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Case Studies by Lauren Hancock Mathys

2 case studies

by Publication Date
published: 20 Dec 2013

  • Topic: Strategy
  • Industry: Medical supplies industry
  • Region: Europe

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Abstract:
The case “Rehability (B)” illustrates how one firm created a blue ocean of new market space in the highly regulated and competitive German medical supplies industry in the early 1990s. By asking a different set of strategic questions, Rehability, a German medical supplies company, shifted the focus of the industry and reconstructed market boundaries by looking across the chain of buyers, across the emotional-functional orientation of the industry, and across complementary product and service offerings. In so doing, Rehability was able to uncover and address a whole set of pain points of wheelchair users, create an unprecedented offering for them and at the same time set itself on a growth trajectory even while other medical supply stores and medical supply manufacturers struggled to survive against rapidly deteriorating industry conditions. This two-part case is accompanied by a two-part theory-based movie, which reviews industry conditions and the traditional approach of the medical supplies industry and demonstrates Rehability’s strategic move to shift the orientation of the industry and create a blue ocean. Together the theory-based movie and the case are excellent for teaching both MBAs and executives how to reconstruct an industry through the six paths framework.

Pedagogical Objectives:
• To demonstrates how a company can reconstruct market boundaries and create a blue ocean in a highly regulated industry, where organizations often feel their opportunities for innovation are limited. • To illustrate several key frameworks and tools of blue ocean strategy such as the Six Paths Framework, the Buyer Experience Cycle/Buyer Utility Map, and the Four Actions Framework.

Keywords:
Blue Ocean Strategy, Rehability, Wheelchairs, Medical Supplies Industry, Michael Heil, Germany, European Competitiveness Initiative, European Competitiveness, Europe

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published: 20 Dec 2013

  • Topic: Strategy
  • Industry: Medical supplies industry
  • Region: Europe

Show details ...

Abstract:
Executives in heavily regulated industries often feel their hands are tied by rules and regulations which some claim to even interfere with their ability to innovate. As such, it is not uncommon to find regulated firms competing in the same way for decades without ever challenging the status quo. The case “Rehability (A)” describes the conditions of the highly regulated medical supplies industry in Germany and shows how traditional players, bounded by the conventional logic about how to compete in such an industry, focused on providing the lowest-cost standardized products and the widest range of ancillary supplements in stores while overlooking the pain points experienced by users of these products, thereby trapping themselves in ever intensifying and price-based competition. This two-part case is accompanied by a two-part theory-based movie, which reviews industry conditions and the traditional approach of the medical supplies industry and demonstrates Rehability’s strategic move to shift the orientation of the industry and create a blue ocean. Together the theory-based movie and the case are excellent for teaching both MBAs and executives how to reconstruct an industry through the six paths framework.

Pedagogical Objectives:
• To demonstrates how a company can reconstruct market boundaries and create a blue ocean in a highly regulated industry, where organizations often feel their opportunities for innovation are limited. • To illustrate several key frameworks and tools of blue ocean strategy such as the Six Paths Framework, the Buyer Experience Cycle/Buyer Utility Map, and the Four Actions Framework.

Keywords:
Blue Ocean Strategy, Rehability, Wheelchairs, Medical Supplies Industry, Michael Heil, Germany, European Competitiveness Initiative, European Competitiveness, Europe

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