This business case is about the battle between Amazon Marketplace and Shopify in the competitive and fast-growing e-commerce market. It uses the decision-making process of the Pizza Pilgrims, a chain of pizza restaurants in London who pivoted to e-commerce during the COVID-19 pandemic. The case explains how the two platforms define their target customer and value proposition, how they make money and their strategies to scale. Students will be encouraged to study the differences between transaction, innovation, and hybrid platform models, understand the strengths and weaknesses of each, and reflect on the application of platform strategies to other industries. They will also consider what strategy Amazon Marketplace and Shopify might adopt for future growth and reflect on whether one model might be more successful than the other. Platform strategy is deployed by the most valuable companies in the world to create value by opening their platform to third parties with complementary innovations like Apple iPhone or Sony PlayStation, or by connecting demand and supply of a given market like Uber or Airbnb. The success and growth of platforms depends on a deep understanding of the types of platforms, monetization strategies and the complex dynamics of network effects. Pizza Pilgrims' choice of Shopify over Amazon Marketplace demonstrates how Shopify developed a compelling value proposition to help merchants build their brands and leverage direct relationships with their customers across multiple channels. This matches their strategy to design an asset-light, open innovation platform where an ecosystem of developers helps merchants innovate, allowing the value capture (revenue and shopper insights to fuel future innovations) to be shared across all sides. By contrast, Amazon Marketplace is designed to offer variety, low prices, and fast delivery to shoppers; this matches with their strategy to design a transaction platform where value is extracted from merchants and offered
Most managers in an international business are likely to be involved with international joint ventures (IJVs) during their career. IJVs have a greater chance of success if the businesses involved have good advisers on their teams. However, it can be a challenge to know what advisers to hire and how best to utilize their expertise. Drawing on their extensive career experience, the authors recommend best practices for hiring and working with international joint venture advisers based on three perspectives: legal, business, and academic. The possible roles of advisers, value versus cost of advisers, and what to look for and avoid when hiring advisers are outlined and framed within specific business examples.
The chief executive officer of McLaren Racing (McLaren), is considering the next strategic investment for the upcoming Formula 1 (F1) 2020 racing season. With goals to win the World Constructors’ Championship and challenge the top three F1 teams, the McLaren team must consider the benefits and challenges of two options: changing engine suppliers for radical improvement, or staying with the current engine supplier for incremental innovation. Adopting a new engine (Mercedes) would offer comparatively more speed than staying with the old engine; however, millions of data points collected from the old engine would no longer be applicable for future iterations. Alternatively, staying with the old engine (Renault) would allow McLaren to incrementally improve upon its existing car, but the fast innovation cycles in F1 mean McLaren must carefully weigh the possibility of diminishing benefits associated with this option.<br><br>In a highly uncertain environment with fast-paced design cycles, F1 offers a unique setting to understand how organizations in an innovation-based industry balance the competition between radical and incremental innovation. The trade-offs offered by these two approaches are further compounded by competitive innovation cycles, high costs, tight timelines, and planning limitations due to a considerable degree of luck on the race tracks.
In March 2020, Evolko Systems Private Limited encountered several strategic and operational effects resulting from the outbreak of the COVID-19 pandemic. The private health care technology company, which was based in California, United States, used artificial intelligence and machine learning to provide products and services to India’s health care market. The company’s chief executive officer had to mitigate risk from the pandemic using his company’s business model and value offerings. The outbreak of the COVID-19 pandemic, which resulted in a lockdown order effective across all of India to slow the progress of the virus, affected some of the company’s key business elements and had a macroeconomic impact on its operations. The chief executive officer’s challenge was to explore all options to continue the business operations and to determine how to transform its physically interactive business model to one with little or no physical contact with clients.
In 2011 Katrina Lake launched a new type of online retailing, Stitch Fix, a personal styling service based on a mix of human creativity and artificial intelligence, and grew it into a $3.6B company. Like many other successful retail businesses, it rapidly caught Jeff Bezos's eye. And nothing good comes when Jeff Bezos notices you and decides to compete. After a first attempt to challenge Stitch Fix in June 2017 with Prime Wardrobe, Amazon unveiled Personal Shopper in 2019, a new service that worked similar to Stitch Fix. Will Bezos do to Lake's Stitch Fix what he did to Barnes & Noble with books? Or will Stitch Fix be able to fend off the retail giant Amazon?
California-based Intel Corporation (Intel) was one of the world’s leading semiconductor circuit firms. In July 2020, manufacturing delays with Intel’s 10 nanometre (nm) and 7 nm chips were adversely affecting the company’s customers at a time when demand for personal computers and laptops was at its peak. Unlike its competitors, Intel was vertically integrated. Competitors such as Advanced Micro Devices, Inc. had outsourced their chip manufacturing to leading contract manufacturers such as Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) and were experiencing better market capitalization growth by focusing on designing chips for PCs and other product categories. TSMC had become the leading contract manufacturer for chips globally. Intel’s former chief executive officer (CEO) believed that Intel’s chip quality was the best because its manufacturing facilities were in house. At the same time, geopolitical issues between Taiwan, the United States, and China meant that regulatory authorities in the United States were not in favour of outsourcing critical chip manufacturing. In January 2021, Intel’s newly appointed CEO would have to decide whether Intel should outsource chip manufacturing to a contract manufacturer like TSMC and whether, in the long run, Intel should remain a vertically integrated unit or spin off its manufacturing division.
Many people thought of knitting as a hobby for grandmothers, but the time-honored craft had evolved into a booming business with loyal, passionate, and interactive customers worldwide. The Spanish e-commerce business We Are Knitters (WAK) spent the last decade growing into what investors called the “world leader in online knitted kit sales,” a segment of the global $100 billion knitting industry. WAK’s sales soared by 240 per cent between April 2019 and April 2020 due to the arrival of the COVID-19 pandemic in early 2020. By February 2021, while WAK’s co-founders were still grappling with pandemic-related challenges, ahead of WAK's 10-year anniversary, they also started to look ahead to consider plans for further growth and internationalization while maintaining their business model and competitive advantages.
Mantra Ayurveda (Mantra), established in India in 2020, manufactured and marketed luxury Ayurvedic skin care and hair care products. The brand’s equity in the Indian market was low, its performance marketing efforts were not leading to expected revenue gains, and the revenue from direct-to-consumer (DTC) initiatives had experienced a negligible uptick in financial year (FY) 2020–21. In April 2021, the chief executive officer would have to convince the board and investors about his plans for achieving fourfold revenue growth from the DTC channel in FY 2021–22. He needed to propose a choice that would build the brand for long-term sustenance while delivering on short-term revenue goals, considering key strategic pillars: an international DTC market launch to expand; offline marketing to increase brand awareness; in-house and outsourced performance marketing to optimize digital efforts; and discounts, promotions, and the launch of smaller package sizes to drive trials. Making the right choice could lead to an expanded international brand presence and deeper penetration into the Indian luxury market. However, the wrong choice could mean an early exit of a major investor, leaving the company cash-starved and plunging both the company and the future of his career into uncertainty.
Anthem Inc. (www.anthem.com) was a leading health care insurance provider and the largest insurer in the Blue Cross Blue Shield (BCBS) network. In October 2017, it approved the establishment of captive subsidiaries or global capability centers (GCCs), called "Legato," in India and the Philippines. The first captive was established in India. From January 2018 to June 2021, the two Legato entities had ramped up their head count to over 15,000 full-time employees (FTEs). This number well exceeded the initial approved business plan of a little over 3,000 FTEs. As a result, the parent organization accrued substantial cost savings. This also helped the company create a foundation to use low-cost internal talent to enable additional objectives, such as supporting digital transformational objectives and improving end-to-end process efficiency. Anthem developed an initial organization chart and reporting structure to establish the new companies. As the entities grew, Anthem made changes to better align them with US processes and strengthen governance and risk management. In 2021, Anthem established a new objective for Legato. As a cost center, Legato had firmly established itself in Anthem's value delivery chain, successfully setting up several information technology (IT) and business process practices. Anthem decided to use this capability by pursuing IT and business service revenue from other BCBS players in the US. It could now offer a suite of IT and business process services from Legato-essentially a profit and loss (P&L) role. The addition of this new P&L role brought up the following questions: Should the existing leaders' role be expanded to take on the additional responsibility of delivering to external customers? Should an entirely new division be established to take on this new P&L role? Or was there any other option to consider?
Ace Micromatic Group (AMG) was established in 1979 and is a well-known machine tools (MT) manufacturer in India. Under the leadership of Shrinivas Shirgurkar, Managing Director, the firm has been ambitiously seeking new opportunities. It is a ""niche entrepreneur"" company that focuses on MT and computerized numerical control (CNC) machines. MMT China was founded in 2007 as AMG's wholly owned foreign enterprise (WOFE). The overwhelming support of the local government impressed AMG. The structure of the MT market has shifted from pyramidal to diamond shaped. MMT China has successfully focused on small- and medium-sized businesses (SMEs). Its focus has been aesthetics, automation, customer experience, and dealer relationships. Despite this, it has encountered several challenges. One set of challenges was financing the purchase of its goods. Another concern was the gulf between its organizational ideals and Chinese business practices and culture norms, such as giving gifts and favors (guanxi, personal networks not related to business). MMT China has been able to overcome these challenges by providing high-quality products at competitive prices, supported by efficient after-sales service. It has overcome overwhelming odds and reaped the rewards of investing in China. The founders are hopeful and optimistic about initiatives such as "China Plus One" and "Make in China2025." Careful planning will be necessary to make the most of these changes.
Doctors' efficiency and patients' health outcomes stand to benefit from employing technology to resolve pain points. However, it is challenging to increase technology adoption rates in healthcare, especially in developing countries such as India where it is the need of the hour. This case provides in-depth discussions among company executives to highlight the challenges faced and to engage students to think critically about solutions for HealthPlix, the company which focuses on how target users (i.e., doctors) are encouraged to adopt AI technologies. It also provides an overview of Indian healthcare market, challenges and possible future opportunities for health tech firms.
This case is about evaluation of an entrepreneurial idea in a setting that is relatable to the students, a university. Michael Brosko, Director of Capital Planning at Loyola University Chicago, had to decide on a recommendation to the president of the university about a building under construction. It could be sold as condominiums, rented as apartments, or a team of undergraduate students could start and manage the country's first student-run guesthouse. On one hand, it presented an exciting entrepreneurial opportunity, consistent with the mission of the university. On the other hand, the novelty of the concept created uncertainty about the financial and operational feasibility of the venture. In January 2010, a residential building was in late stages of construction near the campus. The original intention of the administration was to either sell the building as condominiums or rent them as apartments. When the real estate market went into decline, Brosko remembered his entrepreneurial experiences at his alma mater and imagined an alternative use for the property that would provide a hands-on experiential learning opportunity for students. After preliminary meetings with several professors and administrators who were skeptical, he found an ally in Assistant Professor Uygur, who taught entrepreneurship courses in the MBA program. Impressed by Brosko's enthusiasm, he agreed to design a feasibility study as part of an MBA course. The feasibility analysis investigated several issues concerning that venture with the experiential learning mission: potential demand, customer profiles, competitor analysis, operational feasibility, financial feasibility, and educational benefits to the student workers.
Tom White, President of Wildcat Solutions (WS), a student run business and for-credit experiential learning class at the Inland Empire University must decide if they should keep secret shops, a challenging and unpopular product among the student associates that is nevertheless an important source of revenue for the class. To make this decision, White must wrestle with the multiple missions that WS has adopted. The case can be used in a later undergraduate Business or Marketing Strategy class when discussing corporate missions or when evaluating dual/multi mission organizations and social enterprises because the case hinges on evaluating the organization mission in the context of WS revenues sources. WS is a dual/multi mission organization, which are popular with students today, and the case highlights the natural tension or contradiction such organizations have within their mission statements.
Penny Pink, the owner of Portneuf Valley Brewery (PVB), was feeling the negative effects from the COVID-19 pandemic and increased competition. In 2020, Portneuf Valley Brewing's (PVB) sales were down 30% from the prior year. While a large percentage of this decline was attributed to the pandemic, which caused significant damage to PVB, the brewpub had been operating at a loss since 2017. Penny Pink was determined to turn things around and had 90 days. While Pink believed her customers would still want to enjoy traditional in-house dining at the brewery, it was time to consider additional pivoting options as she looked forward to 2021. Pink needed greater flexibility in a changing business environment, and the ability to generate income from other sources. It was January of 2021, and Pink was considering multiple ways to pivot her business, including ramping up her delivery and take-out model, renting out her kitchen when not in use (i.e., ghost kitchen), purchasing a food truck, and/or installing a canning operation. Closing down the business permanently was also an option. Pink had up to $50,000 to invest into the business to try and turn things around. Also, she needed to create a business forecast for 2021, which proved difficult given the current business environment; it was unclear how 2021 would play out for PVB, and if Pink could save PVB from permanently shutting down.
This article initiates a discussion with the guardians of the case method to make teaching cases more "DEI-friendly." It outlines how instructors, case writers, and other case stakeholders can consider the principles of diversity, equity and inclusion in the cases they select, write, review and publish. For instructors, a DEI case teaching toolkit along with other useful resources are provided. For case writers, DEI guidance for writing cases and instructor manuals and suggested exemplar cases are offered. The article concludes with a compiled list of contemporary resources about DEI teaching considerations in business schools.