At the time of the case the good enough segment was growing about three times as quickly as the premium segment and Danfoss was thinking about entering this fast growing market. To do this Danfoss had evaluated several of the local Chinese players as acquisitions targets, and had picked Holip as the best potential target. Erhardt Jessen, a vice president of the division, has to recommend whether to acquire Holip and, if yes, the strategy that Danfoss Motion Controls should adopt for Holip. Key issues that he would have to address included the continued use of the Holip brand and the degree to which Holip should be integrated into Danfoss. The (A) case describes the overall Danfoss situation and issues and describes in some detail the history of Holip, its business model and its strategy. It was written with the support of both Danfoss and Holip management teams. Learning objectives: The case gives participants an opportunity to deepen their understanding of the issues a multinational manufacturer of high performance products must address as it faces increasing competition from local players manufacturing good enough products. Participants also have an opportunity to learn how a somewhat typical small, low cost Chinese manufacturer operates. Participants can look at the pros and cons of entering the good enough segment and the advantages and disadvantages of using an acquisition as the entry vehicle. Finally, they have an opportunity to understand the issues that need to be resolved to successfully leverage the acquisition to achieve the company's objectives in the good enough market segment. Depending on the course's learning objectives, the Danfoss-Holip case series can be taught either by using the A case followed by the B case, or by using the A1 and A2 cases followed by the B-case.

Arkadi Kuhlmann launched ING DIRECT USA in 2000. The direct bank was very successful and by 2006 it had grown to be the largest online banking business and the 3rd largest savings-and-loan institution in the US. Faced with fierce and growing competition from both other direct banks and the online banking operations of such major traditional banks as Citibank and HSBC was faced with some tough decisions about how to move forward. One of the options under active consideration was the launch of a high interest paying checking or payments account. This was a product that ING DIRECT USA had always avoided in the past due to its complexity and high support costs. Learning objective: The challenges facing a successful low cost competitor as it responds to a changing market environment and increasing competitive pressure from established banks.

In December 2003 the management team at Saurer Twisting Systems (STS) was facing increasing competition in the critically important Chinese market. Local competitors in China were undercutting the price of Saurer's CompactTwister, which was manufactured in China, by over 50%. The company was considering the introduction of a lower cost machine targeted at Chinese and Asian customers, who would not buy its high cost machine. Margins were likely to be significantly lower on the new machine, and the new machine might cannibalize their high-end product. If the STS team did decide to introduce the new machine, it would have to make some difficult decisions about positioning, pricing, naming the product, and sales strategy. It was also not clear how their Chinese competitors would respond to the proposed new product.

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.

In November 2004 Saurer Twisting Systems launched a new twisting machine called Focus in China under the Volkmann brand. The (B) case describes the launch strategy for the new product in China and India, the competitive response, and the early results Saurer achieved. By June 2005 it was clear that Saurer Twisting Systems would easily achieve its objectives in India and Pakistan, but China was proving to be more challenging. The CEO of Saurer Twisting Systems was trying to decide what additional steps he might take to accelerate Volkmann's progress in China and to deal with the competitive threat posed by a major Chinese competitor.

Research in Motion had successfully launched the innovative BlackBerry service in North America and was looking to accelerate business growth there and globally. The company had been using a direct sales approach and was considering a move to using telecommunications carriers as the primary channel. A team of executives was charged with recommending a strategy and implementation plan.

The management team at ING Bank of Canada was preparing to launch Canada's first discount bank. Initially, the bank planned to serve its customers using mail and telephone. Later, it planned to supplement the telephone banking service with an interactive voice response system and an Internet-based service. ING hoped to attract customers by offering significantly higher interest rates on its savings products than any of its competitors. There was some skepticism about the viability of the proposed business model. At the time of the case, the president and CEO of ING Bank was reviewing the proposed launch strategy.