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Strategy

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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

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

published: 25 Mar 2019

  • Topic: Strategy
  • Region: Europe

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Abstract:
The case illustrates how Atos, a global leader in digital transformation, used a social networking based tool (blueKiwi) to replace email in its internal communications. The key to its successful deployment was the creation of professional communities (analogous to groups in Facebook) around specific issues. While the company was not able to rid itself of email completely, it did achieve increased efficiency in internal information sharing.

Pedagogical Objectives:
The case illustrates key concepts from “The Social Organization: How to Use Social Media to Tap the Collective Genius of your Customers and Employees” by Anthony J. Bradley and Mark P. McDonald. For social-media-based tools to be successfully deployed, firms should: • Define how the community collaboration experience should function, with a clear statement of purpose as a starting point. • Develop a “tipping point” plan, i.e. a strategy to spread awareness; aim for “viral expansion” (voluntary participation rather than top-down) to reach a sustainable community that should be guided and monitored, but not too closely. • Develop a suitable environment in which the community can congregate and collaborate (social media software, appropriate user experience, etc). Case (A) looks at problems associated with email as a communications medium and describes how blueKiwi, a social media type platform, allows people to communicate within communities around specific issues. Case (B) describes the outcomes, including measures used by Atos to evaluate the health of communities. BlueKiwi did allow the company to become more agile and built the foundation for work based on self-organizing teams.

Keywords:
Organizational Change, Social Media, Social Media Communities, Information Technology Company, Consulting, Agility

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published: 25 Mar 2019

  • Topic: Strategy
  • Region: Europe

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Abstract:
The case illustrates how Atos, a global leader in digital transformation, used a social networking based tool (blueKiwi) to replace email in its internal communications. The key to its successful deployment was the creation of professional communities (analogous to groups in Facebook) around specific issues. While the company was not able to rid itself of email completely, it did achieve increased efficiency in internal information sharing.

Pedagogical Objectives:
The case illustrates key concepts from “The Social Organization: How to Use Social Media to Tap the Collective Genius of your Customers and Employees” by Anthony J. Bradley and Mark P. McDonald. For social-media-based tools to be successfully deployed, firms should: • Define how the community collaboration experience should function, with a clear statement of purpose as a starting point. • Develop a “tipping point” plan, i.e. a strategy to spread awareness; aim for “viral expansion” (voluntary participation rather than top-down) to reach a sustainable community that should be guided and monitored, but not too closely. • Develop a suitable environment in which the community can congregate and collaborate (social media software, appropriate user experience, etc). Case (A) looks at problems associated with email as a communications medium and describes how blueKiwi, a social media type platform, allows people to communicate within communities around specific issues. Case (B) describes the outcomes, including measures used by Atos to evaluate the health of communities. BlueKiwi did allow the company to become more agile and built the foundation for work based on self-organizing teams.

Keywords:
Organizational Change, Social Media, Social Media Communities, Information Technology Company, Consulting, Agility

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published: 25 Mar 2019

  • Topic: Strategy
  • Region: Europe

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Abstract:
The case represents a role-play simulation in which a team of up to 6 participants acts as a board of directors of a privately-owned automotive lighting products manufacturer. At a regular meeting, the board has to make two decisions: 1) define growth targets for the next eight years; 2) decide the fate of a newly appointed CEO whose style has created a wave of uproar at the company. The board consists of two shareholders, chairman of the board, two independent directors and employee representative. After the two-hours meeting, the participants will have time to reflect on their experience and exchange views within their groups.

Pedagogical Objectives:
The simulation is designed to serve as a basis for class discussion in the format of a board meeting, for which students are expected to use all the knowledge gained during the programme. The learning objectives are: 1) to experience the dynamics of a board of directors, 2) to understand the systemic nature of boards and board-management interaction, 3) to use different approaches to decision making, 4) to lead a board (for the chair), 5) to collaborate with people with different backgrounds and agendas.

Keywords:
Board of Directors, Management, Board Process, Chair of the Board, Ceo, Strategy, Ceo Succession, Automotive Industry

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published: 25 Mar 2019

  • Topic: Strategy
  • Region: Europe

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Abstract:
The case represents a role-play simulation in which a team of up to 6 participants acts as a board of directors of a privately-owned automotive lighting products manufacturer. At a regular meeting, the board has to make two decisions: 1) define growth targets for the next eight years; 2) decide the fate of a newly appointed CEO whose style has created a wave of uproar at the company. The board consists of two shareholders, chairman of the board, two independent directors and employee representative. After the two-hours meeting, the participants will have time to reflect on their experience and exchange views within their groups.

Pedagogical Objectives:
The simulation is designed to serve as a basis for class discussion in the format of a board meeting, for which students are expected to use all the knowledge gained during the programme. The learning objectives are: 1) to experience the dynamics of a board of directors, 2) to understand the systemic nature of boards and board-management interaction, 3) to use different approaches to decision making, 4) to lead a board (for the chair), 5) to collaborate with people with different backgrounds and agendas.

Keywords:
Board of Directors, Management, Board Process, Chair of the Board, Ceo, Strategy, Ceo Succession, Automotive Industry

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published: 22 Mar 2019

  • Topic: Strategy
  • Region: North America

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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

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published: 22 Mar 2019

  • Topic: Strategy
  • Region: Asia

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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

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Abstract:
This case analyses Tata Motors’ strategic move to create and launch the Tata Nano, exploring the factors behind the project’s earlier success and the reasons for its execution failure. It illustrates the importance of having a strong and aligned set of value, profit and people propositions in order to create and capture a blue ocean. The teaching note reviews how Tata Nano created its exceptional value proposition and attained a viable profit proposition by following the right strategic sequence, and then examines different components of Tata Nano’s people proposition to identify the major causes of the setback in executing its blue ocean strategy.

Pedagogical Objectives:
1) To demonstrate how Tata Nano reconstructed market boundaries across alternative industries and created a commercially viable blue ocean opportunity by following the right strategic sequence. 2) To highlight the importance of matching value and profit propositions with an equally strong people proposition in ensuring the successful execution of a blue ocean strategy. 3) To review major BOS concepts, frameworks and tools in the course of analyzing the Tata Nano strategic move.

Keywords:
Tata Nano, Blue Ocean Strategy, Emerging Economy, Strategic Alignment, Automobile Industry, Value Innovation, Strategic Pricing, Target Costing, Strategy Execution, Execution Failure, Stakeholders, Noncustomers

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