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Case Studies by Tony Tong

5 case studies

by Publication Date
published: 26 Jun 2018

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

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Abstract:
The case sets China’s Huawei Technologies in the context of the evolving global smartphone industry, notably its positioning and the links between its competitive strategy and its corporate (global) strategy. It describes the origin, growth and structure of the smartphone industry, evolving industry trends and dynamics, and profiles the major players including Apple and Samsung (originally hardware manufacturers), Google and Microsoft (originally software developers), and new entrants such as HTC and Xiaomi. It focuses on the factors behind Huawei’s stunning success—from a traditional telecom equipment provider to the third largest smartphone maker in the world (after Samsung and Apple), while pointing to the challenges that lie ahead. The unique characteristics of smartphones— multi-functionality, high degree of technology integration, and fast-moving ecosystems—make them an ideal choice for analysis of industry change. The tale of Huawei—a Chinese telecom giant—entering and succeeding in the highly competitive global smartphone industry allows for discussion of the competitive strategy and organizational transformation of an emerging economy multinational enterprise.

Pedagogical Objectives:
• To discuss the past, present and future of the smartphone industry.
• Sources of competitive advantage of the major smartphone makers.
• Challenges facing smartphone makers to sustain their competitive advantage.
• Co-evolution of competitive, corporate and global strategy of an emerging economy multinational.

Keywords:
Smartphone Industry, Competitive Strategy, Industry and Competitive Analysis, Technology and Innovation Strategy, Global Strategy, China Strategy, Strategy in Emerging Markets, Huawei, Samsung, Apple, Competitive Advantages

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published: 26 Mar 2018

  • Topic: Strategy
  • Industry: Smartphone industries
  • Region: Asia

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Abstract:
The case focuses on China’s ‘furious five’ smartphone makers – Huawei, Xiaomi, Lenovo, and OPPO/Vivo, charting the history of the industry and the changing dynamics of the global market. It explains the emerging market context in which these companies operate, its distinctive features, opportunities and challenges, and the various ways they have triumphed over established global brands. The case provides a detailed introduction to the respective Chinese smartphone makers and their products. It discusses their current strategies and how they were influenced at the formative stage by the background and experience of the respective founders. It examines their development trajectories to shed light on their global strategies in the future. Given its dynamic growth and intense competition, China’s smartphone market offers an ideal setting to analyse the competitive heterogeneity of firms in an emerging market context.

Pedagogical Objectives:
The case has proved suitable for discussion of any or all of the following topics: 1. Historical development, current status and future trends of the global and Chinese smartphone industry and market 2. Competitive strategies adopted by major smartphone vendors in China 3. Sources and implications of competitive heterogeneity between China’s smartphone makers It can be used together with the INSEAD case #6269 “A Dark Horse in the Global Smartphone Market: Huawei’s Smartphone Strategy”, which offers further details for analysis of the global smartphone industry and sources of Huawei’s competitive advantage.

Keywords:
Smartphone Industry, Competitive Strategy, Huawei, Huawei, Oppo, Vivo, Xiaomi, Lenovo, Origin of Strategy, China, Emerging Market, Industry Evolution and Dynamics, Strategy Dna, Competitive Heterogeneity, Experience of Founders

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published: 11 Dec 2017

  • Topic: Strategy
  • Industry: Ride-hailing market; Taxi
  • Region: Global

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Abstract:
As a result of fast-developing mobile technology, companies must deal with increasing business complexity in a high-velocity environment. The Uber vs. Didi case illustrates a wide range of strategic issues that a company may face when creating a new business model, generating unprecedented value for customers, challenging traditional business and regulatory frameworks, and expanding into an emerging market to compete with local rivals. The case is about Uber’s competition with Didi, its local rival in China. The first part describes the traditional taxi industry, using the illustration of the US taxi medallion system. It explains Uber’s platform-based business model, value innovation, challenge to government regulation, and surge pricing model, as well as associated ethical issues. The second part describes the emergence of Didi in China and how it challenged Uber when it entered China’s ride-hailing market. Unlike its rapid expansion in the US and other countries, Uber had a bumpy ride in China. In June 2015, Didi was reported to have 80.2% of the market, outperforming Uber’s meagre 11.5%. With China’s internet giants joining the battle as strategic investors—Baidu (backing Uber), Alibaba and Tencent (both backing Didi), and from Silicon Valley—Apple (backing Didi), the race between Uber and Didi has far-reaching implications.

Pedagogical Objectives:
The case has proved to be well suited to a discussion of any or all of the following topics: 1.Competitive strategy basics (industry analysis, competitive analysis); 2.Value innovation (Blue Ocean Strategy, ERRC framework, strategy canvas); 3.Fundamentals of a platform business model (analysis of two-sided markets; how to jumpstart adoption) 4.Competition among platform businesses (analysis of strength of “network effects”, potential for “winner-takes-all”, and “platform envelopment” effects) 5.Entry into new international markets (entry mode, country choice and characteristics) 6.Competition with local rivals (replication of business models; standardization vs. localization; dealing with government and local constituencies)

Keywords:
Ride-Hailing Apps, Taxi Industry, Blue Ocean Strategy, Platform Strategy, Two-Sided Market, Global Strategy, Entry into New International Markets, Competition with Local Rivals, Value Innovation, China, Uber, Didi

Related:

published: 27 Feb 2017

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

Show details ...

Abstract:
The case sets China’s Huawei Technologies in the context of the evolving global smartphone industry, notably its positioning and the links between its competitive strategy and its corporate (global) strategy. It describes the origin, growth and structure of the smartphone industry, evolving industry trends and dynamics, and profiles the major players including Apple and Samsung (originally hardware manufacturers), Google and Microsoft (originally software developers), and new entrants such as HTC and Xiaomi. It focuses on the factors behind Huawei’s stunning success—from a traditional telecom equipment provider to the third largest smartphone maker in the world (after Samsung and Apple), while pointing to the challenges that lie ahead. The unique characteristics of smartphones— multi-functionality, high degree of technology integration, and fast-moving ecosystems—make them an ideal choice for analysis of industry change. The tale of Huawei—a Chinese telecom giant—entering and succeeding in the highly competitive global smartphone industry allows for discussion of the competitive strategy and organizational transformation of an emerging economy multinational enterprise.

Pedagogical Objectives:
• To discuss the past, present and future of the smartphone industry. • Sources of competitive advantage of the major smartphone makers. • Challenges facing smartphone makers to sustain their competitive advantage. • Co-evolution of competitive, corporate and global strategy of an emerging economy multinational.

Keywords:
Smartphone Industry, Competitive Strategy, Industry and Competitive Analysis, Technology and Innovation Strategy, Global Strategy, China Strategy, Strategy in Emerging Markets, Huawei, Samsung, Apple, Competitive Advantages

Related:

published: 14 Nov 2016

  • Topic: Strategy
  • Industry: Ride-hailing market, taxi
  • Region: Asia

Show details ...

Abstract:
As a result of fast-developing mobile technology, companies must deal with increasing business complexity in a high-velocity environment. The Uber vs. Didi case illustrates a wide range of strategic issues that a company may face when creating a new business model, generating unprecedented value for customers, challenging traditional business and regulatory frameworks, and expanding into an emerging market to compete with local rivals. The case is about Uber’s competition with Didi, its local rival in China. The first part describes the traditional taxi industry, using the illustration of the US taxi medallion system. It explains Uber’s platform-based business model, value innovation, challenge to government regulation, and surge pricing model, as well as associated ethical issues. The second part describes the emergence of Didi in China and how it challenged Uber when it entered China’s ride-hailing market. Unlike its rapid expansion in the US and other countries, Uber had a bumpy ride in China. In June 2015, Didi was reported to have 80.2% of the market, outperforming Uber’s meagre 11.5%. With China’s internet giants joining the battle as strategic investors—Baidu (backing Uber), Alibaba and Tencent (both backing Didi), and from Silicon Valley—Apple (backing Didi), the race between Uber and Didi has far-reaching implications.

Pedagogical Objectives:
The case has proved to be well suited to a discussion of any or all of the following topics: 1. Competitive strategy basics (industry analysis, competitive analysis); 2. Value innovation (Blue Ocean Strategy, ERRC framework, strategy canvas); 3. Fundamentals of a platform business model (analysis of two-sided markets; how to jumpstart adoption) 4. Competition among platform businesses (analysis of strength of “network effects”, potential for “winner-takes-all”, and “platform envelopment” effects) 5. Entry into new international markets (entry mode, country choice and characteristics) 6. Competition with local rivals (replication of business models; standardization vs. localization; dealing with government and local constituencies)

Keywords:
Ride-Hailing Apps, Taxi Industry, Blue Ocean Strategy, Platform Strategy, Two-Sided Market, Global Strategy, Entry into New International Markets, Competition with Local Rivals, Value Innovation, China, Uber, Didi

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