INSEAD the business school for the world

Strategy

by Publication Date

Show details ...

Abstract:
The Blue Ocean Strategy Implementation Scenario Case offers a set of interactive group scenarios which are designed to deepen the participants' understanding of Blue Ocean Strategy implementation principles. Using the five scenarios participants work in teams as they learn to apply key concepts of tipping point leadership and fair process. The five settings (health insurance, manufacturing, government, banking and politics) show how Blue Ocean Strategy implementation principles apply at different organizational levels to overcome the four key implementation hurdles (cognitive, resource, motivational and political).

Pedagogical Objectives:
The teaching objectives are: (1) to deepen participants' understanding of Blue Ocean Strategy principles; (2) to learn how to apply key concepts of tipping point leadership and fair process; and (3) to understand how Blue Ocean Strategy implementation principles can be applied at different organizational levels, and how they can be applied to overcome the four key organizational hurdles (cognitive, resource, motivational and political). A teaching note is available to accompany this case which includes a template for running the breakout groups.

Keywords:
Tipping Point Leadership, Fair Process, Blue Ocean Strategy, Organizational Hurdle, Resource Hurdle, Motivational Hurdle, Political Hurdle, Cognitive Hurdle

Related:

published: 25 Jun 2018

Show details ...

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

Related:

published: 25 Jun 2018

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

Show details ...

Abstract:
This highly popular exercise allows participants to actually apply the concept, frameworks, and process of blue ocean shift to one of the most competitive industries – the travel industry. Using worksheets, participants will take a step-by-step approach to systematically shift their strategic logic from competing to creating and apply the processes and tools of blue ocean shift to the travel industry. The case includes a real-life example of a successful blue ocean shift in the travel industry and is accompanied by a firsthand video interview with Dong Gun Lee, CEO of My Real Trip, a Korean company that challenged the travel industry’s long existing assumptions to open new market space.

Pedagogical Objectives:
The case consists of three parts: 1) Part A is a short case that 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. 2) A Blue Ocean Shift Exercise is conducted in the classroom using accompanying worksheets. Participants follow the process of blue ocean shift using the Buyer Utility Map, 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 using the lecture slides that accompany this case.

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

Related:

published: 25 Jun 2018

  • Topic: Strategy
  • Industry: Grocery stores
  • Region: North America

Show details ...

Abstract:
Customers are gaga for Wawa, the restaurant / convienence store / gas station that inspires people to tattoo the firm’s logo. Founded in 1803, the company morphed over time from an iron foundry to a textile mill, to a dairy farm, dairy delivery business, grocery store, then convienence store. Dark clouds descended with the 2008 financial crisis. As competitiors converged on Wawa, management recognized the need for a new direction. After the CEO asked his executives to review a selection of business books, they chose Blue Ocean Strategy to redefine industry boundaries, shifting away from the red ocean of competition to a blue ocean of differentiation and low cost. By 2017 Wawa was the 34th largest private company in the US, with 625 million customers and sales of $10.5 billion. It serves 222 million cups of coffee a year and 105 million hoagie sandwiches. Where the average 7-Eleven convienence store grosses $30,000-$35,000 per week, Wawa averages $116,000. It used Blue Ocean Shift to achieve breakout success and thrive for a decade after its strategic pivot.

Pedagogical Objectives:
• Blue Ocean businesses can be created and thrive in markets thought to be hopelessly red ocean, including retail, gas stations and restaurants. • The methodical use of the Blue Ocean process and tools provides structure to break out of the red ocean and are more effective than an ad hoc approach. • When a company creates a Blue Ocean and effectively aligns its value, profit and people propositions, it typically takes years for credible challengers to emerge. Since its Blue Ocean shift, Wawa has enjoyed a decade of strong profitable growth, rolling out its new offering across its 800 stores. • All Blue Oceans eventually turn red. In the long term, success requires reaching for new Blue Oceans as existing ones are eventually invaded by challengers.

Keywords:
Retail, Gas Station, Convenience Store, Grocery Store, Restaurant, Quick Serve Restaurant, Fast Casual Restaurant, Wawa, Blue Ocean Strategy, Blue Ocean Shift, Mcdonald’s, Panera, Chipotle

Related:

published: 28 May 2018

Show details ...

Abstract:
Jean-Marc Frangos, Managing Director of Products & Services Research and Open Innovation at BT Group is looking to optimize the London-based telcom company’s external innovation process – scouting for new technologies from Silicon Valley, Israel and Asia. Having taken on responsibility for some of BT’s internal research labs in 2017, he needs to boost synergies between internal research and external innovation, and to evaluate how these will play out in the future for telecom companies and the implications for BT.

Pedagogical Objectives:
To explore (i) how multinational firms access and integrate external technologies from various places across the globe, (ii) the challenges of integrating external knowledge, (iii) the management of synergies between organizational units / sub-domains, (iv) the evolution of the competitive environment and its implications for firm strategy.

Keywords:
Global Open Innovation, Global Strategy, Technology Scouting, Silicon Valley, Telecoms, Partnerships Large Firms and Start-Ups, Knowledge Management, Digital Transformation, Innovation Clusters

published: 28 May 2018

Show details ...

Abstract:
PopChef is a start-up foodtech business in the lunchtime food delivery market in Paris. The case centres on the period from launch in 2015 to 2017. PopChef is the first to enter the market with a new business model in France. As other well-funded domestic and international entrants arrive, the market becomes highly competitive market. PopChef aims to counter this by shifting from a technology-based company to a virtual food company. Will this be enough to ensure its survival?

Pedagogical Objectives:
The teaching objectives relate to the firm’s strategic direction. The first is to compare and contrast diverse business models – including platforms and vertically integrated virtual restaurants. The second is to address how new players stimulate demand and develop the market, yet also intensify the competitive pressure. The third is to trace PopChef’s development over time as it adapts to changing conditions and seeks new sources of competitive advantage. PopChef’s changing fortunes provide an engaging context in which to address these issues.

Keywords:
Foodtech, Food Delivery, Start-Up, Marketing, Platform, Digital, User Experience, Distribution, Strategy, New Market Model, Algorithm, Culture, Virtual Restaurant

published: 04 May 2018

  • Topic: Strategy
  • Industry: Motion Picture & Television
  • Region: North America

Show details ...

Abstract:
The Marvel Way: Restoring a Blue Ocean explains one of the greatest turnarounds in modern business history. This case comes with a two-part video interview with CEO Peter Cuneo who launched a Blue Ocean. Founded in 1939, Marvel Comics initially struggled in a red ocean producing primarily me-to knock-off comic books. In the early 1960’s the business took a blue ocean turn by focusing on noncustomer college students. Marvel invented characters that were people first and superheroes second: Spider-Man, The Hulk, Iron Man, the X-Men. The business thrived. By the 1980’s value extractors took over Marvel, badly misaligning value, profit, and people. In late 1996 Marvel filed for bankruptcy, a victim of red ocean management practices. New management purchased the business out of bankruptcy in 1998 but faced a daunting task: Marvel owed $30 million in annual interest payments on a $250 million loan, cash was so tight that they almost missed payroll, and movie rights for many of their best characters were licensed to others. First managers stabilized the business then Marvel created a new type of blue ocean that went on to produce the most profitable movie franchise in history. Just over a decade after exiting bankruptcy a debt-free Marvel sold itself to Disney for $4.2 billion.

Pedagogical Objectives:
Learn how to use Blue Ocean Strategy to pivot from a red to a blue ocean. Teach the importance of aligning value, profits and people. Explain the difference between value extraction and value innovation, and the financial and ethical ramifications of each.

Keywords:
Blue Ocean Strategy, Marvel, Motion Pictures, Movies, Ip-Based Finance, Bankruptcy, Ethics, Disney

Related:

published: 23 Apr 2018

  • Topic: Strategy
  • Region: Global

Show details ...

Abstract:
This note is an introduction to the macro (or general) environment and strategy tools (PESTEL analysis, scenario development) used to analyze it. It provides templates for the application of these tools in strategic analysis. The note also discusses the benefits and limitations of macro environmental analysis, as well as the role it plays as a part of the overall strategic analysis of the business environment.

Pedagogical Objectives:
To provide conceptual support and an integrated framework for the diagnosis of the business environment in basic strategy courses (undergraduate, graduate, executive education).

Keywords:
Macro Environment, Pestel Analysis, Environmental Scenarios, Market Size / Growth Analysis, Demand Shifters, Business Environment, Competitive Strategy, Pest Analysis, Environmental Scanning

published: 26 Mar 2018

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

Show details ...

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

Related:

published: 23 Mar 2018

Show details ...

Abstract:
The Swiss company TAG Heuer, maker of luxury watches, is part of the LVMH group (Moet Hennessy Louis Vuitton). In 2015, CEO Jean-Claude Biver is deciding whether to launch its first-ever fully connected Swiss watch, manufactured in partnership with Google and Intel. Entering this new market presents an unprecedented challenge: making a watch based on a technology (microprocessors) that the Swiss have not mastered. Is TAG Heuer ready to compete in the digital space - and potentially without the traditional 'Swiss Made' label? Case B takes up the story following the successful launch of the TAG Heuer connected watch. Sales are beyond all expectations for the luxury Swiss watchmaker and its partners Intel and Google. There are a few surprises too – the consumers are older than they expected and the watches sell out far quicker than anticipated – hence the company runs into some supply chain issues.

Pedagogical Objectives:
To learn how a nation achieves international success in a specific industry and how multinational corporations enable the emergence of clusters and benefit from them. In particular, how the Swiss luxury watch industry (in particular TAG Heuer) reacted and dealt with the challenge from connected watches such as the Apple Watch. Four key issues are addressed: 1. The importance of the 'Swiss Made' label for this market. 2. How to make a connected watch 'eternal' in the spirit of traditional mechanical watches. 3. How TAG Heuer prepared for a profound digital transformation by learning from the technology cluster in Silicon Valley (locating a team of engineers there and managing the partnership with Google and Intel). 4. How a company dealt with digital disruption in a conservative industry – Swiss watchmaking. 5. How multinationals identify technology in other clusters – “technology scouting” - and set up relevant processes.

Keywords:
Watches, Luxury, Wearables, Connected Watches, Digital Transformation, Google, Intel, Clusters, Jean-Claude Biver, Global Strategy, Digital Disruption, Apple Watch, Swissmade, Silicon Valley, Switzerland

Related:

by Publication Date


Share