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Case Studies by Wei-Ru Chen

6 case studies

by Publication Date
published: 19 Dec 2014

  • Topic: Strategy
  • Industry: House appliance
  • Region: Asia

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Abstract:
Galanz evolved from a Chinese township enterprise to become the world’s number one microwave oven manufacturer in six years through an aggressive price war strategy and capacity expansion. Can Galanz now replicate its rapid growth model in other home appliance categories such as air conditioners, rice cookers, and refrigerators?

Pedagogical Objectives:
This case studies the contexts in which a bold price war and capacity expansion strategy can be effective. It analyses (1) the competitive advantages of Chinese low cost manufacturers, (2) the competitive dynamics between multinational branded companies and Chinese OEMs and among Chinese emerging global players, and (3) the challenges of transforming a world-leading plant to a world-leading brand.

Keywords:
Price War Strategy, Capacity Preemption, Emerging Market, Oem, Microwave Oven, China, Low Cost, Competition

published: 20 Dec 2012

  • Topic: Strategy
  • Industry: Tire industry
  • Region: Asia

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Abstract:
The "Michelin and the Global Tire Industry in 2011" case series focuses on the strategic challenges Michelin faces as it seeks to regain global leadership in the tire industry. Following a description of the global industry dynamics, the segmentation of the tire markets and the economics of the industry, the case reviews the competitive position of the key competitors. Michelin’s challenges in China are getting particular attention. The case on GiTi briefly reviews the company history, its current strategy and results.

Pedagogical Objectives:
The case series allows a discussion of the drivers of industry globalization and the development of competitive advantage and strategy in a global setting. It is focused on a leader, Michelin, which has been very successful but is now bypassed by a new leader, Bridgestone, and faces new challengers such as Hankook. The case series allows an in-depth analysis of globalization of markets and global competition, the strategy models of the new competitiors and the strategic challenges Western companies face to maintain their prominence and performance.

Keywords:
Global Competition, Competitiveness, Emerging Market Competitors, Mature Industries, Innovation in Mature Markets, Consolidation, Global Strategy, New Business/strategy Models, European Competitiveness Initiative, European Competitiveness, Europe, Strategy

published: 20 Dec 2012

  • Topic: Strategy
  • Industry: Tire industry
  • Region: Asia

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Abstract:
The "Michelin and the Global Tire Industry in 2011" case series focuses on the strategic challenges Michelin faces as it seeks to regain global leadership in the tire industry. Following a description of the global industry dynamics, the segmentation of the tire markets and the economics of the industry, the case reviews the competitive position of the key competitors. Michelin’s challenges in China are getting particular attention. The case on Hangzhou Zhongce briefly reviews the company history, its current strategy and results.

Pedagogical Objectives:
The case series allows a discussion of the drivers of industry globalization and the development of competitive advantage and strategy in a global setting. It is focused on a leader, Michelin, which has been very successful but is now bypassed by a new leader, Bridgestone, and faces new challengers such as Hankook. The case series allows an indepth analysis of globalization of markets and global competition, the strategy models of the new competitiors and the strategic challenges Western companies face to maintain their prominence and performance.

Keywords:
Global Competition, Competitiveness, Emerging Market Competitors, Mature Industries, Innovation in Mature Markets, Consolidation, Global Strategy, New Business/strategy Models, European Competitiveness Initiative, European Competitiveness, Europe, Strategy

published: 23 Apr 2012

  • Topic: Strategy
  • Industry: Electrical work
  • Region: Other Regions

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Abstract:
Nokia has dominated the mobile handset business for over 20 years. But as mobile technologies evolves and the consumer focus shiftsfrom handset design towards software and content platforms, it creates an opportunity for new players, such as RIM, Apple and Google, to enter the market and challenge Nokia’s position. This case examines the competitive situation in the mobile ecosystem and Nokia’s attempt to redefine itself as an 'internet company' in 2008.

Pedagogical Objectives:
This case can be used to illustrate basic concept of competitive strategy (five forces, value chain integration, competitive advantage) in the context of an ecosystem. It is designed to discuss competitive threats to Nokia's position, such as envelopment threats from players outside the ecosystem (Apple, Google). Particularly attention is given to issues of cooperation and integration between software platforms and complements (hardware, content, services). It also explores Nokia's corporate strategy and structure.

Keywords:
Ecosystem, Industry Analysis, Evolution, Change, Apple, Google, Convergence, Mobile, European Competitiveness Initiative, European Competitiveness, Europe, Change Management

published: 27 Mar 2009

  • Topic: Strategy
  • Industry: Internet Search
  • Region: Asia

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Abstract:
The case describes the battle between Google, the world’s leading search engine, and Baidu, a local entrepreneurial firm in China. In 2009, Baidu’s internet traffic share in the country was over three times that of Google and Yahoo!China. Would Google utilise its global resources to impose its dominance in China? Could Baidu defend its leading position?

Pedagogical Objectives:
This case studies competitive strategies in a platform-mediated network business. It discusses (1) business-model evolution (value creation and capture); (2) analysis of platform business (two-sided market, critical mass, network externality); (3) sustainability of leadership position (attack and defence); (4) global strategy (localisation vs. globalisation); (5) business ethics and government relations.

Keywords:
Online Search Market, Platform Competition, Localisation, Network Externality, Global Strategy, Sustainable Competitive Advantage, International Business, China

Prizes won:
- Winner of 2009 EFMD Award, Emerging Chinese Global Competitors Category

published: 27 Feb 2009

  • Topic: Strategy
  • Industry: Quick Service Restaurants and Franchise
  • Region: Asia

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Abstract:
McDonald’s is the undisputed global leader of quick service restaurants. In China, however, it has less than half the number of outlets and significantly lower profit margins than KFC. Why is KFC seemingly wining in China? How can McDonald’s leverage its global acumen to catch up with KFC?

Pedagogical Objectives:
This case studies cross border transfer of business models between two very different institutional contexts. It discusses how multinational firms replicate their proven successful business model and underlying practices from USA to China, a country that is deemed very different in operating environment and consumer behaviour. If local adaptation seems inevitable, then what has to be changed and when?

Keywords:
Adaptation, Replication, Transfer of Best Practice, Global Strategy, Business Model, China, Franchise, Emerging Market, Restaurant Chain, International Business

Prizes won:
- 2014 Case Centre Best Selling Case in Strategy and General Management
- 2013 Case Centre Best Selling Case in Strategy and General Management
- 2012 ecch Best Selling Case in Strategy and General Management

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