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Founded in 1994 as a private think tank, Digital Economy focused on researching the effects of emerging technologies on competitive strategies and high-performance organizations. By the late 1990s, clients demanded consulting services to complement previously purchased research services. The company's business model and offerings flourished in the technology boom. Then, in the first quarter of 2001, the technology boom began to deflate. Digital Economy's decision makers were confident that the changes in the environment would be short lived and that the company's business model and offerings were infallible. Unfortunately, such an assessment and subsequent decisions led to substantial losses in the next two years. The parent firm pressured Digital Economy to realize a profit by the following fiscal year or be completely shut down or consolidated. Despite Digital Economy being in a state of crisis, the management team failed to see the need for change.

Canada's tobacco manufacturers all faced similar marketing challenges: a decrease in the proportion of population who smoke, a growing list of government restrictions on promotional opportunities and increases in taxation on tobacco products. Despite the variety of packaging formats, the 10 most popular brands, produced by the three leading manufacturers, had been priced identically. When the number two manufacturer re-introduced one of its products as a discounted brand, the marketing executives at the rival companies needed to decide on their response. The supplement to this case, Cigarette Wars (B), product 9B04M010 discusses the response of the other two leading tobacco manufacturers.

Canada's tobacco manufacturers all faced similar marketing challenges: a decrease in the proportion of the population who smokes, a growing list of government restrictions on promotional opportunities, and increases in taxation on tobacco products. Despite the variety of packaging formats, the 10 most popular brands, produced by the three leading manufacturers, had been priced identically. When the number two manufacturer reintroduced one of its products as a discounted brand, the marketing executives at the rival companies needed to decide on their response.

Supplements the (A) case.

Harlequin Enterprises is a well-known publisher of series romantic fiction and is facing threats to its leading position as the world's largest romance publisher. This threat comes from the growing popularity of single title women's fiction novels. While Harlequin was the dominant and very profitable producer of series of romance novels, research indicated that many customers were reading as many single-title romance and women's fiction books as series romances. Facing a steady loss of share in a growing total women's fiction market, Harlequin convened a task force to study the possibility of re-launching a single title women's fiction program. (A video is available, product 7B03M007, that features four senior managers discussing the challenges the company faced.)

Henry Birks & Sons, Inc. (Birks) is a large fine jewellery retail chain. The president and chief executive officer has spent several years streamlining the Canadian operations and building his management team in anticipation of an expansion. Its parent company, Iniziative Regaluxe, is looking for a return on its $65 million investment in Birks. This return will come about only if Birks proceeds with an initial public offering, or is bought out by a major competitor. Although the chief executive officer believes that expansion in the United States is the only way to find growth, this strategy is called into question when environment factors are examined. He must decide if expansion into the United States is the answer.

Harlequin Enterprise, a well-known publisher of series romantic fiction, is facing threats to its leading position as the world's largest romance publisher, posed by the growing popularity of single-title, women's fiction novels. Harlequin was the dominant and very profitable producer of series romance novels, but research indicates that many customers are reading as many single-title romance and women's fiction books as series romances. Facing a steady loss of share in a growing total women's fiction market, Harlequin convened a task force to study the possibility of relaunching a single-title, women's fiction program.

The president and chief executive officer of a large food manufacturer is preparing his company's strategic agenda for the next five years. One of the top five food manufacturers in Canada, the company went public and restructured its management team six years ago. The efforts were successful, resulting in an increase in the company's market share. Recent food industry trends, however, added "box" stores and private label brands to the domestic competition. At the same time, the terms of the Canada-U.S. Free Trade Agreement are expected to abolish food-related tariffs within two years, opening up competition from across the border. Although the company has experienced success in the past five years, the president and CEO needs a strategic plan that will take the company to the next level.

The president and chief executive officer of a large food manufacturer is preparing his company's strategic agenda for the next five years. One of the top five food manufacturers in Canada, the company went public and restructured its management team six years ago. The efforts were successful, resulting in an increase in the company's market share. Recent food industry trends, however, added box stores and private label brands to the domestic competition. At the same time, the terms of the Canada-U.S. Free Trade Agreement are expected to abolish food-related tariffs within two years, opening up competition from across the border. While the company has experienced success in the past five years, the president and chief executive officer needs a strategic plan that will take the company to the next level.

Ebao is a year-old Web-based technology company whose founders believe that their e-insurance programs and products have the potential to improve the overall efficiency of China's traditional insurance industry. In its first year of operation, Ebao has grown into a 70-person organization with offices in Shanghai and Beijing, and almost all the major insurance companies in China have signed up with the company's Web site and are using its e-insurance applications. Ebao's chief executive officer and founder has a long list of challenges to confront in the coming year. The company needs to strengthen its market position in the face of rapidly growing competition and to sustain its rapid growth in a year full of market downturns. As well, Ebao's management team has targeted to achieve break-even by the end of the current year. The company's chief executive officer must determine a concrete business strategy that will lead Ebao onto the next stage of success. His challenge is to build competitive advantage in the new Internet industry and in an emerging market.

The partners of CompleteScript.com, an Internet-based automated prescription filling service, have to decide whether to continue developing their innovative service themselves, to escalate the project with the help of venture capital or to sell the business. One of the partners knew they would need to create a solid plan with a clear strategy and cost structure to prepare for any of the options.

The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster, Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files--which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital.

Grand & Toy is one of Canada's largest commercial suppliers of office stationery. The president of Grand & Toy is wary of the competitive threat posed by Staples, a well-known U.S. office supply company, and is reviewing his company's budget forecast to plan for a meeting with senior managers. He wants to use this opportunity to rethink the company's strategy and ensure all competitive threats and opportunities have been considered.

Canadel is Canada's leading manufacturer of casual dining room furniture. Following Canadel's entry into the U.S. market in 1992, sales had multiplied eight-fold and were expected to reach $125 million in 2000. The three brothers that made up the company's top management team were discussing recent sales results and future orientation of the firm. Questions that surfaced included growth in existing and new markets and competition from established industry giants and new upstarts. The brothers were determined to assess these opportunities and threats in the upcoming weeks.

The music industry has changed dramatically as a result of technological and business innovations that have transformed how music is acquired, and how value is created and distributed. Napster Inc. operated one of several Web sites that allowed Internet users free access to MP3 music files -- which eventually led to lawsuits around issues of the protection of intellectual capital. These issues lead to the examination of the forces at play in the transformation of the music industry, the strategic alternatives for players in the industry and the legal context underpinning the strategic alternatives, with a particular focus on the protection of intellectual capital.

Canadel is Canada's leading manufacturer of casual dining room furniture. Following Canadel's entry into the U.S. market in 1992, sales had multiplied eight-fold and were expected to reach $125 million in 2000. The three brothers that made up the company's top management team were discussing recent sales results and future orientation of the firm. Questions that surfaced included growth in existing and new markets, and competition from established industry giants and new upstarts. The brothers were determined to assess these opportunities and threats in the upcoming weeks.

The founders of iCraveTV had a great idea for a potentially lucrative market segment: retransmitting network broadcast television signals to Internet-connected PCs, reaching a worldwide extension market. There were several resourcing obstacles to overcome while entering the fiercely competitive broadcasting industry and building competitive advantage: obtaining rights to the programs, securing paying advertisers, retaining viewers, having sufficient cash and management expertise. Several issues remained unresolved as they moved towards the launch of iCraveTV: negotiating rights from each of the content syndicators or attempting to pay Internet royalties for the programming; and preventing U.S. users from accessing the Canadian site since iCraveTV was legally permitted to retransmit television signals already carried on Canadian cable channels, but due to differences in regulation, it might face U.S. broadcast industry objections if U.S. audiences found access to the iCraveTV signal. A supplemental case, iCraveTV.com (B): The Aftermath of the Pennsylvania Injunction, product 9B01M010, is available.

Workbrain Corporation was a young firm that offered Web-based time and attendance management systems solutions to companies with a blue-collar workforce. The company was the only player in a market niche that it created, offering proprietary systems that relied on technological excellence and alliances with third party vendors. Currently, it was developing a product at the same time as it was preparing a Request for Proposal for a large potential client. Workbrain Corporation didn't have the human resources, organizational infrastructure or external alliances they needed to present the product they envisioned or grow the company into what the chief executive officer envisioned. The newly-hired vice-president of corporate development was responsible for the strategic growth of the firm both internally and externally. He was faced with the task of organizing and re-orienting the company, and needed to develop a plan to grow the company into a market-oriented organization from the project/product-oriented one it was.

Monsanto, a biotechnology giant highly committed to sustainable development efforts, needs to assess the attractiveness of the drinking water treatment industry before deciding its entry to it. Four dimensions of the global water treatment industry are described: types of products and services, applications, end-users and geographical markets. The drinking water treatment segment, which is classified into municipal drinking water treatment and residential drinking water treatment, is examined in depth. Players in these two categories produce the chemicals and equipment necessary to purify tap water supplied to consumers and residential water purification devices. The bottled water industry is considered a substitute of the drinking water treatment segment. The primary objective of the case is to answer the question Is the industry attractive? and to introduce students to industry analysis and industry segmentation.

Monsanto, a biotechnology giant highly committed to sustainable development efforts, needs to assess the attractiveness of the drinking water treatment industry before deciding its entry to it. Four dimensions of the global water treatment industry are described: types of products and services, applications, end users, and geographical markets. The drinking water treatment segment, which is classified into municipal drinking water treatment and residential drinking water treatment, is examined in depth. Players in these two categories produce the chemicals and equipment necessary to purify tap water supplied to consumers and residential water purification devices. The bottled water industry is considered a substitute of the drinking water treatment segment. Teaching purpose: To answer the question "Is the industry attractive?" and to introduce students to industry analysis and industry segmentation.