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
The "1mg" case focuses on a key strategic dilemma of an entrepreneur in times of digitalization. Should 1mg be just an e-pharmacy and designed as pure pipeline business, a marketplace or be a hybrid between these two? Should it adhere to the current stakeholder constellation, or should the needs of patients, and no longer those of doctors and hospitals, be at the centre of the healthcare ecosystem? India's healthcare market in 2014 was expected to grow with 14% CAGR reaching by 158B$. E-pharmacies not only enjoyed the support of the national government to reduce costs and improve quality of medication, but also to increase access to people in rural areas, comply with India regulation and increase sales tax collection. Traditional pharmacies were regulated under the Drug & Cosmetics Act whereas e-pharmacies were regulated under the IT Act. These different regulatory bases created distortion. It was expected that regulation would be clarified and give digitalization a strong boost. That said, the traditional brick and mortar pharmacies were still playing a critical role in the overall supply chain. At the same time a plethora of competitors were attracting funds by international venture capitalists and gain market traction, either based purely on new digital technologies or on their existing healthcare footprint. The case describes the different market segments based on demographics, health habits, age, and combines it with the penetration data of the mobile industry in the life of urban & rural Indians. The case also tackles the question of profitability versus growth and provides all the elements needed for a debate over the business model choice to be implemented.
As a new CEO, Thomas Schinicker, who took over Roche Diagnostics Centralized Point of Care Solutions (CPS) in early 2018, he faced a dilemma. HIs executive team had already engaged in a lengthy one-year strategy development process in 2017 mapping out the scenarios for the future and defining where Roche Diagnostics should play and how it should win. All they needed was his sign-off to go ahead and announce the new strategy. What should he do?
The CEO decided to hold off on announcing anything before including everyone, all 1600 employees in Roche Diagnostics, in engaging in the strategy development process, in getting their views on where the company should play and how it should win in the future. Frank Desiere, VP Strategy and Business Development, Roche Diagnostics CPS now faced a dilemma. After all of the discussions and decisions made in 2017 based on the approach he facilitated, how was he going to engage 1600 people in developing the strategy, when the strategy had already been developed?
Frank Desiere, VP Strategy and Business Development, Roche Diagnostics CPS and his team including Guido Bartalena, Head of Strategy, Roche Diagnostics CPS had together created a 6 months journey called BOOST or Building our Organization's Strategy Together of engaging 50% of the organization (through volunteer sign-ups). BOOST comprised 58 interactive workshops that ran between February and June 2018 across all CPS's main sites and several additional locations. The workshops were facilitated by 72 senior leaders from across the organization and 803 employees took part in the sessions, both from within CPS and from other Roche Diagnostics business areas. Over 11,300 ideas were generated during the program and Bartalena's team qualified and clustered all of them, to ensure that every contribution was considered. However Bartalena was now faced with a critical fork in the road. How was he going to incorporate these ideas into the overall strategy, and how would it be communicated back to the community?
This case illustrates how Vontobel, a mid-size Swiss private bank successfully built out its multi-issuer platform for Structured Products (SPs). The case starts by describing the industry of SPs, the market for SPs in Switzerland, and on Vontobel building its know-how in SPs. As a result, deritrade® Single-Issuer Platform (SIP) was launched in 2010. The platform helped gain operational efficiency, relieve employees from doing manual operations and thus allow scarce resources to focus on the core businesses. The bank then gained experience in the market with its SIP. Once the SIP delivered its full power and the SP market stagnated, Vontobel considered opening its platform to its competitors to become a Multi-Issuer Platform (MIP). Yet, there were numerous challenges faced by the company with this decision: cannibalization, convincing competitors to join, pricing, and governance.
This case is about implementing a strategic initiative at Grand Circle Corporation, one of the largest international tour operators in the US, sending over 1 million retired Americans overseas since 1985. After having launched the Grand Circle Foundation in 1992, the owners come to the realization in 2003 that it is not achieving its original mission. The case describes the challenges that the company is facing in trying to embed corporate philanthropy as part of their business model rather than it being a side show. The reader is left with a number of unanswered issues concerning what the owners, Alan and Harriet Lewis should do.