S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S 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. 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 Dilution; Competitive Strategies Case Industry Aircraft Industrys growing PC market, in 1998. Though it Study; Product Offering Enhancements; Reference No. COM0167B was a late entrant, Dell initially did well Core Competencies; Breakfast Segment Year of Pub. 2008 through its direct selling business model 3 www.ibscdc.org 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 left out the Chinese consumer’s desire to various transatlantic routes between New • To understand the strategies used by 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 the emergence of the transatlantic BCO Teaching Note Available • To discuss critical success factors in the Struc.Assign. Available Chinese PC market market Keywords • To understand and contrast the business • To analyse the positioning of small niche 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 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 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; Piaggio vs Honda: The Strategy size. The fast food market of US was in a 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 Niche Air Carriers? manufacturer, who tasted initial success with the launch of ‘Vespa’ motor scooter in Box also decided to defend its share of the 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 • To understand the drivers of the fast Virgin Atlantic to re-assess their services continuous adjustments. food industry 4 www.ibscdc.org

• To understand the strategies to be entrants) with local players (the Keywords

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S adopted to survive in an over crowded incumbents); who is better equipped to I – Y G E T A R T S and fragmented fast food market tap China’s retailing potential?; can Nintendo’s Decline; Gaming Industry; Strategy to recover market share; Wii; • To discuss the various strategies adopted foreign players leverage on their experience and learning curves from Xbox; Competitive Strategies Case Study; by companies in the fast food segment Play station; Nintendo; Game Cube; Video specifically the breakfast market other markets?; should they work on their strengths or create new ones to Games; CEO Satoru Iwata; New product • 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 Industry Fast Food Industry Viacom, the largest cable network in the from multi-national retailers? Reference No. COM0161A US in terms of revenue in 2004, had its 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, series. While case (A) looks at the Nintendo’s Competitive VOD, iPod, Mobile TVs and the Internet as media offering different content competitive landscape of China’s retail Strategies in Gaming Console industry, case (B) helps analyse the Market • The case deals with the emerging media competitive responses to Chinese 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 forever? If strategy is all about creating Reference No. COM0158A company has launched Wii videogame Year of Pub. 2007 unique advantages, this case is much more console. The case discusses Nintendo’s than how companies deploy different Teaching Note Available 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; Competitive Strategies Case Study; Internet plans to the moves of bigger and better Pedagogical Objectives competitors (new entrants)? Can both co- Video; IPTV; Time Warner; Business 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 Since 1995 till 2007, the global toy industry market share. has been experiencing changes like the rise • To understand and analyse various Industry Electronic Gaming in the number of video game players and competitive strategies of creating unique Reference No. COM0159P shift in consumer preferences. Due to the positions in China’s retail industry Year of Pub. 2007 unpredictable shift in the play patterns of • To compare and contrast competitive Teaching Note Not Available kids, traditional toy manufacturers – losing strategies of foreign players (the new Struc.Assign. Not Available market share to video game companies – are toiling hard to retain their positions in 5 www.ibscdc.org 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; 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. Dunkin’ Donuts’ Competitive Mattel broadened its product lines and • To discuss the resulting challenges 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 was acquired by a consortium of private in the US toy industry Branded apparel; Quota restrictions; Free- 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- Struc.Assign. Available • Growth strategies adopted to reposition 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 and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition; Hasbro; Age-compression; services were popular among internet users entering new markets Fisher-Price; KGOY; Handlers; Leapfrog who downloaded copyrighted music. • To discuss the dynamics of the fast food enterprises; Jakks Pacific; Competitive However, between 2002-2005, growing and beverage industry. Strategies Case Study; Learning Company; 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 • Understand the dynamics of online music changing dynamics in the apparel industry. segment; Competition; New owner; Growth industry. The industry has been undergoing many strategy; Competitive Strategies Case changes, due to consolidations among · How Napster became a legendary icon. Study; New markets; Expanding menus; 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 · Reason for Napster downfall promotion; Product line; Global result, companies implemented strategies Positioning System; Loyal clientele to expand their brand portfolios and widen · Analyses the future prospects of Napster the distribution network across channels. with reference to the increasing To bring back its lost glory, William L. competition. McComb, Liz Claiborne’s CEO, initiated Best Buy: Growth through ‘Three-M’s’ strategy – multi-brand, multi- Industry Music Sharing Segmentation geography and multi-channel. Through Reference No. COM0155P which he hopes to win out in the fiercely Year of Pub. 2007 Best Buy is a $30-billion-a-year consumer competitive apparel industry. Teaching Note Available electronics superstore with more than 930 Struc.Assign. Not Available outlets across US and Canada. Its warehouse-style superstores with yellow tag Pedagogical Objectives Keywords logo offer branded consumer products like • To analyse the value chain of the apparel Peer-to-peer (or P2P) music sharing televisions, DVD players, home audio, car companies service; Internet; Mp3; Free downloading audio, computers, cameras, music, movies, 6 www.ibscdc.org

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

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Since the 1990s, Best Buy followed ‘the quality; Online selling; Store extension and which offers a product portfolio including I – Y G E T A R T S 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 Yahoo vs Google: The components and accessories. 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 market. manufacturing plants and rationalising their 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 Keywords US market till 2003-04 when it became the 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 Pedagogical Objectives Industry Automobile Industry sold groceries, apparel, CDs, books, videos, 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 Lean manufacturing; Global Body Line; 2005. This case study discusses the strategy • The case discusses their future growth Hybrid Vehicles; US youth market; pick up adopted by ASDA’s to make a turnaround prospects. 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 Teaching Note Not Available The Future of Gap Inc • To analyse the ASDA’s Pricing Strategy 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 there has been a trade-off. Pressler, who Supermarket chain; Wal-Mart; Value for Toyota’s Success in the US Auto money; Changing management; Business has little retail experience, has not steered 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 www.ibscdc.org 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 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 Reference No. COM0146P Pedagogical Objectives a new threat. In late 2003, Frito Lays has launched Lays Stax—a variety of potato Year of Pub. 2007 • 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 • The case analyses Gap’s repositioning Keywords unique packaging of Pringles, Frito Lays, strategy and its decline is offering an extensive range of flavours Nokia Media Master; AMPS/TDMA; 3G; • 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 competitor. How can Pringles maintain its HMV: Competing in the Digital Teaching Note Not Available market share in the face of stiff World Struc.Assign. Not Available competition from Frito Lays? HMV Group plc (HMV) was one of the Keywords The case can be used to teach competitive world’s leading retailers of music, DVD/ strategy, branding strategy and market Gap; Competitive Strategies Case Study; video, computer games and books in the strategy. Banana Republic; old navy; marketing 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; • Analyse the snack industry and the competition from general supermarkets SWOT analysis; merchandise changing trends in the industry had an adverse impact on HMV’s revenue in 2005. Changes in musical tastes also • Pringles’ strategy vis-à-vis other brands affected HMV’s sales adversely. HMV hoped to improve its profitability by Southwest vs JetBlue in the • Relationship between product initiating fresh price cuts and expanding Changing Market differentiation, brand premium and 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.

Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies market in the US. However in 2006, the

Competition and Strategy/Competitive Strategies Teaching Note Available Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies 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 Toyota Motor Corporation, a leading auto Reference No. COM0145P of low cost airlines i.e. Southwest Airlines manufacturer has built its reputation for Year of Pub. 2007 and Jet Blue quality on the idea of continuous Teaching Note Not Available • It evaluates various strategies adopted improvement and respect for people. In Struc.Assign. Not Available 2001, it has launched the Toyota Diversity by the two companies to gain cost 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 H&M vs Zara: Competitive reservation system; Airbus A320; hobby Pedagogical Objectives Airport; Morris air; Competitive Strategies Growth Strategies • HR; Diversity; Quality; Corporate Case Study; Arizona One The case compares the competitive growth responsibility; minority participation; strategies of two ‘fast fashion’ retailers – 8 www.ibscdc.org

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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S been growing at an average rate of 20% scrutiny than at any other time in its computers (PCs) and related software and I – Y G E T A R T S 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 • The case discusses about the changing for more upscale malls and busy downtown competitive environment. The BBC has centers and decided to open smaller stores. business model of Apple Company in been criticised for making programmes that the MP3 market. It evaluates the Zara has decided against developing a are not popular but are worthy, and it has manufacturing base in the US. However, it product launching and product also been criticised if it has made positioning strategies of Apple, and its has followed the same business model and programmes which reach millions of product strategy that it followed in Europe. competitive strategies to face people. Aware that the renewal of the competition. Its clothes are however priced higher in 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 • To compare the growth strategies and Struc.Assign. Not Available 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; competitors; Microsoft; SanDisk; Industry Garmnet Industry • 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 launching of subsequent generations of Teaching Note Not Available Industry Media and Broadcasting iPod by apple; launching of iPod Nano Struc.Assign. Not Available Industry 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 Broadcasting Corporation (BBC), a Home also had a stronghold. Besides, Apple’s Challenges in the MP3 Home-Depot of the US, the largest retailer dominant broadcaster in the United Player Market Kingdom, operates several public TV of home improvement products in the world, was planning to enter China soon. channels, a 24-hour cable news channel, The case is about challenges faced by Apple In this scenario, analysts felt that the digital channels, national and digital radio computers in the MP3 players market. market was ready for a fierce battle among networks, and an online news service. In 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 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 Industry Retail Consumer electronics; Business strategy; • 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 Struc.Assign. Not Available Industry Retail AMD: Challenging INTEL Reference No. COM0141K Keywords AMD, the second largest chip maker Year of Pub. 2007 Evolution of modern retailing; Grocery challenged the market leader Intel with its Teaching Note Not Available server chips. AMD had been growing Struc.Assign. Not Available retailing in Europe; Discount retailers; Types of discount operators; Competitive steadily in the server market with its 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 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 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 Europe’s Grocery Market: Pedagogical Objectives 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 • To understand the dominance of the Personal computer (PC); Dell; IBM fighting, analysts wondered how the Korean and the Japanese manufacturers (International Business Machines grocery market of Europe would shape up in the Digital TV segment, globally Corporation); Hewlett Packard (HP); in future. 10 www.ibscdc.org

Opteron; Business strategy; Lenovo; Boeing 787 Dreamliner which was due to browsing and pop-up window blocker

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Random access memory (RAM); Pentium take the skies in 2007 was being built in a besides adding certain enhanced security I – Y G E T A R T S virtual factory, which was spread across features. However, at the juncture of the continents. The prototype of the Microsoft’s latest release, Mozilla was Microsoft’s Zune: Competitive aircraft was being built in several countries reported to release Firefox 2, an upgraded (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 seek an overview of the competitive share in the US market since 2001. But at to be launched in 2010 would be done landscape in the web browser market the end of 2006 Microsoft decided to outside Continental Europe. That even 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 • To discuss the evolution of Apple’s iPod (hypertext markup language); Phishing 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 Markets (PartA) Reference No. COM0137K Outsourcing; Europe; America; Civil 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 product; Product management; Mozilla’s Firefox? market which remained far away from its 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 much market share. Airbus and Boeing: Building offering from Microsoft was more as a response to the pinch it was feeling in terms The case deals with the decision dilemma Planes in Global Factories of market share erosion since 2004, when in Toyota India operation. Would it pursue its nearest competitor, Mozilla Lots of fear and apprehension cropped up its aggressive cost leadership strategy or Corporation released Firefox 1 rather than among the nationals of Europe and follow the path of differentiation? Would a proactive market strategy. America as both the continents’ prime 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 www.ibscdc.org 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 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 Who Would Set the Standard? • To analyse Toyota’s strategy of adapting 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 player, HD-XA1, priced at $799.Within Industry Automobile warfare; Loss-leader Strategy; Competitive few weeks, on 18th April 2006, the Reference No. COM0134K Strategies Case Study; pricing strategies of company launched another simpler version Year of Pub. 2006 the HD-DVD and Blu-ray formats; of HD-DVD player, HD-A1 which was Teaching Note Not Available Hollywood Film Studios; marketing war of priced even lower at $499 with a per-unit Struc.Assign. Not Available technology formats; Betamax and loss of $200. According to analysts, the VHS(Video Home System) war; Toshiba Keywords cost of the HD-A1 player was about $700 Corporation; Analytical Optical Disc; Sony or more which included the internal Competitive Strategies Case Study; Toyota; 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? DVD platform (player and disc), a head (complete knocked down); Midsize sedans; In the 1990s, Motorola Inc. was the no.1 MUV (Multi utility vehicle) start and build an early lead in the format 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 with price tag of $999 or more. started growing and in 1997, with 22.5% 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

Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies introduction of a new section within the Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies 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 • To understand the impact of changing Teaching Note Not Available 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 understand that technological warfare • To analyse the strategies adopted by Airlines; Project 747-8; Mach number; could lead to the market getting divided Edward Zander. 12 www.ibscdc.org

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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Reference No. COM0131B that Toyota overtook Ford in its home diversified in to home and entertainment I – Y G E T A R T S 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 automakers like General Motors and Ford. systems segment 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. Year of Pub. 2006 luxury cars were upsetting American Industry Software Teaching Note Available automakers. How had the Japanese luxury Reference No. COM0128A Struc.Assign. Available carmakers been able to supersede US luxury 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 efficiency; American Customer leader; new product development; Japanese luxury car manufacturers in the satisfaction Index; Customer retantion Innovation; core competencies; vertical US soil rates; Ford - Looking to bounce back; Ford markets; product integration; software; computers; Xbox; Zune; Windows; DOS; • To assess the potential challenges to the - Rejuvenation process 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 with its global annual revenues of US $44.28 Dilemma Struc.Assign. Not Available 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 The decision was seen as a strategic move, Toyota Ahead of Ford in the US software like Dos, windows, MS- Office. The company expanded its business to Web which would optimize shareholders value and improve Home Depot’s commercial Toyota Motor Corp. (TMC) surpassed Ford based software in the mid 90s, mobile ended 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 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 telephony with the new digital world of Reference No. COM0127A Strategies Case Study; Chinese Automobile the internet and mobility was a concept Year of Pub. 2007 Industry; Indian Automobile Industry; Car; with great potential. Nokia had made Teaching Note Not Available Geographic Expansion Struc.Assign. Not Available attempts to integrate various features in 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 become a market leader. improvement Market; Spin-offs; Split-off; Palates’ Strategic Evolution; Competitive Pizza Hut Inc. is the world’s largest pizza Pedagogical Objectives Strategies Case Study; Wall-Mart; Lowe; 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 tastes in its restaurants and its menu, while Ford vs. GM in Asia • To discuss Nokia’s technology maintaining its international heritage and convergence strategy for its mobile Routed around a century back, the quality. The case discusses Pizza Hut’s handsets automobile industry had been one of the 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 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 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 Volvo in India manufacturer. • To discuss the Pricing Strategy of Pizza Hut in India The case revolves around the two biggest AB Volvo is a Fortune 500 company based in Sweden. Its product portfolio consists auto manufacturer General Motors and Ford • To discuss rising competition in fast food of commercial vehicles like cars, trucks, Motors, which were already geographically Industry of India and evaluate the future buses, construction equipment, marine and diversified, had also moved into the of Pizza Hut in the fast food Industry of industrial engines, and aero engines. Its growing region of Asia. The case talks about 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 in Southern India with an investment of be able to sustain their position as an Keywords industry leader? $70 million. The company faced intense Localisation strategies; Yum brands; Indian competition from established players like Tata Motors and Ashok Leyland. This case Pedagogical Objectives Pizza market; Masala Pizza; Competitive Strategies Case Study; Vegiterian Pizza; study discusses Volvo’s strategy for the • 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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S and bus segment. no more the iconic brand it once was, rather, new advertising strategies of Benetton. I – Y G E T A R T S it was less than one quarter of the size of industry. Industry Auto Industry Tesco - UK’s largest and most profitable Reference No. COM0123P retailer in 2006. Could M&S once again Industry Apparel Industry Year of Pub. 2006 gain its position in the market? Reference No. COM0120P 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 the Changing Times on the Internet, Rocketboom.com was a Year of Pub. 2006 brand new concept. The show on the Teaching Note Not Available The case covers Lego’s product website was a combination of innovatively Struc.Assign. Not Available 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 Reference No. COM0122P • The concepts associated with changes 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 by16.9 %, from ¤28 million, ($35 million) Industry Toy Industry Video blog; Andrew Baron; Competitive to ¤23 million, ($30.1 million), and Reference No. COM0119P Strategies Case Study; Amanda Congdon; revenue has dipped 0.8%, from ¤381 Year of Pub. 2006 Tivo; weblog million, ($476.6 million) to ¤378 million, Teaching Note Available ($495.2 million). Analysts wonder whether Struc.Assign. Not Available 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 will it lead to a complete loss of identity Strategies Case Study; legoland theme parks; 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 over the Years battles which pushed it into a crisis that Benetton 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 and Clue to name a few. The case covers markets the evolution of Hasbro’s product Line and Pedagogical Objectives the strategies undertaken by the company • To analyse how Embraer rose to become 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 Reference No. COM0117C Keywords Pedagogical Objectives 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 In 2001, Apple Computer Inc. (Apple) strategies, its new product launches and Ericsson; Retailing; Samsung; LG; retail forayed in retailing as part of its initiative how these products have fared. kiosks; Competitive Strategies Case Study; 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 th (Embraer) was established in 1969 by the 2006, Apple introduced its 147 retail 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 planes business, Embraer decided to have an enjoyable time. 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 Sony India’s Retailing Strategies 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 • To understand how Embraer turned Reference No. COM0115K in 2006, in order to reach the youth and Year of Pub. 2006 the middle-class. To do so, the stores were around itself after emerging from bankruptcy Teaching Note Not Available launched under three brand names – Sony 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 www.ibscdc.org

Samsung – Leading in the Digital announced its plans to develop the 7E7 • To analyse the initiatives taken by Wal-

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Age 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, had invested billion dollars on this model. Industry Retail Department Stores one of the leading global electronics This case study offers a discussion on the Reference No. COM0112K companies and synonymous with digital factors that have driven Boeing and Airbus Year of Pub. 2006 technology. Samsung has strong presence to adopt different strategies and whether Teaching Note Not Available from consumer electronics to Airbus would proceed with the huge Struc.Assign. Not Available 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 Airbus; Boeing; A380; Super Jumbos; Industry Consumer Electronics 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 market and its trend Keywords 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. high rate of employee turnover. In order Since its inception, Boeing had been Industry Consumer Electronics enjoying a virtual monopoly in the to counter these problems Wal-Mart took few initiatives which would not only reduce Reference No. COM0111K commercial aircraft industry, but was Year of Pub. 2006 threatened by the advent of the European employee turnover rate but would also add revenue to the company. The case gives Teaching Note Not Available aerospace company, ‘Airbus S.A.S.’ 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 AMD vs Intel: Competitive companies, attained a new dimension in • 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 aviation, as it envisaged a huge demand for dimension due to different strategic of retailers larger aircrafts. In contrast, Boeing asserted, initiatives taken by both the companies. AMD not only attacked Intel with its server that smaller and faster aircrafts would rule • To understand the policies followed by chips but also challenged Intel by the market. In keeping with this, Boeing 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 Incorporated (ATI) Technologies in a $5.4 The wireless industry was among the most 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 had reached a level of saturation from AMD’s PC market share dropped in Japan • 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 Pedagogical Objectives Year of Pub. 2006 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 Search Engine industry; Google; MySpace. industry 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 owned the two popular top level domains challenges of mergers and consolidations. Industry Electronic Components (TLD’s), .com and .net that together Reference No. COM0106K 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 Industry Wireless accounted for nearly 53 percent of all Year of Pub. 2006 Reference No. COM0108K TLD’s. Owing to the leverage it enjoyed Teaching Note Not Available Year of Pub. 2006 by virtue of being the largest player, Struc.Assig. Not Available 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 • To discuss some of the prominent anti- the heat in both segment. Entry of foreign of the threats signals the intensifying competitive business practices of Verisign, car makers: Honda, Toyota and Ford along competition in the search engine market. like the Waiting List service, misleading with aggressive marketing and new product Analysts wonder whether Google will be cancellation notices and the Site Finder. launch of Maruti put Hyundai in trouble. Its 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 Verisign; Entrust; ICANN; TLD. the success potential of HMIL’s strategy in 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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S one step ahead of competitors in the fast- Teaching Note Not Available I – Y G E T A R T S • 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 Industry Auto Manufacturing with the same title was released during the Year of Pub. 2006 Reference No. COM0105K 90s. America Online, the largest Internet Teaching Note Available Year of Pub. 2006 Service Provider (ISP) in US in 2006, Struc.Assign. Not Available Teaching Note Not Available offered dial-up and broadband internet 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 st Beyond next decade. The turn of the 21 century 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 access, was not able to fulfill the demands chief executive officer. Zafirovski had his Amazon.com, the world’s leading online of the consumers. It was also bombarded work cut out for him. To make sure Nortel retailer had survived for nine long years with heavy competition in the field leading found level ground, after the accounting without annual profits because it was guided to a gradual decline of the AOL subscriber scandal and fraud of the past few years had by a long-term vision that put into place base. shaken the international reputation of the 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 as AOL’s subscribers accounted for 36% of The case traces the history of Nortel from survive the onslaught of major competitors the unique visitors to its network of websites a builder of phones and fire alarm boxes at like eBay, and continue to retain the No.1 and generated 80% of the page views. To the beginning of the last century to position while at the same time realise overcome this, AOL made available its offering complete solutions for reasonable levels of earnings to satisfy software, e-mail and security products free multiprotocol, multiservice, and global shareholders. This was the dilemma that to all web users and decided to concentrate networking together with software and founder Jeff Bezos and his team had to on broadband rather than on dial-up. services in 2006. It discusses the global address. business activities of Nortel and its The case details the Internet access performance in the Cable market and Small industry, the online advertising industry and and Medium Enterprises as also the need Pedagogical Objectives 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 by AOL in reviving itself. prices is also analysed. The case concludes • Make a SWOT analysis of Amazon and 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 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 success achieved in China by offering Struc.Assign. Not Available business model adopted by the 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; Keywords retailers. It remains to be seen how it would Comcast; Unique Visitors. 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 • Carrefour’s entry strategies by its founder, Mr. Zong Qinghou in 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 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 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 Business School; Hypermarket in China reporting a sales of 1259 million euros 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 two facts: growing Chinese retail sales, Screen Wars – LCD vs Plasma halls. The advent of the modern multiplex 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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S were in fact cheaper to make, since the Privatisation; Competition; Marketing; I – Y G E T A R T S 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 not as products giving protection against LCD technology was suitable only for the DTH vs Cable TV – Sky Wars in smaller sized televisions and could not risk. Most of the customers were under- compete with Plasma technology in larger insured with no flexibility or transparency India in the services provided. Before the entry sizes. This belief changed with the Home entertainment in India had come a of private players insurance penetration introduction of the seventh-generation long way from the days when there was and awareness was very low especially in (G7) plants by various LCD manufacturers. 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 th both LCD and Plasma TVs came down. established on April 19 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 • To introduce the students to the quality. 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? • To detail how players in both streams would need a broadband connection as well as a set-top-box and a personal computer. were coming out with various new • How should LIC use its strengths to Considering the low PC penetration in versions 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 screen and the low penetration rate of Teaching Note Available Industry Insurance personal computers in India. On the whole, Struc.Assign. Not Available Reference No. COM0097C 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 innovator. The case also brings to light • To discuss strategies to be adopted by a entertainment industry in India the fact that the battle between AMD and large multinational, to counter local players • To highlight the various technological Intel was now moving beyond processors 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 cooperative supermarket chain of NTUC AMD vs Intel – Strategies for Strategy; Customer Centric Strategy; ATI; Market Leader; Jerry Sanders; Paul Otellini; (National Trades Union Congress) in 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 supplier of x86-compatible processors It involved in many community 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 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 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 Pedagogical Objectives Intel. In July 2006, AMD planned to and CEO of eBay, said that China was a 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. would work together to promote the Yahoo! including home entertainment, mobile Industry Retail Brand in China. With eBay and Alibaba computing, consumer electronics, high Reference No. COM0093C stepping up their operations, it was to be definition TVs and video games. The battle 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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Stores; Store formats; Country themed during 2006, out of which only 15 had application of the dual-core chip, the I – Y G E T A R T S 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 • The strategies taken by Intel, the leading DELL: PCs in Pieces? growth of over 20% between 2000 and 2005. It maintained lower fares even player in the chip market to consolidate 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 Threat to Microsoft? Dell Teaching Note Available Struc.Assign. Not Available Microsoft, the world’s largest software • To understand the impact of Dell’s Keywords company was a dominant player in the business model on the market as well as 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 commercially. But it had to face measures to retain its domination. a transformation during the post competition from other manufacturers liberalisation era in the 1990s. The leading Industry Online Industry who had come up with the revolutionary low cost airline in Europe – Ryanair, began Reference No. COM0089C ‘cell chip’. With challenges cropping up its operations in 1985 from Ireland. It was Year of Pub. 2005 from different directions, Paul Otellini, the able to establish itself in the UK and it Teaching Note Not Available president and CEO of Intel, needed to make extended its wings to other parts of Europe. Struc.Assign. Not Available 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. of being the primary and dominant player Microsoft; Google; Desktop search; Scheduled airlines like British Airways, in the international PC market. Netscape Navigator; Browser war; Desktop 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 www.ibscdc.org 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 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 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 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 Yamaha Bikes in Asia: Can its little buzz, and Microsoft’s global market 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 • The case can be used to do a SWOT to an astounding $2.3 billion in 2001. The of services industry and emphasis on analysis of both Microsoft and Google demand for Yamaha bikes decreased and customised services and custom care and discuss their growth strategy. inventories piled up. To counter all these solutions, analysts are sceptical whether IBM’s software business alone can become difficulties, Yamaha initiated various Industry IT (Information Technology) it’s most dependable growth engine. management plans, operational reforms 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 • To analyse the role of software and Struc.Assign. Not Available 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 www.ibscdc.org

Anheuser-Busch: Brewing a competitors such as Lenovo and Acer. This Business Model; Post Office Ltd.; Parcel

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Fresh Image 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 Federated Department Stores – Budweiser, Bud Light, Michelob, Bacardi 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 • To discuss the trends in the US PC market market had declined. The case study cosmetics), home furnishing, and other discusses how Anheuser-Busch used • To understand how Dell had achieved consumer goods. This case discusses in innovative advertising to enhance the growth through its Business model. depth the growth of FDS and its constant 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 strategy of the company and its future industry Keywords 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 • Discuss ‘the four priority’ business Speciality brewers; Grolsch; Adolph Coors; 360 years in the UK. The group operated Grupo Modelo; Corona; Bacardi. strategy of FDS and suggest what other 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, revenue driver by Dell’s management which Industry Postal Services Reference No. COM0082B posted revenues of $8.4 billion in 2005. announced an ambition plan to increase Amazon sustained its existence, despite the revenues to $80 billion by 2008. Year of Pub. 2005 Teaching Note Not Available fact, that it was not making profits for 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 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 Teaching Note Not Available Pedagogical Objectives Keywords Struc.Assign. Not Available • To understand the nature and structure Keywords Athletic sportswear industry; Adidas; Nike; of the online retail and commerce 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, 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 The ‘American’: What’s The case describes the athletic sportswear Industry e-commerce ‘American’ Anyway? Reference No. COM0080A industry scenario in China with the 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 Innovation; Peripheral Vision; Growth mass production, moving assembly line and early 1990s through agents and by 1993 Strategies; Competitive Advantage; On- ‘$5-day’, which became the industry norm. 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 th important industries in the US. Receiving On December 12 2005, for the first time 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S declined significantly in the eyes of Race, CSI: Miami, Without a Trace, Two microprocessor with superior performance I – Y G E T A R T S 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 discuss about the competitive • To identify and discuss the strategic Pedagogical Objectives inflection points in the US automobile strategies adopted by Nancy Tellem for 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 Manufacturers Lead the Way under the dynamic leadership of Nancy innovative products. Until the late 1990s, 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, with the automobile industry players are in the 1980s, increasing health concern • To understand the movie exhibition 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 • To discuss whether the competitive Films; IMAX Dome; Fame Adlabs; Shringar governments and automobile Cinemas; Inox Leisure; Fun Multiplex. manufacturers in ensuring vehicle and strategies of Anheuser-Busch would help pedestrian safety it to sustain its leadership in the US beer market. • To discuss the new safety initiatives of McDonald’s in UK: The the Japanese automobile industry Industry Brewers 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 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 Industry Automobile Keywords its customers in the UK. However, since Reference No. COM0074 2001, McDonald’s has been drawing Landscape of US beer industry; Different Year of Pub. 2006 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); food market. Emergency response system; Adaptive PVR Cinemas: Competitive cruise control; Active safety technology; Strategies of the Indian Cineplex Automated Highway System (AHS); Global Pioneer Pedagogical Objectives Positioning System (GPS); Vehicle • To understand the competitive landscape Priya Village Roadshow (PVR) is the largest Dynamics Integrated Management (VDIM) 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 Strategies Mumbai, Bangalore and Hyderabad in 2006. it enjoyed prior to 2001. st However, since the turn of the 21 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.

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Year of Pub. 2006 FedEx in China: The Competitive customer data is analysed to get a deeper

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Teaching Note Available Strategies 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 have established a major presence in the in the fast food industry; Changing trends • To analyse whether such transition would fast growing courier and express delivery in the UK’s fast food industry; McDonald’s help Kroger or go against it, as by segment of China. FedEx has been the most revival in the UK. 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. In the world of business, the pioneer or the Year of Pub. 2006 first-mover in an industry often fails to Teaching Note Available 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 particular market – a phenomenon known leadership strategy; Competition in the FedEx to gain a competitive edge in the as ‘active inertia’. This leads to a decline retail industry; Wal-Mart; Safeway; Tesco; Chinese market. in their financial position and sometimes Kmart; Challenges faced by retailers; 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 China Post; Competitive strategies; experienced one of the fastest growth rates. pioneer faces in any industry and the Market entry strategies; DHL; TNT; Helped by booming demand, the country’s factors that determine the sustainability United Parcel Service (UPS); Strategic automobile industry has experienced the of its leadership alliance; Joint venture; World Trade fastest growth rate in the world since the • 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 Pedagogical Objectives Teaching Note Not Available been competing to gain market share from 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

29 www.ibscdc.org 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 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, Pedagogical Objectives the high-end luxury segment in the US, Bill Hewlett and David Packard, HP became 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 printing market. But there remain doubts Toyota; Lexus; LS 460; Luxury cars; Stand- 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. 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 Furniture retailing industry in China; Customer preferences in China; Foreign Pedagogical Objectives furniture retailers in China; Domestic Amgen, the World’s Biggest furniture manufacturers in China; Price of • To discuss the reasons behind the choice Biotechnology Group: The of various mediums of digital photo furniture in China; B&Q; Customer printing by consumers spending habits in China; Supplier countries Competitive Strategies of IKEA; IKEA’s global operations. • To discuss the logic behind HP’s strategy Since its inception in 1980 as Applied 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 Dye sublimation process. • To discuss the competitive strategies 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Biotherapeutics The Competitive Strategies in 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 Training as Competitive soon emerge as the fourth largest auto- enhance their respective positions in the market after the US, Japan and Germany. Advantage global chewing gum market. Volkswagen, China’s largest automaker in 2003, with a 37% market share, stood to The storage and organisation segment Industry Candy and Confections forms a part of the home furnishing gain from the expanding market. However, Reference No. COM0061 the second quarter of 2004 witnessed an industry and, over time, the Container Store Year of Pub. 2006 has become synonymous with this niche abrupt slowdown in the sales of automobiles Teaching Note Available in China. Volkswagen also faced increased retail category. The Container Store was 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 successful as the Container Store. The Volkswagen plans to increase its strategies; Growth strategies; Acquisition company’s unique recruitment and training investments in the country to 5.3 billion strategies; Marketing strategies; Brand policy, corporate culture and philosophy euros (US$6.5 billion) by 2008. 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 they have become a competitive Year of Pub. 2004 in 1962 as discount retail stores, the advantage for the company Teaching Note Not Available 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 image, Target projected an ‘upscale image’. model. Volkswagen (VW); China; Automobile However, both the retailers were trying to industry; China’s automobile industry; Industry Home Furnishing and change their image with Wal-Mart trying Shanghai Volkswagen Automotive Housewares to shift towards a more upscale image, Company; FAW-Volkswagen Automotive Reference No. COM0062 while Target trying to project an image of Company Limited; Growth strategy; VW Year of Pub. 2006 a retailer selling quality products at low joint ventures in China; Growth challenges Teaching Note Available 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 marketing; Specialty stores; Teamwork. Mobile USA (Virgin) in July 2002. Virgin would be beneficial for Wal-Mart and targeted the under penetrated youth Target. 31 www.ibscdc.org 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 Analysts termed this performance as a huge telephony solutions; French telecom • To understand the competition between 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 Benchmarking to Outsmarting The Power of a Start-up • To discuss the broad spectrum of competition that runs through the In the mid-1990s, Samsung was known as Company: Can Iliad Group airlines industry. Unsettle the Monopoly of France a low-cost manufacturer of electronic products that imitated Sony’s models. Hit Industry Airline Telecom? hard by the Asian financial crisis in 1997, Reference No. COM0056 the company implemented a turn around By 2004, Iliad Group (established in 1987) Year of Pub. 2003 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 had transformed itself from being a 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 services market (after France Telecom) with a turnover of US$670.3 million. Iliad Keywords copycat to a manufacturer of high quality, cutting edge electronic products. In the started as an Internet service provider and Low-cost airlines; Ryanair; easyJet; transformed itself into a full-fledged process, it also overtook Sony as the world’s Competition in Europe’s airline industry; most valuable consumer electronics brand. Internet and telecommunications 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 The competitive scenario of the UK retail • To understand the rapid expansion of stables. Iliad Group in France industry changed with the entry of Wal- 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 Industry Internet and On-line Services Struc.Assign. Available 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 Year of Pub. 2006 Samsung Electronics; Sony; Paranoid prices, Tesco also started to greatly reduce Teaching Note Available corporate culture; Jong Yong Yun; Reverse their prices. This counter strategy of Tesco Struc.Assign. Not Available engineering turn around strategy; helped it hold a major market share of the Benchmarking; Brand building; Master Keywords retail market, leading ahead of its brand strategy; Brand value; Digital competitors. On the other hand, ASDA in television technology; Memory chips; France Telecom; Telecommunication spite of providing low prices, saw its market sector of France; Free Internet services; Liquid Crystal Display (LCD); Mobile share continuously decrease in the year phones; Asian financial crisis Freebox; Broadband Internet services; 2005. 32 www.ibscdc.org

Samsung vs Sony: The leading players in the global consumer and gas exploration and production;

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Competitive Collaboration 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 Exchange, Asia’s Oldest Stock Prior to Sony, Samsung had also entered 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 In mid-2005, Royal Dutch/Shell Group, the • To discuss how Samsung is using this and politicians for being non-transparent, world’s third-largest oil company, has strategy to gain a leadership position in unregulated and taking inadequate measures undergone a massive restructuring. For the global consumer electronics industry. for investors’ protection. To overcome nearly a century, Royal Dutch/Shell was these challenges, BSE launched a series of Industry Memory Chips and Modules one of the most renowned companies of measures in the late 1990s and with the Reference No. COM0053 the world, for its long-term planning, advent of reforms, BSE witnessed notable Year of Pub. 2005 technical capabilities and collegial developments in many areas such as: (1) Teaching Note Available management style. Shell was once viewed trading; (2) operations; (3) management; Struc.Assign. Available 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 9th 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 Samsung vs LG: Similar Goals, bigger. In 2004, the company was • To understand how BSE has emerged embroiled in an oil reserves reporting Dissimilar Strategies (from a regional stock exchange) to scandal. All these perils were analysed 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 • To understand the nature and intensity challenges and competition faced by a memory technology and its strategic entry of the recent troubles of the company National Stock Exchange and other 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 Reference No. COM0051 intends to emerge as a strong international Keywords brand in the footsteps of Samsung. Year of Pub. 2005 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 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 Progressive Corporation, the No.3 auto mobile services market of Japan. 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; Progressive’s tailor-made insurance offering lower priced 3G services, which Sony PlayStation; Microsoft Xbox; services for its customers made it one of had enabled KDDI to add more subscribers 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 sustain its position in the market • To discuss NTT DoCoMo’s strategies 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 th attempts failed, on November 19 2004, Struc.Assign. Not Available Keywords Oracle met with some success when a Keywords Auto insurance market in the US; majority of PeopleSoft’s shareholders expressed their support to its offer. Despite Progressive’s innovative services to its NTT DoCoMo; KDDI; Price war; Mobile

Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies the shareholders’ support for the bid, Oracle Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies Competition and Strategy/Competitive Strategies customers; History of Progressive services in Japan; CDMA2000 (Code still has to wait for the approval from the Corporation; Top ten insurers in the US; Division Multiple Access); W-CDMA Delaware’s Chancery Court for elimination Immediate response vehicle; Autograph; (Wideband-Code Division Multiple of the final barrier – the ‘Poison Pill’ and Working of Concierge Claims Service; Access); 3G services; Competitive scenario the invalidation of the Customer Assurance Financials of Progressive Corporation; in the Japanese cell phone market; i-mode; Program, provisions inducted by PeopleSoft Market shares of Progressive and its FOMA (freedom of mobile multimedia to prevent the takeover. competitors; Awards received by 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 PeopleSoft Inc. (PeopleSoft); Oracle to the established players like Blockbuster PlayStation. Corporation (Oracle); Enterprise Software Inc. and Hollywood Entertainment 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 www.ibscdc.org

Pedagogical Objectives Microsoft vs Windows Pedagogical Objectives

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S • 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 • To discuss whether Google could become stores 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 light of the increasing competition from Industry Information Technology Justice Jackson’s verdict, but upheld the much bigger rivals like Blockbuster and Reference No. COM0042 view that Microsoft had indeed used its a threat of substitution from video-on- Year of Pub. 2006 monopoly position to further its own demand services. Teaching Note Available 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 Keywords reorganisation; Antitrust lawsuits; 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; Pedagogical Objectives Threat of substitution; Competition from 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 Industry Computer Software year, the software has become one of the released the programming source code for most strategic parts in this context and its Communicator software to the open Reference No. COM0043 Year of Pub. 2004 gained prominence. This attracted the source community. The Mozilla project’s attention of Microsoft to gain a foothold objective was to develop a good browser Teaching Note Not Available in the growing market for mobile software. quickly. After 32 months and several Struc.Assign. Not Available releases, Mozilla, its Internet application Keywords suite, and Firefox, its standalone browser, Pedagogical Objectives Microsoft versus Windows; Monopoly; have become very popular with Internet • To discuss Michael E Porter’s Five Anti-trust violations; William H (Bill) users. Mozilla’s browsers have become Forces Model with specific focus on Gates; Steven Ballmer; Justice Thomas famous for being clutter- free and intense competition and types of Penfold Jackson; Mario Monti’s Microsoft innovative, and word-of-mouth marketing. 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 in 2005. However, the company has been Industry Mobile Handset Industry Year of Pub. 2004 facing increasing competition from Google, Reference No. COM0041 Teaching Note Not Available the number one search engine in the world. Year of Pub. 2005 Struc.Assign. Not Available Google has been diversifying its businesses Teaching Note Not Available 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 www.ibscdc.org 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 programme; eBay’s global operations. • To discuss how Renault offered a luxury 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 success of Logan. communities that collaborated to produce Low-cost Carriers in USA: Pricing ‘free’ software. The emergence of the Pressures for Major Airlines Industry Automobile Manufacturing Internet further strengthened the The entry of low-cost carriers into Reference No. COM0037 movement, which ultimately yielded a commercial aviation had a legacy of factors Year of Pub. 2006 finished product in the form of Linux. – both environmental and operational – Teaching Note Not Available When giants like IBM and Dell started using that contributed to their business models. Struc.Assign. Not Available Linux for their servers, they seemed to If the Airline Deregulation Act of 1978 have an answer to Microsoft’s dominance Keywords helped them scale their operations, their in the operating systems market. ‘no-frills’ approach eased their entry Logan; Luxury car; No frills car; Renault; 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; Europe. • To discuss whether Microsoft will they survived one of the worst downturns 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 were tailored according to the consumer Open source; Proprietary Software; Richard • To discuss the major airlines’ fight-back, needs. The company believed in the Stallman; IBM and Linux; Shared source which eventually extended their strategy of innovation and diversification. initiative; Red Hat Linux. 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 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 business strategy. It came up with products eBay was founded in 1995 by a young Struc.Assign. Available 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 Deregulation Act; Southwest Airlines; first month of its launch. However, the • To discuss the various strategies People Express Airlines; New routes and company witnessed its maximum growth implemented by the L’Oreal group to be new airlines; Operating revenues; under its current chairman Meg Whitman, the market leader in the global cosmetic Operating costs; The grip of bankruptcy; who joined in 1998. By 2003, Whitman market and how the group is trying to Major carriers adopting the low-cost made eBay the world’s largest on-line sustain that position by refocusing its model; In-flight food services; JetBlue’s auction company with 5,000 employees 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 Keywords powerhouse. Logan, the new car launched on September th Industry Internet Auctions 24 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

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Kinetic Group (India): Gearing were threatened by the entry of Wal-Mart restructuring strategy; Yun’s open-style

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S up for the Future 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 Reference No. COM0034 Hyundai Motor Co., associated with shabby Motors and Bajaj Auto (which together Year of Pub. 2005 automobiles that regularly became laughing controlled about 86% of the motorcycle Teaching Note Not Available stock in the late night television talk shows segment). One such player was Kinetic Struc.Assign. Not Available of the US, has stunned the auto world by 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 Jungle Jim’s International Market; Wal- a number of motorcycles for customers Toyota, the long time industry leader in Mart stores; Kroger; Retailing; wanting different value propositions: price; quality, by just one point. The newly earned Differentiation strategies; Speciality food; fuel efficiency; design; and after sales respect for Hyundai has helped in increasing Competition; Inventory management; service etc. However, at the end of 2003, its sales, to earn a spot in the global big Stock Keeping Units (SKU’s); Vendor it had less than 2% of the motorcycle league. In 2004, Hyundai became number management; Buying behaviour; Speciality market. 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 of scooters and mopeds. Pedagogical Objective through Catastrophe Culture • To discuss whether the new found quality Industry Automobile Manufacturing 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 quality products with unique designs and strategy; Motorcycles; Market Keywords effective brand promotions. In 2004, penetration; Market share; Organic and Samsung surpassed Sony to earn profits of Hyundai; JD Power Associates; Initial inorganic growth; Product design; Product $9.4 billion over revenues of $72 billion. Quality Study; Quality improvements of segmentation and positioning. Still, Yun felt that to compete in the global Hyundai; Six Sigma campaign in Hyundai; 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: Electronics in Fairfield, Ohio, about 20 miles north of 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 • To understand the evolution of the Civic has insulated Jungle Jim’s from the price 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 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 partnerships with US defence companies the competition. Many more search Gillette; Energizer Holdings Incorporated; like Northrop Grumman and Raytheon, to engines followed suit as they saw an Schick; M3Power; Quattro; Oral-B; fend off competition from Boeing and opportunity to generate revenues through Gillette Sensor; Duracell; Refillable razor Lockheed Martin, and has also acquired the search results. Whether Google can business; Gillette Mach3; Gillette Safety companies like Racal Instruments, which weather the competition and still remain Razor Company; Gillette altra shaving specialises in testing aerospace and defence dominant is a question that is of interest system; Shaving products; Revlon; equipment. to many, especially in the wake of its plans Progressive blade geometry. 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 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 competition from Take-Two Interactive, Industry Commercial Aircraft Pay-Per-Click (PPC) advertising that which ventured into the sports videogame Manufacturing provided better returns on advertising market with a low-priced football Reference No. COM0027 expenditure compared to other forms videogame, ESPN NFL2K5, competing Year of Pub. 2005 of on-line advertisements directly with Madden NFL, the high-priced Teaching Note Not Available 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 • To discuss the competitive strategies Dr. Reddy’s Tussles with Pfizer 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S was the first Indian pharmaceutical Broadcasting I – Y G E T A R T S • To discuss the strategies adopted by DHL company that received approval from the Reference No. COM0025 to increase its market share in India by US Food and Drug Administration (FDA) Year of Pub. 2003 repositioning itself as a niche, industry to market a generic version of Eli Lilly’s Teaching Note Not Available specific, solutions provider. drug, Prozac, under a 180-day marketing Struc.Assign. Not Available exclusivity. However, in 2002, Pfizer Keywords Industry Express Delivery Services challenged Dr Reddy’s intentions to market 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. • To discuss Dr Reddy’s defense against Global logistics service providers; Logistics 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 single largest market for express by DHL in India apart from global services. 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 (FDA); Branded generics; Abbreviated New boxes and take on its rivals FedEx (Federal 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 Disney Channel was one of the earliest Struc.Assign. Available 2000, the focus of the company shifted 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); • To discuss the growth strategies of Dell channel started transforming itself into a Express delivery; Logistics; Deutsche Post; and Gateway over time basic cable network. However, the Airborne Express; Danzas Group; Freight- 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 Year of Pub. 2004 • To discuss the channel’s unique aware of the growth potential of the logistics industry. Despite being the market Teaching Note Not Available segmentation strategy and the revenues Struc.Assign. Not Available the channel generated through leader in the INR 800 crore Indian express 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 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 Daiei vs Aeon: Contrasting an unexplored market soon became Coca-Cola; Coke; Beverage; Change; competition-frenzy and model-conscious. Retailing Strategies of the Bottlers; Restructuring; Reorganisation; 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- Pedagogical Objectives bubble economy. Since then, it has been carbonated Front implementing various restructuring • To trace the various factors that strategies and has been bailed out twice, contributed to the increase in In the light of the increase in public’s health receiving ¥640 billion of assistance from competition in the China’s luxury car consciousness in the 1990s, coupled with the banks. It still carried a debt of over 1 market the mounting concerns regarding the 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 programme undertaken by the Industrial Year of Pub. 2004 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 Toyota; Ford; GM and DaimlerChrysler; Industry Carbonated Beverages Reference No. COM0018 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 was once dominated by Daiei. Nissan; Ferrari; Rolls Royce; Maybach; Bentley Motors. Year of Pub. 2004 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 changing its leadership, strategies, and Coca-Cola’s strategies for non-carbonated retailing industry; Bubble economy; molding its culture. After a slew of brands; Bottled water market; Pepsi’s non- Speciality store operations; Supply chain controversies due to strained relations with carbonated brands; Dasani; Coca-Cola’s management; General merchandising; its bottlers, contamination scares and legal ‘project mother’; Coca-Cola’s Distribution efficiency; Price battles since the 1990s, the company’s promotional efforts of non-carbonated competitiveness; Product differentiation; performance took a severe beating. Coca- brands; Coca-Cola’s challenges in the non- Japan’s Wal-Mart; Industrial Revitalisation Cola is now trying to change its structural carbonated market; Top non-alcoholic Corporation of Japan; Rehabilitation ‘hardware’ as well as its behavioural beverage makers in the world; Coca-Cola’s programme; Worldwide Retail Exchange ‘software’ to regain its past glory. future plan for growth. (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 • To discuss the contemporary Chinese, who are more enterprising and unlined leather bags, has been posting an management models like ‘learning ambitious, the pattern of expenditure on average 12% growth rate in net income. organisation’, ‘individualised luxury goods has changed. By early 2004, In 2003, Coach was the largest maker and corporation’ and ‘change masters’, in the country emerged as the world’s fastest- retailer of leather accessories in the US the 21st century global economy. growing and third-largest car market after 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

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growth of Coach has been its CEO, Lew Christie’s: The 240 Year-old Year of Pub. 2004

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Frankfort, who put the company back on Auction House’s Competitive 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 Times Keywords • 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 market share of its rival discount chains retailing; Luxury brands in leather Teaching Note Not Available continues to grow. accessories. 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 In May 2004, Cisco Networks (Cisco) employed by Carrefour in trying to retain recession; Differentiation strategies; On- launched its much awaited top-of-the-line, and enhance its market share line auctioneers; eBay; Price fixing; Ed high-end router code-named ‘Huge Fast Dolman. • To discuss the competence of Carrefour 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 Keywords remained a dominant force in the overall Charles Schwab, one of the world’s largest 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 Boston Scientific vs Johnson & Industry Networking Industry its basic values. 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. Industry Banking and Financial turned out to be one of the hottest products 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 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 was on the point of oblivion, from the standard definition DVD. Industry Video Rental and Sales Johnson & Johnson came back with Reference No. COM0010 Year of Pub. 2005 ‘cypher’ in 2003 – a drug-coated stent. It Pedagogical Objectives instantly became a leader, surpassing Teaching Note Not Available Boston Scientific and other players. In • To understand the origins of the present Struc.Assign. Not Available 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 Pedagogical Objectives industry; Business model; Strong consumer- 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 video sales and rentals; Life cycle • To discuss the battle for dominance • To analyse the influence of the hardware manufacturers and the Hollywood extension; Viacom split-off; Growth between Boston Scientific and Johnson options and strategies. & Johnson and the factors that shape studios, on the possible outcome of the 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 companies to wade through a volatile Year of Pub. 2005 Wal-Mart? industry Teaching Note Not Available Struc.Assign. Not Available Best Buy, Wal-Mart and Circuit City are • To discuss the importance of first-mover the top three consumer electronics retailers advantage in the pharmaceutical Keywords in the US. Over the years, Best Buy and industry. The standards war; High Definition-DVD Circuit City have built a reputation for (HD-DVD); Sony’s Blu-ray disc; Toshiba’s Industry Video Rental and Sales selling quality goods along with high value HD-DVD; World standard for the high Reference No. COM0012 customer assistance at the point of sale. definition DVD; Lack of inter- Year of Pub. 2004 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- 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 along with the goods. Wal-Mart, although cost advantage. Coronary stent; Boston Scientific; Johnson a leading electronics retailer, only started & 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 Buy and Circuit City facility; Patent infringements and lawsuits. Blockbuster was one of the strongest 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 Circuit City. Blu-ray vs HD-DVD: The Format than 9,000 stores across North and South 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 (Video Home System), which was promoted Best Buy; Circuit City; Wal-Mart; Revenue an industry in decline by experts. by Victor Company of Japan Limited model; Consumer electronics retailer; (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;

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Radio Battle 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 • To discuss if Barbie can ward off the In early 2005, for the first time in its digital radio broadcasting. The BBC has Bratz challenge and remain relevant to history, Apple Inc. entered the low-end also invested heavily in digital radio. The the tween girl market. market by introducing its cheapest digital 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, Keywords Dell, HP (Hewlett-Packard) and Sony in would survive these challenging times or 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 • To discuss the payoffs of Apple’s entry competitors. It is believed that Emap would Barbie; Flavas. challenge the BBC in digital radio into the low-end market. broadcasting. Industry Personal Computers AvtoVAZ, the Russian Car Maker: Reference No. COM0005 Pedagogical Objectives 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 th strategy; Apple product matrix; Apple’s Industry Radio Broadcasting and Till the end of the 20 century, AvtoVAZ iPod Shuffle; Mac Mini; Mac’s market Programming dominated the Russian market with 90% st share; Apple’s Internet strategy; Apple’s Reference No. COM0008 market share. By the turn of the 21 digital hub strategy; Sales of iPod Shuffle; Year of Pub. 2005 century, Russia’s car market began booming Mac Mini’s major competitors; Apple’s Teaching Note Not Available due to a healthy economy and high export sweet spot; MP3 market; Apple’s Struc.Assign. Not Available revenues, triggering off high purchasing 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); foreign cars AvtoVAZ started losing market East Midlands Allied Press (Emap) plc.; Aldi: The German Wal-Mart? share. Digital radio broadcasting in Britain; Selling what customers want is different Changing landscape of radio in Britain; from selling what retailers want their Competitive scenario in British radio; Pedagogical Objectives 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 inception. However, its undisputed Reference No. COM0004 leadership in the fashion doll market has Keywords Year of Pub. 2004 been facing a challenge since January 2002 Teaching Note Available AvtoVAZ, the Russian car maker; from Bratz, a rival fashion doll from MGA Struc.Assign. Available Expansion strategies; Growth strategies; Entertainment. MGA Entertainment Competition; Lada car models; Russian car successfully marketed its Bratz to the tween Keywords industry; CITIC Prudential; General girls, a marketing niche that Mattel has Motors; Ford; Cost reduction; Acquisitions been struggling for years to target. The Grocery retailers; Hard discounting; 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 differentiation; Private labels of discount • To discuss the dynamics of the 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 belongs to Nintendo, a Japan-based Albertsons’ Competitive companies. 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 synonymous with video games, fail to • To discuss the methods adopted by Airbus; Risk sharing partners; Financing the A380. protect its territory? Moreover, all the 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 The Football World Cup has become a Year of Pub. 2004 was not directly competing with Sony’s mega event watched by viewers from across Teaching Note Not Available 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 Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage 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 • To discuss whether the two companies dominance in the commercial aircraft • To analyse the sustainability of would be able to achieve their objectives. market. Over the years, Airbus gradually Nintendo’s strategy. made its ground riding on government Industry Sportswear Industry Video Games funding and innovative technologies. For Reference No. COM0001 Reference No. CCA0041 the first time in 2003, Airbus became the Year of Pub. 2005 Year of Pub. 2009 world’s largest manufacturer of commercial Teaching Note Not Available Teaching Note Available aircrafts by surpassing Boeing in market Struc.Assign. Not Available share. Competition among the two reached Struc.Assig. Available Keywords a new dimension when Airbus announced Keywords the A380 Superjumbo. Airbus touted the Adidas; PUMA; Football World Cup 2006; Nintendo, Video games industry, A380 as the future of commercial aviation, Sportswear; Salomon; Adidas-Salomon; Innovation, Competition, Sony, Microsoft, as it saw a huge demand for larger aircrafts. three division structure; Marketing war; Value Chain, Business model, Consumer In contrast, Boeing asserted that smaller Competitive landscape; Nike; Reebok; behaviour, Industry Dynamics, and faster aircrafts would rule the market Herbert Hainer; Jochen Zeitz; PlayStation, Competitive Strategy, and announced its plans to build the 7E7 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

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Losing? Struc.Assig. Available Market Share – Flight of Margins? 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 manufacturing. Coupled with the open door Nokia, the market leader has seen its market industry entered China in 2002. It faced policy, China’s strategy of becoming the share fall due to lack of foresight. Through severe competition in the Chinese market world’s factory floor was quiet successful. product innovation, Motorola wants to from a local player- Taobao.com operated Within 20 years, China became the reclaim the top position it lost to Nokia. by Alibaba.com, China’s largest B2B seventh-largest economy in terms of GDP, Asian handset makers too want and are operator. eBay also faced restrictions in the most favoured nation for FDI and becoming stronger. Quickest adjustment to the operation of its payment service, Pay emerged as the world’s superpower in market needs is all that matters. Pal. The Chinese Government imposed manufacturing. With competitive Meticulously surveying the industry, this regulations requiring domestic control over advantages in labour, raw material and supply case discusses the much-needed strategies. financial services companies like Pay Pal. chain, China was ranked 40th in Global After nearly five years of operation in Competitiveness Index, an index that ranks Pedagogical Objectives China, eBay was left with only 29% market countries based on their competitiveness. share as against Taobao’s 67%. eBay tried • To understand the trends and the critical However, how sustainable is China's to adopt its US model in its Chinese success factors in the global mobile competitiveness? By 2003, China was operations, although with some alterations handset industry, and how did this change finding it hard to retain MNCs. Rising labour to suit local needs. their strategies 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 • To do the scenario analysis for the China and move out for better alternatives. wireless operator and looked forward to a mobile handset industry Can China remain globally competitive 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 global players in China. Year of Pub. 2007 advantages and relatively low raw material Teaching Note Available Struc.Assig. Available prices. Moreover, to avoid the challenge of 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 Industry E Commerce Ericsson 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 Struc.Assig. Not Available • To analyse the economic benefit and Market Share – Flight of Margins? social cost to china’s economic Keywords Motorola, ranked second in the mobile development and the sustainability of eBay; Business Strategies; Online Auction handset industry, launches its fashionable China’s competitive advantage Industry; Chinese Internet Market; E ultra-slim phone, RAZR. It is a terrific hit • 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 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 its formidable strength to its unusual Reference No. CCA0037 property; 3M Lttice; technology sharing; Year of Pub. 2007 corporate culture, which has comfortably fostered innovation and interdepartmental Core Competency & Competitive Teaching Note Available Advantage Case Study; Scotch brand tape; Struc.Assig. Available cooperation, backed by a massive research 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 % Battle of the Titans: Lowe's vs Competitive Advantage Case Study; 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 Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Buckley realises that there is a need to own PayPal, Skype, and Eachnet. eBay instant hit and other companies copied the has a global customer base of 181 million. demystify 3M and understand the workings of the ‘3M Lattice’. 3M’s technology format. Lowe’s also tried copying the The company has 31 websites across the format in order to prevent downfall of its globe, from Brazil to Germany to China. portfolio and process capability are at the core of its unique business model. These business. Lowe’s effort paid off. In 2000, 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 to build scale increase market share, who would sustain. Stiff competition was • The online auction market in China emphasize localisation and build long term another major challenge, so the question was who would succeed? • eBay’s localisation strategy competency. The idea is to defend created 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 • eBay’s venture strategy to establish its • To discuss about the retailing industry mixture of brands and local acquisitions; leadership in e-commerce market. and housing market in the US 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 Online Auction; shopping website; Reference No. CCA0034B 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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S companies. It has been involved in more promote their software was intriguing to I – Y G E T A R T S 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 Internal Branding and HRM at established strategic guideline for brand case and it compares both Linux and Windows – as operating software. The Virgin extension. The case enables students to discuss the brand extension strategies efficiency derived by the Microsoft-Novell 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 • Competitive strategies in software play a key role in maintaining its core brand Group industry values. The case enables students to discuss • Discuss the brand extension strategies Virgin’s innovative HR practices and adopted by Virgin and the role played by • Dynamics in Operating and Server internal branding strategy, evaluate its Richard Branson, its promoter network software Industry 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. internal branding strategy Struc.Assig. Not Available 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 Virtualisation; Interoperability exercise. Virgin Atlantic; Virgin retail; Virgin Rail; 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 Case Study; Virgin Mobile; NTL-Telewest; New Challenges Teaching Note Available 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 Virgin in 2006: Managing Brand versions of OS and other server software, provided direct/indirect employment to over 2 million people. Over the years, India Extensions but Microsoft was proprietary software whereas Novell dealt with Linux, free produced international quality steel of 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? 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 The case while detailing the expansion of such as iron ore and coal, make higher capitalisation which was lower than that Wal-Mart to China provides a scope for investments in R&D and human resource of its arch-rival Pepsi. The company’s discussion on the strategies adopted by it development and improvise infrastructure market value was $97.9 billion, compared and its rivals in the competitive Chinese such as roads, railways and ports. The core to $98.4 billion of Pepsi. This sparked a retail industry. The case also discusses the of this vision was Steel Authority of India debate among the analysts about the future challenges faced by Wal-Mart. Ltd. (SAIL), one of Indian government’s of the world’s largest beverage company. ‘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 the mid-1980s, Coke concentrated on its supporting the country’s infrastructural • Analyse Wal-Mart’s strategy vis-à-vis core business of carbonated soft drinks, growth by innovative metallurgical 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 Industry Retail look for steel plants to acquire. Expressing into non-carbonated drinks, snack foods Reference No. CCA0028C confidence about SAIL’s opportunities in and restaurant businesses, while Coke stuck Year of Pub. 2005 facing up to the new challenges, the SAIL to its cola business. By 2000, Pepsi had a Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Teaching Note Not Available CMD confirmed,"We are able to maintain diverse product portfolio which reduced its Struc.Assign. Not Available our market share despite new producers reliance on cola business. The case attempts 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; Logistics; Sourcing; Infrastructure; Pedagogical Objectives The case also discusses the trends in the 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S opined that it would be very challenging for Reference No. CCA0026P I – Y G E T A R T S • Possibilities for a Rs. One lakh car in the Tatas to retain the price tag. But Ratan Year of Pub. 2006 India Tata went ahead with the strategic alliance 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 which worked with Tata Motors on Indica world but also the No.1 toy retailer in US. X3; Indian Automobile Industry; Growth will be designing the aesthetic and The company was known as a category 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; experimenting on carbon-fiber composites company tried to compete with discounters Export possibilities for small cars; Small from renewable resources which would offer but its strategies did not work favourably 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 • To discuss the concept of specialty which the Asian numbers, excluding Japan task of convincing traditional media, which and Korea, might be under three million retailing, get an overview of the US toy is responsible for most of its content, to market and competition in the market. indicating the unsaturated nature of the 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 he wonders if his bet will pay off. With so be a source for mass manufacturing. An Keywords alliance which synergizes these abilities much content being generated in Yahoo, 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 swiftly to execute a succession plan that • The Indian automobile industry 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 office, Charlie Bell (Bell) discovers he is • The case outlines Microsoft’s rise, its 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 how De Beers built up the monopoly, the Industry IT(Information Technology) CEOs in as many years, McDonald’s challenges it was facing in 2004 and whether Reference No. CCA0023P 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 Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage competitor to gain a lead in the US market. Year of Pub. 2005 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 online service, the wireless and small- benefited India. 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 competition from countries like in rejuvenating Microsoft’s fortunes and De Beers: End of Monopoly? 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 www.ibscdc.org

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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S BPO industry was to be seen. sustaining its competitive position remains I – Y G E T A R T S 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 strategies followed by the market leader factors on which the competing countries • To analyse the Chinese fast food industry were trying to turn the trend towards them. Google and the market challenger Yahoo • 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; NASSCOM. multi-branding; bird-flu. 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 service seafood categories, respectively. employment opportunities. Thailand was leader in the search engine industry. A wave Outside the US, Yum opened three new the leader in the region, followed by of mergers, acquisitions, and personnel restaurants every day including one Singapore and Malaysia and India as the changes shook up this ever-volatile restaurant per day in China where it was preferred destinations for medical industry and Yahoo emerged as a threat to the market leader. treatment. 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 and challenges, the region had vast Google was a phenomenal success. By 2005, player. opportunity for growth. Google was a search engine industry leader and with its innovations in technology and Industry Microprocessors, 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 Advantage? Asian region as a preferred destination the market leader and the market 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 technology that used scrap steel to produce healthcare tourism was diverting the Industry Information Technology Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage steel. With the help of the new technology attention and resources of the Reference No. CCA0016A and a unique organisational culture, the government from the domestic Year of Pub. 2005 company became the second largest healthcare needs, especially public health 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 plans overseas and a rigid work culture are Teaching Note Not Available AMD’s Technological raising doubts about its sustainability. Struc.Assign. Not Available Innovations: Converting Capabilities into Competitive Keywords Advantages Pedagogical Objectives Marketing; Destination marketing; AMD always remained in the shadow of • To discuss the role of mini-mill Marketing strategy; Market positioning; Intel until the launch of its Athlon and technology in the success of Nucor Niche market; Public and private sector Opteron processors. Although AMD holds involvement; Business strategy; Strategic • To discuss how Nucor created a unique less than 20% of the global microprocessor management; Core competence; First organisational culture that fostered market vis-à-vis Intels’s 80%, the technical mover advantage; Cost advantage; Service; equality superiority of its products has been accepted Hospitality; Patient feedback; by the industry. With Hector Ruiz at the • To discuss how Nucor developed a Competition; Asian economies; India; helm, the company has initiated renewed competitive advantage by adopting a Singapore; Malaysia; Thailand. effort in continuing its commitment to performance-based compensation 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 • To highlight the changing competitive industry. 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Teaching Note Available and left viewing directions. Being a global I – Y G E T A R T S British Broadcasting Corporation (BBC); Struc.Assign. Available leader in LCD technology, Sharp has also 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; Mandatory TV licence fee in UK; Nucor; Organisational culture; Kenneth viewing angles. With a turnover of 2,539 billion yen by March 2005, Sharp expects Competitive strategies for BBC; John Birt; Iverson; Daniel DiMicco; Lean BBC Worldwide; BBC News Online; management structure and decentralised additional revenue of about 10 billion yen from these two innovations by 2006. Beeb.com; UK Internet demographics; management structure; Bonus and 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? Struc.Assign. Available Management Strategy: Giving it 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 Microsoft, which is expected to come out and became the biggest steel company in Competitive Advantage: The BBC Way with ‘Longhorn’, an advanced version of the world. 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 Keywords Mittal Steel; Laxmi Nivas Mittal; Growth 2000 to 7.8 million users in 2005. This 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 • To discuss the potential challenges that Sharp: Building Competitive Competitive Advantage through Advantage Through Innovation BBC On-line might face due to rapid increase in various content service ‘Unconventional’ Means providers. Since its inception in 1912, Sharp EnCana Corporation (EnCana) evolved Corporation has traditionally been known from being a virtually unknown entity to for its new categories of ‘never seen before’ Industry Television and Internet Content Poviders North America’s largest independent oil products. The latest in its innovations was and gas company. Under the leadership of unveiled in July 2005, when the company Reference No. CCA0011 Year of Pub. 2005 chief executive officer, Gwyn Morgan, started the mass production of the world’s EnCana developed a strategy of focusing first ‘dual-function LCD’ (liquid crystal Teaching Note Not Available Struc.Assign. Not Available exclusively on extraction of 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 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 Digital Animation: India’s EnCana Corporation; Largest independent are likely to come across certain 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 Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage Core Competency and Competitive Advantage 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 and China, India’s animation industry is Exclusive Image of Mighty Benz Toyota production system; Benefits of lean and BMW – Can it Achieve? expected to grow by 30% to $1.5 billion 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 philosophy. Industry Motion Picture Production several growth strategies expanding its 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); Computer graphics; Jadoo Works; Maya • To discuss the transformation of Audi unique Macintosh desktops. The increase Entertainment; Outsourcing to India; from an ordinary brand to a luxury brand 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. during company’s restructuring, was animation; 3D animation; Pentamedia Graphics; Toonz Animation; Cartoon Industry Automobile Manufacturing attributed to iPod, which had been an Network; Padmalaya Films; Global Reference No. CCA0008 important spoke in Apple’s strategy to 54 www.ibscdc.org

animation industry; IFC (International resulted in a slew of high quality, low cost Year of Pub. 2004

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Finance Corporation). cars from Japan that put enormous Teaching Note Not Available I – Y G E T A R T S competitive pressures on carmakers from Struc. Assign. Not Available other nations, especially the ‘Big Three’ Keywords Building Competencies: The (GM, Ford and Chrysler) of the US. 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 Korea’s impressive growth performance World Health Organisation; World Trade 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; the developing world. notebooks, PCs, cell phones, personal 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 Pedagogical Objective Japanese Automobile 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 Despite a late entry in the global automobile Asia in the LCD business, with specific tenth of the price offered by industry and the devastation caused by the references to the competitive advantage multinationals. This move by CIPLA sent two World Wars, Japan’s automobile of Taiwan in the technology. the big pharma players across the world industry witnessed a rapid growth that scurrying to lower their prices and to stop Industry Electronic Components transformed the country into the world’s generic versions of their drugs being sold. Reference No. CCA0001 leading automobile manufacturer by the turn Year of Pub. 2003 st of the 21 century. One of the major reasons Teaching Note Not Available Pedagogical Objectives behind this success had been the radical Struc.Assign. Not Available Japanese production system, devised by • To discuss the factors that made Indian Keywords Taiichi Ohno of the Toyota Motor Pharmaceutical industry generic driven Company. The ‘Toyota Production System’ Taiwan; Taiwan’s competitive advantage; • To discuss how CIPLA utilized Indian or the ‘Lean Production System’, as it was Taiwan and LCD; Small and medium Patents Act 1970 to offer drugs at lower called, focused on the elimination of waste enterprises; Cluster; Liquid crystal display; prices and thereby challenging the big at every step of the manufacturing process, Thin film transistor; Plasma display; pharma companies of the world. empowered employees to take decisions for Samsung; LG Philips; AU Optronics; Sharp; solving problems and helped to build Industry Pharmaceutical Industry Korea; Volatility; OBM. conducive relations between the Reference No. CCA0002 manufacturers and their suppliers. This 55 www.ibscdc.org Pedagogical Objectives Year of Pub. 2007 Teaching Note Not Available • The case discusses the key factors 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 Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy 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 Hewlett- Packard; HP Laset jet printer; extention 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 4.1 million laptop batteries made by Sony • To analyse the reasons for Fopp's Web JetAdmin; HP OpenView and fitted in its laptop computers. Dell business model failure said that the faulty batteries might, in rare cases, overheat and ignite. The recall was • To debate and evaluate the surviving Salesforce.com’s Million options available for Fopp. termed as the largest in the history of Subscriber Dream consumer electronics and raised fears about Industry Entertainment The case study is about a US based on- the safety of laptop computers. The Reference No. COS0066 incident also raised questions about Dell’s Year of Pub. 2007 demand CRM (Customer Relationship Management) solution provider company product quality and came as a blow to its Teaching Note Available efforts to refresh its image and customer Struc.Assig. Available – Salesforce.com. The company’s flagship offering is Salesforce automation suite service. In such a scenario, analysts 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 Hewlett-Packard (HP) based in California, • To understand the strategies adopted by Salesforce.com vis –a –vis its competitors US is a global technology solutions Dell to recall the batteries 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 revenues of $1 billion by 2007.The case • To debate whether Dell would be able to market share. It provided a full range of also discusses about the future potential of win back the goodwill of the customers high-tech equipment, including personal CRM and ERP industries. or not. 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 case study discusses HP’s strategy to Computer; Notebook battery; Battery and ERP industries. innovate in order to maintain its market overheating; CPSC (Consumer Product 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S service; Dell battery programme; PC county’s leading retail chain Metro AG. itself as ‘Beyond Petroleum’ suffered from I – Y G E T A R T S (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 Wal-Mart’s Exit from South Korea pretax loss on the deal of its 2007 fiscal to take proper preventive measures to 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 This case gives in detail about Prudhoe Bay international expansion since 1990, but that limited critical mass, insufficient square incidence, its impact on BP’s ‘green’ this strategy was apparently not applicable meter productivity and too aggressive positioning and environment friendly to the country of South Korea. The world pricing policy and above all cut throat image, strategy taken by BP to win back largest retailer was pulling out of the competition from the local competitors its ‘green’ image and how the company peninsula-where it’s wholly owned “Wal- like Aldi, Metro AG might cause Wal-Mart’s planned to prevent similar incidents in Mart Korea” arm had struggled since 1998 downfall in Germany. 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, to exit from Germany was strategically a local retailer, for $882 million after Wal- 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 Pedagogical Objectives strategy in the context of Prudhoe Bay million. Shinsegae was South Korea's largest 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 Year of Pub. 2007 • To discuss about Wal-Mart’s strategic Industry Retail Teaching Note Not Available initiatives in South Korea 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 BP: Trying to Win Back its ‘Green’ Shinsegae; Discount store chain; E-Mart; 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 super jumbo A380. Moreover, the valuation jointly operated by BP and government 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 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 • To understand defense and aerospace Industry Digital Media & Entertainment was considered as a relationship between industry and factors affecting it Reference No. COS0058A families rather than just two individuals Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy 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; Keywords rising competition, changing Indian 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 of India with respect to Marriages Strategies Case Study; Markets; US and UK 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 the business of Fixing Marriages Online. YouTube versus MySpace - towards a liquidity crunch. To tide over the financial crisis, Essar Steel decided to Google's Dilemma Industry E-commerce Industry avail the option of CDR to get out of the 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 Wolf Blass. It was the world’s third most The race to gain maximum number of adopted by Essar Steel to overcome its problems. widely distributed brand. Since 2000, sales eyeballs had brought MySpace and YouTube 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 – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S to become a major player in the wine revenue of US$20,485.2 million and a profit I – Y G E T A R T S 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 • To discuss the corporate restructuring Teaching Note Available employees by Lenovo. This case study strategies of its CEOs, Corrado Passera Struc.Assig. Not Available 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, avenues. The case discusses P&G’s previous Poste Italiane: A Story of Korea. The company chose India as its raw-material source due to her high quality marketing innovations, the business Corporate Metamorphosis models of Tremor and Vocal point and the iron-ore reserves. The company planned 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 revival of the company started in 1998 when successfully leverage its U$12 billion by P&G Corrado Passera (Passera) took over as the investment as it envisaged. The case • 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 objectives. Industry FMCG Industry further strengthened the company’s Reference No. COS0054P operation by reinforcing the financial Year of Pub. 2006 division and upgrading the information Pedagogical Objectives technology infrastructure. From 2003, such Teaching Note Available • To discuss the trends and pattern of corporate makeover strategies had started Struc.Assig. Not Available 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 industry Multi-fibre arrangement; Exports; Quota. • The case traces the growth of Canon, discusses its innovations and success • To discuss the value chain of the global strategy. It outlines why the deal is steel industry EDS in 2005: Jordan’s Challenge important to all the players, and what is 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 a financial mess since 2001. After three • To discuss how steel companies plan to in existing product categories, through years of putting out fires, Michael Jordan integrate backward enhancement of product development (Jordan) CEO EDS, who had been brought capabilities and product price • To discuss the key factors that a steel in two years ago to turn EDS around, has competitiveness. It also discusses company judge before investing and plan finally unveiled a plan to revive growth. Canon’s efforts to carve a place for itself to leverage it. He has cut costs and streamlined processes, in the flat-screen-TV market. but the changes have not been visible in Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Industry Steel Reference No. COS0051K the firm’s balance sheet. Industry Digital camers,TV, Photocopier Reference No. COS0048P Year of Pub. 2006 In 2005, Jordan has come up with a novel Year of Pub. 2006 Teaching Note Not Available idea of selling EDS as the leader of a Teaching Note Not Available Struc.Assig. 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; Pedagogical Objectives Implications After MFA Phase out 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 to an end. In the post quota era, Indian – (but the changes have not been visible Systematic Service textile exports were expected to increase in the firm’s balance sheet.) Infosys Foundation, the philanthropic arm from US$15 billion in 2005 to US$50 • It also discusses EDS’ new strategy, the of Infosys Technologies Ltd. (Infosys), was billion by 2010. India had the advantage advantages of the agility alliance and founded in 1996 with an aim to serve the of low cost labour, availability of raw 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 in the post quota era. It also throws light this direction. The case also discuses the 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 digital camera company. Fujio Mitarai Pedagogical Objectives 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 for itself in the flat-screen-TV market. To India; Health care; Social; rehabilitation; Year of Pub. 2005 maintain market leadership in existing Rural uplift; Learning and education in 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 www.ibscdc.org

Warehouse clubs in the US • Having been successful in the CDMA McDonald’s Localization

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S market, would LG be able to compete Strategy:Brand Unification, Menu Warehouse clubs in the US registered a effectively in the GSM market? phenomenal growth during the last decade 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 its IPO by early 2006. It faced stiff • Business strategy of warehouse clubs. maintained uniform brand identity across competition from the market leader Visa the globe while customizing its menu to Industry Retail and other rivals. The IPO was announced suit local tastes Reference No. COS0046B 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 unique American appeal. Keywords The case describes the industry structure of the credit cards, the present organization Warehouse clubs; Costco; Sam’s Club; BJ’s; Industry Fast Food & Quick Service structure of MasterCard and the proposed Merchandising; Business Model; Wholesale Restaurants one after the IPO. The case also describes club industry; Discounting; No-frills; Self- Reference No. COS0043 the competitive landscape of the industry service formats; Membership; Distribution; Year of Pub. 2006 and the critical factors affecting it. The supply chain; Retail in the US; Same store Teaching Note Available core of the case is the proposed IPO of sales. Struc.Assign. Available 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 industry with a growth of 568% was the McDonald’s on the move; Localising the on-line world; The McDonald’s way; The second largest market after China. There • To understand how card credit industry 5P’s (product, price, promotion, place, were around 20 handset companies in the 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; Menu customisation; Flexible operating entered the Indian market with the CDMA • To understand brand management segment in collaboration with the service platform. 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. 61 www.ibscdc.org Pedagogical Objectives company, has focused on its core business Keywords of express delivery. Although, the growing • To understand the reasons underlying international trade and increasing demand Honda; Acura; Legend; Toyota; Lexus; 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 commercials. However, with the Keywords Pedagogical Objectives fragmentation of the market, advertisers • To highlight the changing trends in the Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Philips; Semiconductor industry; IPO 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 messages. As a result, top US television Europe; Competition; Expansion; • To discuss the rationale behind FedEx’s networks like NBC Universal, CBS Electronics market; Recovery plans; decision to stay tuned only to its core Broadcasting and ABC had abandoned their Research and development; Investments; 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. Porsche’s Investment in Year of Pub. 2006 At the end of 2004, there were 7.5 million 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 In October 2005, German luxury sports- But one thing was missing – the business 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 chain and warehouse management; Role additional 3.4%. Porsche’s chief executive • To highlight the trend of on-demand of express delivery service; United Parcel officer Wendelin Wiedeking maintained entertainment and the challenges faced Service; DHL and TNT; Frederick Smith; that the move was to protect its business by the industry in the absence of a International trade and globalisation; Hub model and to give the company long-term 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 Porsche faced the same threats of brand Industry Broadcasting Honda: As Acura in USA and as Reference No. COS0038 dilution, rising costs and lower margins as Legend in Japan? bigger car makers. Year of Pub. 2005 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; Cannibalisation; Customer retention; Industry Automobile sceptical about the success of Acura amidst intense competition in the Japanese car Distribution network; 20-120 rule; Free on Reference No. COS0041 Demand (FoD). Year of Pub. 2006 market and Japanese loyalty to imported 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; Uncertainty loomed over the German Diversification; Diversification risk; Brand • To discuss Honda’s strategy to win a share chipmaker Infineon, as the market for management; Positioning; Alliance. in the domestic luxury car market of 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 62 www.ibscdc.org

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

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Buy has grown through customer I – Y G E T A R T S • 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 Apple; Dell’s kiosks in US malls; Supply Reference No. COS0037 markets, which were designed to target specific consumer segments like women chain management at Dell; Dell’s customer Year of Pub. 2005 satisfaction. Teaching Note Not Available and urban youth. 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- Keywords done at an increasing rate worldwide. Coupled 2004, which led to the reduction of $514 with the high cost of ink cartridges, Best Buy; Customer centricity model; million in its earnings. The accounting woes manufacturing inkjet cartridges has become Growth strategies; The segmented stores; stemmed from reckless global expansion an extremely profitable business for printer Customer focus; Concept stores; Super initiatives of Interpublic in countries like manufacturers. However, the exorbitantly store format; Speciality retailers; Discount Azerbaijan, Bulgaria, Kazakhstan, Ukraine high cost of ink cartridges has resulted in retailers; Competition; Acquisitions; and Uzbekistan, where accounting customers shifting to the concept of Competitive advantage; Customer practices are different from those in the refilling ink cartridges that are done at half orientation; Brad Anderson; Service US. The company lost clients like GM, the cost of a new cartridge. Cartridge World, innovation. Unilever and Bank of America, which 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 Since its inception in 1984, Dell has been • To discuss the new business model expansion by a corporate and the a pioneer of direct selling of computers to adopted by Cartridge World resulting factors which could affect a large enterprises on a global scale. While corporate’s brand image. • To discuss whether Cartridge World, 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 consumer markets through innovative Year of Pub. 2006 Keywords Teaching Note Not Available product offerings. 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 (generally accepted accounting principals); Brick and mortar concept; Competitive the consumer markets for the global PC Marketing communications companies; advantage; Cash cow; Low cost strategy; 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 Year of Pub. 2005 Model: The Segmented Stores Milan, Versace grew over the years through Teaching Note Available Gianni’s ‘daring design innovations and Minneapolis-based Best Buy is a leading Struc.Assign. Available consumer electronics retailer in the US and clever publicity’, clocking revenues of

63 www.ibscdc.org $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 company started witnessing declining sales, Hindusthan Petroleum Corporation Ltd; transition. accumulating debts that touched £83 Government subsidy; Mergers. million by the end of 2003. However, under Industry Retailing Giancarlo Di Risio, who was appointed as Reference No. COS0029 Year of Pub. 2005 the new chief executive officer (CEO) in Google’s Grand Moves: Are they September 2004, Versace witnessed a 21% Teaching Note Not Available 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 extension; Music record labels; Breakeven Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy 300 million users worldwide, Google is facing 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; might prove to be a limiting factor for the death of its founder. 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 PC Model, Dell became the number one Gianni Versace; Donatella; Restructuring initiatives in the future and its imminent seller of personal computers. For its strategies; Italian fashion industry; Medusa 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 BP - John Browne Bets on Asia: Global search engine industry; Yahoo!; services business and the applicability of 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 Also, the margins on the downstream • To discuss whether Dell’s services operations were lower than the upstream (Mis?)Adventure business would be as successful as its hardware business and the appropriate operations. 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 www.ibscdc.org

Siemens’ Troubled Mobile Phone Sanyo’s founder and son of the current pricing strategy; New market entrants;

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Business: Options and Strategies 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’ Industry Consumer Electronics and the division has grown to be the Strategy: Leading Intel in a New Reference No. COS0026 ‘Achilles heel’ for the European giant. 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 – Amidst these challenges, Paul Otellini in sale, closure, joint venture or a turnaround. Sanyo Electrical Company; Consumer electronics; Corporate governance; Chief November 2004 was appointed as fifth executive office (CEO); Management Chief Executive Officer (CEO) of Intel. Pedagogical Objectives reshuffle; Leadership; Tomoyo Nonaka; Otellini shifted Intel’s focus from speed of • 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 VW’s and GM’s Loss in China: First future of the loss-making mobile unit. 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, the Chinese market through this mode Siemens Information and Microcontrollers, Digital were Volkswagen (VW), in 1984, and Communications; Mobile electronics Signal Processing General Motors (GM), in 1995. Though products and services; Information and Reference No. COS0024 VW and GM made huge profits and large Communication Mobile (ICM); Year of Pub. 2005 market shares in China in their early years, Turnaround and survival strategies; Teaching Note Not Available they lost out eventually to new entrants Restructuring plan; cost-cutting efforts; 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 Intel’s product launch strategy; Paul EU economic recession; overcapacity; cars according to the shift in their customer Otellini at Intel; Intel-AMD price war; Nokia; Sony Ericsson; Motorola; BenQ; segment, from the government-owned Global semiconductor industry; Heat Revival options and strategies; Telecom institutions to individuals. It was opined generated by Intel’s processors; AMD’s equipment and services; Turnaround that GM and VW have procrastinated cost- technological advantages over Intel; Intel’s specialist; Divestments and spin-offs. cutting and other measures for too long. 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 position in turn spurred a change in the In the early 21st century, Sony, Japan’s Year of Pub. 2005 top management. Tomoyo Nonaka, a most innovative company and the world’s Teaching Note Not Available former TV journalist, with little knowledge most valuable consumer electronics Struc.Assign. Not Available about electronics and no management company, was in a crisis. Its foray into 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 www.ibscdc.org 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 Samsung’s LCD (liquid crystal display) TVs its revenues. Maker’ leaped ahead in terms of quality and demand in an industry, which had been dominated Industry Telecommunications and Media Accenture is a leading management by Sony for almost half a century. A Reference No. COS0022 consulting, technology services and restructuring plan, ‘Transformation 60’, Year of Pub. 2005 outsourcing firm. While traditional was implemented by the then chief Teaching Note Not Available management consulting was the main executive officer Nobiyuki Idei to revive Struc.Assign. Not Available 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 Video on demand; AIM (AOL Instant Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy time in the history of Sony, a non-Japanese, 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 The New York Times: Balancing • To discuss Accenture’s grand vision, its • 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 • To discuss whether Sir Howard will be Pulitzer prizes and revered for its authentic Industry Management Consulting and. able to revive Sony’s fortunes. journalism, is faced with several challenges. Outsourcing 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 Keywords Struc.Assign. Available new revenue streams for the company. The solution for increasing profitability Keywords Accenture; Grand vision; William Green; 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, for both its current and archive sections. best; Sony Pictures; Music Television; 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 AOL’s Ad Revenues: A New Struc.Assign. Not Available 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S became the focal point for a number of I – Y G E T A R T S • 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 Keywords Pedagogical Objective 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 team that did not seem to be inclined to Reference No. COS0016 firms; Business opportunities; Xintiandi Year of Pub 2004 Entertainment District; Vincent Lo; change much or take big risks, in marked contrast to the situation when Michael Teaching Note Available Engineering design and consulting firms; 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’ celebrities like Michael Jordan and Tiger Industry Information Collection and Woods. Nike’s belief in a performance shoe Delivery Tata group’s Indian Hotels Company backed by high-value advertising enabled Reference No. COS0017 Limited (IHCL), India’s largest luxury hotel it to gain an edge over competitors like Year of Pub. 2004 chain launched its first ‘no-frill’ hotel Adidas and Reebok. But the company had Teaching Note Not Available named indiOne in Bangalore. indiOne, a its share of ups and downs due to supply Struc.Assign. Not Available stand-alone brand created without the Taj- 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 from the middle-class segment. Moreover, • To discuss Nike’s marketing and 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 st rates (ARRs) as Indian tourism went • To discuss how the company has, over By the turn of the 21 century, obesity had been categorised as a global epidemic and through a bad phase due to September 11 the years, produced some of the best terrorist attacks, the attack on the Indian shoe technologies. studies conducted by the ‘Centre for Disease Control and Prevention’ of the US showed Parliament House and escalating tension 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.

67 www.ibscdc.org Pedagogical Objectives Whole Foods Markets: Growth Pedagogical Objective • To discuss how IHCL has positioned Dilemmas • To discuss the growth dilemmas faced 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 making Christmas trees. • To discuss the potential opportunities consumers in ‘organic foods’, and went on 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 Corporate Strategy Corporate Strategy Corporate Strategy

Corporate Strategy Corporate Strategy 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; competition from global giants and indiOne; Tata group; Indian hotel industry; Greenland Investment Holdings Limited; retaining the good show of the company Luxury hotels; Cost efficiencies; Branding; Carlyle Group; DreamWorks SKG; Francis in terms of growth and profits. There are India’s middle class; Domestic traveller; KAO; Boto International Holdings other challenges in the form of employee Roots Corporation Limited. 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 • To discuss the inception and growth story Since the beginning of the 21st century, the Bikram Yoga: Doing Yoga the of Whole Foods from a single store to a European telecom companies had invested 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 Industry Food Retailing, Grocery Yoga in several forms and styles, around services to their customers. Consequently, the world. Especially in the US, the most of these companies got into huge Reference No. COS0013 Year of Pub. 2004 popularity of Yoga turned it into a debts and write offs. Under such multimillion dollar business. It raised circumstances, Hutch started its 3G services Teaching Note Not Available Struc.Assign. Not Available concern when one such style - Bikram in Europe. 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

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S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S Future Bet 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 employee strength to 25,000 by 2010 • To discuss the problems that NPIL would (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. industry in the short and long-term. Pedagogical Objectives 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 Keywords • To discuss the development of the work 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 Kodak; Digital imaging; Daniel Carp; industry; Generic drugs; Drug price controls; • 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 pharmaceutical companies will have to Having started as an on-line travel agent Teaching Note Not Available strictly adhere to product patent laws and for the airline companies in 1994, Expedia Struc.Assign. Not Available not the process patent laws that it has increased its offerings and became the 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 • To discuss how Expedia reinvented its values of JetBlue Airways; Low cost versus have increased investments in research and business by creating multiple profit traditional airlines in the US; Growth plans development (R&D), joint ventures and centers like hotel bookings, car rentals, of JetBlue Airways; The challenges ahead also have elaborated their marketing etc. for JetBlue Airways. 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 Imaging • To discuss the impact of international 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 photography with consumer electronics. Teaching Note Not Available Nicholas Piramal India Limited (NPIL) Faced with the threat of worldwide decline Struc.Assign. Not Available to stay competitive in the post-2005 in photographic film sales, as well as the period Keywords 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

69 www.ibscdc.org agent; Travel business; Dynamic one electric utility company. In 2002 and Keywords packaging; Business travel industry; Richard 2003, the company was listed on the Barton; Travelocity; Metropolitan Travel; BusinessWeek’s tally of 50 best performing Industrial Credit and Investment 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 that the company produced many Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy Corporate Strategy power and control over their bottling Industry Utility and Energy breakthrough drugs. While the company partners and neglected the partners’ Reference No. COS0005 emerged as the icon of consumer interests, their relationships strained and Year of Pub. 2004 healthcare, Vagelos was dubbed as the ‘Jack the company’s performance got affected. Teaching Note Not Available Welch of the pharmaceutical industry’. On introspection, the company realised Struc.Assign. Not Available 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. Rowe; Corbin A McNeill Jr; Utility Pedagogical Objectives Even for Merck, the year 2000 meant the companies; Nuclear fleet; Cost cutting; expiration of five of its blockbuster drugs • To discuss some of the changes Coke Mergers and acquisitions; Purchasing and the company had no new drugs in its made in rebuilding the strained method of accounting; Sithe Energies; research pipeline. While most of the relationships with its bottlers American Energy Company; Wholesale pharma companies either merged or bought market and retail market; Dynegy • To discuss the importance of maintaining ideas from small biotech firms to fill their Incorporated; Rate freeze. good relationships with partners, and 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? Industry Beverages Pedagogical Objectives 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 market segment and numerous subsidiaries, look for a merger partner, when most 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. diversifications had however raised Acquisitions and mergers; Douglas Daft; Industry Pharmaceutical questions about the rationale behind the Distribution channels; Coca-Cola servings; Reference No. COS0003 expansion. When a simple rumour of a Contamination scares; Coke concentrate; Year of Pub. 2004 cash crunch could cause panic withdrawals Financial wizardry; Donald Keough; Teaching Note Not Available running into one and a half crores in just Roberto Goizueta; Douglas Ivester; The 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 • To discuss the possible problems because world’s leading biotech companies, was nothing could go wrong with them. This founded in 1976. The company in its early case provides insights into the strategy of of bringing all the subsidiaries under one umbrella organisation. years, aspired to become a blockbuster- an electric utility Exelon, which did not 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 70 www.ibscdc.org

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

S T R A T E G Y – I – Y G E T A R T S S T R A T E G Y – I – Y G E T A R T S

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