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Entrepreneurship

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published: 29 Oct 2018

  • Topic: Entrepreneurship
  • Region: Asia

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Abstract:
Constance and Gopal have both quit their jobs at reputed organisations to join the Entrepreneur First (EF) programme to realise their entrepreneurial ambitions. They bring different sets of skills to the table but are united in their desire to do something meaningful at the forefront of technology. They have been admitted to the EF programme in Singapore, which is where their paths first crossed and where they co-founded AIMLedge.

Pedagogical Objectives:
Focusing on the instruction and application of concepts related to entrepreneurship and new business ventures, the case presents the benefits that incubators such as EF offer, as well as the drawbacks, e.g., the fact that the co-founders (Constance and Gopal) barely know each other, the pressure to deliver in a short time span. The case enables students to discuss the following questions and themes: 1. Do I want to become an entrepreneur? 2. How to pick the right co-founder? 3. How to deal with (negative) feedback? 4. Competitive positioning through a customer lens 5. Creating value through business models

Keywords:
Technology, Startup Accelerator, Entrepreneurial Ventures, Entrepreneurship, Start-Ups, Startup, Business Model, Incubator

published: 29 Oct 2018

  • Topic: Entrepreneurship
  • Region: North America

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Abstract:
The case explores the possible acquisition by McKinsey &Company of design company LUNAR in response to the new directions management consulting is taking. As of 2014, a new internal unit included ‘McKinsey implementation’ and ‘digital labs’, which explored new opportunities for the Firm and soon became major growth vectors for the consultancy. Targeting new capabilities and expertise, senior leadership asks the heads of the Product Development Practice (PDP) to “shoot big” if an opportunity arises. Design is one such capability, but how should they bring it on board: A partnership with an existing design company? An outright acquisition? Or by developing organically, hiring designers to work within the company? Ultimately, the acquisition option is chosen as a way to secure proven design talent, a brand, a portfolio, infrastructure and culture. A team within the PDP pitch a proposal to acquire a design company to the McKinsey advisory board, which gives the green light for a pilot test. McKinsey&Company asks LUNAR to host a workshop (for the redesign of a storage cabinet for laptop computers) and is more than impressed with the result. Discussions to acquire the design firm begin, but strategic, organizational and operational issues must be ironed out first. Students are required to assess whether the acquisition option will succeed, whether there is a better route (with respective advantages and disadvantages), and what organizational levers can be used to optimize LUNAR’s integration.

Pedagogical Objectives:
a) The strategic reasoning behind building a firm’s capabilities through an acquisition. How to add new organizational capabilities via an acquisition, what form the acquisition should take, and the advantages/disadvantages involved. b) Using organizational levers (e.g. defining career plans) to structure the new firm’s integration. How best to integrate the new capabilities – in this case design – from the acquired company into the established organization.

Keywords:
Knowledge Services, Design Thinking, Organizational Capabilities, Innovation, Design Capabilities, Creativity, Creative Organizations, Mckinsey, Lunar

published: 31 Aug 2018

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Abstract:
Grab, Uber and Go-Jek compete in ride-hailing and related logistics and transport services (e.g., food delivery, courier service) across Southeast Asia, including Indonesia, Philippines, Vietnam, Thailand, Malaysia and Singapore. The case focuses on differences in company history and strategy, and how they shape the competition and ultimately performance differentials. The goal is to illustrate the dynamics of platform-based competition across a region. Issues covered include network effects, achieving scale, one-country focus versus expansion in an interconnected region, technological standardization versus localization, mutual forbearance and real options across product features and market geographies, and how equity ownership and control drive consolidation in platform ecosystems.

Pedagogical Objectives:
The case offers lessons in digital entrepreneurship, platform competition, network effects, internationalization strategy, technology standards, mutual forbearance, real options, market consolidation, and equity ownership and control.

Keywords:
Digital Entrepreneurship, Platforms, Competition, Network Effects, Mutual Forebearance, Real Options, Ride-Sharing, Ride-Hailing, Two-Sided Market, Southeast Asia, Indonesia, Singapore, Malaysia, Uber, Grab, Go-Jek

published: 30 Jul 2018

  • Topic: Entrepreneurship
  • Region: Asia

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Abstract:
The case tells the story behind “My INSEAD Story” – a unique book for children based on the INSEAD MBA experience of their parents. Sian Bentson and Ankur Grover came up with the idea as part of their final assignment for the “SPSD: Creative Thinking” course. It subsequently became the basis of a commercial product and, ultimately, a company, StoryPie (storypie.co) – which creates storybooks from the personal experiences of parents. Ankur Grover shares the behind-the-scenes journey, describing the rollercoaster ride from concept development to product launch. The case explains how innovation projects (even for simple products) are carried out – from gathering user insights to ideation, prototyping, and testing – and the sources of uncertainty that a project leader has to manage during the innovation journey. There are two versions of the case. Part 1 describes the product conceptualization as part of a 10-day course assignment. The complete version covers the journey over the two months that followed the course to develop it into a commercial product.

Pedagogical Objectives:
. Understanding and appreciating how innovation is enabled in a process-driven manner . Comprehending and analyzing the challenges of managing an entrepreneurial/innovative project . Evaluating business opportunities and identifying appropriate business models to go with them

Keywords:
Innovation, Entrepreneurship, Design Thinking, Lean Startup

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published: 30 Jul 2018

  • Topic: Entrepreneurship
  • Region: Asia

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Abstract:
The case tells the story behind “My INSEAD Story” – a unique book for children based on the INSEAD MBA experience of their parents. Sian Bentson and Ankur Grover came up with the idea as part of their final assignment for the “SPSD: Creative Thinking” course. It subsequently became the basis of a commercial product and, ultimately, a company, StoryPie (storypie.co) – which creates storybooks from the personal experiences of parents. Ankur Grover shares the behind-the-scenes journey, describing the rollercoaster ride from concept development to product launch. The case explains how innovation projects (even for simple products) are carried out – from gathering user insights to ideation, prototyping, and testing – and the sources of uncertainty that a project leader has to manage during the innovation journey. There are two versions of the case. Part 1 describes the product conceptualization as part of a 10-day course assignment. The complete version covers the journey over the two months that followed the course to develop it into a commercial product.

Pedagogical Objectives:
. Understanding and appreciating how innovation is enabled in a process-driven manner . Comprehending and analyzing the challenges of managing an entrepreneurial/innovative project . Evaluating business opportunities and identifying appropriate business models to go with them

Keywords:
Innovation, Entrepreneurship, Design Thinking, Lean Startup

Related:

published: 23 Apr 2018

  • Topic: Entrepreneurship
  • Industry: Digital Platform, Mobile Application, Logistics, Ride-Sharing, Food Delivery
  • Region: Asia
  • Website: https://cases.insead.edu/go-jek

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Abstract:
Go-Jek, a ride-sharing, food-delivery and logistics company, was the first ‘unicorn’ startup (private company valued over $1 billion) to be founded in Indonesia. Case (A) focuses on the launch of Go-Jek as a mobile ride-sharing and food delivery platform, the network effects, and the digital disruption of existing taxi drivers. Case (B) describes the competition with digital entrants Uber and Grab and with incumbent taxi companies, and its use of funds from Sequoia, Rakuten, KKR, Temasek, Tencent, and Google to compete. Case (C) explores Go-Jek’s product experimentation in financial services with the Go-Pay wallet, potential international expansion and the ultimate goal to achieve 'super app' status (like Alipay and Wechat in China) in Southeast Asia.

Pedagogical Objectives:
This case series offers lessons in digital entrepreneurship, launching platforms, network effects, platform competition, product experimentation, internationalization by start-ups, and diversification to become a 'super app'.

Keywords:
Digital Entrepreneurship, Platforms, Network Effects, Experimentation, Ride-Sharing, Transportation and Logistics, Lean Startup, Two-Sided Market, Indonesia, Southeast Asia, Singapore

Related:

published: 23 Apr 2018

  • Topic: Entrepreneurship
  • Industry: Digital Platform, Mobile Application, Logistics, Ride-Sharing, Food Delivery
  • Region: Asia
  • Website: https://cases.insead.edu/go-jek

Show details ...

Abstract:
Go-Jek, a ride-sharing, food-delivery and logistics company, was the first ‘unicorn’ startup (private company valued over $1 billion) to be founded in Indonesia. Case (A) focuses on the launch of Go-Jek as a mobile ride-sharing and food delivery platform, the network effects, and the digital disruption of existing taxi drivers. Case (B) describes the competition with digital entrants Uber and Grab and with incumbent taxi companies, and its use of funds from Sequoia, Rakuten, KKR, Temasek, Tencent, and Google to compete. Case (C) explores Go-Jek’s product experimentation in financial services with the Go-Pay wallet, potential international expansion and the ultimate goal to achieve 'super app' status (like Alipay and Wechat in China) in Southeast Asia.

Pedagogical Objectives:
This case series offers lessons in digital entrepreneurship, launching platforms, network effects, platform competition, product experimentation, internationalization by start-ups, and diversification to become a 'super app'.

Keywords:
Digital Entrepreneurship, Platforms, Network Effects, Experimentation, Ride-Sharing, Transportation and Logistics, Lean Startup, Two-Sided Market, Indonesia, Southeast Asia, Singapore

Related:

published: 23 Apr 2018

  • Topic: Entrepreneurship
  • Industry: Digital Platform, Mobile Application, Logistics, Ride-Sharing, Food Delivery
  • Region: Asia
  • Website: https://cases.insead.edu/go-jek

Show details ...

Abstract:
Go-Jek, a ride-sharing, food-delivery and logistics company, was the first ‘unicorn’ startup (private company valued over $1 billion) to be founded in Indonesia. Case (A) focuses on the launch of Go-Jek as a mobile ride-sharing and food delivery platform, the network effects, and the digital disruption of existing taxi drivers. Case (B) describes the competition with digital entrants Uber and Grab and with incumbent taxi companies, and its use of funds from Sequoia, Rakuten, KKR, Temasek, Tencent, and Google to compete. Case (C) explores Go-Jek’s product experimentation in financial services with the Go-Pay wallet, potential international expansion and the ultimate goal to achieve 'super app' status (like Alipay and Wechat in China) in Southeast Asia.

Pedagogical Objectives:
This case series offers lessons in digital entrepreneurship, launching platforms, network effects, platform competition, product experimentation, internationalization by start-ups, and diversification to become a 'super app'.

Keywords:
Digital Entrepreneurship, Platforms, Network Effects, Experimentation, Ride-Sharing, Transportation and Logistics, Lean Startup, Two-Sided Market, Indonesia, Southeast Asia, Singapore

Related:

published: 15 Dec 2017

  • Topic: Entrepreneurship
  • Industry: Local and Suburban Passenger Transportation
  • Region: Middle-East

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Abstract:
Careem, a Dubai-based ride-hailing company, was founded in 2012 in the United Arab Emirates (UAE) by two ex-McKinsey consultants who saw a gap in the transport market. Started as a web-based car booking service for corporate clients, Careem had evolved into a leading application-based booking service in the Middle East and North Africa (MENA) region, with a differentiated business model tailored to the tastes and preferences of Middle Eastern consumers. Fuelled by venture capital funding rounds in September 2013 and December 2014, Careem was again on the fundraising trail in 2015 for a Series C investment round to further scale its existing business and continue its roll-out across MENA. The Abraaj Group, a leading emerging markets private equity investor, was interested, but with Uber competing fiercely in the MENA region, it had to decide whether Careem could compete with its well-funded global competitor.

Pedagogical Objectives:
This case helps students understand: • The evolution of a successful start-up, from concept to funding to scaling. • The challenges faced by operators of early-stage companies and the key questions and metrics considered by investors in early-stage companies. • The convergence of traditional venture capital and private equity roles in the late-stage venture capital market. • How private equity investors add value to their portfolio companies and differentiate themselves in the market. • How global business models in the “new economy” can be modified and refined to suit consumer preferences and provide a competitive advantage in emerging markets.

Keywords:
Ride-Hailing, Mena, Smart Devices, Digital Disruption, Smart Apps, Uber, Start-Up, Private Equity

published: 28 Aug 2017

  • Topic: Entrepreneurship
  • Industry: Private Equity
  • Region: Europe

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Abstract:
In May 2012, private equity firm KKR is considering the buyout of WMF group (WMF), a diversified kitchenware and professional coffee machine manufacturer headquartered in Geislingen, Germany. The deal seems a potentially compelling investment opportunity, with various options for value creation – expanding WMF’s well-established brand to other geographies as well as reducing costs. Priorities must be set, however, to generate an attractive return by the end of the investment period. The deal team has to decide which business segments are worth putting more resources into and which to divest, which brands should be kept and which to trim off, and how to take up any operational slack without affecting the overall strategy.

Pedagogical Objectives:
This case emphasizes private equity firms’ focus on operational value creation in a large buyout, in particular the process of analysing the potential for returns by improving operations in the target company. This differs from classic studies on takeovers based purely on financial metrics. Presenting a concrete example of the potential for PE to improve the competitive positioning, operations and culture of a portfolio company, the case provides an inside view of the way deal teams evaluate potential acquisitions. It also shows the challenges posed by the target company’s capital structure that must be addressed, and how this affects the potential for value creation.

Keywords:
Private Equity, Buyout, Lbo, Operational Value Creation, Retail, E-Commerce, Growth Strategy, Europe, Germany

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