Case Studies on Strategy

S T R A T E G Y – I 1 www.ibscdc.org SunTzu’s The Art of War: Industry India’s Subhiksha – Aping Wal- Analysis Excercise (B) Mart’s EDLP Strategy? 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 capturing a sizeable market share in the Industry Not Applicable the conventional retailers like Nilgiri’s or US. Nokia’s profit margins reduced year Reference No. COM0171 Spencer’s Daily; it hoped to create a niche after year in US since 2004. One often Year of Pub. 2009 market with its discount model. Subhiksha cited reason was its unwillingness to Teaching Note Not Available relied heavily on organised retailing and customise according to the preferences of Struc.Assign. Not Available 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 market share? What challenges does it running businesses, managing people, Industry Retail Industry face? What prevents it from having a honing leadership abilities, motivating the Reference No. COM0169C formidable market position in the US? employees, preparing for a battle, etc. If Year of Pub. 2008 Should it, succumbing to the market the book is used in a highly structured way Teaching Note Available pressures (realities!), decide to customise to underscore the underpinnings of priceless Struc.Assign. Available 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; Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies 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 lessons can be related to Strategy course, Store War the mobile handset industry 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 2 www.ibscdc.org • Discuss rivalry and competition of Pepsi Teaching Note Available Indian Hotel Industry (B): The S T R A T E G Y – I S T R A T E G Y – I S T R A T E G Y – I S T R A T E G S T R A T E G Y – I S T R A T E G Y – I and Coke or of companies in other Struc.Assign. Available Park’s Eye for the Unconventional industries Keywords Companies can stick with their competitive • The newest trends in chocolate retailing. Airbus 350; Boeing 787; Aircraft advantage, by either satisfying customers’ 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, proposition and improve business systems Airbus 350 vs Boeing 787 – Battle Priya Paul, fought for her idea and her – a strategy best described as market- for the Skies transformational leadership qualities has driving. Many pioneering companies follow seen the hotel chain create a niche in the this strategy and are hugely successful. Case Over the decades, Airbus and Boeing, the boutique hotels segment. The case is a good (B) discusses how an Indian hotel, The Park two major players have been at loggerheads illustration of a hotel chain with a market- – a pioneer of ‘boutique’ hotels in India – for aircraft orders. This case details the driving approach that came up with followed this strategy to create a small but intensity of the rivalry between the two breakthrough innovations and deeply exclusive chain of sleek designer boutique companies by elucidating facts and figures 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 Pedagogical Objectives being designed with new composite create the hotel was considered highly risky 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.

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