth despite posting losses for many strategies adopted by AOL, the consumer
world. The threat from manufacturers in years perception of AOL and the challenges faced
China with their capacity to offer low
• Make a SWOT analysis of Amazon and by AOL in reviving itself.
prices is also analysed. The case concludes
by 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 Retail
products and services quickly into Reference No. COM0103C • To Evaluate AOL’s new business model

19
www.ibscdc.org
• To discuss the position of AOL-Dial Up, Pedagogical Objectives this growing consumerism. The aggressive
AOL Broadband and aol.com. 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
www.ibscdc.org
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
were in fact cheaper to make, since the Privatisation; Competition; Marketing;
glass 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 selling
Taiwanese companies, who were into the privatisation, Life Insurance Corporation approach; IRDA; Unit Linked Insurance
LCD 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 and
LCD 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 in
smaller sized televisions and could not
compete with Plasma technology in larger insured with no flexibility or transparency India
sizes. This belief changed with the in the services provided. Before the entry
Home entertainment in India had come a
introduction 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 (Direct
Industrial Co. (Panasonic) and Pioneer competition from private insurance to Home) technology. The entry of Tata
Corp. 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.V
controlled 88% of the market for 40-inch- Authority (IRDA) Act, 1999. As per the industry. DTH gained popularity because
plus, thin-screen televisions. The cost of provisions of the Act, the IRDA was it provided hundreds of channels, 24x7
both LCD and Plasma TVs came down. established on April 19th 2000. This marked with clear transmission quality, pay per
They achieved cost reduction by increasing the beginning of liberalisation of the Indian view films and programmes and a whole
the dimensions of glass substrates used, but insurance sector. By 2006, there were 14 set of choices hitherto unknown to the
the cost reduction effect was very small private insurers in India whose market Indian television viewer. As of 2006, there
beyond sixth or seventh generation plants. share was increasing every year. Innovative were three companies providing DTH
Cost reduction beyond that point would products, smart marketing and aggressive services in India – Doordarshan, Dishtv
require cutting materials and other cost- distribution helped the private sector grow and the latest entrant Tata Sky. Some more
through- volume production effects, within a very short period. Slowly but players like Reliance and Sun TV were
slowing the pace of production. As a result steadily, awareness about insurance was also expected to hit the market in the near
of this there was a price war between LCD increasing in India. The increase in future. With the Government of India
and Plasma TV manufacturers. Now the penetration and awareness could be having set the end of 2006 as the deadline
customers have a wide range of products attributed to the stiff competition to introduce CAS (Conditional Access
to choose from. This case captures the generated among public and private System), in selected metros and later all
latest developments happening in the players. over India, the scene would become more
world of LCD and Plasma TVs and allows competitive. Cable operators have started
As a result of competition posed by the pressurising the Indian government to
for discussion on how the future would take private insurers, LIC launched many new
shape. 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 a
Pedagogical 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 constraints
Industry Technology • LIC could join with some private of mobile TV could be the prohibitive cost
Reference No. COM0098C insurers. of the handset, the smaller size of the
Year of Pub. 2006
Industry Insurance screen and the low penetration rate of
Teaching 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 more
Keywords Teaching Note Available options in terms of TV entertainment and
Struc.Assign. Not Available the main deciding factor would be service
LCD; Plasma; Flat screen; Televisions; support. The case allows for discussion on
Technology; Liquid Crystal Display; Keywords the present scenario of home
Marketing; Strategy; Brands; Product entertainment in India.
innovation. Life Insurance Corporation of India – LIC;
Life insurance industry in India; Monopoly

21
www.ibscdc.org
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; Alibaba.com; 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, EachNet.com 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 Taobao.com, 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 Taobao.com was launched by Alibaba.com, 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, Taobao.com 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 Taobao.com 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 Alibaba.com 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 Alibaba.com 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); Grocery

22
www.ibscdc.org
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
Stores; Store formats; Country themed during 2006, out of which only 15 had application of the dual-core chip, the
stores; Community development; more than 50 flights per day. The low cost challenges ahead and the diversifications
Consumer 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 even
The case describes the challenges that the though fuel costs shot up and competition its brand position
Dell’s Personal Computer (PC) business increased. With successful pricing and cost- • Intel’s strategies to retain the top
faces. The case aims at providing discussion cutting strategies, it maintained a cost gap position worldwide by successfully
points regarding Dell’s present strategies of 64% compared to other scheduled fending off competition from other
in 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 high
industry and reasons for retardation of the efficiency at lower costs. Industry IT
growth. It also intends to raise debate on Reference No. COM0090C
Dell’s business model and the viability of Pedagogical Objectives Year of Pub. 2006
the model in today’s competitive scenario. Teaching Note Not Available
The case is designed to help understand • To study low-cost carrier industry in Struc.Assign. Not Available
the PC industry, Dell’s position as a PC Europe
Keywords
maker, competition faced by Dell and • Ryanair’s cost-cutting and branding
impact of its business model on the market strategies Intel; AMD; Branding; Cell Chip; Market
as 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 a
Industry 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 they
Reference No. COM0092C Airports and Third party contracts; Inviseo turned on their PCs. Google also wooed
Year of Pub. 2005 Table; On board Advertising; Turn around away Microsoft’s employees creating
Teaching Note Not Available Time and Common Boeing fleet. further concern.
Struc.Assign. Not Available The case explores the strategies followed
Keywords by Google to outsmart Microsoft in the
Intel: Leaping Ahead search market. The case opens up
Dell; Personal Computers/Pcs; PC Industry Everywhere? possibilities for further discussion on
Laptops; Desktops; Michael Dell; Global Microsoft’s defensive measures to retain
PC 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 defensive
The airline industry in Europe underwent measures to retain its domination.
commercially. But it had to face
a transformation during the post
competition from other manufacturers Industry Online Industry
liberalisation era in the 1990s. The leading
who had come up with the revolutionary Reference No. COM0089C
low cost airline in Europe – Ryanair, began
‘cell chip’. With challenges cropping up Year of Pub. 2005
its operations in 1985 from Ireland. It was
from different directions, Paul Otellini, the Teaching Note Not Available
able to establish itself in the UK and it
president and CEO of Intel, needed to make Struc.Assign. Not Available
extended its wings to other parts of Europe.
a strategic decision on whether to continue
The company focused on price conscious
with the ‘Intel Everywhere’ policy or Keywords
travelers who travelled often to different
rejuvenate the company’s core strength
parts of Europe for leisure and business. Microsoft; Google; Desktop search;
of being the primary and dominant player
Scheduled airlines like British Airways, Netscape Navigator; Browser war; Desktop
in the international PC market.
Lufthansa and Aer Lingus had to restructure war; Longhorn; Competition; Internet
their 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 taken
particular.

23
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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 hardware

24
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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
resulted in lower average selling prices for force Worldwide; single daily delivery
Dell’s products and adversely impacted its system.
Anheuser-Busch is a leading American operating margins. With Dell encountering
brewer with 50% market share. It offers problems on various fronts, its share price
30 beverages in the US beer market. declined to $29 in October 2005; it’s lowest
Budweiser, Bud Light, Michelob, Bacardi
Federated Department Stores –
in two years, leading to the question of
are some of its well-known brands. whether Dell’s direct business model could
Focusing on National Brands
However, in 2004, Anheuser-Busch’s ensure further success in the changing Federated Department Stores (FDS) is one
revenues seemed to have stagnated as the scenario. of the America’s leading upscale
US beer industry saw flat consumption department retail stores that offer a range
trends, decline in volumes and higher costs. Pedagogical Objectives of merchandise, including apparel,
Beer’s share of the US alcoholic beverage accessories (handbags, jewelry and
market had declined. The case study • To discuss the trends in the US PC market
cosmetics), home furnishing, and other
discusses how Anheuser-Busch used consumer goods. This case discusses in
• To understand how Dell had achieved
innovative 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 store
among consumers and to differentiate their Industry Electronics industry. This case emphasises the FDS’s
products 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 by
Pedagogical 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 US
Reference No. COM0084P Computers; Sony; BestBuy; Windows Department Store industry
Year of Pub. 2006 Media Center; XPS.
Teaching Note Not Available • Discuss the strategies adopted by FDS to
Struc.Assign. Not Available sustain in the competitive retail market

Keywords Royal Mail Group: Gaming up • The pros and cons of FDS’s effort to
unite its department stores into two
Anheuser-Busch; Brewing industry; Light with Competition national brands – Bloomingdale’s and
beer; Changing beer market; Spirits; Royal mail Group, a public limited company Macy’s
Budweiser; Bud-Light; SABMiller; had been providing postal services for over
Speciality brewers; Grolsch; Adolph Coors; • Discuss ‘the four priority’ business
360 years in the UK. The group operated strategy of FDS and suggest what other
Grupo 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 Available
Dell, 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 Keywords
a 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’s
business model which eliminated the need chairman of Royal Group and chief department stores; differentiated
for middlemen was a major factor executive, Adam Crozier. assortments; simplified pricing; shopping
contributing to this success. However, with experience; marketing strategy; JC Penny;
the corporate PC growth declining from Pedagogical Objectives Kohl’s corp.; Business strategy; Terry
double digits in the 1990s to single digits Lundgren; Wal-Mart.
post 2001, Dell entered the consumer PC • The state of postal services in the UK
segment with its Dimension desktop and • Business model of Royal mail group
Inspiron notebook line in and the consumer
electronic segment with digital TV, MP3 • Restructuring initiatives of Royal mail Amazon in 2006
player and Axim handhelds in 2003. group. Amazon.com Inc. (Amazon), a fortune 500
Consumer business was seen as a key company and a leading on-line retailer,
Industry Postal Services
revenue driver by Dell’s management which posted revenues of $8.4 billion in 2005.
Reference No. COM0082B
announced an ambition plan to increase Amazon sustained its existence, despite the
Year of Pub. 2005
revenues to $80 billion by 2008. fact, that it was not making profits for
Teaching Note Not Available
However, 2005 proved to be a challenging Struc.Assign. Not Available almost a decade since its inception. It
year for Dell. Not only did the company recorded profits for the first time in history
struggle 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 an
players 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
www.ibscdc.org
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
www.ibscdc.org
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
declined significantly in the eyes of Race, CSI: Miami, Without a Trace, Two microprocessor with superior performance
consumers, 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 server
up with a promotional campaign challenges from its competitors like ABC microprocessor called, Opteron. AMD
emphasising on its American legacy. and FOX. Moreover, broadcast TV consistently came out with superior
Toyota also launched a campaign striving networks are losing revenues from products compared to Intel and steadily
to showcase its ‘Americanism’. In addition, advertising to other forms of media and started gaining market share. Intel realized
the retirees of the Big Three formed a facing increasing competition from new that a company that was one-tenth its size
grassroots association in order to persuade digital media such as Internet, DVDs, PVRs, was a serious threat to its leadership
the US consumers to buy only ‘American’ VOD, etc. It is being debated whether position. In an effort to contain market
to save the jobs of millions of Americans Tellem would be able to counter such losses and regain its lost glory, Intel
working at the Big Three. In the light of challenges successfully in the future. implemented extensive changes including
this 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 its
to define what is ‘American’ at all. previous successes and depose Intel from
• To discuss about the competitive nature its leadership position in the
Pedagogical 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 Entertainment
Industry Automobile
Reference No. COM0076 • To discuss whether the new initiatives
Reference No. COM0077
Year of Pub. 2006 taken up by Intel and AMD respectively
Year of Pub. 2006
Teaching Note Not Available will enable them to gain a sustainable
Teaching Note Not Available
Struc.Assign. Not Available competitive advantage over the other
Struc.Assign. Not Available
Keywords • To discuss what strategies Intel and AMD
Keywords 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; NBC
Three; General Motors Ford Daimler Inc.; Reality TV Shows; Fall Season; Cable Industry Semiconductor
Chrysler; Toyota Honda Nissan; Keep TV; New Distribution Technologies; Video- Reference No. COM0075
America Rolling Legacy costs Healthcare; On-Demand (VOD); Consolidation in TV Year of Pub. 2006
Competitive Advantage; Bold Moves Network Industry; Viacom; Leslie Teaching Note Available
campaign; Segmentation Targeting and Moonves; New Digital Media; Business Struc.Assign. Available
Positioning (STP); Brand Image; Industry Models of Entertainment Companies.
Life Cycle; Lean Production Total Quality Keywords
Management; William Edwards Deming
and Joseph M. Juran; Downsizing Intel AMD; Semiconductor industry;
operations Layoffs; UAW (United Auto Intel vs AMD: AMD has the Last Microprocessor market; Strategic
Workers); 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 Opteron
Entertainment Group: The Future microprocessor-manufacturing Athlon Dual Core; Dell HP Sun
Challenges powerhouse that dominated the Microsystems; Platform strategy.
microprocessor industry and dictated terms
CBS Paramount Television (CBS) captured to the PC industry. One of the main factors
the top position for the 2005-2006 season responsible for Intel’s meteoric rise was its Automobile Safety: Japanese
among the US broadcast TV networks, ability to respond to the market with
under the dynamic leadership of Nancy innovative products. Until the late 1990s,
Manufacturers Lead the Way
Tellem (Tellem), president, CBS Intel had a complete grip on the Road accidents are resulting in increasing
Paramount Network Television microprocessor market with more than number of injuries and deaths every year
Entertainment Group. Under Tellem’s 80% share. No rival could compete with globally. Realising the magnitude of the
leadership, CBS became US’ most watched Intel’s technological and marketing clout. problem, the World Health Organisation
TV network on the strength of successful Then in 1999, a small company named (WHO) in 2004, classified ‘road traffic

27
www.ibscdc.org
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
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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
Teaching Note Available understanding of their purchasing
Struc.Assign. Not Available behaviour. The retailer also implemented
The expansion of the postal industry in a ‘customer first’ strategy to deliver higher
Keywords China has attempted to keep pace with value to its customers coupled with an
Fast 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 the
repositioning; Competition in the UK’s industry from offering basic services to Pedagogical Objectives
fast food industry; McDonald’s competitors state-of-the-art express delivery services
in the UK; Wimpy; Pret a Manger; KFC; has taken place in less than half a century. • To understand the need for Kroger’s
Starbucks; Burger King; Subway; While China Post dominates the postal transition in its business model from being
Turnaround strategy; Core competences services market, global courier companies price-led to being customer-centric
in the fast food industry; Changing trends have established a major presence in the
• To analyse whether such transition would
in the UK’s fast food industry; McDonald’s fast growing courier and express delivery
help Kroger or go against it, as by
revival 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. 2006
In the world of business, the pioneer or the
Teaching Note Available
first-mover in an industry often fails to
stand up to the competition from its Pedagogical Objectives Struc.Assign. Not Available
follower or the second-mover due to its • To discuss the critical success factors in Keywords
failure to constantly innovate or to take the courier service industry of China
timely 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; the
time-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 the
particular 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 sometimes
put their existence in jeopardy. The Industry Express Delivery Services Customer behaviour.
second-movers, on the other hand, have Reference No. COM0069
been found to gain from the experiences Year of Pub. 2006
of the pioneer and take full advantage of Teaching Note Not Available Hyundai in China: The
the pioneer’s weaknesses and strategic Struc.Assign. Not Available Competitive Strategies
mistakes.
Keywords Ever since 1978, when China started the
Pedagogical 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 its
Industry Discount Retailing
presence in the country.
Reference No. COM0070 For many years, the third-largest
Year of Pub. 2006 supermarket group in the US, Kroger, has
Teaching Note Not Available been competing to gain market share from Pedagogical Objectives
Struc.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 industry
Keywords Kroger tried to attract customers and
First mover’s disadvantage; Second mover’s increase its sales. However, it failed as its • To discuss the market entry strategies
advantage; Wal-Mart vs Target; Motorola cost reduction could not match its price of Hyundai in China
vs Nokia; Intel vs AMD; Sony vs Samsung; reduction. Realising that it was difficult to • To discuss the strategies that Hyundai
Home Depot vs Lowe’s; Marketing myopia; compete on the basis of price alone, in adopted to gain a competitive edge in
Active 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 Automobile
development. Kroger formulated a customer-centric Reference No. COM0067
strategy for itself. According to this, Year of Pub. 2006

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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.

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Industry Biopharmaceuticals & Wrigley vs Cadbury Schweppes: Industry Retailing
The Competitive Strategies in

S T R A T E G Y – I
Biotherapeutics Reference No. COM0060
Reference No. COM0063 chewing Gum Market Year of Pub. 2005
Year of Pub. 2006 Teaching Note Available
Teaching Note Not Available Wrigley, with a global market share of Struc.Assign. Not Available
Struc.Assign. Not Available 35.4%, is the world’s largest manufacturer
and marketer of chewing gums. For the Keywords
Keywords first time in its history, its dominance was Wal-Mart; Target; Image differences;
Global biotechnology industry; Acquisition threatened when confectionery giant Competitive responses; Cost leadership
of Immunex; Blockbuster Cadbury Schweppes forayed into the strategy; Low-price strategy; Promotional
biopharmaceuticals and drugs; Strategic manufacturing of chewing gum in 2002 and strategy; Low profile image; Upscale
acquisitions 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 core
Research and development expenditure of business of Cadbury Schweppes.
Amgen; Eranasp; Neupogen; Enbrel;
Volkswagen in China: The
Epogen; 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 in
The storage and organisation segment 2003, with a 37% market share, stood to
Industry Candy and Confections
forms a part of the home furnishing gain from the expanding market. However,
Reference No. COM0061
industry and, over time, the Container Store the second quarter of 2004 witnessed an
Year of Pub. 2006
has become synonymous with this niche abrupt slowdown in the sales of automobiles
Teaching Note Available
retail category. The Container Store was in China. Volkswagen also faced increased
Struc.Assign. Not Available
established in 1978, and though many new competition from companies like General
players entered had the storage and Keywords Motors and Toyota. In a bid to maintain
organisation segment, none were as its position in the Chinese market,
Global chewing gum market; Competitive Volkswagen plans to increase its
successful as the Container Store. The
strategies; Growth strategies; Acquisition investments in the country to 5.3 billion
company’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; Doublemint
competitors. Pedagogical Objective
chewing gums; Spearmints; Trident Splash;
Hollywood. • To discuss Volkswagen’s growth in the
Pedagogical 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 to
Industry 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 of
Year of Pub. 2006 Company Limited; Growth strategy; VW
a retailer selling quality products at low
Teaching Note Available joint ventures in China; Growth challenges
prices.
Struc.Assign. Available in China; VW expansion plans in China;
FDI (Foreign Direct Investment) in
Keywords Pedagogical Objectives Chinese auto sector
Retail industry; Home furnishing and • To understand the development of Wal-
housewares industry; Training and Mart and Target over the years, the
recruitment policies; Competitive difference in image projected by the two Virgin Mobile in USA:
advantage; Human resource management; companies and the image makeover Differentiating Growth Strategies
Storage and organisation products; strategies being adopted by them as a
Employee empowerment; Performance part of their competitive response to Virgin Group, the British conglomerate
appraisal; Employee turnover; Wal-Mart each other which operates in various businesses from
target; Kip Tindell; Garrett Boone; Niche airlines to bridal services, started Virgin
• To discuss whether the image makeover Mobile USA (Virgin) in July 2002. Virgin
marketing; Specialty stores; Teamwork.
would be beneficial for Wal-Mart and targeted the under penetrated youth
Target.

31
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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 Ryanair.com. 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.

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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
electronics industry. Corporate governance at Shell; Reserve
reporting scandal at Shell; Competitive
In 2004, Sony, the iconic consumer Industry Electronics
strategies of Shell; Restructuring at Shell.
electronics giant, formed S-LCD, a joint Reference No. COM0052
venture with Samsung Electronics to Year of Pub. 2005
manufacture large-sized LCD (Liquid Crystal Teaching Note Available
Display) panels for its television division. Struc.Assign. Available Reforms at Bombay Stock
Prior to Sony, Samsung had also entered Exchange, Asia’s Oldest Stock
Keywords
into strategic alliances with other Exchange: The Competitive
competitors like Apple, Intel, Motorola, Samsung; LG (LG Electronics); Global Strategies
Dell, HP and Nokia. With huge investments branding; Vertical integration; Cultural
in research and development, Samsung, marketing; CDMA (Code Division Multiple The Bombay Stock Exchange (BSE), which
whose 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 its
iPod, aims to displace its competitors (who electronics market; Chaebol; DRAM business operations. From being a regional
are also its customers and partners) from (Dynamic Random Access Memory); stock exchange, it has emerged as one of
their leadership position. Digital technology. the important institutions for transferring
savings into investments, in the country.
Between 1990 and 2003, BSE witnessed a
Pedagogical 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 was
Industry Memory Chips and Modules these challenges, BSE launched a series of
one of the most renowned companies of
Reference 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 collegial
Teaching Note Available developments in many areas such as: (1)
management style. Shell was once viewed
Struc.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, thereby
Samsung; Sony; Consumer electronics; structure. Its old corporate slogan, ‘You
separating trading, ownership and
Competitive collaboration; Collaborative can be sure of Shell’, seemed a mere
management. Finally, on the August 9 th
competition; Strategy; Strategic alliance; statement of fact. But the waters changed
2005, BSE created history by converting
Japan; South Korea; Samsung Electronics; from the mid-1990s. First, the company
itself into a corporate entity, thereby
Dell; 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 exchange
By the end of the fiscal year 2004, Samsung, be the upshot of the once hailed twin board
the largest South Korean conglomerate, structure. As a result, in 2005 the company • To understand the issue of failure of
reported a profit of US$10 billion, while was restructured and was rechristened as corporate governance at Asia’s biggest
its global and domestic competitor LG (LG Royal Dutch Shell Plc. stock exchange
Electronics) could make US$1.5 billion. • To discuss the competitive strategies
Since its inception, the leadership position Pedagogical Objectives adopted by BSE to overcome the
of Samsung in dynamic random access challenges and competition faced by a
• To understand the nature and intensity
memory technology and its strategic entry National Stock Exchange and other
of the recent troubles of the company
into the consumer electronics industry global stock exchanges.
brought it on a par with other global leaders • To discuss how the company tried to
like Sony and Philips. The rise of the tide over such trying times and are the Industry Stock Markets
company as the 21st largest global brand in sustainability of those strategies. Reference No. COM0050
2004 was due to its cutting edge technology, Year of Pub. 2005
innovative designs and savvy marketing. Industry Oil and Gas Exploration and Teaching Note Not Available
LG, which was late to enter the industry, Production Struc.Assign. Not Available
intends to emerge as a strong international Reference No. COM0051
Year of Pub. 2005 Keywords
brand in the footsteps of Samsung.
However, LG is considered to be a laggard Teaching Note Not Available Bombay Stock Exchange (BSE); National
in the consumer electronics industry with Struc.Assign. Not Available Stock Exchange; Over The Counter
its short product life-cycles and ever Keywords Exchange of India (OTCEI); Securities and
changing 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
www.ibscdc.org
(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 Amazon.com also entered the on-line
and Microsoft to capture market share takeover; Combat strategies; Poison pill;
Customer Assurance. rental bandwagon.

34
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Pedagogical Objectives Microsoft vs Windows Pedagogical Objectives

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. Available
Industry Internet Retail end of the 1990s, Microsoft’s legal woes
Reference No. COM0045 had taken on a transatlantic dimension, Keywords
Year of Pub. 2005 with the European Commission also Bill Gates; Microsoft Corporation; Google
Teaching 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 operating
Netflix’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 appeal.
market; Business model innovation;
Threat of substitution; Competition from Pedagogical Objectives
Microsoft in the Mobile Phone
video-on-demand services.
• To discuss the possible spin-offs for Industry: Strategies and
Microsoft’s future Challenges
Mozilla: 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-end
In 1998, when Microsoft was fast past to build up possible future business mobile devices. As the market for these
becoming a near-monopoly in the browser scenarios. high-end mobile devices is increasing every
market, Netscape created Mozilla.org and year, the software has become one of the
released the programming source code for Industry Computer Software
Reference No. COM0043 most strategic parts in this context and
its Communicator software to the open gained prominence. This attracted the
source community. The Mozilla project’s Year of Pub. 2004
Teaching Note Not Available attention of Microsoft to gain a foothold
objective was to develop a good browser
Struc.Assign. Not Available in the growing market for mobile software.
quickly. After 32 months and several
releases, Mozilla, its Internet application Keywords
suite, and Firefox, its standalone browser, Pedagogical Objectives
have become very popular with Internet Microsoft versus Windows; Monopoly;
• To discuss Michael E Porter ’s Five
users. Mozilla’s browsers have become Anti-trust violations; William H (Bill)
Forces Model with specific focus on
famous for being clutter- free and Gates; Steven Ballmer; Justice Thomas
intense competition and types of
innovative, and word-of-mouth marketing. Penfold Jackson; Mario Monti’s Microsoft
competition namely, company specific,
verdict; European Competition
group specific and network-based
Pedagogical 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 billion
Reference No. COM0044 Industry Mobile Handset Industry
in 2005. However, the company has been
Year 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 Available
Keywords into software development, posing a direct
challenge to Microsoft. The increasing Keywords
Mozilla; Firefox; Microsoft Internet threat from Google has driven Microsoft to
Explorer (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
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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; eBay

36
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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
stores, Kroger and other department stores management; Bureaucracy in Samsung;
into its region. Yun’s business model for Samsung
Since the early 2000s, motorcycles were Electronics’ 3Ps; Samsung Electronics’
the fastest moving segment of the Indian Pedagogical Objective brand image; Corporate culture; Samsung’s
two-wheeler industry and in 2002-2003 it VIP centre.
accounted for about 76% of the overall • To discuss the differentiation strategies
market. In order to take advantage of this adopted by Jungle Jim’s to combat the
trend many players, traditionally scooter increasing competition.
and moped makers, had entered this
Hyundai: Tomorrow’s Toyota?
Industry Retailing
market, dominated by Hero Honda, TVS Hyundai Motor Co., associated with shabby
Reference No. COM0034
Motors and Bajaj Auto (which together automobiles that regularly became laughing
Year of Pub. 2005
controlled about 86% of the motorcycle stock in the late night television talk shows
Teaching Note Not Available
segment). One such player was Kinetic of the US, has stunned the auto world by
Struc.Assign. Not Available
Group, which had been a dominant player occupying the number two slot in the
in the gearless scooters and mopeds Keywords ‘2004 Initial Quality Study’ of J.D. Power
segment. Since 2001, Kinetic had launched and Associates. Hyundai trailed behind
a number of motorcycles for customers Jungle Jim’s International Market; Wal-
Toyota, the long time industry leader in
wanting different value propositions: price; Mart stores; Kroger; Retailing;
quality, by just one point. The newly earned
fuel efficiency; design; and after sales Differentiation strategies; Speciality food;
respect for Hyundai has helped in increasing
service etc. However, at the end of 2003, Competition; Inventory management;
its sales, to earn a spot in the global big
it had less than 2% of the motorcycle Stock Keeping Units (SKU’s); Vendor
league. In 2004, Hyundai became number
market. 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 Culture
Industry Automobile Manufacturing
• To discuss whether the new found quality
Reference No. COM0035 Jong Yong Yun, Samsung Electronics’ chief improvement at Hyundai is for real and
Year of Pub. 2004 executive officer since December 1996, whether the strategies that Hyundai is
Teaching Note Not Available has restructured Samsung by defying following will help in overtaking
Struc.Assign. Not Available traditional Korean corporate culture of Toyota.
hierarchy and lifetime employment. Yun
Industry Automobile Manufacturing
Keywords instilled a sense of ‘perpetual crisis’ among
Reference No. COM0032
his employees and encouraged them to
Kinetic Group; India two-wheeler industry; Year of Pub. 2005
come up with innovative products that
Joint ventures and alliances; Research and Teaching Note Not Available
according to him, were necessary for
development; Competitive growth Struc.Assign. Not Available
Samsung’s survival. His emphasis was on
strategies; Brand building; Global expansion
strategy; 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 of
inorganic 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; Branding
Jungle 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 Objectives
Jungle 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 Strategies
Cincinnati, is a sprawling specialty food
• To discuss how a change in leadership
market in a theme park-like atmosphere. Since its introduction in 1972, the Honda
and organisational culture helps to
With more than 285,000 square feet of Civic has remained a major attraction to
enhance a company’s competitiveness.
shopping area all under one roof, and food young customers with its sporty look and
from 72 countries, US National Association Industry Memory Chips and Modules low-cost. Honda’s attempt to make the
for the Specialty Foods Trade recognises Reference No. COM0033 car appealing to all ages cost the Civic its
it as one of the best international food Year of Pub. 2005 design and compactness, which in turn
stores in the US. Its exotic offerings like Teaching Note Not Available prompted loyal customers to defect to
dried lotus blossoms, pigs’ heads, baby Struc.Assign. Not Available Honda’s competitors. Alarmed by the rapid
octopus salad, canned blue corn fungus, decline in sales, Honda launched its new
ostrich eggs and many more, attract more Keywords eighth-generation Civic in September
than 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; Samsung
emphasis on shopping as entertainment Electronics’ brand value; Lee’s new Pedagogical Objectives
and specialty foods. Though the strategy management initiative; Samsung
has insulated Jungle Jim’s from the price • To understand the evolution of the Civic
Electronics’ design culture; Jong Yong Yun’s
wars, it is only to some extent and its sales over the years

37
www.ibscdc.org
• 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 generics

38
www.ibscdc.org
and bulk drug manufacturing business. It Industry Television Cable and Pedagogical Objective

S T R A T E G Y – I
was the first Indian pharmaceutical Broadcasting
company that received approval from the Reference No. COM0025
• To discuss the strategies adopted by DHL
US Food and Drug Administration (FDA) Year of Pub. 2003
to increase its market share in India by
to market a generic version of Eli Lilly’s Teaching Note Not Available
repositioning itself as a niche, industry
drug, Prozac, under a 180-day marketing Struc.Assign. Not Available
specific, solutions provider.
exclusivity. However, in 2002, Pfizer Industry Express Delivery Services
challenged Dr Reddy’s intentions to market Keywords
Reference No. COM0023
its yet-to-launch branded generic version Disney Channel; Walt Disney; Tween; Kids Year of Pub. 2004
of Norvasc (for example AmVaz of Dr channels; Basic cable; Programming Teaching Note Not Available
Reddy’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 Post
Industry Pharmaceutical DHL in USA: The Competitive AG; History of express industry in India;
Reference No. COM0026
Strategies Courier industry in India; Competitive
Year of Pub. 2004 strategies of DHL India (Dalsey, Hillblom
Teaching Note Not Available By the end of 2004, DHL (Dalsey, Hillblom and Lynn); Companies in the express and
Struc.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 provided
Keywords by DHL in India apart from global services.
single largest market for express
Dr. Reddy’s Laboratories Limited; Pfizer distribution. It invested $1.2 billion in the
Inc; 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 Gateway
Drug Application (ANDA); Patent Express Corporation) and UPS (United
challenges; Indian pharmaceutical industry; Parcel Service), which together held 78% Dell Computers Limited, in its 20 years of
United States Court of Appeals for the of the US parcel market. its existence, is considered as a pioneer in
Federal Circuit; 505 (b) (2) application direct marketing. The company has always
process, paragraph IV filing; American Pedagogical Objectives focused on improving its supply chain by
pharmaceutical industry; Exclusive reducing costs through direct selling. Dell’s
marketing rights; Generic drug • To highlight DHL’s expansion plans in mission is focused on the concept of the
manufacturers; Business strategy; Norvasc; US direct-to-market strategy. The company’s
Amlodipine Besylate; Amlodipine Maleate; • To discuss the competitive strategies of direct model has become a global
Off-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 shifted
Disney Channel was one of the earliest
from ‘direct marketing’ to ‘research and
channels for kids to appear on American Keywords
television. The channel originally started development’.
as a pay channel in 1983 and catered to a DHL (Dalsey Hillblom Lynn); US parcel
comparatively small segment of the market; FedEx (Federal Express Pedagogical Objectives
market. It was not until 1993 that the Corporation); UPS (United Parcel Service);
Express delivery; Logistics; Deutsche Post; • To discuss the growth strategies of Dell
channel started transforming itself into a
Airborne Express; Danzas Group; Freight- and Gateway over time
basic cable network. However, the
transformation had its own challenges in forwarder; Strategic parts centres; Express • To discuss how Dell’s efficient and
terms of programming and distribution logistics centres; Drop-boxes; Regional sort responsive supply chain enabled it to
strategies. Besides, the channel was free centres; New DHL lead the market without spending too
from commercials and the only revenue it much on research and development and
generated was from cable operators. how weaknesses in Gateway’s supply
DHL in India: The Competitive chain made it lag behind, in spite of
Pedagogical 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
www.ibscdc.org
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 luxury

40
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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
Frankfort, who put the company back on Teaching Note Available
track after its sales started plummeting in Strategies Struc.Assign. Available
the mid-1990s.
Christie’s, along with Sotheby’s, has Keywords
Pedagogical 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. COM0017
Year of Pub. 2004 Pedagogical Objectives
Teaching Note Available
• To highlight the evolution of Christie’s Carrefour: Competitive
Struc.Assign. Available
as an iconic auction house Strategies During Challenging
Keywords Times
• To discuss the competitive strategies of
Coach Inc.; Lew Frankfort; Louis Vuitton; Christie’s to fend off increasing France-based Carrefour is by far the largest
Gucci; Leather accessories; Tommy competition from the on-line retailer in Europe. With its hypermarket
Hilfiger; Hamptons flap satchel; Brand auctioneers and regain the top slot from chain established in 30 countries, Carrefour
building strategies; Competitive strategies Sotheby’s in the auction industry. is the world’s second-largest retailer after
of Coach Incorporated; Brand image Wal-Mart. However, economic recession
Industry Auction
transformation; Sara Lee; Women’s in its home-market of Europe has caused
Reference No. COM0015
fashion accessories; Prada; Fashion Carrefour’s sales to decline, while the
Year of Pub. 2005
retailing; Luxury brands in leather market share of its rival discount chains
Teaching Note Not Available
accessories. 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 retain
In May 2004, Cisco Networks (Cisco)
recession; Differentiation strategies; On- and enhance its market share
launched its much awaited top-of-the-line,
line auctioneers; eBay; Price fixing; Ed
high-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 primary
supplier of routing technology to Internet Industry Retailing
Service Providers (ISPs) and large Charles Schwab’s Competitive Reference No. COM0013
companies. HFR was launched at a time Strategies Year of Pub. 2005
when Cisco was facing intense competition Teaching Note Not Available
from a much smaller company named The deregulation of the US fixed rate Struc.Assign. Not Available
Juniper Networks (Juniper). Though Cisco brokerage system in 1975 saw the birth of
Charles Schwab, one of the world’s largest Keywords
remained a dominant force in the overall
networking market, it was losing ground discount-brokerage houses. It was Carrefour; French retail market; Europe’s
to 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 high
Pedagogical 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 Industry
Reference No. COM0016 Johnson: Battle for the Stent
Year of Pub. 2004 Pedagogical Objectives Market
Teaching Note Not Available
• To discuss the soundness of the First-mover advantage in a virgin market
Struc.Assign. Not Available
competitive strategies adopted by is crucial for a pharmaceutical company as
Keywords Charles Schwab it invests billions of dollars on research.
Introducing a new product first would result
Cisco and Juniper; Core and edge routers; • To understand the innovative services in a quicker financial break-even and even
John Chambers; Carrier routing system - that enabled Charles Schwab to become profit for the company. Stent, a medical
1; 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
www.ibscdc.org
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 like

42
www.ibscdc.org
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
shockwaves through Mattel. Challenges for AvtoVAZ.

Traditionally the BBC has dominated the Pedagogical Objectives


radio-broadcasting sector in the UK. The
publicly funded BBC dwarfed commercial • To discuss the challenge for Barbie from Apple’s ‘Low-end’ Strategy: The
radio stations, which intended to challenge Bratz, in the tween segment Payoffs
the 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 the
digital radio broadcasting. The BBC has history, Apple Inc. entered the low-end
Bratz challenge and remain relevant to
also 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 a
radio 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 new
radio stations. Analysts opine that only Year of Pub. 2003 products Apple is likely to run the risk of
those media groups, which have cross- Teaching Note Not Available cannibalisation and might also face severe
selling ability and adequate scale to Struc.Assign. Not Available competition from established players like
negotiate good deals with the advertisers, Dell, HP (Hewlett-Packard) and Sony in
would survive these challenging times or Keywords
the low-end market.
will be lost in the consolidation wave that Barbie; Bratz; Tween; Mattel; US toy
is sweeping the British radio-broadcasting industry; Fashion dolls; MGA Pedagogical Objectives
sector. In this aspect, East Midlands Allied Entertainment; NPD Group; Best-selling
Press (Emap) plc., a leading radio and toys; Barbie Rapunzel; Robert A Eckert; • To describe Apple’s product strategy
magazine group, has an edge over its Isaac Larian; Age compression; My Scene
competitors. 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 radio
broadcasting. Industry Personal Computers

Pedagogical 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’s
Industry 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’s
Reference 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’s
Teaching Note Not Available
revenues, triggering off high purchasing sweet spot; MP3 market; Apple’s
Struc.Assign. Not Available
power and the demand for new lifestyles. challenges in the low-end market; Global
Keywords Due to huge demand for cars, many foreign PC (Personal Computer) market
carmakers started foraying into Russia, and
Radio broadcasting in Britain; Profile of
with customer preference shifting to
BBC (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 different
Changing landscape of radio in Britain;
Competitive scenario in British radio; Pedagogical Objectives from selling what retailers want their
customers to buy. Keeping the offering
Private radio companies in Britain; • To highlight the growth of AvtoVAZ in simple and satisfying the customers’ basic
Competition for BBC in the domestic the protected centrally planned Russian necessities has gone a long way in Aldi’s
market. 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 Objective
Barbie, introduced by toymaker Mattel in Industry Auto Manufacturing • To discuss the business model of Aldi
1959, has been the most popular fashion Reference No. COM0006 from the perspective of the 4Ps
doll 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 Retail
sold over a billion Barbies since its Struc.Assign. Available Reference No. COM0004
inception. However, its undisputed
leadership in the fashion doll market has Keywords Year of Pub. 2004
Teaching Note Available
been facing a challenge since January 2002
AvtoVAZ, the Russian car maker; Struc.Assign. Available
from Bratz, a rival fashion doll from MGA
Expansion strategies; Growth strategies;
Entertainment. MGA Entertainment
Competition; Lada car models; Russian car Keywords
successfully marketed its Bratz to the tween
industry; CITIC Prudential; General
girls, 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
www.ibscdc.org
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 Microsoft's 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 factors

44
www.ibscdc.org
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
Struc.Assig. Available

This case, set in 2008 end, attempts to Keywords In a short span of time the mobile handset
explore a debate on whether China is losing China, MNCs, Yuan, GCI, Competitive industry has seen phenomenal growth and
its competitive edge as a preferred Advantage, Comparative Advantage, Deng a paradigm shift. The success parameters
manufacturing destination. Since China’s Xiapong, China's Competitiveness, GDP, have changed and the incumbent handset
transition from a planned economy under PPP, Manufacturing Sector makers have to adjust to still be in the
the leadership of Deng Xiaoping into a reckoning. The growth rate is however
market economy in 1978, there was a rapid forecast to slow down and there is fierce
growth in the Chinese economy. Leveraging battle among the players to gain a bigger
on its strength of 1.3 billion people, eBay in China: Strategies and market share, even if that means sacrificing
including 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 market
manufacturing. Coupled with the open door
industry entered China in 2002. It faced share fall due to lack of foresight. Through
policy, China’s strategy of becoming the
severe competition in the Chinese market product innovation, Motorola wants to
world’s factory floor was quiet successful.
from a local player- Taobao.com operated reclaim the top position it lost to Nokia.
Within 20 years, China became the
by Alibaba.com, China’s largest B2B Asian handset makers too want and are
seventh-largest economy in terms of GDP,
operator. eBay also faced restrictions in becoming stronger. Quickest adjustment to
the 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, this
manufacturing. 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 Global
Competitiveness Index, an index that ranks
After nearly five years of operation in Pedagogical Objectives
China, eBay was left with only 29% market
countries based on their competitiveness. • To understand the trends and the critical
share as against Taobao’s 67%. eBay tried
However, how sustainable is China's success factors in the global mobile
to adopt its US model in its Chinese
competitiveness? By 2003, China was handset industry, and how did this change
operations, although with some alterations
finding it hard to retain MNCs. Rising labour their strategies
to suit local needs.
costs, spiralling raw material prices and
appreciating Yuan, is forcing many In December 2006, eBay announced a joint • To understand the concept of value chain
companies to shut down their branches in venture with TOM Online, China’s popular
China and move out for better alternatives. • To do the scenario analysis for the
wireless operator and looked forward to a
Can China remain globally competitive mobile handset industry
revival in its Chinese operations. The case
while 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 to
of the companies, however, still prefer China teach courses on Strategy and to Industry Telecommunication
as the destination of choice owing to factors specifically discuss challenges faced by Reference No. CCA0038
like large consumer market, supply chain Year of Pub. 2007
global players in China.
advantages and relatively low raw material Teaching Note Available
prices. Moreover, to avoid the challenge of Struc.Assig. Available
Pedagogical Objectives
rising cost, companies are changing their Keywords
strategies, investing on higher technology • To analyse the business model of eBay
and training employees. Even China is Trends in the Global Mobile Handset
• To analyse the dynamics of online
shifting from mass manufacturing labour- Industry; Critical Success Factors in Mobile
auction industry in china
intensive industries to high-tech industries. Handset Industry; Basis for Industry
The case explores the opportunities and • To understand the factors behind eBay's Segmentation; Value Chain Analysis; Total
challenges 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 able
Pedagogical 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; eBay's 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. Debating
Industry Manufacturing Taobao Motorola’s strategy, this case discusses
Reference No. CCA0040 whether it can beat Nokia.
Year of Pub. 2009

45
www.ibscdc.org
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: Lowe's 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
eBay's 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 billion-eBay.com (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 world's 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. Available

46
www.ibscdc.org
Keywords group of over 200 privately held opposing each other, the alignment to co-

S T R A T E G Y – I
companies. It has been involved in more promote their software was intriguing to
Home Improvement market; Core brand extensions than any other major many.
Competency & Competitive Advantage brand in the past 20 years. Founder
Case Study; Home centers; Home Depot; promoter Richard Branson has extended The case describes how free software
Lowe’s; US retailer; Home Depot vs the Virgin brand to diverse and distinct movement evolved over years and how
Lowe’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 freely
Frontrunner; 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 strategies
The 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 web
branding exercise. A diversified group, with reference to core brand values, services for managing physical and virtual
Virgin has over 200 privately held management practices, factors servers for the users of Microsoft Windows
companies. 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 of
brand to diverse and distinct businesses such and discuss the future prospects of Virgin’s Novell being dissolved into the Microsoft
as airline, cola, mobile phone, bridal wear, brand extension, its new foray’s and the amalgam, as many industry analysts have
retail chain, financial services, cars, jeans, future role of its promoter. pointed to such earlier partnerships and
trains, and books amongst others. As deals.
Branson extends brand Virgin to new and Pedagogical Objectives
unrelated area, Virgin’s human resource Pedagogical Objectives
management, leadership and brand values • Understand the dynamics of the Virgin
Group • Competitive strategies in software
play a key role in maintaining its core brand
industry
values. The case enables students to discuss
• Discuss the brand extension strategies
Virgin’s innovative HR practices and • Dynamics in Operating and Server
adopted by Virgin and the role played by
internal branding strategy, evaluate its network software Industry
Richard Branson, its promoter
HRM model with reference to recruitment,
work culture and role of leadership and • Evaluate Virgin’s business model with • Ethics in software industry
spread 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; Stagecoach
Industry Service Industry
Group; T-Mobile network; Core
Reference No. CCA0033P
Competency & Competitive Advantage Steel Authority of India: Facing
Year of Pub. 2006
Teaching Note Available
Case Study; Virgin Mobile; NTL-Telewest; New Challenges
Virgin Cola
Struc.Assig. Not Available The Indian steel industry was the third
Keywords fastest growing steel industry in the world
next only to China. The demand for Indian
Richard Branson; Virgin Atlantic; Core Microsoft – Novell Alignment: steel was growing at 8-9 % as against a
Competency & Competitive Advantage The Future of Linux global average of 5-6 %. By 2006, with a
Case Study; Virgin retail; Virgin Rail; Virgin Microsoft entered into a working current capacity of 38 million tonnes per
Direct; Virgin People; Virgin blue; Virgin agreement with Novell on November 2nd annum (MTA) the Indian Steel Industry
Village 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, free
The case covers Virgin’s brand extension software developed over years of research almost all grades/varieties and had also been
strategies 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
www.ibscdc.org
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 steel

48
www.ibscdc.org
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
opined that it would be very challenging for Reference No. CCA0026P
the Tatas to retain the price tag. But Ratan • Possibilities for a Rs. One lakh car in Year of Pub. 2006
Tata went ahead with the strategic alliance India Teaching Note Not Available
with Fiat Auto SpA, constructing an • Various challenges such a car would face Struc.Assign. Not Available
assembly plant in West Bengal and looking in the Indian market
for never-before moves like using Keywords
reengineered plastics and adhesives instead • Opportunities available for the car in Yahoo!; Terry Semel; Online brand
of 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. CCA0027C
The engine for the small car project Year of Pub. 2006
codenamed 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 only
technology. 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 category
will be designing the aesthetic and
aerodynamic 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 discount
use of plastics on the body of the car. Reengineered Plastics for interiors; Tata giants Wal-Mart and Target entered the
Developers 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 discounters
experimenting on carbon-fiber composites
Export possibilities for small cars; Small but its strategies did not work favourably
from renewable resources which would offer
a strong but incredibly lightweight cars; Tata Ryerson and Tata Motorfinance; and it faced financial problems. The
alternative. The company was considering Quadricycles; Aerodynamics and aesthetics situation was so severe that the company
3-4 sites to produce the ‘people’s car’, in small car; Automobile consortium in was considering completely selling off its
whose engines and power-train would be India. toys business. The case details the
developed in-house. Tata was also reported circumstances that led TRU into problems
to be in talks with the TVS, the Hero and and forced the company to take some
the Kinetic Motor groups to co-invest in Yahoo! – Eyeing the Next Big major decisions. Finally, the case discusses
the assembly facilities in other locations. Thing on Internet the actions taken by the company and its
Tata Motors reasoned that by 2008, the plans for the future.
launch year of small car, the top-end price After the dismal financial performance in
for motorcycles would be Rs. 70,000 to the early 2000s, Yahoo! (Yahoo) is on its Pedagogical Objectives
Rs. 80,000. Hence, a car priced at Rs. 1 way back to profitability in 2003. Under
lakh would be a perfect and safer the guidance of Terry Semel (Semel) CEO • To discuss the way TRU revolutionised
alternative. Tata also eyed the possibilities Yahoo, the portal is on the way to becoming the toy retail industry by selling a wide
of exporting to south East Asian countries the largest media company in the world. range of toys in one place and becoming
like 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 department
As of 2006, the annual size of the global source of revenue for online companies. As stores.
car market was around 50 million units, of advertisers flock to Yahoo, Semel has a tough
which the Asian numbers, excluding Japan • To discuss the concept of specialty
task of convincing traditional media, which retailing, get an overview of the US toy
and Korea, might be under three million is responsible for most of its content, to
indicating the unsaturated nature of the market and competition in the market.
continue their relationship with Yahoo.
car market in Asia. Added to this would be • To discuss the factors that led to a
the 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 Industry
3,000 which would open up these markets podcasts and hyperlinks, is the “next big Reference No. CCA0025P
and buildup unprecedented volumes. While thing” on the internet both for the user Year Of Pub. 2005
India had the engineering skills and and the advertiser. As Semel makes Teaching Note Not Available
innovative industry leadership, China could investments to make social media a reality, Struc.Assign. Not Available
be a source for mass manufacturing. An he wonders if his bet will pay off. With so
much content being generated in Yahoo, Keywords
alliance which synergizes these abilities
could create opportunities dethroning will Yahoo be able to maintain the fine Toys R Us; Specialty toy retail; Toy
Japan and Korea as automobile leaders in balance between guiding the user to the industry; toysrus.com; 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, but
other players from both the nations. Pedagogical Objectives
• To discuss Yahoo’s growth McDonald’s in 2005: Sustaining
Pedagogical Objectives the Growth Momentum
• To discuss the competition and changing
The case anticipates familiarising the markets When James R. Cantalupo (Cantalupo) dies
students 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
www.ibscdc.org
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 extent
50
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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
BPO industry was to be seen. sustaining its competitive position remains
to be seen. • To understand the search engine industry
The case discusses the various parameters structure
on which India had gained competitive
advantage in past. Further, it explains Pedagogical Objectives • To discuss the competitive growth
factors on which the competing countries strategies followed by the market leader
• To analyse the Chinese fast food industry Google and the market challenger Yahoo
were trying to turn the trend towards them.
• To discuss the growth strategies and • To analyse the business models followed
Pedagogical 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 Available
Industry Information Technology
Keywords Keywords
Reference No. CCA0020A
Year 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 product
chain; 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 capitalising
In 2005, Kentucky, US based YUM! on advantages of “lower cost skilled
Brands, Inc. was the world’s largest quick In July 2005, the search engine industry personnel, cultural factors, natural
service 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 patients
developed, operated, franchised and increased by 6%; where as that of Yahoo’s from developed nations where medical
licensed nearly 34,000 restaurants in more had increased by 9% on Q-to-Q basis. treatments were expensive and the waiting
than 100 countries. Four of its restaurant Though Google had 36% market share in lists long. By providing medical services
brands KFC, Pizza Hut, Taco Bell and Long Web search in 2004, Yahoo was catching to foreign customers, these countries were
John Silver’s were the global leaders of the up fast with 27% market share. not only generating valuable foreign
chicken, pizza, Mexican food, and quick- exchange, but were also creating
Till 2004, Google had been the undisputed employment opportunities. Thailand was
service seafood categories, respectively.
leader in the search engine industry. A wave the leader in the region, followed by
Outside the US, Yum opened three new
of mergers, acquisitions, and personnel Singapore and Malaysia and India as the
restaurants every day including one
changes shook up this ever-volatile preferred destinations for medical
restaurant 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 full
The 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 national
Yum as the focus. The successful strategies was known for its innovation led growth. income, which extended well beyond the
adopted by Yum such as localization, With different strengths and philosophies, medical, travel and tourism sectors
owning 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 added
contributed to its evolution as the market to the growth of the industry.
The case describes the growth strategies
leader in China. The challenges Yum faced
followed by both players. Google’s Though Asian countries provided cheaper
in China were stiff competition from
innovation driven growth strategy and medical services, they were also perceived
McDonald’s and other international and
Yahoo’s diversified business model to by some as being manned by low quality
local players, growing concerns related to
dominate the industry has been compared doctors who provided poor quality
lack of healthy nutrition values of fast food
and contrasted. The case highlights the treatment. Pricing of the treatments and
and outbreak of bird flu epidemics. Yum
competitive advantages Yahoo and Google packages across the region varied. Experts
had plans to introduce its two other fast
have in their respective areas. The case opined that the over emphasis on the
food brands, Long John Silver’s and A&W
ends with a debate on who would rule the foreign patients who offered higher
All American Food in China. How
search industry. revenue compared to domestic patients can
successful would these be with Chinese

51
www.ibscdc.org
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. CCA0014

52
www.ibscdc.org
Year of Pub 2006 display), which displays information in right Keywords

S T R A T E G Y – I
Teaching Note Available and left viewing directions. Being a global
Struc.Assign. Available leader in LCD technology, Sharp has also British Broadcasting Corporation (BBC);
developed another variety of LCD, which Internet content provider; On-line content
Keywords 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 Beeb.com; 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; Market
Integrated mills and mini-mills; chief Pedagogical Objective operations of BBC Online; Interactive
executive officer (CEO) compensation; technology in BBC.
Share the pain; No-layoff policy; • To discuss growth strategy and
Competitive 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 operating
has 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 and
knowledge management program, which edge; Texas Instruments; Component Dashboard, Tiger is poised to change the
was 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 launched
its various plants for improvisation of Semiconductors; Optical communication Tiger ‘about time’ when the company is
manufacturing processes for cost system. basking in the success of iPod, others are
reduction. Mittal Steel, whose turnover was sceptical whether the company can make
$22 billion in 2004, increased its Tiger as successful as iPod. Besides, Apple
production capacity from 20 million tons
Using Online Presence to Gain is also expected to face competition from
to 70 million tons between 2002 and 2005
and became the biggest steel company in Competitive Advantage: The Microsoft, which is expected to come out
the world. BBC Way with ‘Longhorn’, an advanced version of
its operating system Microsoft XP.
Since its on-line foray in 1998, British
Pedagogical 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, soaps
Reference No. CCA0013 and teen chat to science and nature. With Industry Personal Computers
Year Of Pub. 2005 its broader news content enhanced by audio Reference No. CCA0010
Teaching Note Not Available and visual aids, BBC attracts a majority of Year of Pub. 2005
Struc.Assign. Not Available newspaper readers, both online and offline. Teaching Note Not Available
The viewership of BBC’s news website Struc.Assign. Not Available
Keywords increased from 1.6 million weekly users in
2000 to 7.8 million users in 2005. This Keywords
Mittal Steel; Laxmi Nivas Mittal; Growth
strategies; 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; Personal
steel producer; Mittal Steel’s business rapid decline in advertising revenues. computer; Digital music; Steve Jobs; iTunes.
model; Acquisitions; Family business;
Competitive advantage; Operations; Pedagogical Objectives
Knowledge 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’ Means
Since its inception in 1912, Sharp providers.
EnCana Corporation (EnCana) evolved
Corporation has traditionally been known from being a virtually unknown entity to
Industry Television and Internet
for its new categories of ‘never seen before’ North America’s largest independent oil
Content Poviders
products. The latest in its innovations was and gas company. Under the leadership of
Reference No. CCA0011
unveiled in July 2005, when the company chief executive officer, Gwyn Morgan,
Year of Pub. 2005
started the mass production of the world’s EnCana developed a strategy of focusing
Teaching Note Not Available
first ‘dual-function LCD’ (liquid crystal exclusively on extraction of
Struc.Assign. Not Available

53
www.ibscdc.org
‘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. CCA0008

54
www.ibscdc.org
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
Finance Corporation). cars from Japan that put enormous 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 Trade
Korea’s impressive growth performance
over the last four decades is usually of the Japanese Lean production system, Organisation; Yusuf Hamied; Indian
described. The case study focuses on the which resulted in the production of high Patents Act 1970; General Agreement on
conditions of dynamic industrial changes quality, low cost cars Trade and Tariffs (GATT); Abbreviated new
that helped Korea to catch up with the • To discuss how Japanese manufactures drug application; Zidovudine; Product
industrialised nations in the world. gave competition to the ‘Big Three’ of patents and process patents; Doctors
US. Without Borders; Pharmaceutical value
Pedagogical 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 with
Industry Automobile Manufacturing behind Toyota production system (TPS); their premium price tag represented a
Reference No. CCA0004 Lean design and development; Kaizen; Just- relatively small segment of the overall
Year of Pub. 2004 in-time. television market even in 2003. However,
Teaching Note Not Available LCD TV production was expected to go up
Struc.Assign. Not Available in 2004. Consequently, prices were likely
Keywords Cipla ‘s Generic Competence to drop to levels affordable to the average
customer by 2005. Since the late 1990s, a
Building competencies; South Korea’s Thanks to the Indian Patents Act 1970, vast majority of LCD products such as
chaebols; Duplicative and creative Indian pharmaceutical companies became notebook PCs, cell phones, personal digital
imitation; Technology transfer; Reverse adept at reverse engineering. Minimal devices were made in Asia. As in 2003
engineering; Research and development; expenditure on R&D, low labour costs and Taiwanese manufacturers dominated the
Hyundai; Samsung; LG; Automobile low input costs due to availability of cheap notebook computer industry. This gave
industry; Semi-conductor industry; indigenous raw materials contributed to Taiwanese LCD-makers a competitive
Imitation to innovation; Learning by lower production costs. These factors advantage in the booming LCD TV
doing; learning by research; South Korean contributed to the Indian pharma industry business. However, Korea and Japan
exports; Investment driven state; Low cost becoming ‘generics’ driven. The growing dominated the LCD business. Taiwan trailed
investments; Technology assimilation; problem of AIDS across the world, Japan in LCD technologies. Besides
building. 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 specific
Despite a late entry in the global automobile
tenth of the price offered by references to the competitive advantage
industry 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 world
industry witnessed a rapid growth that Industry Electronic Components
scurrying to lower their prices and to stop
transformed 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. 2003
of the 21st century. One of the major reasons Teaching Note Not Available
behind this success had been the radical Pedagogical Objectives
Struc.Assign. Not Available
Japanese production system, devised by • To discuss the factors that made Indian
Taiichi Ohno of the Toyota Motor Keywords
Pharmaceutical industry generic driven
Company. 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 medium
called, 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 Industry
conducive relations between the
Reference No. CCA0002
manufacturers and their suppliers. This

55
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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, UK's Music Retailer (B): The Keywords
Costs of Overexposure? • The case analyses the competitors move
vis-à-vis HP in the printer industry Salesforce.com-on 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 Fopp's 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 Fopp's decision to go out Year of Pub. 2007 enterprise edition; Appexchange platform;
of business. This case is an antithesis to Teaching Note Not Available salesfroce.com 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 Fopp's edition; pertner edition; mashup with
positioning to reach a particular Keywords google; salesforce.com's 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
chain's 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 Fopp's
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
Salesforce.com’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
– Salesforce.com. 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 Salesforce.com, 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 Salesforce.com’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,
Salesforce.com 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 Salesforce.com 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; Corporate

56
www.ibscdc.org
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
service; Dell battery programme; PC county’s leading retail chain Metro AG. itself as ‘Beyond Petroleum’ suffered from
(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 to
Wal-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 company
growing at a rapid pace with more than German retail market. Analysts perceived still believed about its ‘green’ ethos and
6100 stores world wide, their net sales that US Model of business was not effective values, it needs to be aligned with the
reached 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 Bay
international 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 friendly
to the country of South Korea. The world
competition from the local competitors image, strategy taken by BP to win back
largest retailer was pulling out of the
like Aldi, Metro AG might cause Wal-Mart’s its ‘green’ image and how the company
peninsula-where it’s wholly owned “Wal-
downfall in Germany. planned to prevent similar incidents in
Mart Korea” arm had struggled since 1998
future without affecting its cost
as 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 decision
sell 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 integrated
in the year 2005, on sales of US $ 802 strategy in the context of Prudhoe Bay
million. Shinsegae was South Korea's largest Pedagogical Objectives
incidence
discount store chain and also used to run • To understand the global retail market
the country's third-ranked department • To analyse the implication of the
store chain E-Mart. This case gives an idea • To discuss about Wal-Mart’s initiatives Prudhoe Bay disaster in BP’s corporate
about the failed strategy of Wal-Mart, in Germany image
globally 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; 'Beyond
Teaching 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 prices
Keywords
Wal-Mart; Retailer; Wal-Mart Korea; BAE Systems Exits Commercial
Shinsegae; Discount store chain; E-Mart; BP: Trying to Win Back its ‘Green’
Aircraft Manufacturing
Pull-out; Carrefour; Tesco; 'Warehouse' Image
format; E-Land; Corporate Strategies Case Hampshire, UK-based fourth largest
Study; Strategy; Everyday low prices; Since March 2006, British Petroleum’s defense and aerospace company, BAE
Korea 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 lower
The 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 by
reached to more than US 312.4 billion for corroded. This led to the decision to close funding the projects or also at times being
the 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’s
international expansion, but the strategy fourth, affected BP’s top-line and bottom- contribution in European commercial
was apparently failed in the country of line and led to a severe PR disaster for the aircraft manufacturing and thereby led to
Germany. 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
www.ibscdc.org
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 BharatMatrimony.com: 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. BharatMatrimony.com (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 BharatMatrimony.com
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 BharatMatrimony.com
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
Google's Dilemma avail the option of CDR to get out of the
Industry E-commerce Industry
Reference No. COS0056P
Both, MySpace.com and YouTube.com 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 iRishta.com
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
Orkut.com 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 throughVideo.Google.com • 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
www.ibscdc.org
its consolidation strategies and its attempts Keywords break even. In 2005, Poste Italiane had

S T R A T E G Y – I
to become a major player in the wine revenue of US$20,485.2 million and a profit
segment. 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 knox
Pedagogical 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 company's poor financial
Industry Beverege Industry company with 8% share of the worldwide position in the 1990's and the reasons
Reference No. COS0055P PC market. The take over involved the behind them
Year of Pub. 2006 integration of IBM’s operations and
Teaching Note Available • To discuss the corporate restructuring
employees by Lenovo. This case study
Struc.Assig. Not Available strategies of its CEOs, Corrado Passera
discusses how Lenovo has managed the
and Massimo Sarmi
Keywords integration and the strategies it is adopting
to compete in the global market. • To discuss the company's diversification
Beringer Blass wine estate; Carlton & into financial services
United beverages; Lensworth Group; Pedagogical Objectives
Corporate Strategies Case Study; Scottish • To discuss the HR strategies pertaining
& Newcastle; SAB Miller; Mildara Blass; • To understand the Chinese personal to such restructuring.
Rosemount; Penfold's; 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 Available
The $57 billion - Procter & Gamble (P&G) • To discuss Lenovo’s strategy to make a
was the world's No.1 maker of household comeback. Keywords
products. It had always been a frontrunner
Industry IT (Information Technology) Post Italiane; Corporate restructuring;
in marketing. It had invented the concepts
Reference No. COS0053P Mission; Vision; Banking Industry; Parcel
of brand, brand management and the ‘Soap
Year of Pub. 2006 Delivery.
Opera’. The company had recently
Teaching Note Available
resorted to ‘Buzz/Word-of-mouth
Struc.Assig. Not Available
marketing’ as its latest experiment to
attract consumers. P&G had set up Tremor Keywords Posco: Moving Towards Raw
and Vocal point wherein it encouraged Material
teens and moms respectively to talk to Legend Computers; Think Vision; Think
people, about everything - from the Pad; Corporate Strategies Case Study; Think South Korea based POSCO, the fifth largest
products to anything under the sun. The Vantage; Think centre; Aptiva; Netvista; steel producer of the world, planned to set
initiative was turning out to be a huge Lenovo 3000 series; Think centre E series; up a steel plant of 12 million tonnes per
success, once again making P&G the V series annum (mtpa) at Paradeep, India. This U$
pioneer for moving away from traditional 12 bn investment is POSCO's first
mediums of marketing and opening up new investment outside its home country,
Korea. The company chose India as its
avenues. The case discusses P&G’s previous Poste Italiane: A Story of
raw-material source due to her high quality
marketing innovations, the business Corporate Metamorphosis iron-ore reserves. The company planned
models of Tremor and Vocal point and the
oppositions that it faced from certain In 1990s, Poste Italiane, the largest to produce primary steel in India and
segments. company of Italy, was facing huge financial transport the semi-finished steel to its
losses. It was one of Europe's most inefficient manufacturing facility in Korea. Analysts
opine that the new initiatives will help
Pedagogical 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 Industry
Reference No. COS0054P operation by reinforcing the financial
Year of Pub. 2006 division and upgrading the information Pedagogical Objectives
Teaching Note Available technology infrastructure. From 2003, such
• To discuss the trends and pattern of
Struc.Assig. Not Available corporate makeover strategies had started
global steel industry
delivering results, when it attained its first

59
www.ibscdc.org
• 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
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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
market, would LG be able to compete
Warehouse clubs in the US registered a
phenomenal 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-food
the 21st century. Costco, Sam’s club and Reference No. COS0045B
retailer with 30,000 restaurants in 119
Berkley and Jansen (BJ’s) were the three Year of Pub. 2005
countries, has successfully maintained its
leading warehouse clubs in the US. Teaching Note Not Available
global brand identity by standardizing its
Warehouse clubs operated as no-frills, self- Struc.Assign. Not Available
principles and service quality but customizing
service format which offered lower prices
Keywords its offerings across the globe. The highlight
as compared to other retailers. It offered a of McDonald’s localization strategy has been
narrow assortment of branded food and LG; Indian Telecom; LG Electronics India its foray into Asia where it has survived and
general merchandise items within a wide Ltd; GSM Segment; CDMA Segment; has repeatedly proved itself vis-à-vis other
range of product categories. Customers Nokia; Samsung; Indian mobile Handset big food retailers who have failed due to
were limited to members who paid an Industry; Benq Reliance Infocomm; Tata their inability to adapt to Asia’s diverse
annual 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 Objectives

Pedagogical 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 Visa
Industry Retail the globe while customizing its menu to
and other rivals. The IPO was announced
Reference No. COS0046B suit local tastes
at a time when various lawsuits filed by its
Year of Pub. 2005 rivals and its merchants were ongoing. Also • To analyse whether McDonald’s
Teaching Note Not Available the US credit card industry was going localization strategy would prove to be
Struc.Assign. Not Available through a wave of consolidation. a disadvantage in case the brand loses its
Keywords unique American appeal.
The case describes the industry structure
of the credit cards, the present organization Industry Fast Food & Quick Service
Warehouse clubs; Costco; Sam’s Club; BJ’s;
structure of MasterCard and the proposed Restaurants
Merchandising; Business Model; Wholesale
one after the IPO. The case also describes Reference No. COS0043
club industry; Discounting; No-frills; Self-
the competitive landscape of the industry Year of Pub. 2006
service formats; Membership; Distribution;
and the critical factors affecting it. The Teaching Note Available
supply chain; Retail in the US; Same store
core of the case is the proposed IPO of Struc.Assign. Available
sales.
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 ‘Happy
In 2003-2004, the Indian mobile handset Price Menu’ in India; Food studios;
Pedagogical Objectives McDonald’s on the move; Localising the
industry with a growth of 568% was the
second largest market after China. There on-line world; The McDonald’s way; The
• To understand how card credit industry
were around 20 handset companies in the 5P’s (product, price, promotion, place,
operates
GSM 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 service
operators, Reliance Infocomm and Tata • To debate issue related to corporate
Teleservices. LG Electronics India Ltd., governance.
(LGEIL) captured 66% market share in the
Industry Credit Card Industry
Philips Electronics NV: Weighing
CDMA segment compared to Samsung who
Reference No. COS0044A the Strategic Options for
had a market share of only 15.2%. Having
Year of Pub. 2006 Semiconductor Division
tasted the initial success in the CDMA
Teaching Note Not Available
market, LGEIL entered the GSM market. The semiconductor industry is considered
Struc.Assign. Not Available
The case gives in-depth information on the a highly volatile industry. There are
telecom environment in India, and the Keywords frequent changes in technology, which
growth of the handset market in India. The constantly influence demand and supply.
case discusses on the various initiatives taken MasterCard; Visa; Initial Public Offering Philips failed to sustain its semiconductor
by 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; organization
Pedagogical 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.
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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 transportation

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Pedagogical Objective Canada. Since its inception in 1966, Best Keywords

S T R A T E G Y – I
Buy has grown through customer
• 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; Supply
Reference No. COS0037
specific consumer segments like women chain management at Dell; Dell’s customer
Year of Pub. 2005
and urban youth. satisfaction.
Teaching Note Not Available
Struc.Assign. Not Available
Pedagogical Objectives
Keywords Interpublic (USA), the World’s
• To highlight the growth strategies of Third Biggest Marketing Services
Infineon Technologies; Chipmaker; DRAM Best Buy
(Dynamic Random Access Memory) chips; Group: The Perils of Reckless
Value chain; Spin-off; Market saturation; • To discuss the ‘customer centricity’ Global Expansion
Pricing pressure; Memory chips; Logic chips; model of Best Buy as a tool to sustain its
Research 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, Interpublic
Digital-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 $514
with 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; Super
manufacturers. However, the exorbitantly Azerbaijan, Bulgaria, Kazakhstan, Ukraine
store format; Speciality retailers; Discount
high 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; Customer
refilling ink cartridges that are done at half US. The company lost clients like GM,
orientation; Brad Anderson; Service
the cost of a new cartridge. Cartridge World, Unilever and Bank of America, which
innovation.
an Australian company that operates in affected its brand equity and increased its
many countries through franchise stores, debt burden.
leads this business model.
Dell’s Dilemma: Corporates or
Pedagogical Objective
Pedagogical 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. 2005
Industry Printing Imaging Equipment outpacing the corporate market in growth, Teaching Note Not Available
Reference No. COS0036 Dell is striving to focus more on the Struc.Assign. Not Available
Year of Pub. 2006 consumer markets through innovative
product offerings. Keywords
Teaching Note Not Available
Struc.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 of
Brick and mortar concept; Competitive (generally accepted accounting principals);
the consumer markets for the global PC
advantage; Cash cow; Low cost strategy; Marketing communications companies;
industry
Quality; 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 enterprise
Competitive 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 Available
Minneapolis-based Best Buy is a leading Gianni’s ‘daring design innovations and
Struc.Assign. Available
consumer electronics retailer in the US and clever publicity’, clocking revenues of

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$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 retailing

64
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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
chairman Satoshi Iue was appointed as the Chery; Global automobile industry; Joint
president. The new appointments came as venture; Shanghai Automotive Corporation
The mobile phone division of Siemens AG, a surprise to many’. First Auto Works (FAW); Flexible tooling
the German electronics major, is the fourth and lean manufacturing; Operational
largest producer of mobile handsets in the Pedagogical Objective flexibility; Price war; Market share.
world. But since 2001 it has been constantly
reporting 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. 2005
With the appointment of the new Chief
Teaching Note Not Available By the turn of the 21st century, Intel’s
Executive Officer (CEO), Klaus Kleinfeld,
Struc.Assign. Not Available challenges included the Internet bubble
a decision on the mobile division has become
burst, rival AMD outperforming Intel and
the 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 in
sale, 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 century
Reference No. COS0027 lacked the technical expertise to facilitate
Year of Pub. 2005 mass production of automobiles. The • To discuss Intel’s new strategy for growth
Teaching Note Not Available Government of China made a policy of in 2005, under the leadership of Paul
Struc.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, Digital
Communications; Mobile electronics were Volkswagen (VW), in 1984, and
Signal Processing
products and services; Information and General Motors (GM), in 1995. Though
Reference No. COS0024
Communication Mobile (ICM); VW and GM made huge profits and large
Year of Pub. 2005
Turnaround and survival strategies; market shares in China in their early years,
Teaching Note Not Available
Restructuring plan; cost-cutting efforts; they lost out eventually to new entrants
Struc.Assign. Not Available
Heinrich von Pierer and Klaus Kleinfeld; like Hyundai and a Chinese company
Siemens Communications Group; Siemens named Chery. Despite their position as the Keywords
AG mobile division; Loss-making division; incumbents, they failed to customise their
cars according to the shift in their customer Intel’s product launch strategy; Paul
EU 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; Heat
Revival options and strategies; Telecom
that GM and VW have procrastinated cost- generated by Intel’s processors; AMD’s
equipment and services; Turnaround
cutting and other measures for too long. technological advantages over Intel; Intel’s
specialist; 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 advantage
Sanyo Electric Company, Japan’s third-
largest consumer electronics maker • To discuss whether it proves beneficial
witnessed 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’ for
year ended March 31 st 2005, as it reported a Japanese Company?
Industry Automobile Manufacturing
a loss of $1.1 billion. The grave financial
Reference No. COS0025 In the early 21st century, Sony, Japan’s
position in turn spurred a change in the
Year of Pub. 2005 most innovative company and the world’s
top management. Tomoyo Nonaka, a
Teaching Note Not Available most valuable consumer electronics
former TV journalist, with little knowledge
Struc.Assign. Not Available company, was in a crisis. Its foray into
about electronics and no management
music, motion pictures, and financial
experience was appointed as the new Keywords
chairman 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
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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; Advertising.com; 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; Nytimes.com; 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.

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Pedagogical Objectives Keywords the McDonald’s Corporation. McDonald’s

S T R A T E G Y – I
became the focal point for a number of
• 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 the
Industry Construction Industry genuineness of the health benefits of the
Reference No. COS0019 new additions and on the sincerity of the
Year of Pub 2005 Bloomberg’s Dilemma: Growth company’s commitment to the cause of
Teaching Note Not Available
or Sale? promoting a healthy lifestyle.
Struc.Assign. Not Available
In November 2001, after Bloomberg’s Pedagogical Objective
Keywords
founder Michael Rubens Bloomberg left the
Mainland China; Regulatory framework; company to become the New York City • To discuss the issue of corporate social
China’s construction industry; Building Mayor, a new management team took over responsibility among fast food
relationships; 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 Service
Urban and Rural Construction; State- accounts, Michael Bloomberg had placed
Restaurants
owned enterprises; Foreign construction his firm in the hands of a management
Reference No. COS0016
firms; Business opportunities; Xintiandi team that did not seem to be inclined to
Year of Pub 2004
Entertainment District; Vincent Lo; change much or take big risks, in marked
Teaching Note Available
Engineering design and consulting firms; contrast to the situation when Michael
Struc.Assign. Available
Commercial housing projects; Chinese real Bloomberg was at the helm. Also the
estate. 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 company
have failed. As an athletic footwear and
sports apparel manufacturer, Nike’s brand • To discuss the initiatives taken by the
has 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 the
brand had become synonymous with sport Pyramid’
Industry Information Collection and
celebrities like Michael Jordan and Tiger
Delivery Tata group’s Indian Hotels Company
Woods. Nike’s belief in a performance shoe
Reference No. COS0017 Limited (IHCL), India’s largest luxury hotel
backed by high-value advertising enabled
Year of Pub. 2004 chain launched its first ‘no-frill’ hotel
it to gain an edge over competitors like
Teaching Note Not Available named indiOne in Bangalore. indiOne, a
Adidas 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 Keywords
to this were the allegations of labour and safe stay at an affordable price for the
exploitation in its Asian factories. But the Bloomberg; Michael Bloomberg; Market middle-class traveler. The hotel provided
company rebutted its critics by emerging data industry; Reuters; Tom Glocer; single and double rooms just for INR 900
as 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 a
31 st 2004, the company posted a 15% T Grauer; Reuters’ 3000; Bloomberg-lite; landmark innovation in the traditional
rise 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 its
Pedagogical 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 showed
Industry Footwear that nearly 30% of the American in the Indo-Pak relations. So when the
Reference No. COS0018 population was suffering from obesity and majority of the luxury hotels were trying
Year of Pub. 2004 related health problems. Weight Watchers to boost their occupancy rates and ARRs
Teaching Note Available and other social groups blamed the calorie- by introducing discount schemes and
Struc.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.

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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.

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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
of image capture (cameras), services (on- focus on joint ventures more than on
line photofinishing sites, kiosks and R&D
During the period 2001-2003, when the minilabs) and image output (printing
six major network carriers in the US had paper). • To discuss the multiprolonged strategic
collectively lost $21 billion, the low cost approach for growth
airline JetBlue had managed to increase its Pedagogical Objectives • To discuss the multifaceted strategies
profits from $38 million to $103 million. adopted by Nicholas Piramal India
In spite of the overall industry malaise, • To discuss the growth strategies adopted Limited to cope with the on-coming
Neeleman, the airline’s founder made an by its current chairman and CEO Daniel implementation of international patent
aggressive plan to increase the fleet size Carp for its digital imaging business law from January 1st 2005
from 57 Airbus A320s to 290 and the
• To discuss Kodak’s future outlook • To discuss the problems that NPIL would
employee 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 Business
Industry Airlines
Patent Law (IPL) from January 2005 Model
Reference No. COS0010
onwards. This means that India’s
Year Of Pub. 2004 Having started as an on-line travel agent
pharmaceutical companies will have to
Teaching Note Not Available for the airline companies in 1994, Expedia
strictly adhere to product patent laws and
Struc.Assign. Not Available increased its offerings and became the
not the process patent laws that it has
world’s leading on-line travel agent in
Keywords followed to date. Indian companies were
reverse engineering the patented drugs and, 2002. The success of Expedia was
JetBlue Airways; Low cost airlines in the with minor changes in the process, launched attributed to the shift in its business model
US; Cost management by low cost carriers; them in the domestic markets at cheaper from ‘commission model’ to ‘merchant
US airlines industry after September 11, rates. The enforcement of the law would model’.
2001; Brand building by JetBlue Airways; necessiate the Indian companies to
Operations of JetBlue airways; HR (human complete with global pharma majors to Pedagogical Objectives
resource) practices at JetBlue Airways; Core stay in business. Thus, Indian companies
values of JetBlue Airways; Low cost versus • To discuss how Expedia reinvented its
have increased investments in research and
traditional airlines in the US; Growth plans business by creating multiple profit
development (R&D), joint ventures and
of JetBlue Airways; The challenges ahead centers like hotel bookings, car rentals,
also have elaborated their marketing
for 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 pharmaceutical
Eastman Kodak, a 130 year old company industry and how NPIL planned to meet Industry Travel Agencies and Services
is undergoing a radical transformation due the product patent challenge Reference No. COS0007
to the rapid convergence of traditional Year of Pub. 2004
• To discuss the various efforts taken by Teaching Note Not Available
photography with consumer electronics.
Nicholas Piramal India Limited (NPIL) Struc.Assign. Not Available
Faced with the threat of worldwide decline
to stay competitive in the post-2005
in photographic film sales, as well as the Keywords
period
growing popularity of digital cameras,
Daniel Carp, the chairman and CEO of • To discuss the strategic approaches Expedia; Business model; Commission
Kodak, had announced a new growth followed by NPIL to face the global model; Merchant model; On-line travel

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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 number

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pharma companies such as Novartis and cross-selling its products through its

S T R A T E G Y – I
AstraZeneca in this segment. In 2003, the various companies, each selling some
company’s market cap of about $30 specialized products.
billion was bigger than most big pharma
Industry Banking & Financial Services
players. According to analysts, the exciting
Reference No. COS0001
thing about the company was not its stock
Year of Pub. 2003
price or its growing supremacy in the cancer
Teaching Note Not Available
segment; rather it was the company’s
Struc.Assign. Not Available
unique strategy unlike other players in the
industry. Keywords

Pedagogical 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 cash
Reference No. COS0002
reserve ratios; Cross-selling.
Year of Pub. 2004
Teaching Note Not Available
Struc.Assign. Not Available

Keywords
Genentech; Business strategy;
Biotechnology industry; Research and
development; United States
pharmaceutical industry; Avastin; Arthur
D Levinson; Big pharma; Targeted
therapies; Rituxan; Herceptin; Food and
drug administration; United States Food and
Drug Administration; Blockbuster drugs;
Biologics license application.

HDFC’s Business Model


In the late 1990s, to exploit the synergies
brought by universal banking, major banks
in Europe and America merged to form
leading banks in the world. The trend of
consolidation hit even the Indian markets.
In 2002, Industrial Credit and Investment
Corporation of India Ltd (ICICI), one of
the leading development financial
institutions in India, reverse merged with
its subsidiary ICICI Bank, to become the
second largest bank in India. However,
Housing Development and Finance
Corporation (HDFC), India’s leading
housing finance company in terms of
deposits and loan disbursements, positioned
itself as a group of companies with each
subsidiary offering specialised products. It
focused on generating synergies of universal
banking by cross-selling its products across
its subsidiaries without actually merging
into 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

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