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Strategy

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published: 13 Feb 2019

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Abstract:
Scortex, a young start-up based in Paris, has developed an applied artificial intelligent (AI) solution for an industrial setting, combining hardware and machine learning. Its CEO is wondering how best to deploy the €1.8 million C-round financing it has raised. While the market is potentially huge, he is aware that IBM – with which he has collaborated in the past – has just launched a direct competitive offering.

Pedagogical Objectives:
. Assess how Scortex could position its offering and best approach the market, while developing sources of competitive advantage
. Decide how best to deploy the €1.8 million C-round financing that Scortex has raised

Keywords:
Machine Learning, Artificial Intelligence, Start-Up, Entrepreneurship, Deep Learning, Cloud Computing, Automation, Industrial Applications, Hardware, Machine Vision, Algorithm, Strategy, Quality Control

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Abstract:
The Universidad Privada Boliviana (UPB), the Private University of Bolivia, was founded in 1993. Not long after, in the late 1990s, civil unrest erupted with coca growers battling police in the streets outside the campus. Students and faculty fled, the prior President retired, and UPB was functionally insolvent. Manuel Olave was hired as Rector (President) in 1999 to salvage the struggling school. Charged with turning around the struggling university, Olave realized that head-on competition would not help UPB thrive. Instead of benchmarking against leading universities, Olave formed a team to explore growth opportunities, using blue ocean methodologies like the Buyer Utility Map, Strategy Canvas, and ERRC Grid. Based on insights from the blue ocean shift process, UPB made a series of strategic moves to capture untapped demand for higher education that was more affordable and of higher value for students. Two decades later, UPB is ranked the best private university in Bolivia, enrollment is at capacity, and the school is planning a third campus.

Pedagogical Objectives:
• To explore a real world example of how a struggling education institution can turn around based on the blue ocean shift process. • To learn how a noncustomer analysis can help an organization uncover hidden pain points and create new demand. • To understand how a blue ocean leader can galvanize support and build confidence through the blue ocean shift process.

Keywords:
Education, University, Business School, Blue Ocean Strategy, Blue Ocean Shift, Value Innovation, Turnaround, Bolivia, Universidad Privada Boliviana, Upb Bolivia, Evo Morales, Santa Cruz De La Sierra, Latin America, Non Profit

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published: 30 Nov 2018

  • Topic: Strategy
  • Region: Europe

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Abstract:
Charity fundraising in the UK was a deep red ocean when Comic Relief started. Costs were up and donations were down. To stand out from the crowd, organizations had to work harder at fundraising and marketing. Yet Comic Relief rapidly achieved 96 percent national brand awareness and has now raised over £1 billion without spending anything on marketing. Its flagship event, held once every two years, is almost a national holiday in the UK. The case reveals how Comic Relief redefined the problem of the charity-giving industry - from how to get the wealthy to give out of guilt, to how to get everyone ‘to do something funny for money’ – thus reconstructing the market boundaries. It understood how to create new demand by looking to nondonors and what turned them off (the blocks to giving). In so doing, it erected formidable barriers to imitation – cognitive, organisational, economic and legal. Its enduring success relies on the alignment of its value, profit and people propositions. It can be used to teach the following Blue Ocean concepts: (1) the Buyer Utility Map; (2) the Three Tiers of Noncustomers; (3) Barriers to Imitation; and (4) Disruptive versus nondisruptive creation.

Pedagogical Objectives:
• The central importance of noncustomers as a way to gain insights into how to create new demand and generate new growth. Instead of fighting for a greater percentage of existing donors, Comic Relief looked to noncustomers and what turned them off charitable giving, uncovering the major pain points imposed by the industry. This gave critical insight into how to open up new market space - a blue ocean of noncustomers • Barriers to imitation Barriers to imitation effectively prolong the sustainability of a blue ocean strategy, in this case the alignment of value, profit and people propositions, and cognitive, organizational, brand, economic and legal barriers – keeping challengers for many years. • Market creating-strategies are not synonymous with disruptive creation. Rather than replacing an earlier technology or existing product or service, Blue Ocean Shift | Strategy goes beyond disruption to embrace what Chan Kim and Renée Mauborgne call “nondisruptive creation” of a new market and with it new growth. While Comic Relief triggered a measure of disruption, it principally unlocked nondisruptive creation, where its gain didn’t come at the expense of others.

Keywords:
Social Services, Blue Ocean Strategy, Nonprofit Organization, Disruptive Creation, Nondisruptive Creation, Barriers to Imitation, Noncustomers, Market Creating Strategy, Charity, Blue Ocean Shift, Charity Fundraising

published: 29 Oct 2018

  • Topic: Strategy
  • Region: Asia

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Abstract:
The case reviews how the Japanese company Park24 reinvented the short-stay parking industry in Japan and expanded it over the years, establishing itself as the unchallenged market leader. Hitherto short-stay parking in Japan was largely provided as a public service. Shortage of land and the high price of real estate explained the severe shortage of city parking space was due to land scarcity and lofty prices of land resources. Park24 saw that the solution was not building gigantic multi-storey car parks but making parking lots available everywhere people went and accessible anytime of the day. Drawing insights from the convenience store industry, Park24 looked for small plots near popular destinations and launched a low-cost, secure and automated parking service called Times. Rolled out rapidly across Japan, it fundamentally redrew the landscape of the short-stay parking industry. Park24’s blue ocean move shows how a nondisruptive market-creating approach can open up new value-cost frontiers, new demand and high growth.

Pedagogical Objectives:
The teaching of this case aims to investigate and discuss how Park24: 1) Gained insight into creating a blue ocean from non-customers of the existing short-stay parking industry and analyzing their pain points. 2) Redrew the landscape of short-stay carparks in Japan by borrowing key elements from the convenience store industry. 3) Redefined the industry problem (parking) and provided a new solution, opening up a huge new market via non-disruptive creation.

Keywords:
Parking Industry, Short-Stay Parking, Unattractive Industry, New Market Space, Market Creation, Blue Ocean Strategy, Blue Ocean Shift, Noncustomers, Demand Creation, Market Reconstruction, Nondisruptive Creation, . Car Sharing, Digital Data, Differential Pricing

published: 31 Aug 2018

  • Topic: Strategy
  • Industry: Aircraft Leasing
  • Region: Europe

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Abstract:
The case describes the meteoric rise of Avolon in the aircraft leasing industry – from a private-equity-backed start-up to IPO and M&A activity, resulting in a top three industry position only seven years after its foundation. It is the first to offer an overview of the history of the aircraft leasing industry, from its largely Irish roots to a global phenomenon that has secured major Asian investment. It follows the career highs and lows of a daring entrepreneur who overcomes multiple obstacles to ultimately build a global player from scratch. Throughout the different phases of Avolon’s strategic growth, it highlights the power of embedding corporate values that fuel the company culture and its competitiveness.

Pedagogical Objectives:
The case has the potential to bring together a range of topics – from strategy, general management and entrepreneurship. As such it can be used in MBA and executive education classes, for introductory, industry analysis or final capstone purposes. It can also serve as an introduction to the aircraft leasing industry.

Keywords:
Industry Analysis, Entrepreneurship, Growth Strategy, Mergers and Acquisitions, Private Equity, Strategy Process, Strategy Execution, Agility, Founder’s Mentality, Corporate Culture, Euro-Asian Business Partnerships, Strategic Positioning

published: 22 Aug 2018

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Abstract:
The case describes Operation “Lava Jato” (Car Wash) in Brazil, one of largest anti-corruption investigations in the world. Operation Car Wash brought to light the shady relationships between government contractors, political campaign agencies and high-profile politicians in what were known as ‘pay-for-play’ schemes – bribes and campaign contributions paid by major corporations to government officials and political parties in exchange for lucrative government contracts which were over-invoiced to ‘cover the costs’. By March 2018, 123 defendants had been convicted (their cumulative prison sentences amounting to 1,861 years), many from the highest echelons of government and business.

Pedagogical Objectives:
The aim is to discuss how doing business in Brazil is being transformed by one of the largest corruption probes in history. More broadly, the case allows instructors to examine institutional changes in emerging markets and their implications for business.

Keywords:
Corruption, Emerging Markets, Car Wash, Lava-Jato, Brazil, Sergio Moro, Institutional Change, Latin America

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published: 22 Aug 2018

  • Topic: Strategy
  • Industry: Travel Industry
  • Region: Asia

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Abstract:
The case is a combination of strategy formulation exercise and case method. It consists of three parts: 1) Part A looks into the competitive landscape of the travel industry in Korea and ends with the challenging question to participants to create their own blue ocean strategy as a group work. 2) Blue Ocean Shift Exercise is conducted in the classroom using the worksheets. It provides detailed information in a pre-set format. Participants follow the process of blue ocean shift using the Buyer Utility Map, the Noncustomer Analysis, the Six-Path Framework, the E-R-R-C Grid, and the To-Be Strategy Canvas to create their own blue ocean strategy. 3) Part B provides an example of creating a new market space in the travel industry in 2012 in Korea—My Real Trip. This theory-based video case narrates how My Real Trip reconstructed the market boundaries and created new demand in the crowded and divided travel industry. The strategic move can be discussed in the classroom accompanied by lecture slides.

Pedagogical Objectives:
1. To show how fierce competition in Korea’s travel industry led to dissatisfied customers and a price war that put local travel operators in financial trouble. 2. Market creation is not entirely driven by entrepreneurship, based on a random, high-risk endeavor, and conducted through trial and error. With market-creating tools and guidance, anybody can make a market-creating move with confidence and creative competence. 3. While the human element is often sidelined in strategy formulation, a Blue Ocean shift emphasizes the importance of building confidence for creating new growth. Without the confidence to act, few will venture down a new path. 4. My Real Trip identified the market problems and solved them in a different way by looking across industry boundaries – and across time. By offering a different degree and kind of value, My Real Trip achieved a Blue Ocean shift, shaping unfavorable industry conditions in its favor. 5. My Real Trip did not replace the existing industry; it seized new growth and created a new market and jobs that did not exist before. This is nondisruptive creation.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Sharing Economy, Travel Industry, Korea, Entrepreneurship, Start-Up, Strategy Formulation, Workshop, Market Creation, Exercise, Innovation

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published: 30 Jul 2018

  • Topic: Strategy
  • Industry: Automobiles and other motor vehicles
  • Region: North America

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Abstract:
Waymo, the self-driving car division of Google, has ordered 82,000 self-driving cars for delivery through 2020. Cruise Automation, from General Motors, is perfecting their own fleet. Countless companies are driving full-throttle into the future. This case explores whether self-driving cars (autonomous vehicles or AVs) are a red ocean or blue ocean opportunity, and explains the difference between technological innovation and value innovation. It will prompt students to think about disruptive innovation and nondisruptive market creation, and why inventors of major technological innovations throughout history have often failed to meaningfully monetize their inventions.

Pedagogical Objectives:
The case has proved to be well suited to a discussion of any or all of the following topics: 1. Value innovation (Blue Ocean Strategy, Six-Paths Framework, Kim & Mauborgne’s ERRC framework, Kim & Mauborgne’s Strategy Canvas); 2. Technology innovation, disruptive innovation (How do firms respond to new technology?) 3. Fundamentals of industry change

Keywords:
Blue Ocean Strategy, Disruptive Innovation, Nondisruptive Innovation, Self-Driving Cars, Autonomous Vehicles, Waymo, Uber, Invention, Darpa Grand Challenge, Bmw, Automation, Job Loss, Automobile Insurance, Taxi Services

published: 27 Jun 2018

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Abstract:
The case discusses the globalization of fashion and the trajectory of Fashion Forward Dubai. Since its inception in 2013, FFWD had striven to offer an alternative to traditional fashion weeks by showcasing collections of local designers to fashion buyers, journalists and customers on the catwalk and on internet. Over 15,000 attendees came to the show and more than 100,000 followed it online. In 2018, FFWD’s co-founder, Ramzi Nakad, has to decide whether to continue the B2B+B2C event showcasing emerging brands in Dubai Design District, or create a digital fashion platform to sell direct-to-customers and give brands instant international exposure and access to e-commerce without the high costs of runway shows. The case asks to what extent the global fashion industry is ripe for digital disruption.

Pedagogical Objectives:
Discuss the challenges and opportunities for the emergence and development of a new fashion cluster in Dubai, using digital as a enabler, seen from the perspective of the global strategy options of an entrepreneurial firm based out of Dubai.

Keywords:
Fashion, Digital Disruption, Clusters, Emerging Markets, Dubai, Digital Transformation, Digital Platform, Global Strategy, International Management, Entrepreneurship

Prizes won:
- Winner 2018 EFMD Case Writing Competition, MENA Business Cases

published: 26 Jun 2018

  • Topic: Strategy
  • Industry: Computer software
  • Region: Global

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Abstract:
The case describes a series of blue ocean strategic moves made by Salesforce.com in the CRM application market. In particular, the case addresses the concern of business executives over the applicability of blue ocean strategy in the B2B area. B2B managers often find that they are locked into providing products of certain types and specifications to their immediate customers. But in fact, value innovation can take place on the three platforms of a business offering, i.e., product, service and delivery. Salesforce.com’s strategic moves provide an exemplary demonstration of how a company can effectively create and renew its blue ocean in the B2B field by value innovating its single business on the product, service and delivery platforms alternately. The case is accompanied by a comprehensive teaching note that analyzes and explains the key strategic moves of Salesforce.com using major BOS frameworks and tools.

Pedagogical Objectives:
This case is intended to demonstrate the methodology for creating a blue ocean for the B2B business. It highlights the importance of value innovating on the three platforms of product, service, and delivery to create and renew blue oceans. Participants are also expected to reinforce their understanding about important BOS concepts and frameworks such as the noncustomer concept, the buyer utility analysis, the six paths framework, and the ERRC analysis.

Keywords:
Blue Ocean Strategy, Value Innovation, Salesforce.com, Social Enterprise Solutions, Cloud Computing, Customer Relationship Management, Business Software

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