Strategy Case Studies
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S T R A T E G Y – III 1 www.ibscdc.org Industry Fashion Customer preference; Competitive Reference No. INA0078 environment; US Auto industry Year of Pub. 2009 Fashion Industry: Can Asia Buck Teaching Note Available Struc.Assign. Available the Trend? The US Newspaper Industry at Keywords Crossroads? Well, how does one define fashion going global – When a Gucci or Armani is Asia, Oriental, Fashion, Blue Ocean The print newspaper industry of the US displayed on the fashion streets of Japan Strategy, SWOT Analysis, GAP Analysis , has been witnessing revenue decline since and China or when celebrities like Liz Japan, China, Europe, Retail, Gucci, Global, 2005. Decreasing circulations and Hurley or Will Smith showcase themselves Brand, Apparel, Supply chain consequently decreasing advertising in an Asian outfit? The winds of global revenue, due to the increasing popularity fashion industry are changing their course of digital media, is said to have affected Industry Analysis Industry Analysis Industry Analysis Industry Analysis Industry Analysis – no more do fashion winds move only CAFE Fuel Rules: Changing Auto the print medium. Many newspaper from west to east but they blow from east companies initiated several cost cutting to west too. Asian fashion, of late, has Industry Dynamics in the US efforts to cope up with the industry made its presence felt on the global ramp. In a move to increase fuel efficiency and downtrend. The increasing online For centuries, western brands like Gucci, to reduce gasoline usage for travel, a bill advertising revenue at the US newspaper Versace, Armani and LVMH maintained was passed by US Federal government websites put forth a notion that the their supremacy in the world of fashion. raising the standards of Corporate Average industry will undergo a paradigm shift from Innovation, rich designing, marketing Fuel Economy (CAFE) standards to 35 the print medium to the online medium. expertise coupled with the presence of miles per gallon (mpg), to be achieved by Many analysts believed that the US excellent fashion connoisseurs, enabled the 2020 from the current standards of 27.5 newspaper organisations will retain their western brands to command a premium mpg for passenger cars and 22.2 mpg for local franchises in print format, as it over the years. In comparison, the Asian trucks. US car manufacturers like GM, Ford contributes significantly to their revenue. fashion industry, which is still in the nascent and Chrysler were apprehensive of this However, speculation is rife about the stage of growth, has been trying vigorously decision as they were in doubt in achieving future of US print newspaper industry as to position itself among the global players. the proposed standard in 12 years. The the focus shifts to the online medium. Although oriental fashion is pulling huge automakers were left with two options – crowds to its fashion weeks, the Asian either make cars more expensive or make Pedagogical Objectives fashion industry, despite talented designers them smaller and less powerful. By and lean manufacturing processes, is failing upgrading their manufacturing processes • To analyse the increasing popularity of to build a brand image in the high-end and investing in expensive technology, new media over the traditional media in luxury segment. Factors like low brand they hoped to reach the standards set by the US value, lack of technical know-how, the Act. It was also found that Japanese • To provide an overview of the US infrastructure and distribution networks manufacturers like Honda or Toyota were newspaper industry and the competitive have been hampering their growth closer to the proposed standards as scenario opportunities globally. compared to the 'Detroit 3' and European car manufacturers. On the other hand, • To analyse the various factors that affect This case study dwells upon the dynamics the US print newspaper industry of the global fashion industry and the fearing a rise in oil prices, consumers are comparative position of the Asian fashion looking for fuel efficient and compact cars. • To analyse how the US print newspaper industry. The case study also analyses the Consumers as well as market analysts industry can hold its audience and challenges and threats to Asian fashion presume that new CAFÉ standards can be increase its revenue. designers and brands from global players met by 2020 which is in contradiction to besides providing a scope to identify the the view of the automakers. The case Industry Newspaper Publishing ways in which Asian fashion industry can attempts to profile the needs of consumers Reference No. INA0076B create an uncontested market space and and expertise of auto-manufacturers, in Year of Pub. 2008 make competition irrelevant. the wake of new CAFÉ rules. Teaching Note Available Struc.Assign. Available Pedagogical Objectives Pedagogical Objectives Keywords • To understand and analyse fashion • To comprehend the implications of US Newspaper Industry; NAA; WAN; industry dynamics in a flat world (market environmental regulations on industry Digital Media; Ad spend; Classified ads; share, profit margins, value chain, etc.) dynamics Consumer spectrum; Interactive marketing; New media; Internet • To analyse the critical success factors • To understand the impact of CAFE bill on US customers and auto manufacturers advertising; Crossroads; Newspaper for fashion industry and debate on websites; Business models; Google; Yahoo whether they would change when the • To understand the prospects and companies go global challenges of US auto industry. • To understand the Asian fashion Industry Auto Industry Indian Animation Industry: industry's capabilities and contrast them Reference No. INA0077C Roadblocks for Global with the global fashion industry's critical Year of Pub. 2008 Competitiveness success factors Teaching Note Available Since 2005, India witnessed an increase in • To debate on the essential requisites for Struc.Assign. Available the amount of work related to animation any Asian fashion house to go global Keywords outsourced to India. Most of the companies and the strategies they should follow to that outsourced such work were from the position themselves so as to successfully CAFÉ rules; Environmental Standards; Europe, US and also Asia. Though there compete with the incumbents. Industry Analysis Case Studies; Big three; Detroit three; Japanese Automakers; has been an increase in the volume of 2 www.ibscdc.org outsourced projects and co-production (14.4% to 2.17 million units). The demand at much lower prices. Whether Nikon S T R A T E G Y – III S T R A T E G Y – III S T R A T E G Y – III S T R A T E G Y S T R A T E G Y – III deals, the animation content in the form for such scooters increased in Indian two- would be able to successfully fight grey S T R A T E G Y – III of movies and television content did not wheeler market due to improvement in market issue in India was yet to be seen. seem to entice the Indian audience. This product features, design and style; and was cast doubts on the competitiveness of the targeted to attract young college girls, Pedagogical Objectives Indian animation industry. This case study housewives, and teenagers. Looking for examines the various hurdles that Indian growth, Suzuki launched gearless scooter • Dynamics of compact camera market animation companies need to cross, not 'Access 125' (Access) in the 100cc to 150cc in India only to appeal to the local market but also segment to compete with its competitors • Market entry strategies of Nikon in to become globally competitive. like Honda, Kinetic, and Bajaj. But still, a India segment of customers preferred Pedagogical Objectives motorcycles because of bigger wheels, • Strategic implications of grey markets better road grip, power, higher ground • Nikon's strategies to fight grey markets. The case study helps in understanding clearance, and low maintenance cost • The growth of global animation industry compared to scooters. The case facilitates Industry Compact Camera Market discussion on whether Suzuki would be able Reference No. INA0073A • Growth prospects of the Indian to succeed in capturing these buyers mind Year of Pub. 2008 animation industry in relation to the space. Teaching Note Available worldwide markets Struc.Assign. Available Pedagogical Objectives • Inadequacy of the Indian animation Keywords industry to compete globally. • To examine the growth drivers and Nikon Corporation; Compact Camera Industry Animation Industry demand factors of Indian two-wheeler market Market in India; Grey Market; Compact Reference No. INA0075B Camera; Single Reflex Camera (SLR); Year of Pub. 2008 • To understand the importance of Canon India; Kodak India; Nikon's Teaching Note Available continuous innovation in two-wheeler Coolpix; Industry Analysis Case Study; Grey Struc.Assign. Available market Market; Digital Cameras; Product Keywords cannibalisation; Brand Image; Brand • To study the impact of consumer Building India; Emerging economy; Animation; behaviour in Indian two-wheeler industry Global animation Industry; Indian • To discuss whether the strategies adopted animation Industry; Roadblocks; by Suzuki would help it succeed in Indian Hotel Industry (A): The Developing nations; Financial News; shifting the consumer priorities from Competitive Dynamics Outsourcing; Intermediaries; Industry motorcycles to gearless scooters in Analysis Case Study; MNCs; Animation India. Fuelled by the country's booming economy, outsourcing hub low-cost air carrier introduction and Industry Automobile