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Entrepreneurship

by Publication Date
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:
Read a related Knowledge article "Digital Lessons from Go-Jek, Indonesia’s Answer to Uber and Grab" by Jason Davis.

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

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:
Read a related Knowledge article "Digital Lessons from Go-Jek, Indonesia’s Answer to Uber and Grab" by Jason Davis.

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

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:
Read a related Knowledge article "Digital Lessons from Go-Jek, Indonesia’s Answer to Uber and Grab" by Jason Davis.

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

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

published: 28 Aug 2017

  • Topic: Entrepreneurship
  • Industry: Transportation
  • Region: Europe

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Abstract:
RAPID, a private company with complex ownership and nontransparent management systems, faces challenges associated with fast growth and an archaic governance structure. The founders of the company recognize the challenges, but lack knowledge and experience to deal with them. Specifically, they are about to discuss replacement of the CEO and reorganization of their governance system. The system of corporate governance which has emerged at RAPID represents a strange mix of some contemporary practices such as a separation of chairman and CEO roles, and independent audit, family traditions, and an informal entrepreneurial approach. The case recounts the different approaches the RAPID founders explored in approaching the CEO succession and governance reform, and shows how their thinking process evolved and what decisions they made at different stages of the change process.

Pedagogical Objectives:
The pedagogical objective is to give students the opportunity to see the real situation in managing a family business, the challenges such a firm faces, and possible ways to deal with them. Moreover, the case study allows students to see how local companies in emerging markets enter the global world, how such growth affects the culture and the management system inside the organization, and how challenging it is for successful first-generation entrepreneurs to adapt and to switch to a different, international corporate and financial strategy.

Keywords:
Corporate Governance, Management, Board of Directors, Family Business, Ceo Succession, Entrepreneurship, Founder, Russia, Corporate Governance, Board Process and Remuneration at the Top

published: 28 Aug 2017

  • Topic: Entrepreneurship
  • Industry: Fashion
  • Region: Europe

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Abstract:
This case illustrates solutions to a) the vexing problem of how to stop counterfeit luxury goods from being sold on the Internet; and b) the larger issue of how to sell lots of pre-owned personal luxury goods without fear of undermining their lofty prices. When the “fake luxury goods” problem first appeared in the mid-2000s, brands like L’Oreal, Hermès and Tiffany responded by taking one of the biggest online marketplaces, eBay, to court. The big brands won millions in damages and dragged eBay’s name through the mud for years to come. But on the sidelines were three different sets of entrepreneurs, almost all French, who saw in this scandal the opportunity of a lifetime. Separately they launched three competing digital platforms where pre-owned luxury products can be bought and sold on the condition that they are fully authenticated by experts. While all three are still in business, the company that started with six co-founders has been the most successful. This case examines the role of all six people and why eight years later the two “techies” were able to leave the company on good terms.

Pedagogical Objectives:
The case can be taught in executive education and elective MBA courses in luxury management, organizational behavior and entrepreneurship. With the case, instructors can focus on a wide range of issues related to both the sourcing and distribution of second-hand personal luxury goods within a global market. When sellers first offer goods for sale on the Vestiaire Collective platform, curators take them through a number of steps to ensure that the products are suitable for inclusion in the catalogue. Matching supply with demand is a key variable of success in this business, since fashion products have an especially unique set of characteristics that vary from one region to another, from one designer to another and from one epoch to another. Once a purchase is concluded, curators then ascertain if the actual product conforms to the seller’s description and is a genuine item. Creating trust among customers is also an absolute necessity in this business. In sum, instructors can use the case to discuss the essentials of business and management in an easily accessible setting.

Keywords:
Digital Platforms, E-Commerce, Fashion, Product Certification, Authentic Goods, Counterfeit Goods, Personal Luxury Goods, Premium Designer Clothes, Vintage Clothes, Curation, Concierge Service, Videdressing, Vestiaire Collective, Instantluxe

published: 26 Jun 2017

  • Topic: Entrepreneurship
  • Industry: Commercial physical and biological research
  • Region: Asia

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Abstract:
A Korean agricultural biotechnology company spun out from university research is at a crossroads. Using advanced fermentation technology, it has created a string of unique products for consumers and farmers. It now has an opportunity to license and develop a proprietary technology to solve a major social problem: odour from animal waste. Should it devote all its efforts to this new technology and new market?

Pedagogical Objectives:
Using the example of an entrepreneurial company that developed a product portfolio over 15 years, students are able (1) to chart a logical growth path around proprietary intellectual property; (2) to consider when and how to pivot from one technological trajectory to another; (3) to understand how entrepreneurial ventures develop and deploy competencies as a complex bundle of technological, applications and market knowledge.

Keywords:
Entrepreneurship, Biotechnology, Korea, Growth Strategy, Intellectual Property, Diversification, Strategic Management, University-Based Spinoffs, International Growth

published: 29 May 2017

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Abstract:
In 2011, Partners Group is nearing the end of a year-long quest for a new mandate from a European pension fund, Future Plan. The fund has struggled with its 6-year old PE programme, consistently falling short of its target allocation to the asset class and generating poor returns, seemingly always one step behind the opportunity in the market. Future Plan has built its PE programme by investing in closed-end funds of PE products managed by two executives, one focused on European markets, the other on global markets. But the fallout from the global economic crisis wreaked havoc with Future Plan’s PE programme and something has to change. With an interest in expanding its PE activity to include secondary and direct investment strategies, Future Plan begins a manager search process with one goal in mind: to achieve the target return to the asset class by 2014. The case charts Partners Group’s role in the selection process and how its expertise and services, along with a novel holding structure, offer a way to achieve Future Plan’s goals.
Please visit the dedicated case website to access supplementary material.

Pedagogical Objectives:
This case provides a ringside seat to follow the actions taken by a medium-sized pension fund when managing its private equity portfolio allocation. Students explore the rationale behind making investment decisions, the key challenges faced by institutional investors when constructing and managing a PE portfolio, and compare the characteristics of primary, secondary and direct PE investments. The case provides data and a step-by-step guide for students to develop an investment strategy (across these three categories) that will enable Future Plan to hit its target allocation to PE by year-end 2014 and achieve its goals.

Keywords:
Private Equity, Partners Group, Pension Fund, Institutional Investor, Portfolio Construction, Portfolio Management, Portfolio Optimization, Target Asset Allocation, Global Financial Crisis, Direct Investment, Secondary Investment, Primary Fund Commitment, Limited Partner, Private Equity Programme

published: 27 Feb 2017

  • Topic: Entrepreneurship
  • Industry: Telecoms, connected traffic cloud
  • Region: Europe

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Abstract:
The case describes how telecom giant Ericsson’s Intelligent Transport Systems (ITS) team developed the Connected Traffic Cloud (CTC) due be launched at the prestigious Mobile World Congress. The CTC solution had already created a huge buzz internally. Competition was tough to be selected for launch at this annual conference, witness to the solution’s huge potential for Ericsson’s expansion into new arenas. All the customers the team hoped to reach were present at the conference. The timing was also good as the six year project in Germany where Ericsson had partnered with a consortia on ITS had reached its final stages with positive results in the domain. For the CTC solution to be successful building an ecosystem would be essential be it with road authorities, auto manufacturers, service providers or IT companies the possibilities were endless. The case discusses the challenges Ericsson faced constructing this ecosystem and options for monetizing the innovative solution. It was a new and complex landscape for Ericsson to navigate but with 140 years in the telecom space the company had global scale and local presence required for the ITS domain. Auto manufacturers were looking to redefine their value chains with cars becoming connected and automated, and were therefore investing in communication and cloud solutions.

Pedagogical Objectives:
Students should gain an understanding of what makes an ecosystem - what partnerships, what service / product offerings, and what business model. They should be able to answer the following questions: • What are the biggest risks of Ericsson’s current approach to Connected Traffic Cloud? • How are competitors likely to respond or enter this space when it matures? • What are the key modifications that Ericsson must make to create and capture value in this space?

Keywords:
Corporate Entrepreneurship, Connected Traffic Cloud, Infrastructure, Sweden, Intelligent Transport Systems, Transport, Networked Society, Connected Vehicle Cloud, The Internet of Things

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