The last of four module notes for students taking an advanced course on competitive strategy. Examines patterns that distinguish successful strategic change efforts from unsuccessful ones.
Describes the start up of Viacord, a Boston-based medical services firm founded by Cynthia Fisher (HBS MBA) in 1993. Told from Fisher's perspective, the entrepreneur details the conceptualization and launch of the business and the many obstacles and expenses faced in the company's first seven years. Fisher describes the venture capital negotiations and a merger with a biotech company that led to the creation of ViaCell in 2000. Fisher explains how her role changed from founder and CEO of Viacord to president and then board member of ViaCell, and carries the firm's story to the successful 2005 IPO.
The Japanese banking industry entered a major crisis in the 1990s, as massive nonperforming loans threatened the survival of even the largest banks. This was a far cry from Japan's stellar growth from 1950 and the heady days of spiraling property and stock market prices in the 1980s. Traces the development of the Japanese economy from the end of the Second World War, the role of international trade flows and finance and foreign direct investment as well as the part played by the Japanese banking sector in those developments. By the year 2000, the government had spent trillions of yen in rescue packages, including the nationalization of two of the largest banks, and was attempting to institute banking sector reforms to resolve the crisis.
This case tells the story of the decision by the city government of Philadelphia to develop a publicly-owned competitor to private high-speed internet connection systems ("broadband"). The case describes both the city''s rationale, its desire to attract new business and its fear that a "digital divide" was leaving poorer residents without affordable access to the World Wide Web, and its means of implementing its decision, through a new not-for-profit arm of city government, which would contract with a private provider. That private provider would agree to provide relatively low-cost wireless web access throughout the city, thereby creating the largest wireless network in the US to date; in return, the city would steer its own information technology business to the new system, which was designed to compete with the private firms Verizon and Comcast. The case is designed to promote a discussion of the nature and causes of monopoly by raising issues of whether the incumbent cable and telephone companies enjoy market power in any of the services they offer and, if so, whether it is advisable to build a new municipal system to promote competition. HKS Case Number 1824.0
This case tells the story of the decision by the city government of Philadelphia to develop a publicly-owned competitor to private high-speed internet connection systems ("broadband"). The case describes both the city''s rationale, its desire to attract new business and its fear that a "digital divide" was leaving poorer residents without affordable access to the World Wide Web, and its means of implementing its decision, through a new not-for-profit arm of city government, which would contract with a private provider. That private provider would agree to provide relatively low-cost wireless web access throughout the city, thereby creating the largest wireless network in the US to date; in return, the city would steer its own information technology business to the new system, which was designed to compete with the private firms Verizon and Comcast. The case is designed to promote a discussion of the nature and causes of monopoly by raising issues of whether the incumbent cable and telephone companies enjoy market power in any of the services they offer and, if so, whether it is advisable to build a new municipal system to promote competition. HKS Case Number 1824.0
Fred Khosravi is a serial medical device entrepreneur. In his latest venture, he must decide whether to sell now or continue to develop his current product and whether to market it, sell the company, or IPO.
The third of four module notes for students who are taking an advanced course on competitive strategy. Examines how combinations of external threats and internal barriers to change lead to strategic failure.
The second of four module notes for students taking an advanced course on competitive strategy. Presents concepts and techniques to help students understand the origins of effective strategies.
General Electric thrived in every decade of the 20th century. Since its founding in 1892, GE has placed a high value on picking and training the best people. Staff members worked with other scientists in the company's research lab to design and manufacture new and better products to satisfy the growing American consumer demand for lighting, appliances, and consumer electronics in the 1910s to 1920s as well as in the 1950s and 1960s. GE's top executives have shown a clear understanding of the leadership and managerial styles that were appropriate for the years in which they worked. In the first decade of the 20th century, Charles Coffin demonstrated that he was an adept negotiator who amassed great wealth for GE in building generators and power equipment for local utilities in which GE also had a financial stake through bond issues. In the final decades of the 20th century, Jack Welch emphasized that GE should support only the most profitable businesses in the company's portfolio, a logic that led Welch and GE to phase out GE's consumer electronics division while bolstering the financial position of GE capital. Profiles all of GE's top executives.
In the spring of 2005, Candace Browning, head of Global Securities Research and Economics at Merrill Lynch, led about 500 Merrill Lynch analysts worldwide in a collaborative effort to produce innovative research, most of them accustomed to working independently in their own regions and areas of expertise. Less than five years earlier, research analysts had expressed little or no interest in group efforts. By 2005, many analysts who had been assigned to work on collaborative projects indicated increased learning and a willingness to work in teams again. Some analysts themselves chose to work together. Whereas Merrill had come a long way, some analysts remained skeptical. Managers also questioned whether all types of collaboration were worth the significant efforts required. Browning had to consider the issues involved, the feedback received, and the industry itself and devise a strategy moving forward.
As CEO of the world's largest oilseed processor, Alberto Weisser of Bunge must not only decide how quickly to expand in fast-growing markets of Eastern Europe and Asia, but also how best to leverage the firm's global footprint and leadership position. The firm is anticipating expanded demand for meat and oils in Asia, increased world trade in agricultural commodities and processed goods, increased volatility, and the possibility of new biotechnology-based products with special quality traits that will require segregated, identity-preserved supply chains from farm to food customer. Bunge is unique because of its focus, its integration from farm to consumer, its commitment to partnering, and its management style that emphasizes decentralization and local entrepreneurship.
Ryanair was the pioneer of low cost flying in Europe. As the result of a series of marketing innovations and stringent control of costs it enjoyed a decade of rapid and profitable growth. By 2004 it had become the most profitable airline in the world (in terms of percentage operating profit). However, it faced intense competition from a variety of traditional, charter and other low-cost carriers. In September 2004 its larger archrival, easyJet, announced that it was going to begin flying into Ryanair's home market. Michael O'Leary and his management team had to decide how to respond to this provocative move.
This note is intended to elaborate on the many dimensions of retail location analysis and decisions. Location is a retail marketing decision that is typically difficult to change frequently, yet it determines access to customers, investments in building and equipment, and many operating costs such as rent, utilities and taxes. In short, it deserves careful attention. This note may be used with product 9B05A031, Note on Retail Convenience.
Every retailer faces competition, either directly or indirectly. This note examines how a retailer can systematically conceptualize and analyze his or her competition in order to make better retail marketing decisions. The two key topic areas are retail formats (a way to classify retail competitors) and competitive analysis. Every retailer needs to find some reason why customers should buy from him or her rather than from a competitor - in short, a competitive advantage. Gaining competitive advantage requires not only customer understanding, but also competitive understanding.
CVS's retail pharmacy operations are functioning poorly and dissatisfying customers. Many customers are defecting as a result. A pharmacy service improvement team has documented the current prescription fulfillment process, its exception rates, and the problems generated by exceptions. The company must now decide how to change this process, and what information system changes to make in support of the redesigned process.
In October 2005, Urs Riedener, head of marketing at Swiss retailer Migros, is contemplating the company's competitive position. Primarily a retailer for foods and near-foods products, the cooperative Migros, with close to 600 retail outlets in Switzerland (but only four outside its domestic market), is facing stiffer competition, both from existing competitors (such as Coop) and new arrivals (such as hard discounters Lidi and Aldi). Riedener and Migros management have so far always had faith in Migros' position in the marketplace, built around its governance structure (the customers were also the owners, creating a close link between the retailer and the market) and its emphasis on never selling harmful products. Socially, ecologically, and ethically produced products were key aspects of Migros' product offering. Riedener knows that Migros benefited from a unique position--and he wants to make sure that Migros defends it from both new and old competitors.