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Strategy

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published: 12 Nov 2019

  • Topic: Strategy
  • Region: Global

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Abstract:
The case describes how three INSEAD alumni founded fintech company Prodigy Finance and created the market for international student loans by solving a problem long overlooked by the finance industry: funding for students in pursuit of advanced education outside their home country, especially “high-earning degree programmes” at top universities with high tuition fees and few scholarships. Traditional banks had ignored this burning need and stayed focused purely on domestic borrowers and local credit records. The founders of Prodigy Finance took a radically different approach, creating a lending platform based on a forward-looking, cross-border risk assessment model and connecting international student borrowers with individual and institutional investors. By 2019, Prodigy Finance had helped over 11,200 students from 132 countries, lending more than US$538 million. This strategic move offers an illustration of “nondisruptive market creation”, a concept coined by W. Chan Kim and Renée Mauborgne, authors of the bestselling Blue Ocean Strategy and Blue Ocean Shift. By identifying and solving a problem that had never been addressed, Prodigy Finance created a new market beyond existing industry boundaries, unlocking and capturing burgeoning new demand without displacing or competing with what the financial services sector had to offer.

Pedagogical Objectives:
This case is intended for use in MBA and executive classrooms, with the following objectives: 1) To illustrate nondisruptive creation and the major advantages of this market-creating method. 2) Use the case as a context to take students through the major steps of identifying potential opportunities for nondisruptive creation. 3) Demonstrate how to use new technologies, new platforms and new business models to achieve nondisruptive market creation.

Keywords:
Fintech, Loan Industry, Student Loans, Bond, Community Investment, Debt Financing, Credit Risk Assessment, Social Good, Social Impact, Disruption, Nondisruption, Nondisruptive Creation, Nondisruptive Innovation

published: 30 Sep 2019

  • Topic: Strategy
  • Region: Asia

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Abstract:
Preferred Networks, Inc. (PFN), a start-up specialized in deep learning technologies, a branch of artificial intelligence (AI) research, differentiated itself early on by aligning with Japan’s manufacturing might and bringing deep learning to the internet of things (IoT). The case follows the start-up as it evolves into a highly valued company with over 200 employees and global partners across various industries. It offers an overview of the AI business landscape and an explanation of deep learning. PFN’s trajectory shows how technology-heavy research firms spark innovation, attract business partners and collaborators, manage as they grow, and decide what business model best suits their needs. The case is intended for use in classes on artificial intelligence, technology and operations management, marketing of complex products and technologies, entrepreneurship and strategic partnerships for research-heavy startups.

Pedagogical Objectives:
The purpose is to learn how to build a business around new and emerging technologies such as deep learning and other advanced machine learning methods. In addition, it can be used to study • Alliances and partnerships between tech-oriented startups and large organizations interested in the technology; • The marketing of new and complex technologies without a marketing team; • Team management and recruitment in an organization with abundant technical talent but limited business experience; • How deep learning and other machine learning methods can be applied to industries such as autonomous driving, factory automation, and healthcare. Key takeaways: • Understand the meaning of “artificial neural network”, “machine learning”, “artificial intelligence”, “shallow” vs. “deep learning” and their role in the AI boom; • An overview of the AI industry and its growing importance across various sectors; • (as seen through the lens of PFN) Specific applications of deep neural networks in autonomous driving, factory automation, and healthcare; • Assess different business models for technology and research-heavy start-ups (in this case integrator/partnerships, profit shares and new product development).

Keywords:
Artificial Intelligence, Deep Learning, Artificial Neural Networks, Startups, Research and Development, Marketing of New Technologies, Autonomous Driving, Factory Automation, Predictive Diagnostics, Biomedical Technology, Computer Vision, Competitive Strategy

published: 28 Aug 2019

  • Topic: Strategy
  • Region: Asia

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Abstract:
The background notes accompany the free online case “Indian Premier League: Innovation Without Disruption”, a self-paced, interactive case that lets readers analyze the strategic logic behind the launch of Indian Premier League (IPL) using blue ocean analytical tools and frameworks. With visual aids and interactive exercises, the case explores how the IPL transformed traditional days-long cricket matches into a thrilling three-hour sports drama with Bollywood music and cheerleaders, and opened up a new market space - “cricketainment” on the pitch and on primetime TV for families to enjoy. Students and executives come to understand the IPL and cricketainment market as an example of nondisruptive creation, i.e., they did not displace or disrupt the existing sector (players, products or services). They were creative but not destructive of what went before, i.e., the domestic cricket league and other forms of entertainment. Applying Chan Kim and Renée Mauborgne’s three-step process, readers discover how the IPL unlocked a new market that was beneficial to both the domestic cricket league and the entertainment industry.

Pedagogical Objectives:
The teaching objectives of the online case and background notes are: 1) To explore how the Board of Control for Cricket in India (BCCI) reinvented the way cricket was played and enjoyed; 2) Apply Blue Ocean concepts, tools and frameworks to the BCCI’s strategic move to create the IPL; 3) Understand that innovation and growth can be driven by “nondisruptive creation”; 4) Illustrate that concept/process using the BCCI’s success in creating a new market and exponential growth without displacing or disrupting the existing order.

Keywords:
Blue Ocean Strategy, Blue Ocean Shift, Indian Premier League, Value Innovation, Sport, Cricket, India, Bollywood, Ipl, Nondisruptive Creation, Sports Business, Public Private Partnership, Disruption, Entertainment

published: 28 Jun 2019

  • Topic: Strategy
  • Industry: Personal navigation devices
  • Region: Global

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Abstract:
Garmin 2019 is the second in a two-part case. Case A reviews the history of Garmin from 1991 to 2008, when the personal navigation device (PND) industry is disrupted by the entry of smartphones with mapping applications. Garmin 2019 covers the decade until 2019, describing how Garmin and other major players responded to shifting consumer preferences, new developments in digital mapping and satellite networks, and the race to develop self-driving cars. In the face of a massive decline in the PND market in this period, Garmin staged a remarkable recovery, shifting focus to spread over diverse products segments, each with its own threats and opportunities. The core of the case is management’s reassessment of corporate strategy across the portfolio of businesses.

Pedagogical Objectives:
Whereas Case A offers a close-up view of an industry moving from growth to maturity to decline in a short timespan, forcing incumbents to reanalyse their strategy, Garmin 2019 (Case B) explores how companies faced with disruption respond according to their capabilities, their respective choices, and the role of corporate strategy in securing competitive advantage. It generates discussion of the influence of strategic repositioning on a firm’s scope, the need to reassess that scope and then decide whether its business units remain integrated or seek alternatives like strategic alliances and long-term contracts.
Part B can be taught together with Part A or as a stand-alone case.

Keywords:
Garmin, Industry Decline, Smartphones, Smartwatch, Disruption, Global Positioning, Gps, Digital Maps, Hd, Repositioning, Corporate Advantage, Corporate Strategy, Satellite Network, Wearables, Outdoor, Fitness

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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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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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Abstract:
At the BMW Group, Gregor Gimmy, a serial entrepreneur and former consultant, introduces the Venture Client (VCL) model to engage with start-ups and boost corporate innovation. The case discusses its initial success at BMW and the rationale that drove Gimmy to establish a new model of external corporate venturing (ECV). It also provides background information on the key forces shaping the auto industry today, the challenges faced by legacy automakers as technological developments accelerate, and the emergence of new rules and new players.

Pedagogical Objectives:
The case can be used for many different audiences and contexts including MBA, executive MBA, undergraduate courses and executive programmes on Competitive Strategy, Innovation Strategy and Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystems and Value Creation.

Keywords:
Competitive Strategy, Innovation Strategy, Innovation Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystem, Value Creation, Bmw, Automanufacturing, Corporate Venture Capital, Start-Up, External Corporate Venturing

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published: 02 May 2019

  • Topic: Strategy
  • Region: Europe

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Abstract:
HelloZack is a young entrepreneurial firm based in Paris focused on the purchase and resale of second-hand Apple products, part of a broader ecosystem that supports ongoing use of Apple products. The case recounts its lean startup history, from its conception in late 2015 when a student group identified an unmet need – to allow people who purchase items online to resell them in a quick and uncomplicated way – through to a fully functioning business in mid-2018. Having built sales of €1 million, HelloZack is approaching investors to help expand the business. The case sets out the pitch to investors and the various strategic options for growing the company.

Pedagogical Objectives:
The main teaching objectives are: 1. Learn about a lean startup experiment-driven approach to entrepreneurship and understand how business models emerge over time. 2. Discuss and debate the alternative strategic ideas under consideration for HelloZack and how fast the startup should scale. 3. Analyse an investor pack and determine whether this contains all the elements necessary.

Keywords:
Apple, Saas, Lean Start-Up, Entrepreneurship, Platform, Digital, Strategy, Second-Hand, Logistics, Growth Strategy, Algorithm, France, Circular Economy, Business Model

published: 02 May 2019

  • Topic: Strategy
  • Region: Europe

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Abstract:
At the BMW Group, Gregor Gimmy, a serial entrepreneur and former consultant, introduces the Venture Client (VCL) model to engage with start-ups and boost corporate innovation. The case discusses its initial success at BMW and the rationale that drove Gimmy to establish a new model of external corporate venturing (ECV). It also provides background information on the key forces shaping the auto industry today, the challenges faced by legacy automakers as technological developments accelerate, and the emergence of new rules and new players.

Pedagogical Objectives:
The case can be used for many different audiences and contexts including MBA, executive MBA, undergraduate courses and executive programmes on Competitive Strategy, Innovation Strategy and Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystems and Value Creation.

Keywords:
Competitive Strategy, Innovation Strategy, Innovation Process, Digital Disruption, Digital Transformation, Customercentricity, Consumer Behaviour, Smart Ecosystem, Value Creation, Bmw, Automanufacturing, Corporate Venture Capital, Start-Up, External Corporate Venturing

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published: 02 May 2019

  • Topic: Strategy
  • Region: Asia

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Abstract:
Nintendo languished in last place during the console wars of the early 2000s, with game industry analysts suggesting that the Kyoto-based firm exit the gaming console market altogether. Instead, Nintendo used Blue Ocean Strategy to redefine market boundaries, creating the best-selling videogame console ever, the Nintendo Wii. Targeting noncustomers, the Wii outsold Sony’s PlayStation and Microsoft’s Xbox combined, until the market was disrupted by smartphones and tablets. Mobile technology targeted the same noncustomers, offering easy-to-understand games and controls, and Wii sales suffered. Nintendo initially responded by introducing a tablet-like console, the Wii U, a poor copy of the tablet experience that was a dismal failure. Stepping back, Nintendo again used Blue Ocean Strategy to “value innovate” with the Nintendo Switch, the only console to outpace the Wii in sales, and by moving into adjacent markets, working with businesses in which it held a minority stake to release the wildly popular Pokémon Go and other mobile games.

Pedagogical Objectives:
• Explore how strategy can be used to shape industry structure and market space, and the importance of linking technology to value. • Understand that businesses go through ups and downs, and that in an up-phase continually value innovating is as important as in a down-phase. • The importance of long-term growth, balancing and planning a product portfolio for the right balance between earnings and growth. This case uses Chan Kim & Renée Mauborgne’s Pioneer-Migrator-Settler Map to map Nintendo’s product portfolio over time and explain its performance.

Keywords:
Nintendo, Wii, Nintendo Switch, Pokémon Go, Mobile Games, Playstation, Xbox, Market Creating Strategy, Videogame Consoles, Blue Ocean Strategy, Blue Ocean Shift, Augmented Reality, Value Innovation, Disruption

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