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Privalia's Internationalization Strategy: How To Enter the German Market, Epilogue
In early 2011, José Manuel Villanueva and Lucas Carné, founders of Privalia, an online fashion discount store, were about to submit to the Board of Directors a strategic plan that could mark the beginning of a new phase in the company's growth. Since its inception in 2006, Privalia had grown at a fast pace: three years later, it was already profitable in Spain and expanded into Italy, Brazil and Mexico. By 2010, it had secured market leadership in every country where it operated. However, the competition grew just as fast, and the experience acquired over recent years indicated that speed and market size proved key in online fashion sales. Privalia already operated in Spain and Italy, but, if it really wanted to become a relevant player in Europe, the company needed to move into the topmost markets like Germany, France or the United Kingdom. Villanueva and Carné decided to strengthen Privalia's international expansion by venturing into the German market. Thus far, Privalia's international growth had unfolded organically, via the creation of affiliates in the countries where it had moved into (Italy, Brazil and Mexico). Now, in order to enter the German market, should Privalia set up a subsidiary or should it acquire Dress-for-Less that was up and running in a leading local market position? Villanueva and Carné did not have much time. A board meeting had been scheduled to make a final decision. They needed to design a clear growth strategy, evaluate their options and prepare an entry proposal for Germany. -
Moleskine (A)
Describes the founding and growth challenges facing Moleskine, an Italian-based consumer products company known for its oilcloth-covered notebooks once used by Ernest Hemingway and Vincent van Gogh. CEO Arrigo Berni and co-founder Maria Sebregondi aim to transform the company from a founder-led company to a professionally managed firm by expanding into new geographies, product categories, and distribution channels. They have also recently developed several strategic partnerships with Silicon Valley firms to expand into an array of digital products. However, after going public, stock prices continue to fluctuate below analysts' expectations, raising concerns about whether the company has grown too quickly. The leaders must now decide how to expand the firm's capabilities while continuing to preserve its organizational identity and creative culture. -
Orkestra - Basque Institute of Competitiveness
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Housing.com: Marketing a Service Offering
Housing.com was a Mumbai-based online real estate listing company that verified the authenticity of every property listing on its website. Despite proving itself as a threat to big players in India's online property portal space, it was struggling in late 2014 to establish itself as a preferred option among brokers. Conflicts of interest between sellers (i.e., brokers, builders, developers, and landowners who listed property online) and buyers (i.e., end-users who searched the website for property) were a matter of concern, with the industry characterized by information asymmetry and a lack of transparency. With the verification of listings, Housing.com was adding value for buyers but also compromising on time and the number of listings on the portal. Property dealers were complaining that the procedure for getting properties listed on the site was long and tedious compared to competitors' sites. How should Housing.com manage traffic and encourage more visitors? What should it do to win over both buyers and sellers? Value-added services - such as verifying property listings - needed to be backed up with an emphasis on listings and an increase in traffic. The biggest dilemma for the chief marketing officer and his team was which customer segment to concentrate on. How could they fill the current gaps in services? -
Note on the Canadian Transportation Industry
Transportation plays a key role in Canada's economy. The first part of the note deals with Canada's transportation network, providing an overview of the transportation services sector and the economic importance of transportation. The second section examines the role of government in Canada's transportation sector, including government policy. The third section describes the characteristics of each of the six main modes of transportation: air, rail, truck, marine, pipeline, and intermodal. The final section addresses the key challenges facing the Canadian transportation sector, including environmental and safety issues. -
Camel's Milk and Lamb's Liver (A)
The case describes the cross-cultural challenges experienced by a French market researcher engaged to do an investment country report in Mauritania. To gain the trust of the 'gatekeeper' of the information he needs, he has the opportunity to immerse himself in traditional culture by experiencing nomadic life in the desert. Pressured by headquarters, yet needing to be sensitive to local culture, he has to decide how far he is prepared to go to get the job done. -
Camel's Milk and Lamb's Liver (B)
The case describes the cross-cultural challenges experienced by a French market researcher engaged to do an investment country report in Mauritania. To gain the trust of the 'gatekeeper' of the information he needs, he has the opportunity to immerse himself in traditional culture by experiencing nomadic life in the desert. Pressured by headquarters, yet needing to be sensitive to local culture, he has to decide how far he is prepared to go to get the job done. -
Camel's Milk and Lamb's Liver (C)
The case describes the cross-cultural challenges experienced by a French market researcher engaged to do an investment country report in Mauritania. To gain the trust of the 'gatekeeper' of the information he needs, he has the opportunity to immerse himself in traditional culture by experiencing nomadic life in the desert. Pressured by headquarters, yet needing to be sensitive to local culture, he has to decide how far he is prepared to go to get the job done. -
Magic Timber and Steel: Investment Evaluation with Net Present Value
Magic Timber and Steel (Magic) was formed in Caloundra, a community on Queensland, Australia's Sunshine Coast. Magic's business peaked in terms of sales revenue in about 2011 and went on to experience a steady decrease in turnover that was attributed to a number of causes, including infrastructure issues on the coast and a drop in tourism. Hoping to reinvigorate the business in early 2015, Magic's owner believed his company required an investment in fixed assets - specifically, a large finisher that would increase capacity and reduce maintenance. Because the new machine required a significant financial investment, the owner had to use the net present value method to determine whether the purchase would add value to the firm. -
Volvo: Finding True Value in the Electric Bus Market
Birgit Skarsgard, head of sustainability and public affairs at Volvo Group, has successfully taken part in the ElectriCity cooperative experiment to integrate electric buses into Sweden's market using KPMG's True Value methodology. This methodology is employed by firms to understand future earnings at risk due to internalization of externalities. As part of the pilot program, Volvo's hometown of Gothenburg, Sweden has accepted electric buses with delight. The question is: Can the company scale the program to the Chinese market where the real opportunity lies? Students are asked how Volvo can leverage the True Value methodology to enter this market. -
Choosing the Right Metrics for Listerine Brand Management in Brazil
Ronaldo Art, brand manager for J&J's Listerine, reflected on the progress he had made in market penetration for the oral hygiene product from the time he started in the position in 2010 to late 2014. He wanted to develop a long-term strategy for the brand rather than stimulating short-term increases in market share, which could compromise the equity of the brand, its profitability, and its long-term competitive advantage. This case has been used in Darden's second-year course "Marketing Metrics and Integrated Marketing Communications" and would work well in any course module focused on brand management and brand strategy. -
Fears and Realities: Managing Ebola in Dallas
In September 2014, as several West African countries continued to battle a deadly outbreak of the Ebola virus, Dallas, Texas emerged as ground zero for the disease in the U.S. This case recounts how, over the course of three days, Thomas Eric Duncan, who had recently arrived in the city from Liberia, reported twice to Dallas Presbyterian Hospital exhibiting signs of illness. Having sent him home after his first visit, the hospital admitted him after his second; and with his symptoms worsening rapidly, tests soon revealed everyone's worst fear: he had Ebola. "Fears and Realities" describes how local, state, and federal public health authorities, along with elected officials and hospital administrators, responded to the alarming news - a hugely difficult task made all the more challenging by confusion over Duncan's background and travel history, and, eventually, by the intense focus and considerable concern on the part of the media and public at large. Efforts to curtail the spread of the disease were further complicated when two nurses who had cared for Duncan also tested positive for Ebola, even though they apparently had followed CDC protocols when interacting with him. With three confirmed cases of the disease in Dallas - each patient with their own network of contacts - authorities scrambled to understand what was happening and to figure out a way to bring the crisis to an end before more people were exposed to the highly virulent disease. -
Fears and Realities: Managing Ebola in Dallas Epilogue
This epilogue accompanies case number KS1160. In September 2014, as several West African countries continued to battle a deadly outbreak of the Ebola virus, Dallas, Texas emerged as ground zero for the disease in the U.S. This case recounts how, over the course of three days, Thomas Eric Duncan, who had recently arrived in the city from Liberia, reported twice to Dallas Presbyterian Hospital exhibiting signs of illness. Having sent him home after his first visit, the hospital admitted him after his second; and with his symptoms worsening rapidly, tests soon revealed everyone's worst fear: he had Ebola. "Fears and Realities" describes how local, state, and federal public health authorities, along with elected officials and hospital administrators, responded to the alarming news - a hugely difficult task made all the more challenging by confusion over Duncan's background and travel history, and, eventually, by the intense focus and considerable concern on the part of the media and public at large. Efforts to curtail the spread of the disease were further complicated when two nurses who had cared for Duncan also tested positive for Ebola, even though they apparently had followed CDC protocols when interacting with him. With three confirmed cases of the disease in Dallas - each patient with their own network of contacts - authorities scrambled to understand what was happening and to figure out a way to bring the crisis to an end before more people were exposed to the highly virulent disease. Case number KS1161. -
InMobi: Reimagining Mobile Advertising
InMobi, a mobile advertising company, considered one of India's first unicorns, has launched a new product called Miip. InMobi hopes that the product will grow its revenue 8 times by 2018. Visually identified by a mascot, Miip seeks to re-imagine adverting by becoming a user's trusted companion on the mobile phone, introducing them to new, relevant products, much as a friend would. As the CEO and co-founder Naveen Tewari introduces the product in China, he wonders if the product will be as successful as InMobi anticipates. -
Marketing Reading: Marketing Communications
Core Curriculum Readings in Marketing cover fundamental concepts, theories, and frameworks in marketing. For classroom use in higher education, this Reading is accompanied by a Teaching Note, test bank, and exhibit slides. This Reading begins with an overview of marketing communications strategy and then presents a framework for designing strategies to optimize consumer engagement. This framework offers managers three broad phases for developing a marketing communications plan: strategic intent, strategic execution, and strategic impact. Crafting such a plan ensures that coordinated and complementary messages are delivered in an integrated marketing communications plan across all consumer touch points. This Reading contains two Interactive Illustrations, "Budgeting for Marketing Communications," which illustrates the objective-and-task budgeting method with a hierarchy of effects perspective, and "Viral Effect of Marketing," which explores the likelihood that a shared YouTube video will "go viral." The Reading also contains links to two video clips, the Taco Bell "Routine Republic" advertisement, a classic example of a conflict-based story, and "Cracking the Code of Super Bowl Ad Effectiveness," which describes research linking viewers' brain activity to the emotional connection of effective ads. Please note: this Reading does not cover the complexity of digital marketing. Its influence on marketing communications is covered in greater depth in Core Reading: Digital Marketing (HBP No. 8224), which is a recommended pairing (assignment) with this Reading. -
Detroit: On the Right Track?
As this case opens in 2012, a cross-sector alliance to bring new rail transport to the Motor City seems about to collapse, and civic leaders have one last chance to save it. The case covers the rise of Detroit, the city's devastating fall, and the ongoing potential revival of the city. It allows a discussion of what causes cities to thrive and to fail, with a special emphasis on the roles of cross-sector collaboration and transportation infrastructure. -
Estimating the Equity Risk Premium
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Managing the European Refugee Crisis
In 2016, Europe struggles to cope with one of the largest refugee flows it has ever witnessed. -
SGX Bids for ASX
In October 2010, the recently appointed CEO of the Singapore Exchange (SGX) wanted the SGX to grow faster than organic growth alone would allow. The most logical acquisition target was the Australian Securities Exchange (ASX). Executives from the SGX and the ASX announced an agreement to merge. The two exchanges would remain separate legal entities for regulatory purposes but both would be owned by ASX?SGX Limited, a new holding company that the deal would establish. But why did the merger fail? This left executives at the SGX and other foreign securities exchanges pondering whether the conditions the Australian Treasurer specified for a merger could ever be met and, if so, would a foreign securities exchange really be allowed to acquire the ASX? -
Textbooks for Change
In May 2015, the chief executive officer (CEO) of a small social enterprise was trying to decide how to expand its business. Textbooks for Change collected used texts from universities and supported African entrepreneurs and universities by donating text sales proceeds or through the distribution of donated materials to deserving schools. The CEO was considering expanding the business to collect textbooks from universities outside its region, and wanted to assess the potential financial viability of three targeted universities.