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Case Studies by Javier Gimeno

17 case studies

by Publication Date
published: 30 Jan 2012

  • Topic: Strategy
  • Industry: Mobile operations
  • Region: Europe

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Abstract:
The mobile industry in Finland in 2005 was facing a price war, which hurt not only the profitability of operators but also their incentives to adopt new technologies (3G). In 2005, the Finnish mobile telecom regulator decided to allow handset bundling and subscription plans for 3G services. This was an opportunity for incumbents to reshape the competitive context in the industry. The case examines the possibilities for Elisa, the second player in a 3-player oligopoly, to introduce new pricing plans to change the competitive context.

Pedagogical Objectives:
The case allows discussion of pricing strategies in oligopoly, particularly with the objective of ending a price war. Possible strategies include handset bundling, price discrimination through subscriptions and different price plans, and new service offerings. Due to the oligopolistic context, a competitive analysis is required to identify possible competitive responsed to pricing actions.

Keywords:
Price Wars, De-Escalation, Mobile Telecommunication, Finland, Price Discrimination, Oligopoly, Pricing, Bundling, European Competitiveness Initiative, European Competitiveness, Europe, Change Management

published: 30 Jan 2012

  • Topic: Strategy
  • Industry: Bottled Water Manufacturing and Distribution
  • Region: North America

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Abstract:
The U.S. bottled water industry went through a major change of structure around 2002. A huge growth in demand, driven by health-conscious consumers, attracted a wave of new entrants, some of them with strong resources and different business models (purified water). Signs of competitive pressure, in the form of price competition and consolidation, were beginning to appear, forcing players to adapt to a very different competitive landscape.

Pedagogical Objectives:
The case can be used in core strategy courses or competitive strategy electives to examine industry transformation (e.g., how industry attractiveness will evolve after changes in the environment). Will the industry become more fragmented or concentrated? What are the forces driving industry structure and performance? The case also allows discussion of the different business models used by companies to adapt to the new landscape.

Keywords:
Industry Transformation, Bottled Water, Strategic Positioning, Industry Structure, Endogenous Sunk Costs, Soft Drinks, Economies of Scale, Price War

published: 01 Feb 2005

  • Topic: Strategy
  • Industry: Computer Peripheral Equipment
  • Region: North America

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Abstract:
The case describes the situation in the desktop printer industry in August 2002. Rumours suggest that Dell is planning to enter the industry. The case describes the structure of the industry, the main players, and the events leading to these rumours. Some possibles motives for Dell entering the printer industry are discussed, as well as the entry barriers.

Pedagogical Objectives:
The case is designed to examine whether a firm with a dominant position in an industry (Dell in PCs) can exploit its powerful position to enter into complementary products (desktop printers). The dominant incumbent in printers (HP) already competes with Dell in PCs. The entry barriers in the printer business are large. The main question is whether Dell can overcome the barriers in order to benefit from this profitable business, or deflate a profit pool from its rival.

Keywords:
Market Entry, Desktop Printers, Entry Barriers, Competitive Dynamics, Tapered Integration, Complementary Products, Multimarket Competition, Diversification

published: 08 Jan 2005

  • Topic: Strategy
  • Industry: Cellular Telephone
  • Region: Global

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Abstract:
The case describes the adoption of two competing mobile internet services in Europe: i-mode (which was very successful in Japan) and Vodafone live!. Case describes the players in the mobile internet ecosystem (operators, handset manufacturers, content providers) in Europe, and describes the competing offerings (technology, marketing, relationships with complementors). The challenge for these platforms in 2003 was to achieve mass market adoption of their services.

Pedagogical Objectives:
The case allows discussion of co-opetition, standards competition and critical mass adoption in a competitive context. - How to manage cooperative and competitive relations with key complementors to ensure adoption? - How to manage the transition from pioneer to mass-market adoption? - How to change the value chain structure to gain leadership within a business ecosystem?

Keywords:
Strategic Alliances, Network Externalities, Complementors, Critical Mass Adoption, Value Chain, Co-Opetition, Standards Competition, European Competitiveness Initiative, European Competitiveness, Europe, Change Management

Related:

published: 01 Jul 2003

  • Topic: Strategy
  • Industry: Air Transportation
  • Region: Europe

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Abstract:
Case Writers: Alessandro BUCCELLA and Herman FUNG This case forms part of a series with “Note on the European Airline Industry” and “European Airline Industry: Lufthansa in 2003”, but can be used independently. The case describes in detail the strategy of Ryanair, and compares the company to other European airlines using the “low-cost carrier” (LCC) model, with particular attention to Easyjet. The case highlights the fact that the “low-cost carrier” group is quite heterogenous in strategy and performance. The case calls for an evaluation of the overall potential of the low-cost carrier strategy within Europe, and for the relative evaluation of the strategies of different LCCs. How big will the market share captured by LCCs? Which of the LCCs are better positioned? What will the emerging structure of the low-cost segment in Europe?

Pedagogical Objectives:
This case can be used to explore the following themes: Evaluate the long-term market potential of an innovative business model, the �low-cost carrier� model Examine the different fit between strategy and market position achieved by different companies following the �low-cost carrier� concept Whether second movers into a new business opportunity should try to imitate or differentiate relative to the first mover

Keywords:
Entry Deterrence, Airlines, Competition, Network Carriers, Entry, Competitive Strategy, Entry Deterrence, Strategic Groups, European Competitiveness, Europe

published: 01 Jul 2003

  • Topic: Strategy
  • Industry: Air Transportation
  • Region: Europe

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Abstract:
Case Writers: Alessandro BUCCELLA and Herman FUNG The note describes the competitive context of the European Airline Industry in early 2003. That airline industry has chronic performance problems. Yet, after September 11, the global recession, and the 2nd Iraq War, the global airline industry is amidst the worst crisis in history. Yet, in the middle of the crisis, some airlines using the “low-cost carrier” business model are experiencing profitable growth. The note describes the economics of the airline industry, with special attention to other participants in the airline supply chain that obtain acceptable returns. The competitive among the different business models in the European airline industry (network carriers, low-cost carriers, charters, etc) are also discussed.

Pedagogical Objectives:
This case can be used to explore the following themes: Industry analysis, including examination of entry and rivalry, and vertical power in the supply chain Competition within and between different business models with different relative advantages Identification of sources of competitive advantage of the �low-cost carrier� strategy Managing capacity in a chronically underperforming industry

Keywords:
Airlines, Low Cost Carriers, Competition, Network Carriers, Entry, Competitive Strategy, Entry Deterrence, Strategic Groups, European Competitiveness, Europe

published: 01 Jan 2003

  • Topic: Strategy
  • Industry: Air Transportation
  • Region: Europe

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Abstract:
Case Writers: Alessandro BUCCELLA and Herman FUNG This case forms part of a series with “Note on the European Airline Industry” and “European Airline Industry: Ryanair in 2003”, but can be used independently. The case describes the strategy of Lufthansa as a major network carrier in Europe. It also describes the entry of low-cost carriers in the German market. The case describes the strategies used by other incumbent airlines in defending against the entry of “low-cost carriers”, ranging from imitation, to entry preemption and deterrence.

Pedagogical Objectives:
This case can be used to explore the following themes: How an incumbent can respond to industry entrants with distinct advantages The constraints that limit competitive responses by incumbents Whether and when entry preemption and deterrence is a viable strategy

Keywords:
Airlines, Low Cost Carriers, Competition, Network Carriers, Entry, Competitive Strategy, Entry Deterrence, Strategic Groups, European Competitiveness, Europe

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