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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.

Please visit the dedicated case website to access supplementary material

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.
Please visit the dedicated case website to access supplementary material.

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

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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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 Jun 2018

  • Topic: Strategy
  • Region: Global

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Abstract:
This case is excellent for teaching both MBAs and executives how to create a blue ocean strategy that is hard to imitate and sustainable. It focuses on Wikipedia versus Britannica.com in the online encyclopedia industry. The case teaches participants the importance of aligning the three strategy propositions of value, profit and people around both differentiation and low cost to break the value-cost trade-off and create a blue ocean that is hard to imitate.

Pedagogical Objectives:
This case shows participants how to create a blue ocean strategy that is hard to imitate by aligning the value, profit and people propositions using a reconstructionist approach that pursues both differentiation and low cost. In the case of Wikipedia, this alignment allows each strategy proposition to also support and reinforce the other two strategy propositions, resulting in a self-sustaining cycle of growth: as more people are motivated to contribute knowledge, the value of its content increases for the users of Wikipedia, which makes its social impact even greater.

Keywords:
Blue Ocean Strategy, Wikipedia, Three Strategy Propositions, Value Proposition, Profit Proposition, People Proposition, Strategic Move, Online Encyclopedia Industry

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published: 26 Jun 2018

  • Topic: Strategy
  • Industry: Entertainment, Circus
  • Region: Global

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Abstract:
This is the second of a two-case series. Cirque du Soleil very successfully entered a structurally unattractive circus industry. It was able to reinvent the industry and created a new market space by challenging the conventional assumptions about how to compete. It value innovated by shifting the buyer group from children (end-users of the traditional circus) to adults (purchasers of the traditional circus), drawing upon the distinctive strengths of other alternative industries, such as the theatre, Broadway shows and the opera, to offer a totally new set of utilities to more mature and higher spending customers. The case series is designed to serve a variety of purposes in the value innovation and creating new market space teaching module of an MBA strategy course or executive education programme. The case series can be equally used individually in a standalone module on value innovation or as part of a sequence of three to four sessions. In both instances, the instructor can best use it to cover the following topics: (1) the value innovation logic (as compared to industry and competitive analysis); (2) the concept of value curve; and (3) the six paths analysis for creating new market space. A video called 'The Evolution of the Circus Industry' is available for free faculty download at www.blueoceanstrategy.com.

Pedagogical Objectives:
The case series is designed to serve a variety of purposes in the value innovation and creating new market space teaching module of an MBA strategy course or executive education programme. The case series can be equally used individually in a standalone module on value innovation or as part of a sequence of three to four sessions. In both instances, the instructor can best use it to cover the following topics: (1) value innovation logic (as compared to industry and competitive analysis); (2) the concept of value curve; and (3) the six paths analysis for creating new market space. A teaching note is available to accompany this cases series. A video clip free for instructor download is available at www.blueoceanstrategy.com.

Keywords:
Circus and Live Entertainment Industry, Value Innovation, Strategy, Blue Ocean Strategy, Creating New Market Space, Redefining Industry Boundaries, Competition

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published: 26 Jun 2018

  • Topic: Strategy
  • Industry: Radio and Television equipment, Computers
  • Region: North America

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Abstract:
This case accompanies 1) a collection of business press articles; 2) two video clips; 3) a teaching note; 4) lecture slides. While the case and articles will be assigned as pre-reading, the video clips and lecture slides will be shown in the classroom by the instructor.

Pedagogical Objectives:
This case shows how a series of blue ocean strategic moves by Apple Inc. has transformed it from a computer manufacturer into a consumer electronics giant. The aim here is to illustrate how blue ocean strategy concepts, tools, and methodologies are applied in the context of managing business portfolios at the corporate level.

Keywords:
Blue Ocean Strategy, Value Innovation, Apple, Corporate Portfolio Management, Corporate Strategy, Growth, Transformation, Consumer Electronics, Corporate Governance, Value Creation, Strategy and Implementation

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