Is The Price Right? Many companies face this question – What should they charge for their products? Right pricing has always been a tussle between the seller and buyer. Traditionally, brands set the price based on competitors offering, market conditions (supply/demand), ROI etc. Then came along value-based pricing wherein a customer would pay a price [...]
Articles
Business and Management Articles at Casestudyinc.com. You can access online articles on business, management, branding, marketing, leadership, change management other subjects.
The Business Model A/B Test
Will the business idea work? A business idea has to be viable to succeed. It has to pass both the logic test (does it make sense, add unique value?) and the economic test (can it work profitably?). If it passes the one test but fails the other test then the business is bound to fail. [...]
The TOP program at Philips
Trouble at Philips In the 1990s, Netherlands-based Royal Philips Electronics (Philips) was performing poorly. By the end of the 90s decade Philips was nearly bankrupt with record losses. Innovations like the rotary head shaver, compact cassette and the CD, DVD formats had come from the Philips stable and it was hard to believe that the [...]
Best Buy’s radical experiment (ROWE) in workplace flexibility
ROWE your own boat – Work from anywhere In 2005/6, Best Buy, the leading electronics retailer introduced a unique program developed by its employees called ROWE. ROWE stands for “results-only work environment” and the goal of the corporate culture initiative was simple – judge performance based on output not on the number of hours spent [...]
Changing company culture – Examples on cultural transformation movements
How do you change the culture of a company? The answer seems simple – Start a movement within the company, restructure the company or start a revolutionary campaign for a new product. Often the change starts within the company and in due course involves the customer and becomes a successful customer movement. The movement is [...]
A brand extension mistake by Harley Davidson
An iconic cult brand Harley Davidson (H-D), the American motorcycle manufacturer has a loyal brand following not only in the U.S. but also in many countries across the globe. The motorcycle’s distinctive design and exhaust note has given rise to many loyal brand communities that are active in clubs, events, and even a museum. Such [...]
Pepsi’s Crystal Fiasco
Clear = Purity and health In 1992, Pepsi launched a new colorless soda called “Crystal Pepsi”. Consumers wanted purity and Pepsi believed a clear soda without color was the answer as it signified purity and health. Pepsi marketed the new formula as caffeine-free, pure alternative to the classic reddish brown normal colas. At the time, [...]
To create or compete
To create or to compete. Many companies mistake one for the other. When a company creates, it implies it has found new products/services or new methods of buying/selling. These new products or methods are hard for the competition to attempt. When one competes, a company targets the same markets and consumers as the competition does [...]
Repeatability model for success
In their book, Repeatability: Build Enduring Businesses for a World of Constant Change authors Chris Zook and James Allen, outline design principles of successful businesses. These principles were termed the “Great Repeatable Model”. Companies that adopt these principles can repeat their success, hence the name repeatable model. According to the authors, there are three key [...]
Apple’s Four Quadrant product grid
Complexity distorts information flow and decelerates clear decision-making. Any decision made in the face of complex operations, unnecessary product types or models are increasingly incoherent. Companies that do well have a sense of clarity and focus with less complex operations and product lineups. Companies whose business models are simple can replicate their successes repeatedly. Apple’s [...]
Reinventing jcpenney
No deep discounts Revitalizing stores with increased emphasis on interiors, product display and merchandising is a common strategy to lure shoppers. Many retail stores focus on expanding the range and diversity of goods on display – to provide them in every possible color and size, at the right time. Selling at discounted prices is another [...]
How companies differentiate from competitors?
The goal of any company selling a product or service is differentiation. A company pitches its unique selling proposition that is going to be most advantageous for it. Successful differentiation requires a good product or service and customer insight (customers’ perception of a company’s product and those of competitors). Setting its products or service apart [...]
Innovation Dilemma – 10 recommendations
Many global companies suffer from the absence of strong innovation. Here are ten recommendations on how to innovate to create competitive advantage for managers seeking to build products and services globally. Do not innovate. Build a product or service. Innovation happens. A strategy to make products to have eureka moments will not succeed. Instead focus [...]
Nissan Production Way
Toyota invented the Toyota Production System (TPS) and in 1994, Nissan developed the Nissan Production Way or NPW to outline its synchronized production philosophy. The idea was to improve the company’s productivity and effectiveness and have a global standard production system. So essentially, manufacture according to the real consumer order, thus coordinating all operations and [...]
Companies and the Rural Push
With a faltering economy, many companies are sending their sales force into rural areas to increase sales and market share. MNCs like P&G, Unilever and Nestle are not only targeting the tier-1 rich consumers but also the very poor. Here is a look at the rural push by various companies: Unilever in Pakistan – The [...]
Amazon – Amazing Facts
Amazon’s original name was Cadabra. In the 1990s Amazon’s slogan was “Earth’s largest bookstore”. In 2006, the company introduced an online TV and movie store. Kindle e- book store was launched in 2007, and the MP3 digital music store in 2008. Around 800 hardware and software engineers work at Amazon’s devices division in Cupertino, California. [...]
Twittering Profits – Transformational business impact
Low-cost customer service In 2008, Gartner identified Twitter as a disruptive technology that would change business in the coming years. According to some estimates, there are around 3 million users on twitter. Both large corporations and small businesses use the low-cost free micro blogging service for various purposes including gathering customer data, responding to customer [...]
Nokia’s shadow program
Shadowing by colleagues Colleagues follow every move of around 30 of Nokia India’s top management leaders for about a week. They observe what they do, how they do and learn from them. The management team selects top 30 Nokia leaders, not based on hierarchy but from any level who typify Nokia’s four values – PAVE [...]
The Nissan Way – Power from within
Nissan, the Japanese automaker has a very simple management thinking known as the ‘The Nissan Way’. According to the Nissan way, the customer is prime focus, value creation provides the impetus and success is measured in terms of profit. Nissan conducts various Nissan Way workshops where its business leaders share knowledge and educate fellow employees. [...]
Japanese M&A in foreign markets – second-largest acquirers in the world in 2011
Importance of expanding overseas and competing on a global scale In 2010, China had overtaken Japan as the as the world’s second-largest economy as Japan struggled with a stagnant economy. In March 2011, the quake & tsunami disaster disrupted factory production and shook Japanese companies. Earlier, they had focused only on the domestic market and [...]
Co-opetition – When Apple and Microsoft struck a deal
Sleeping With the Enemy On Aug. 6, 1997, at the Macworld conference in Boston Steve Jobs announced the unthinkable. He announced a strategic partnership with rival Microsoft. The surprised audience first clapped then booed when they realized what had just been announced. Earlier, Apple had sued Microsoft for patent infringement. “Apple needs help from other [...]
Why online business in China will become the world’s largest by 2015?
A Boston Consulting Group report stated that by 2015, the yearly value of China’s e-commerce market would grow by four times to $305 billion to become the world’s largest. Many e-commerce enterprises that are famous globally have emerged in China. Here are a few factors responsible for the successful growth of e-commerce in China: Internet [...]
Apple’s Mindshare to Marketshare Retail strategy
Sony vs Apple Almost a decade ago, Sony’s market value was seven times more than Apple’s market share. Today, the tables have turned and Apple’s market value is eleven times more than Sony’s market value. Apple had ended Sony’s dominance of the music player market when Steve Jobs, launched the iPod inspired by Sony’s Walkman. [...]
Hiring at McDonald’s – 50,000 McJobs in a day
McDonald’s announced April 19, 2011 as National Hiring Day in the U.S. McDonald’s has 14,000 restaurants in the U.S. and has 650,000 employees. On April 19, this figure will be 700,000 employees i.e. roughly four people per restaurant. (McDonald’s has around 32000 restaurants globally in 117 countries.) As per the plan, McDonald’s will hire 50,000 [...]
How are successful innovators different?
A recent study (400 companies) on global innovation by Booz & Company found that the most innovative companies (seven out of 10 top innovators) were not necessarily the biggest spenders on innovation. The top 10 innovators are: Apple Google 3M GE Toyota Microsoft P&G IBM Samsung Intel Building right innovation capabilities not mere Spending What [...]
Tesco’s mistakes in US – Not understanding the American Customer
In early 2006, Tesco plc decided to enter the US market with convenience stores (Fresh & Easy Neighborhood Markets) to be launched by 2007. Tesco had been studying the American market for two decades and its entry was long time coming. Though the company is not faring that well (currently loss making and is not [...]
McDonald’s versus Subway – The Sandwich Hamburger battle
In March 2011, sandwich chain Subway surpassed the world’s largest hamburger chain, Mcdonald’s in terms of the number of stores globally. In 2002, around nine years ago, Subway had already surpassed McDonald’s in number of stores in the U.S. However, McDonald’s still rules in terms of revenue with $24.1 billion, as compared with $15.2 billion [...]
Rise Mahindra Rise – Brand Makeover and Positioning
Re-branding Mahindra with a New tag-line Around 13 years ago, Mahindra & Mahindra (M&M) defined its core purpose inspired by Akio Morita, founder of Sony Corporation. Its tag-line read – “Indians are second to none in the world.” While Sony Corporation represented Japan as the best in the world with its world-class products, M&M wanted [...]
Mercadona – Innovative HR Practices for better store performance
Mercadona, a Spanish supermarket chain is not only committed to offering the lowest prices but also personalized customer service. For over a decade, Mercadona has had steady profits and do so for more than a decade. In 2008 it had 1,210 supermarkets. In 2008, its performance, operation-wise was superior to other Spanish chains and also [...]
Reverse Innovation – Definition and Examples
What is Reverse Innovation? Reverse Innovation is the strategy of innovating in emerging (or developing) markets and then distributing/marketing these innovations in developed markets. Many companies are developing products in emerging countries like China and India and then distributing them globally. Who coined or introduced the ‘reverse innovation’ concept? Vijay Govindarajan. He is the Earl [...]
P&G’s Connect and Develop Strategy for Innovation
Reinventing P&G’s innovation business model P&G’s old strategy for innovation was based on the invention model where innovation comes from within the company – ‘invent it ourselves’ model. Earlier, innovation at P&G meant building global research facilities and having the best talent in the world develop unique products or inventions. But with the times and [...]
Intel’s Go-to-market Strategy – Tick Tock
What is ‘Tick Tock’? The term ‘Tick Tock’ has been referred to a music group from Puerto Rico, a novel by Dean Koontz, a fictional character in Marvel Comics Universe and even a dance step, but did you know it is the name of Intel’s go-to-market strategy as well. The global economic downturn hit the [...]
Glocalization Examples – Think Globally and Act Locally
We have heard a lot about globalism versus localism over the years. In order to succeed globally, even the biggest multinationals must think locally. A few examples: McDonald’s In the UK, McDonald’s strategy is to listen more to local consumers and then act on it. The company strives to do this around the world. Some [...]
SWOT Analysis
SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is used for identifying those areas where an organization is strong, where it is weak, the major opportunities the company can explore and the threats. SWOT analysis is a useful tool for assessing the strategic position of a business and its environment. SWOT [...]
Bharti Gets a Brand Makeover
Brand Strategy – November 2008 Dominant in the telecommunications services market, Bharti Enterprises, the telecom giant has unveiled its vision for 2020. Its latest brand identity attempts to reflect its intent to grow its other businesses such as financial services, retail and agri-business. New Brand Identity and Brand Essence In early Novemeber (2008), Bharti Enterprises, [...]
Coke’s new strategy in India
Business Strategy – India – Training – Retailing – November 2008 With slowdown in developed markets, companies like PepsiCo and Coca-Cola are looking at emerging markets like India and China for growth. PepsiCo is aiming to triple its businesses in India over the next five years (and also setting up a new leadership structure in [...]
Dell in India – Business and Marketing Strategy
Business Strategy – Strategic Marketing Dell’s Entry in India Dell International started in India about seven or eight years back by opening a customer contact center at Bangalore in 2001. In 2003, the second contact center was opened at Hyderabad. The company operates its services from four centers based at Bangalore, Hyderabad, Chandigarh and Gurgoan. [...]
Dell’s Turnaround Strategy in 2008
Business Management Article Dell’s new retail business and supply chain approach Dell is taking steps to turnaround its business and recovering from losses and decline in its profit margins. Dell had first announced cost-cutting measures as early as May last year. In 2007, Dell changed its direct-sales model to offer computers in retail outlets, after [...]
Alarm Bell for Dell
Business Turnaround Strategy – February 26, 2009 “Within our business, we’re being very disciplined in managing costs, generating profitability and cash flow, and investing in ways that separate Dell from others today and when the economy inevitably improves.“ – Founder and Chief Executive, Michael S. Dell. In February 2009, Dell Computers announced that it would [...]
Foreign Retailers in the U.S.
Fashion Retailing- March, 2009 How are foreign retailers like Zara, Hennes and Mauritz (H&M), Mango, Uniqlo, Kira Plastinina and Topshop performing in the U.S.? What are their expansion plans and their entry year in the U.S.? Can they compete with The Gap, the U.S. local retail chain which has more than 3,000 stores and has [...]
GlaxoSmithKline (GSK) and Dual Headquarters in London and US
January 14, 2008 – Business Management Article Since its formation in 2001, GlaxoSmithKline (GSK), the pharmaceutical giant, for the first time will run from its London headquarters. GSK will continue to operate from its dual headquarters, in London and Philadelphia. GSK’s CEO, Andrew Witty (who joined Glaxo UK in 1985) has decided to remain in [...]
HP’s business strategy in a challenging marketplace
Business Strategy – India – November 2008 How is HP dealing with a challenging economy? Leading tech companies (including Intel and Cisco) believe that given the constraints of the economy today and the likely global recession, customer spending on technology will decline rapidly impacting both consumer and corporate purchases. Declining sales figures in October and [...]
Hewlett-Packard’s retail channel advantage over Dell
February 21, 2008 – Business Management Article HP’s retail channel strategy is working Hewlett-Packard (HP), the world’s largest personal-computer maker (based in the Palo Alto, California), beat Dell in PC sales for the sixth straight quarter and posted a fiscal first-quarter profit (February, 2008). The results which topped analysts’ estimates on orders for PCs, servers [...]
IBM acquires NIT, targets small business sales
January 18, 2008 – Business Management Article IBM and importance of small and medium businesses Out of IBM’s total sales, Small and medium business (SMB) revenues account for about 19%. In the fourth quarter 2007, IBM reported that SMB revenues increased by 11% to $5.4 billion. Overall, IBM reported that fourth quarter revenues increased 10% [...]
Business Restructuring at L&T
August, 2009 – Business Strategy, Strategic Management Article Larsen and Toubro (L&T), the engineering and construction giant wants to reposition itself and be a more focused value-added engineering company. L&T is a USD 8.5 billion company and has 12 operating companies and three subsidiaries. The company was mainly into engineering, procurement and construction segments. It [...]
McDonald’s International Innovations
July, 2009 – Strategic Management, Innovation Article McDonald’s, the fast-food retailing giant has a proven formula for doing well in a recession – courting consumers globally by targeting local tastes with global menus. McDonald’s has expanded its global appeal which has resulted in good results, even though almost every type of industry is seeing widespread [...]
Nokia’s Strategy in the Emerging Markets
Business Strategy – India – November 2008 In the emerging markets, Nokia’s business strategy is to: Increase mobile usage in rural areas Reduce the mobile phone ownership and operating costs Bring the benefits of mobile telephony to people in emerging markets Bring the power of the Internet to these markets An end-to-end player with a [...]
Nokia to exit expensive Germany, move production to low cost countries
January 15, 2008 – Business Management Article Finnish cellphone maker, Nokia is planning to close its mobile devices plant in Bochum, Germany by mid-2008, stating that it is not competitive enough. Nokia, the world’s top cellphone maker, may cut up to 2,300 staff. Nokia is moving production to lower-cost regions and to its existing plants, [...]
Nokia increases market share, Motorola Struggles
January 25, 2008 – Business Management Article Nokia with 40% market share in the fourth quarter of 2007 In what is being regarded as the much-awaited and psychologically important milestone, Nokia (NOK), the Finnish handset maker and global giant, announced that it had achieved a 40% market share in the fourth quarter of 2007. This [...]
Nokia – A struggling market leader
Business Strategy and Management – January 24, 2009"In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry." – Nokia’s President and chief executive Olli-Pekka Kallasvuo. Nokia is the world’s largest handset manufacturer and the maker of four out [...]