L’Itinéraire Community Group was a not-for-profit organization located in Montréal, Quebec. It published a French-language magazine that was sold by homeless and socially marginalized people in the city. The group’s management committee was examining ways of raising additional funds because of the reduction in contributions from traditional sources such as government subsidies. Options included targeting the magazine to the Anglophone and immigrant communities in Montréal, targeting regions outside of Montréal, and producing a digital version of the magazine. The digital option had the additional constraint that the vendors of the magazine, the homeless and socially marginalized, would not be involved in selling. How should the organization deal with this issue?
In 2017, the German company mymuesli GmbH (mymuesli) was operating in six European countries. Having begun to successfully distribute its customizable organic breakfast cereals online, mymuesli built on its growing popularity by opening stores in various cities across Germany, Austria, Switzerland, the Netherlands, and Sweden, where the most popular versions of the product were sold. The relatively young company differentiated itself with its customizable, premium organic products, and relied on its strengths to adapt to lifestyle and health trends. After a conversation in early 2017 with fellow hotel guests hailing from different European countries, the three founders of mymuesli were convinced that entering new countries might be a promising option for the company’s future growth. They began to analyze the maturing industry and its impacts on the company's growth plans.
In 2017, the next generation of consumers that were poised to become engaged to be married—millennials—showed different preferences and consumption patterns than previous generations had shown. In response, the De Beers Group of Companies (De Beers), a leading company within the global diamond industry, was making moves to capture this important market. In partnership with the world’s six other leading diamond companies, known collectively as the Diamond Producers Association, De Beers launched a campaign titled “Real is Rare” with the goal of persuading millennials into believing that diamonds were an important symbol of romantic commitment, even in 2017. Would these marketing endeavours be successful in changing the millennial mindset, or would the campaign fall flat? Would diamond engagement rings continue to be the ultimate symbol of commitment? What could De Beers do to encourage sales of diamonds in a changing world?
In early September 2016, Samsung Electronics Co. Ltd. (Samsung), a leading manufacturer of smartphones headquartered in South Korea, released the new generation of its flagship smartphone, the Galaxy Note 7. Despite initial positive reviews and a strong market reception, just eight days later, Samsung voluntarily recalled 2.5 million of the smartphones, after receiving reports of the devices overheating and catching on fire. The problems persisted even with the replacement device, and the company decided to cease all production and sales of the Galaxy Note 7 in October 2016. Samsung faced a highly commoditized market, decreasing global demand, and increasing competition, but the company now also needed to deal with one of the biggest recalls in the history of the industry. What had gone wrong, and how could the company move forward?
In 2017, PSA Peugeot Citroën (PSA), the French-based automaker known for its famous Peugeot and Citroën brands, announced its plans to re-enter the U.S. market after having exited North America in 1991. This was not the first time the company tried to re-enter the U.S. market. In an effort to reduce its reliance on declining European markets, PSA had attempted to re-enter the United States in 2003, again in 2014 with its premium automobile range, and most recently in 2016 in a partnership with a French-based ride-sharing operator. What are PSA’s strategic options for its international growth by focusing particularly on U.S. re-entry? Would re-entering the U.S. market help PSA respond to growing competitive pressures in the global automotive industry?
By 2016, the BMB Group (BMB) had become the biggest producer of gourmet chocolates and Middle Eastern confectionery in the United Arab Emirates. Making private-label, highly customized confectionery for other brands had proven to be a winning strategy for the company; however, BMB’s leaders felt it was time to transition to a business-to-consumer model. Establishing BMB brands was essential to continued growth because management believed the private-label space would soon fill up with competitors. Which market should BMB enter? There were three possible options: (1) go where Middle Eastern sweets were already popular but compete with many producers; (2) target Middle Eastern expatriate populations that might embrace the products and partner with local distributors; or (3) focus on markets where the population showed a preference for sweets but had relatively limited exposure to, or preference for, Middle Eastern sweets, and use BMB brands to set the standard. Would BMB’s own brands aid the company’s ambitious plans for expansion, or was the firm biting off “more than it could chew?”
Uber China is a strategy pricing case that examines the role of customer acquisition tactics and brand positioning in entering the tantalizingly large Chinese market. The case adopts the perspective of an outside observer looking at Uber's efforts to compete in China from its entry in 2013 to its exit through its acquisition by Didi Chuxing, the highly dominant industry leader in China's ride-sharing market. After laying out the market opportunity, consumer and competitive landscape, and the various acquisition-related moves of Uber and the other major players, the case asks students to conduct a postmortem on Uber's failure in China. Specifically, they must consider what drew Uber to the opportunity in China and what it might have done differently in terms of positioning and customer acquisition to compete more effectively. First and foremost a pricing-related discussion, the case illustrates the relationship between pricing and acquisition tactics and brand positioning and the use of both in market entry and penetration.
This case puts students in the shoes of Mexican entrepreneur Rodolfo Corcuera of the tech startup Aliada, an online platform that matches maids with customers in Mexico City. With backing from one of Mexico City's newest venture capital firms, Corcuera's business now needs to scale, and he is considering how best to position his offering to those on whom his business model depends--maids and customers. To tackle this, students will learn about basic concepts from psychology that can inform marketers. More specifically, they will learn how basic human needs (nurturance, security) fuel self-regulatory goals (promotion and prevention goals, respectively), which in turn impact how people approach their consumption goals. Students will analyze Aliada's current Facebook ads, watch videos of some of Aliada's current maids and customers to assess whether they seem more motivated by promotion or prevention goals, and recommend optimal messaging for Facebook ads and subway banners in order for Corcuera to be most appealing to these two target audiences who may have different motivations.
By 2016, the BMB Group (BMB) had become the biggest producer of gourmet chocolates and Middle Eastern confectionery in the United Arab Emirates. Making private-label, highly customized confectionery for other brands had proven to be a winning strategy for the company; however, BMB's leaders felt it was time to transition to a business-to-consumer model. Establishing BMB brands was essential to continued growth because management believed the private-label space would soon fill up with competitors. Which market should BMB enter? There were three possible options: (1) go where Middle Eastern sweets were already popular but compete with many producers; (2) target Middle Eastern expatriate populations that might embrace the products and partner with local distributors; or (3) focus on markets where the population showed a preference for sweets but had relatively limited exposure to, or preference for, Middle Eastern sweets, and use BMB brands to set the standard. Would BMB's own brands aid the company's ambitious plans for expansion, or was the firm biting off "more than it could chew?"
In early September 2016, Samsung Electronics Co. Ltd. (Samsung), a leading manufacturer of smartphones headquartered in South Korea, released the new generation of its flagship smartphone, the Galaxy Note 7. Despite initial positive reviews and a strong market reception, just eight days later, Samsung voluntarily recalled 2.5 million of the smartphones, after receiving reports of the devices overheating and catching on fire. The problems persisted even with the replacement device, and the company decided to cease all production and sales of the Galaxy Note 7 in October 2016. Samsung faced a highly commoditized market, decreasing global demand, and increasing competition, but the company now also needed to deal with one of the biggest recalls in the history of the industry. What had gone wrong, and how could the company move forward?
In 2017, the next generation of consumers that were poised to become engaged to be married-millennials-showed different preferences and consumption patterns than previous generations had shown. In response, the De Beers Group of Companies (De Beers), a leading company within the global diamond industry, was making moves to capture this important market. In partnership with the world's six other leading diamond companies, known collectively as the Diamond Producers Association, De Beers launched a campaign titled "Real is Rare" with the goal of persuading millennials into believing that diamonds were an important symbol of romantic commitment, even in 2017. Would these marketing endeavours be successful in changing the millennial mindset, or would the campaign fall flat? Would diamond engagement rings continue to be the ultimate symbol of commitment? What could De Beers do to encourage sales of diamonds in a changing world?
In 2017, PSA Peugeot Citroën (PSA), the French-based automaker known for its famous Peugeot and Citroën brands, announced its plans to re-enter the U.S. market after having exited North America in 1991. This was not the first time the company tried to re-enter the U.S. market. In an effort to reduce its reliance on declining European markets, PSA had attempted to re-enter the United States in 2003, again in 2014 with its premium automobile range, and most recently in 2016 in a partnership with a French-based ride-sharing operator. What are PSA's strategic options for its international growth by focusing particularly on U.S. re-entry? Would re-entering the U.S. market help PSA respond to growing competitive pressures in the global automotive industry?
In fall 2017, HTC CEO and Chairperson Cher Wang was driving the company to focus on virtual reality (VR). HTC's first VR product, VIVE, released in spring 2016, was applauded for its superior immersive room-scale capabilities. However, early adoption of VR beyond gamers and technology enthusiasts was off to a slower start in general to due high cost, lack of quality content, and some user discomfort while using the technology. Wang endeavors to be the leading VR company though competition from Sony, Facebook, and other technology leaders is mounting and several, like HTC, are already pursuing second generation tetherless VR technology. As Wang seeks to develop the ecosystem by partnering with developers, creating a content platform, investing in VR startups, and launching VR arcades, she must decide the appropriate balance of fostering innovation in hardware, software and services, or both.
In 2017, management at Shift, an online marketplace that uses a "high touch," concierge approach to buy and sell used cars, was formulating plans for the San Francisco-based startup's next phase of expansion. One option was to preserve Shift's current business model and grow through geographic expansion. Another option was to decentralize more tasks to sellers and/or buyers, for example, management of inspections and repairs. While decentralizing tasks would reduce Shift's labor per transaction and thereby improve the venture's unit economics and its scalability, Shift might risk undermining users' trust by handing off responsibility for critical tasks.
This case series examines the two stage transformation of DBS 2009- 2017. In both stages the bank places the customer as the centre of its thinking about how to structure, resource and play in the market. In 2009 DBS was an underperforming national bank with overseas branches, losing traction and lacking a compelling strategy. Under new leadership the A case describes the initial implementation of its turnaround strategy with the objective of creating a competitive world class multi national bank. DBS must decide which overseas market to focus on and how to enter. It raises the issue of the role of the fintechs in shaping the future of banking and its likely impact on the bank's strategy. The B case describes DBS's digital pure-play entry into the Indian market, its strategic reset now with an ambition to be like a 22,000 person start up prompted by its assessment of what the fintech landscape populated by the likes of Alibaba/ant financial. The case describes significant progress but asks whether this is sufficient given how the industry is evolving. The C case describes the company's progress up to 2017 and highlights why Euromoney named DBS as the World's Best Digital bank. It asks whether this progress is sufficient in given the amount of sectoral change. Learning objective: This case series allows students to examine the implementation of a customer-led strategy in an industry undergoing disruption. More specifically students learn how to implement a customer-led strategy, how to enhance an organisation's agility, how to embed an innovative culture.
In early 2015, Amy Hood, CFO of Microsoft, and the rest of the senior leadership team faced a set of fundamental choices. The firm had opportunities to serve customers in ways that would be associated with higher growth but lower margin. Some of these opportunities involved a shift from perpetual licensing to subscription sales. Whatever choices are made must be articulated to investors and employees.
On October 25, 2016, Timothy J. Sloan, the new CEO of Wells Fargo bank, apologized to 1,200 of his employees in Charlotte, North Carolina. Sloan had been named to the company's top position two weeks earlier, when then-CEO John Stumpf resigned amid fallout from the banking scandal for which Sloan apologized. In September, Wells Fargo had agreed to a $185 million settlement with the Consumer Financial Protection Bureau (CFPB) and two other regulatory bodies, admitting it had opened unauthorized accounts for millions of its consumers. At the heart of the scandal were the company's community banking sales practices, which focused relentlessly on cross-selling multiple products to existing customers.
Netapp, a fast-growing innovator in the storage and data management market, had become successful both in the U.S. and around the world. By 2017 Netapp faces challenges as the cloud disrupted its core storage unit. The CEO knew the company's strategy and organization structure that had served the company for years needed a change. He brought in a chief transformation officer to make it happen.