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I N N O V A A T I O N 1 www.ibscdc.org ITC’s E-Choupal: A Mirage of the American studios declared in May 2007 Immelt charted his own leadership style Poor? that it had obtained the rights for and brought about a cultural revolution in developing a theme park based on the GE. Expectations were high and the E-Choupal is a novel initiative of ITC extremely successful character of the challenges were many. Immelt had to face Limited (ITC), an Indian conglomerate, popular culture Harry Potter in US, UK several challenges. He had to provide to improve its marketing channel in and all over the world. Walt Disney parks leadership and lend vision to a large, diverse agriculture. It has its roots in Project and resorts have also tried to get the rights conglomerate like GE in the post 9/11 Symphony – a pilot project launched in for Harry Potter theme park but failed to volatile global business scenario. He also 1999 to organise ITC’s agri business. The strike a deal with the creator of the Harry had to shift the company’s focus towards business model was designed to Potter character, J.K. Rowling. Universal innovation and customer centricity in accommodate farmers, intermediaries in and Disney have been competing in the addition to posting continued growth in a the traditional model and the company entertainment industry for many years, and sluggish economy. The case study discusses through information technology. The main Walt Disney had been a leader in theme Immelt’s innovation and customer centric objective of e-Choupal is dissemination and parks. Though a tough competitor to approach and the impact it would have on disintermediation of price information. E- Disney in large theme parks segment; the company. Choupal deals with various products – feed emulating Disney’s strategies, Universal ingredients, food grains, edible nuts, was facing decline in the number of Pedagogical Objectives processed fruits and marine products. It attendants to its theme parks since 2004. has extended the basket to horticulture and With the announcement of a Harry Potter • To discuss the role of innovation in GE spices. As of 2007, e-Choupal operates in theme park planned to be ready by 2009, • To discuss the different leadership style the Indian states of Madhya Pradesh, industry experts anticipated Universal to and its impact at GE. Haryana, Uttaranchal, Karnataka, Andhra gain a momentum over Disney. It remains Pradesh, Uttar Pradesh, Maharashtra, to be seen how Universal would leverage Industry Automobile Industry Kerala and Rajasthan. By 2012, ITC has on the successful brand of Harry Potter to Reference No. INM0106B planned to expand the project to 15 states beat Disney in the theme park segment. Year of Pub. 2008 in India reaching 100,000 villages. ITC Teaching Note Available has launched Choupal Sagar, a multi- Pedagogical Objectives Struc.Assign. Available purpose retail outlet in the rural areas with plans to open 700 such rural malls by 2012. • To understand the strategies of Walt Keywords ITC-IBD has initiated a new store format Disney company Leadership style; situational leadership; Choupal Fresh Cash & Carry Stores for • To analyse how Disney used Innovative strategies; Jack Welch; cultural retailing fresh fruits and vegetables across merchandising and cross-promotion to revolution; organic growth; challenges; major Indian cities. ITC has piloted a achieve success in theme parks share price; six sigma; Innovation project with a three-part combo module Management Case Study; GE Global; work to manage the entire value chain. It is • To discuss the competition between out plan; sluggish economic market; harnessing the technology platform for Universal and Disney innovation improvement. The biggest test for ITC is the aggressive scaling up of its operations • To analyse the huge success of the “Harry to successfully reach its vision. Potter” phenomenon Fox Business Network (FBN) – • To discuss the challenges lying ahead for Pedagogical Objectives Universal that takes on the “Harry Talking Business to the Common Potter” brand further Man? • To understand the structure of the e- Choupal network • To debate the potential strategies to be In 2007, News Corporation owned by the used by Universal as against Disney’s. media mogul, Rupert Murdoch launched an • To discuss the benefits derived out of exclusive channel, Fox Business Network the e-Choupal network Industry Theme Parks (FBN). The new channel was different from Reference No. INM0107B • To discuss the future of the e-Choupal CNBC which had a strong foothold in the Year of Pub. 2008 in terms of scalability. business news market. FBN differentiated Teaching Note Available itself by offering business news to the Industry Rural e-Business Struc.Assign. Available common man and kept away from the elite Reference No. INM0108C and the serious audience served by CNBC. Keywords Year of Pub. 2008 By choosing a different audience, was FBN Teaching Note Available US Theme Parks Industry; Harry Potter; bypassing direct confrontation with the Struc.Assign. Available Universal Studios; Disney; Warner market leader? Would serving the Brothers; Theme Parks; Innovation mainstream audience help FBN sustain in Keywords Management Case Study; Entertainment; the long run? E-Choupal; Corporate Social Marketing; Brand Extensions; Movies and Responsibility; ITC Limited; Farmers; Books; J.K. Rowling; Entertainment; Brand Pedagogical Objectives India; Rural e-Business; Internet Kiosks; Leverage, Brand Value, Competition Value Chain Intermediaries; Choupal Sagar; • To analyse the competitive scenario of Innovation Management Case Studies; the business news market in the US Choupal Fresh; Rural Empowerment; Innovate for Growth: Immelt’s • To analyse the scope of differentiating Business Model; Supply Chain Management Strategy for GE its market entry and performance by using bypass attack strategies Jeffrey Immelt became Chairman and CEO of GE in September 2001. Succeeding Jack • To analyse whether the competitive Will Harry Potter’s Magic Work for strategies adopted by FBN be successful Universal Studios Theme Parks? Welch was a challenge in itself, but instead of trying to emulate Welch’s time tested and payoff in the long-run? Universal Parks and Resorts, a division of corporate management philosophies, Universal Studios Inc., one of the leading 2 www.ibscdc.org Industry Broadcasting Localisation; CAGE Frame Work; Alliance I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N I N N O V A A T I O N Google vs Baidu.com (A): The I N N O V A A T I O N Reference No. INM0105B Exportability of Google's Strategies; Acquisitions and Partnerships; Year of Pub. 2008 Business Model Chinese Google; Government Business Teaching Note Available Environment; Internet Censorship; Online Struc.Assign. Available Google is the most visited search engine Advertising; Innovation Management Case with a 62.4% market share and is the most Study; International Business; Legal Keywords profitable with $16.5 billion revenues in Environment and Regulations Fox Business News; CNBC; Bloomberg; By- 2007. The company has seen stupendous pass market entry startegy; innovative success in a short span of time. Its programming; NBCU; Business News; PageRank technology, AdWords and Dell Business Model (B): A Case AdSense advertising programmes and Financial News; Common Man; Naked Cow for Business Model Innovation Boy; Innovation Management Case Study; product line-up has ensured that it stays CNN ahead of competition. The changes it has Dell Inc. was the world's second largest PC made to its business model signify its Company in 2007 in terms of market share. business depth. Google, after conquering Dell was the market leader in 2004, but it the US market, started offering its services BabaJob.com, The Indian Social lost its position to Hewlett-Packard in other countries - through various search following changing competitive dynamics Networking Start-up: interface languages and in a number of local in the PC industry. To regain its leadership Differentiating with the Bottom of domains. Google's rise and profitability has position, Dell started selling its PCs through the Pyramid made other international Internet giants retail chains. This was in sharp contrast to like Yahoo! and Microsoft realise, albeit Dell's legendary business model of selling BabaJob.com, a Bangalore-based start-up, late, the lucrativeness of search. They are customised PCs directly to customers. Dell a unique Internet site that provides making efforts to grow in this direction. had attempted to sell through retail chains employment to the poor through the Google's growth has attracted more previously in the 1990s, but abandoned it concept of online social networking. The competitors and complaints. This case, the due to low profit margins. The case discusses idea is to help the highly unorganised poor first in the series Google vs Baidu.com, the concept of 'active inertia', which results workforce of the economy like maids, details the rise and growth of Internet from an inappropriate response to changing helpers, drivers, cooks, etc. The case not search engines. Providing a brief historical competitive dynamics, and how Dell fell only gives the wider view of this but also outlook, it focuses on how Google through into the trap of 'active inertia'. The case highlights various issues, restricting the its innovative technology rose to success also discusses internal and external member users to integrate them with the very soon. Revenue-earning models of challenges facing Dell in its attempt to growing popularity of online social Internet companies are dealt in greater regain its leadership position in the PC networking. It illustrates the process by detail, with focus on how Google makes industry. which an illiterate gets job through the help money. The case also details Google's add- of a mentor, and in the process the mentor ons to its products and services, for ensuring Pedagogical Objectives gets rewarded for every jobseekers growth and sustainability.
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