LEARNING DIARY

REFLECTION NOTE: CASE - APPLE INC. 2015

1. The decision-making process in any organization is continuous. Multiple decisions are being
made at every level of the pyramid and the integration of such decisions leads to the
formulation of strategy for that firm.
2. The nature of an organization is dynamic. Even a company, which is a market leader, is
exposed to risks at every moment and need to mitigate these risks to maintain their position
in the market.
3. The leading organizations are creating a repository of knowledge gained from its experiences
and failures. These databases are used in the future during strategy formulation.
4. Today's organizations are constantly exploring in terms of innovation and sustainable
competitive advantage to expand the scope of the organization.
5. Apple created a product advantage by the introduction of Iphone but it was not equal to its
competitive advantage as there was a wide gap between cost and Willingness To Pay (WTP).
The main aim of strategy formulation is to gain competitive advantage which is created by
reducing the gap between cost and customer's WTP. Apple made some integrated set of
choices to minimize this gap and thus created a competitive advantage over its competitors.
6. Competitive advantage is a two-step process: 1. Creating competitive advantage 2.
Sustaining competitive advantage. Apple sustained its competitive advantage by investing in
innovation and technology and introducing products that were difficult to imitate by its
competitors.
7. The case also highlights the role of Steve Jobs in the success journey of Apple. Steve Jobs,
through his leadership skills and effective strategies, pulled the company out of the
bankruptcy and created a brand desired by all in the market.

CASE NOTE: CASE - HUSKY INJECTION MOLDING SYSTEMS

Question 1: Are Husky Injection Molding Systems worth the premium they charge? Use the
quantitative analysis to establish your answer.

Answer: In order to comment on whether Husky should charge the premium or not, several
calculations were done. (calculations are done on annual basis)

1. Average number of preforms produced by Husky and its competitors was calculated. Savings
made by Husky is then compared to the savings made by the competitor.
2. The unit for weight is taken to be kilograms and time is taken in seconds for the entire
calculation.

Some of the inferences that could be made from the calculations are:

1. Husky saved $30K in electricity and around $170K in floor space every year.
 2. It takes less time to produce the same number of preforms as its competitors (40% less time)
thus showing the efficiency of its manufacturing process.
3. The superior quality of machines, post sales service and training provided by Husky is
strongest in the industry justifying the premium that they charge.

Question: What were the source of competitive advantage for the Husky before the present
challenges?

Answer:

1. Husky established itself as the leading firm in the preform niche by providing a quick series
of product innovations,
2. The company had established a reputation as a high-quality maker of plastics molds,
especially thinwall.
3. When compared to a simple vendor of equipment, Husky supplied complete factory
solutions for the plastics industry.
4. It offered a fully integrated system of thinwall mold, machine, and product-handling
equipment.
5. Husky provided a comprehensive and integrated product line for the end users it served.
6. The systems were known for their speed, ruggedness, resin utilization, and durability
7. Several benefits offered by products produced using Husky machines are: a) The margarine
container produced on a Husky machine weighs 2 grams less than one made on a competing
machine. b) The cycle time of making a set of PET preforms for soda bottles was 10-15%
shorter than a competitor’s system.
8. The company’s values included concern for the environment, devotion to personal health,
dedication to hard work, egalitarianism, and perfectionism.

SESSION 2

REFLECTION NOTE: CASE – HUSKY INJECTION MOLDING SYSTEMS

1. There exists a template for conducting the strategic audit of an organization which includes
analyzing the advantages, scope, and activities of that firm.
 Advantages include quantitative analysis, analysis of the performance of the firm
and the factors responsible for the same.
 Scope comprises of product management, vertical integration, and geographical
presence of the product.
 Activities include all the internal and external decisions/choices made by the firm
which are different from its competitors. These decisions are dynamic in nature and
can be influenced by external factors.
2. Husky’s generic strategy was to provide differentiated product for a narrow market.
 The organization was doing well, not because of the overall profitability of the
industry but due to the placement of the company in a niche category of providing
machines.
 Scope for Husky included high-quality products, global presence, few applications,
and integration of product and service.
 Husky made different choices in terms of operation, sales and service, procurement,
financial structure, and technological development which made it perform and
deliver better than its competitors.
3. Husky provided a highly focused product and charged premium for it. The value addition for
Husky is more than the value addition for the competitors thus creating a competitive
advantage.
4. The company is a great example of organizational culture and values which helps in
providing high quality products.
5. Analyzing the cost and WTP for Husky and its competitors was useful in determining the
value addition and the reasons for Husky charging a premium amount from its customers.

CASE NOTE: CURLED METAL

Question 1: What should a customer be willing to pay for one of the CMI’s new cushion
pads(11.5inch)? Use the quantitative data to establish the WTP (and possible price) and share
your result to entire Class keeping me CC.

Average real hour costs for owners

Average
Sl no. Parameter real hour
1 Diesel Hammer 102
2 Crane 156
3 Leads 24
4 Labour
5 Labour 63

6 Crane operator 30
7 Foreman 39
8 Overhead 300
Total per hour cost 714

Real cost per hour for the operation is being calculated in the table above. Hidden timings such as
moving and positioning of crane, scheduling delays, mistakes etc can be avoided in case we use real
cost.
Calculations for the two experiments mentioned in the case are shown in below table.

Kendrick Experiment Corey Experiment

Convential pads CMI pads Conventional pads CMI Pads

Total feet 15000 15000 12000 12000
No of sets of pads 20 1 50 1
 Total no of pads 480 6 600 5
Cost per set $150.00 $120.00
Total Cost of pads $3,000.00 $6,000.00
Delay due to changing
pads 20 Minutes 4 minutes 20 minutes 4 minutes
Feet per hour driven 150 200 160 200
Total hours including
Changing pads and
excluding hidden timings 106 hours 75 hours 91.5 60
Time saved using CMI 31 hours 31.5 hours

 The table explains the cost of conventional pads in performing the job. Efficiency of both the
pads is calculated including the time required to complete the job including the pad
changing time.
 The efficiency is better than the conventional pads and there is a considerable difference in
number of hours required to perform same job. Hence as we see CMI has saved 31 hours in
Kendrick’s job and around 31.5 in Corey’s job.
 The maximum amount the customer can pay is 25134$ in Kendrick’s job and 28134$ in
Corey’s Job as 714$ per hour as the operational cost with 31 hours of saving gives total
savings equal to 22134$ and then adding the amount of conventional pads. Dividing these
numbers by the number of pads used per pad cost comes upto 4189$ in Kendricks job and
5626$ in Corey’s Job.
 But the group manager thinks the requirement of number of pads for 10000 feet will be
around 6 and equating aur calculation towards that thinking, the pads required for the job of
Kendrick will be 9 and Corey will be 8.
 Considering this calculation CMI can price its pads in the range of 3000$-3500$ initially and
think of skimming it in the future.

Question 2: How big is the potential market for this product? What should be the strategic and
marketing objectives to introduce this product to market?

On the assumptions of Sanwal,

Total piles used per year 19500-26000

Weeks operated per year 25
Hours operated per week 30
Average driving (ft/hr) 20
Feets driven (annually) 290000000-390000000
Feets driven per set 10000
Total CMI pads sets req 29000-39000
Pads per set 6
Total pads 174000-234000
Per pad price 3000-3500
Total Market 522mn-819mn
The potential market for pile pads can be estimated in between $522mn to $819mn as per the given
information.
Considering all these factors, the following strategies can be followed:
  They should plan a proper distribution and production strategy for smooth movement of the
product
 CMI should focus upon these influencers for e.g., Engineering and construction contractors,
Architectural and consultant engineers, etc. to market the product as the purchasing
decision is dependent on these influencers.
 The company should collaborate with the world bets construction magazine and get
featured to gain foothold and imprint itself in the customer’s mind.
 To achieve a dominant position in the market and gain greater profits, CMI should go for
correct product pricing.
 The company should timely file its patent to protect the property rights.

SESSION 3

REFLECTION NOTE: CASE – CURLED METAL

1. Why Pricing is a multi-dimensional strategic question?

Pricing is considered a multi-dimensional strategic decision because several factors and
dimensions are considered while setting the price of a given product/service. Some of these
factors are:
 Pricing of the competitors offering similar products
 Amount of value created for the customer and the willingness to pay
 Type of pricing model: margin-based pricing or any other strategy
 Role of copyrights and patents
 Ease of replication
 Whether to follow low price high volume strategy or low volume high price strategy
2. Discuss why do perceived economic value is in most cases lower than the True Economic
Value and what can you do to make a better pricing decision?
For calculation of perceived economic value, quantifiable values are included although in
most circumstances, there are hidden benefits such as employee safety and other elements
that cannot be measured in terms of numbers. This results in smaller value of perceived
economic when compared to genuine economic value.
The price should be kept as close as possible to the customer's willingness to pay in order to
gain competitive advantage. While the company should think about the market in which it
competes and how it positions its product, it should also think about the market in which it
competes. Various dimensions should be considered while setting the price including the
market and positioning of the company.
3. Discuss why relative cost analysis is a critical strategic tool?
A way of comparing a company's costs to those of its competitors is called relative cost
analysis. Relative cost analysis assists a company in analyzing whether decreasing costs will
result in a cost advantage and whether that advantage will be long-term sustainable. It helps
a company figure out how its competitors will react if it cuts prices, as well as how the price
war will evolve over time.
Internally, it aids in the understanding of the operations that contribute the most to costs, as
well as cost-cutting opportunities. When a company launches a competing product,
comparable cost analysis might help with price selections.
Case Notes: Microsoft Search

1.How large is MS competitive advantage/disadvantage in Internet Search Industry? How will MS

competitive advantage/disadvantage evolve over time?

Though Microsoft does not have a huge competitive advantage in internet search industry, some
factors contributing to its competitive advantage in 2008 were:

1. Machine learning is used to distinguish Microsoft's results from those of competitors. MS

will be able to obtain user sentiments utilizing this technology by analyzing their web
reviews and performing advanced analysis. This would aid product firms in identifying their
target market and positioning their products in a way that appeals to their emotions.
2. Because there was little innovation in semantic market, Microsoft became a first mover by
investing in emerging technology.
3. The company integrated search service with Microsoft Encarta Encyclopedia thus helping
users get specific answer when they submit concrete query. This made MS a reliable source
to get the answer.

Some factors that lead to the disadvantage of Microsoft are

1. The company has a smaller number of data centers impacting the delivery time of search
results.
2. The number of active searchers is less and therefore it is not the preferred search engine.
3. It is revenue driven with less focus on customer needs and satisfaction
4. It failed to envision some of the important strategies of competitors (e.g., Google book)
5. Also, as Google develops its mobile operating system, it will grow its proportion of mobile
searches, and once Android becomes the dominant operating system, the Google search
engine will have a considerable advantage.
6. As mentioned in exhibit 5, the company has come at par with google in the relevance. But
google still has the upper hand since it has diversified products which can be integrated with
the search engine providing an edge over Microsoft.

2.Why is MS pursuing the market for search and search related advertising?

With a revenue of around $20 billion and a profit margin of 60-70 percent, the search engine
industry is expected to expand to $40 billion by the end of 2012. Microsoft was the first to become a
search provider due to other business activity. In 2003, Microsoft decided to create its own search
engine in response to the popularity of Google.
The global search engine market is estimated to exceed $40 billion, with $98 billion in internet
advertising. MS was chasing the search and search-related advertising business since it was a large
industry with a lot of revenue potential.
As a result of its search engine success, Google was diversifying its product portfolio. Google Maps,
Chrome, and the Android mobile operating system were among the first items it released. Microsoft
will always be at risk if Google succeeds in broadening its company, as Google may invade
Microsoft's area of desktop and laptop operating systems. To keep Google out of its sector,
Microsoft needed to compete in Google's expertise in the search market.

SESSION 4
REFLECTION NOTE: CASE – MICROSOFT SEARCH

1. Microsoft diversified from their domain of core competence and tried to sustain and secure
its competitive advantage.
2. To understand the present value creation of a company, static analysis is used whereas
dynamic analysis is used to understand the value created by the firm in present scenario.
3. Dynamic analysis also helps in analyzing the gap between cost and WTP over time and in
future.
4. Forecasting is used to sustain the competitive advantage for a long time.
5. To preserve the competitive advantage in the core competence domain, defensive strategy
is used.
6. Dynamic analysis in the form of feedback loop analysis is used to understand the effect of
changing circumstances on competitive advantage over time.
7. Search and the internet are both low-marginal-cost and highly imitable industries. As a
result, these industries' businesses are likely to lose their competitive advantage as their
resources and competencies are replicated. As a result, a static study of competitive
advantage will not assist in securing future positions, and a dynamic analysis will be required
to comprehend how the market evolves and enterprises might compete in the future.
8. Static examination of the current scenario assisted us in understanding Microsoft's current
performance and why it was ranked third in the search business. We used dynamic analysis
to figure out what kind of competitive disadvantage Microsoft will suffer in the future and
why it won't be able to catch up to Google in this area.

CASE NOTES: HONDA

Question: What is the strategy that had allowed Honda to be so successful in the motorcycle
industry, particularly in US?

Answer: As per the reports published by BCG, emphasis on high market share helped the Japanese
companies to outperform the domestic competitors. This emphasis led to high production volume,
improved productivity, reduce costs and hence high profitability in long term.
For Honda, the following factors contributed towards its performance and eventual success in the
motorcycle industry in US:

1. Honda did not rely on distributors and established a subsidiary in US to push its lightweight
products in the US market.
2. It gave special attention to marketing and invested heavily on advertising to increase its
sales.
3. The company, through its R&D and advanced manufacturing techniques, achieved a
significant product advantage. The time to introduce a new product in the market was less
as compared to the competitors.
4. Honda was willing to incur short-term losses to build a adequate selling and distribution
network.
5. It gave emphasis on market share and gave annual sales target to the sales company. They
prioritized sales volume rather than short-term profitability.
6. It provided the products with required features and at optimal price thus having an overall
impact on the complete cycle of attracting good dealers and increasing retail.
 7. As shown by the experience curve, the cost reduction was responsible for the competitive
effectiveness and provided them scope to compete in future in case market scenario
changed.

SESSION 5

REFLECTION NOTE: CASE – HONDA

1. The value system and core belief in the product and service played a critical role in the
Honda strategic initiative's logical picture. Unexpected opportunities were successfully
managed thanks to more opportunities, skilled and disciplined responsiveness.
2. Adaptation, Experimentation, and R&D are three crucial aspects of Honda's strategic
ambition, according to management.
3. The basic level of strategic control is defined by the belief system produced by the
company's mission and vision, as well as the boundary system that describes the advantage
and scope activities.
4. The post-analysis of the logic structure's consistent pattern is divided into two parts:
Deliberate (well-foreseen) vs. Emergent (Adapting to the changes)

CASE NOTES: BRITISH MOTORCYCLE INDUSTRY AT CROSSROADS

Question: In 1975, how large is NVT’s competitive disadvantage with respect to Honda? What are
sources of such disadvantage?

Answer:

1. When Honda built a bike, they employed a common chassis, which resulted in a significant
cost savings and faster manufacturing time when compared to the British Motorcycle
Industry, which uses a customized chassis every time a new bike is built.
2. When compared to Honda, the British Motorcycle manufacturer takes longer to complete a
product from the design phase to the construction phase. Honda has a 36-month warranty
versus Honda's 18-month warranty.
3. The higher return on investment for suppliers associated to Honda compared to other British
competitors drew them closer to the corporation, and new technological advancements
were acceptable to those affiliated to Honda.
4. When compared to the British motorcycle sector, Honda's full line of motorcycles was
sustained for a longer length of time, giving competitors a leg up.
5. In comparison to the British Motorcycle Industry, Honda has a reduced fixed cost in terms of
the four contemporary plants curated in Japan, resulting in superior economies of scale.
Modern manufacturing processes, such as automated fabrication technologies, aided in the
achievement of this goal.

SESSION 6

REFLECTION NOTE: BRITISH MOTORCYCLE INDUSTRY AT CROSSROADS

 1. When comparing the Honda bikes to the NVT, economies of scale and economies of
experience played a big influence in lowering the cost and raising the WTP.
2. NVT has a WTP of $2495 and Honda bikes have a WTP of roughly $2112. There is a
difference of around 12% between the products, resulting in a relative WTP of $1895 for
Honda. Taking this into account, NVT would have to lower the price by around $600 to
appeal to the market which, at the time, would be impossible for NVT1 to do.
3. In this case, the theory of disruption may be seen at the Apex in terms of technology
advancements, market capture, and economies of scale. NVT focused on the high-end
market, leaving the lower-end market to HONDA for due diligence.
4. Internal obstacles have a psychological component that causes a response to the challenge
which includes:
 Failure of inspiration
 Failure of motivation
 Failure of perception
 Failure of coordination

CASE NOTE: NETFLIX

Question: As you examine each major shift in Netflix’s strategy, what might have been an
assumptions checklist that they might have used at each stage? What is your opinion about the
strategic transition to VOD?

Answer: Strategic transition to VOD played an important role owing to:

1. Better content acquisition and creation in-house led to a better understanding of the market
and the ability to broadcast it across numerous platforms.
2. The firm's use of the suggestion system and regular updates aided in improving client
satisfaction and preserving the system's queue.
3. Netflix enjoyed first mover advantage over its competitors which had its own benefits.
4. The large subscriber base had to be redeemed because a large client base meant a larger
market share.
5. The fundamental limits prevented other competitors from entering the market in the
beginning, allowing NETFLIX to acquire traction in that time period by circulating movies
from their collection.

Assumptions checklist at each major shift in strategy by Netflix is:

1. Dynamic pricing system led to increase in the WTP of the customers as it affected and
reduced the overall cost structure. This led to Netflix attracting more customers (making
the product affordable) and higher market share.
2. Netflix focused on customer satisfaction and developed various systems like the
recommendation system for the same. Different techniques like easy cancellation and
no late fees policy followed the recommendation system implementation.

Question: Why did Blockbuster slow in responding to Netflix in every stage?

Answer:
 1. The decision to maintain both an online and offline presence divided Blockbuster's
resources, resulting in failure.
2. Failure to anticipate the rapid growth of Netflix during the period resulted in slow response
rate.
3. Slow technological infrastructure expansion combined with duplicating NETFLIX's strategy in
the same area resulted in increased costs and lower profits.

SESSION 7

REFLECTION NOTE: NETFLIX

1. NETFLIX's strategic initiative to fine-tune its services and products in response to changing
market conditions has resulted in stronger market domination. During this time, the firm's
emerging strategic initiatives resulted in much higher profitability.
2. The “Realized Strategy” for NETFLIX was created by combining all the strategical decisions,
project execution, and performance attained.
3. The vast national inventory combined with a stronger recommendation system resulted in a
rise in viewing as well as improved video distribution through several logistic centres and a
partnership with UPS.
4. Lower cost structure and high willingness to pay was a result of changes made in the pricing
system in response to the shift from a video on rent to a subscription model.
5. Reasons which led to the failure of Blockbuster when fighting for market share against
Netflix included some internal tensions:
 There was a lack of understanding in the management due a conflict between short-
term and long-term profits.
 The human intentions were not balanced
 Profits/growth and contribution were not balanced well
 The different constituencies were not clear about the expected performance

CASE NOTE: UNITED PARCEL SERVICES

Question: What is your evaluation of UPS's 1997 scenario planning exercise? Its Horizon 2017
planning exercise? How do the two efforts compare?

Answer: UPS’s 1997 scenario planning led to:

1. It led in the creation of new definitions based on future situations, as well as the creation
of a step-by-step plan for attaining it. It was made possible by the creation of a company
charter.
2. The scenario planning exercise assisted in the development of a thinking technique for
future choices outside of the Business structure process. The concept of the impact of
changes in the global scenario on UPS would introduce a new set of variables into the
research.
3. The developed theme and scenarios assisted the Strategy Advisory Group in reaching a
unified definition as well as a roadmap for evaluating growth potential for competitive
advantage.
 Between the 2017 and 1997 horizon planning exercises, there was not much difference.
Almost 60% of the features were identical. As stated in the 1997 planning exercise, the
Internet turned out to be a major role. Current variables, such as the rise in security and
terrorism threats, were highlighted in the new planning exercise.
The 2017 planning exercise included samples from UPS's core operational players, which
assisted in detecting concerns and announcing new customer satisfaction concepts.

Question: Why was John McDevitt put in charge of 'strategic integration'?

Answer: John McDevitt was chosen as an in charge of strategic integration because:

1. To serve as a strategic coordinator for the implementation of the strategic road map and
to bring together the various cross-functional groups on a shared platform so that the
end results can be met within the specified time period.
2. There was a necessity to link the "Strategic Road Map" and the "Centennial Plan" in a
symbiotic relationship so that both can be achieved without each being isolated.

SESSION 8

REFLECTION NOTES: UNITED PARCEL SERVICES

1. Scenario planning was introduced after a realization that strategic planning used to consider
single uncertainty while planning. In scenario planning, multiple possibilities and multiple
uncertainties were considered along with subjective interpretation and objective analysis.
2. Scenario planning is a 5-step process:
 Orientation: focal issues are defined
 Exploration: set of driving forces and critical uncertainties
 Scenario creation: narratives are defined
 Option consideration: define roadmaps, strategies, and actions
 Integration: develop early warning signals
3. The complete process is:
 Scenario planning
 Strategic planning
 Strategic programming
 Strategic implementation
 Strategic execution
4. Advantages of scenario planning:
 Create shared vocabulary
 Tool for collective learning
 Define regional and global forces
5. Disadvantages:
 Time consuming
 End up in pipe dreams rather than concrete actions
  Can be counterculture
 Time payoff
 Disconnected with present scenario

CASE NOTES: KODAK

The case examines Kodak's dissatisfaction and how it must deal with numerous challenges while
on the lookout. In 2003, compared to 2001, deals were down 5% and earnings were down 3%.
Client preferences were shifting toward advanced photography, and Kodak was facing a long
voyage downstream for traditional photography.
The problems faced by Kodak in the photography business were in the domains of capacity,
digitization and capturing. The company followed various business standards which included:

 Customer centric methodology

 Increased volumes at low prices
 More focus towards publicity
 Domestic and global circulation
 Reinvesting in the benefits

Kodak can construct on its current products with late details to combat fruition and support its
business because it has a generally stabilized market. They should focus on new work and look
for ebb and flow market patterns to segment and focus on the suitable clientele for this. This will
help it grow its business and productivity in the long run.

SESSION 9

RELECTION NOTES: KODAK

Several factors that favored Kodak and restricted the induction of new members are:

 Brand image: Since its inception, Kodak has been a reliable brand that has consistently
led the market. Clients perceived the brand to be reliable, which resulted in client loyalty.
 Economies of scale: New participants would not be able to achieve the economies of
scale that Kodak enjoyed at the time.
 Capital requirement: Huge sums of money were required to enter this market, which
acted as a barrier because the one-time fixed venture acted as a roadblock for
newcomers.
 Distribution: Kodak had been on the hunt for quite some time at that point. They
established strong relationships with their suppliers, which was critical to their success.

1. Kodak should have recognized the capabilities of many business sectors within the
photographic industry and expanded its present product line. They might have used it in
the long run because they were the market leaders with all of the assets.
2. Kodak should have kept up with their assessment methods. It should have also increased
its investment to counteract the threat of new competition.

Ideas for future:

 1. Kodak should try to maintain its competitive advantage by investing money in novel
projects that will provide the company an advantage over its competitors.
2. If brand recognition and item quality are important, Kodak should invest more in
advertising to set itself out from the competition in terms of phrasing.

CASE NOTES: BCPC

 BCPC was known for customer service and satisfaction

 The company provided numerous additional client-specific administrations, such as
charging, starting, and selling esteem added highlights
 They had a measurement to quantify customer loyalty, which helped them recover their
mistakes
 BCPC was successful in precisely anticipating the interest for its administrations and its
likely experience
 BCPC was considering how they could make the most of the item High-speed web
connectivity (HIP). They have two options in front of them:
1. Staff and dispatch HIP as a high-speed network access point for the entire help
area
2. As a distributor, provide HIP to profit from retailer errors.

SESSION 10: BCPC

We were all divided into different breakout rooms in the class, and each of us was assigned to a
different position at the BCPC. We received some information on whether or not we will provide
the organization a quick web access item (HIP). Three of us were in favor of the decision, while
the other three had to be against it. The exercise was beneficial since it provided us with the
opportunity to gain firsthand experience with meeting room gatherings. The idea was to make a
decision that everyone could agree on. This activity demonstrated the following focuses:

 Always try to explore several perspectives behind any significant system because it will
lead to a better decision.
 Everyone has their own thought processes when it comes to deciding which organization
to look for.
 In the event of a disagreement, reaching a middle ground might be difficult, and only
strong thinking can help break the impasse and arrive at a solution.

We learned about success lose direction (WLO) and Problem-addressing definition (PSO). Some
key learnings include:

 In a win/lose situation, the goal is to win and convert to your point of view. The goal of
critical thinking is to arrive at the most optimum arrangement, all factors considered.
 You should conceal your process for dealing with any flaws in WLO while revealing it
under the PSO.
 We have to aggressively support our point of view and your job in that point of view in
WLO, whilst you must place your point of view in PSO. Furthermore, you must
successfully inquire into the perspectives of others.
  Managers have a tendency to suppress any differences under WLO while looking for and
analyzing any conflict in PSO.

SESSION 11-12: RAYNAIR

Raynair aims to fly on the new Dublin-Luton route, which is already served by British Airways and
Air Lingus. Raynair plans to expand its customer base by offering affordable pricing and first-class
service. Customer service is really important. The future course of action of all three airlines is
influenced by a variety of circumstances around the world.

REFLECTION NOTES:

1. Air Lingus was a type of airline that focused mostly on Irish and British industries and was
more dedicated to public service. It operated in intra Europe and Trans Atlanta, and it had
a good government support and reputation, as well as well-established operations and
maintenance.
2. British Airways is a profit-driven company with little competition, making it the most
popular airline for business travelers. It has a strong financial and reputation, as well as a
contemporary fleet. BA had a capacity problem and needed to increase it from 56000 to
60000 seats.
3. If BA and Air Lingus retaliate, millions of dollars will be lost. Accommodation could be a
viable option.
4. Raynair focused on implementing efficient and full utilization: US carriers can enhance
their efficiency by 32 percent with an average capacity utilization of 65 percent and a
higher staffing cost.

Strategies adopted by Raynair:

1. Raynair was low-cost, had a wider geographic scope, had a good value chain, had good
maintenance, was charged low airport fees, and had no congestion costs. It did not have
two flights on the same route and no flights overlapped and used deregulation laws to
maintain its position,
2. Its objective was to fly to cities with few players, secondary airports, and de-
regulation.
3. Although it had a strong first mover advantage, it was not a serious threat to larger
airlines.
4. Raynair also didn't come with any frills and adopted a rapid expansion strategy.
5. The airline maintained internal and external consistency in terms of amenities,
competition, and value proposition.

SESSION 13-14: DELTA AIRLINES

CASE NOTES:

Question: Despite the challenging industrial environment airlines like South-west airlines and Jet-
blue earned a good return. How?
Answer: South-west Airlines:

1. It had simple operations. There are no meals provided. There are no seat assignments or
extras. Workers were adaptable. High aircraft utilization and an enthusiastic team.
2. It features a straightforward pricing structure that clients can understand. The emphasis is
on customer service and a low price.
3. The airline maintained healthy relationships with employee unions.
4. It has high load factor and has limited itself to 10-15% growth.

Jet-blue airlines:

1. It has paperless operations as 60% of the bookings were done via internet.
2. The airline has strong brand image.
3. The fare structure is simple, and costs are low.
4. Load factor is high and CASM is low.
5. They do not have call centers.
6. The flights are equipped with entertainment systems and the staff is compassionate.

Both the airlines followed differentiation strategy and enjoyed cost advantage.

Question: How all low-cost subsidiaries of legacy airlines including Delta express failed?

Answer:

1. They don't have any cost advantages and are still a low-cost carrier selling inexpensive seats.
Genuine expenses are concealed in the financial statement.
2. They have a sour relationship with their employees' union. They have high labor costs and
low output.
3. They have a complex logistical system and a poor service network.
4. The corporate authority helps LLCs become less reliant assaulted by the same bureaucracy
as legacy carriers.

REFLECTION NOTES:

1. In an industry that is very competitive and has many competitors, it is critical to have a
differentiated strategy.
2. One of the main goals in developing and implementing a strategy should be to maintain
excellent relationships with unions, employees, and customers.
3. When a company tries to compete as a low-cost leader, its people are its most valuable
asset because their productivity aids in scale economies and cost reduction.

SESSION 15: HARLEY DAVIDSON

CASE NOTES: With the simple twin engine, Harley quickly get to the top of motorbike sales
globally. Harley-Davidson had designed a bike that was both attractive and dependable. The
ease with which the engine could be tinkered with was the most appealing feature, since
motorcycle mechanics were few and far between, but the owners preferred the sound of raw
power.

Throughout the 1940s and 1950s, many faithful Harley consumers were attracted by the love of
row power and made-in-America equipment. Customers were thought to be tough, such as
members of the US military, Hell Angels, and Hollywood celebrities. As Harley continued to lead
the way in market dominance, it became an American icon and was now connected with things
like the US flag and bald Eagles.

Honda's introduction into the US market was practically the polar opposite of Harley's in terms
of marketing strategy, as they stumbled into a group of customers that were more family
oriented. In 1965, one out of every two motorcycles purchased was of Honda. As Harley's
bottom line began to dwindle, they had to go public to raise capital. Other Japanese
manufacturers began to follow Honda, delivering quieter, quicker, and less expensive
motorcycles, and began to lead the way in sales and market share in the United States.

Following the IPO, Harley-Davidson was purchased by AMF, whose CEO attempted to
significantly alter Harley's handcraft machine. He substantially raised production and introduced
additional features without taking into account the cost of production.

After AMF's profitability began to decline, the company was sold to Vaughn Beals. The new
owners began to compare Harley to Honda, increasing the company's production and quality.
Eventually sales and market share increased, and the Harley-Davidson Ownership Group was
formed. With 900,000 members globally, Harley-HOG Davidson's Group has more than nine
times the number of members as any other motorcycle company.

REFLECTION NOTES:

1. Harley Davidson's historic dominance was impacted by its value proposition, aspects of
innovation, research and development, quality, and dependability. It did traditional
marketing and advertising in the 1940s.
2. Harley-Davidson began to fall in the 1970s, but by 1984 and 1985, it had reverted to a
boom period.
3. The external and internal causes that contributed to the downturn in the 1970s were:
 External - Honda's entry into the market: Honda created a new market focused
on advertising and marketing. The value proposition was a dependable, small,
and efficient motorcycle. It benefited from greater economies of scale. It was
made with cutting-edge technologies. And it's only utilized in a time model.
 Internal - Honda sentry's indifference: A difficulty arose as a result of the
acquisition. AMF was more concerned with quantity than with quality.
Handcrafted models have been discontinued due to a change in production
type.
4. After a period of decline, Harley-Davidson resurfaced on the market. AMF was a
complete failure. The reasons for the transformation were benchmarking manufacturing
capabilities and quality with leveraged buyouts. Process control with added value and
the company lobbied the government to impose import tariffs. There were changes in
the population situation.
 5. Harley Davidson concentrated on Buell and a V-rod motorcycle. It was primarily
concerned with product style and craftsmanship. It became a flat learning organization.
Improved communication was one of the ingredients of excellent organization.
Customer loyalty was shaped by merchandising and brand recognition. The company
returned to the topic of heritage innovation.
6. The success of Harley Davidson can be attributed to the organization's attention on
substances such as dealership, sales, distribution, and styling.

SESSION 16: BEN & JERRY

CASE NOTES: Ben Cohen and Jerry Greenfield launched Ben & Jerry's in 1977. Ben and Jerry's
became famous after starting out as a little business in a neighborhood petrol station. They put
$12,000 into their first shop, which was in an abandoned gas station in Burlington, Vermont. They
became known as a producer of high premium ice cream with flavors including Cherry Gracia and
chunky monkey. Following Ben's resignation as CEO, Bob Holland has been appointed as the
company's new CEO. In the 1980s, Ben & Jerry's evolved from a little ice cream business to a
medium-sized company with sales of around $150 million. As the sector became more competitive,
Ben and Jerry's growth began to decrease.

Hagen Dazs, Dreyer's, and Breyer's are Ben and Jerry's competitors. In the Super Premium segment,
the rivalry was centered on quality. Prices are less important than flavour differentiation and
marketing. The market was divided into two sub segments: typical smoothie flavours such vanilla
chocolate coffee and choco chips, and mix of flavours, which comprised of chocolate and vanilla
foundation ice cream with candy bar chunks placed on top.

The ice cream industry and competition grew at a rapid pace. Ben and Jerry's had a reputation for
using unusual flavours and combinations in its best-selling products. When did the problem begin?
Ice cream was rising at an 11 percent rate as a premium sector. The Super Premium segment's
growth rate has slowed to 4%. The Super Premium segment accounted for 13% of the market. There
were two major competitors with a combined market share of 93 percent. Ben & Jerry's
concentrated on the category of high fat content which was called the Super Premium section and
overlooked the low-fat category which was popular and on the rise. Increasing the number of flavors
led to inefficiencies in the production process.

REFLECTION NOTES:

1. Ben and Jerry's external challenges include the following:

 Growth
 The rate of change in customer preferences is slowing.
 Growth of the premium category
 Substitutes and saturated distributions
 Price wars between competitors
 Difficulty due to the duopoly
 2. Internal challenges included culture, vision, and product development processes.
3. Building brand equity has always been more important in the Super Premium market,
therefore greater effort is needed there.
4. Because supermarkets are five times more profitable than retail stores, a shift in focus is
essential.
5. In order to compete with international firms such as Unilever and Nestle, Ben & Jerry's must
develop powerful marketing campaigns.
6. The next CEO should have a long-term strategy in place rather than merely going with the
flow. Keep a close watch on changing patterns and act as needed. Holland's success as CEO
depends on his ability to spot market shifts.
7. They must choose a flavor based on their thinking about how they wish to present
themselves. And they must decide which flavours to continue producing and which to
discontinue.

Answer:

1. The “About Us” page does not clearly define the purpose and value proposition of the product.
2. On searching about mother healthcare, which should be one of the key words for this website,
Maatri does not appear in the results given by the browser which implies that appropriate keywords
have not been used.
3. There are only 4 related search topics for this product, which can be linked to other relevant
topics too like mother care, child care, etc.
4. The website structure is simple, and all necessary details are visible clearly. Shallow depth
navigation has been implemented with all options available within 3 clicks.
5. The loading time of the page is less which might help in increasing the visits to the website.
6. The links to various social media handles has been mentioned at the end of the page with the
most used ones like facebook and Instagram mentioned in the header thus highlighting its social
media presence.
7. The off-page optimization can be improved by mentioning the link of the site and its articles on
blog pages related to pregnancy and mother health.

Answer: Maatri being a digital platform for mothers to track the health of her children and family
members can use display ads for marketing. Display ads are visible to the customers when they are
not actively searching for a particular product/service. The company can advertise its platform on
websites visited frequently by pregnant women or post pregnancy. Banners can be used to market
the application on pages posting content and articles related to pregnancy and mother's health.
The company can collaborate with small clinics, pediatricians, and health related apps like Practo to
showcase the product on their digital platforms. This will increase the awareness about the brand
and the product.
The company can use direct buying to purchase the space available on different websites since it has
a fixed target audience and will be useful for brand building.
For social media marketing, the platform can post content related to dos and dont's during
pregnancy and importance of mental health of children. It can also post small writeups with
collaborated doctors.