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In the early 1990s, grocery suppliers and retailers joined forces to streamline operations--an initiative called "efficient consumer response." Today, suppliers feel like they're not getting their fair share of the profits from ECR. But they stand to lose more if they give up on it, the authors say.

Online grocery retailing, despite its unproven track record, had generated a substantial amount of interest by mid-2000. Although no online grocery retailer had managed to develop a business model that consistently delivered profits and created value for the customer, several companies touted value propositions and fulfillment models that hoped to overcome the challenges facing the industry. Presents five companies with different fulfillment models: Streamline, Webvan, NetGrocer, Tesco Direct, and Le Shop. Challenges readers to think about which online grocer creates the most value for customers and which grocer will likely be able to overcome the challenge of fulfillment, i.e., building the last mile to the customer.

In April 2000, Stelios Haji-Ioannou launched easyRentacar, his latest Internet-based business. EasyRentacar was just one of several companies operating under the U.K.-based parent company, easyGroup, which also managed easyJet airlines and easyEverything, a chain of Internet shops. Haji-Ioannou, chairman and owner of easyGroup, was a charismatic and wealthy entrepreneur known for his down-to-earth, no-frills style that had come to exemplify the easy brand. After signing a deal with DaimlerChrysler to lease 5,000 of its Mercedes A-Class vehicles, Haji-Ioannou entered the rental car business with the goal of offering low rates. He believed that established players in the rental car business, such as Budget, Avis, and Hertz, had formed a cartel that fed off the corporate client. He aimed to provide a low-cost alternative for consumers who paid out of their own pockets. Illustrates how Haji-Ioannou has once again entered a new business with the goal of redefining the existing industry business model to add shattering value for the customer.

By February 2000, easyEverything, the first chain of large Internet cafes to be conceived anywhere in the world, had already successfully launched five shops in London. The company also aggressively planned to launch an additional 50 shops across Europe by 2002. EasyEverything was just one of several companies operating under the U.K.-based parent company easyGroup, which also managed easyJet airlines and several other start-up ventures. Stelios Haji-Ioannou, chairman and owner of easyGroup, was a charismatic and wealthy entrepreneur known for his down-to-earth, no-frills style that had come to exemplify the easy brand. His mission for easyEverything was simple: to make easyEverything the cheapest way to access the Internet. He also envisioned easyEverything as a virtual alternative to department stores, where users could shop, send e-mails, and surf the Internet. However, some industry experts questioned whether Internet cafes were a viable long-term concept because of rapid changes in technology, such as wireless Internet access.

Stelios Haji-Ioannou, the 32-year-old CEO and founder of easyJet airlines, achieved profitability for the first time in 1999, almost four years after launching his London-based, low-cost carrier. The concept behind easyJet was to offer low-cost airline service to the masses, and the airline accomplished this by adopting an efficiency-driven operating model, creating brand awareness, and maintaining high levels of customer satisfaction. A key issue in the case is whether the airline will continue to grow and survive in the highly competitive, low-cost segment of the market. In 2000, Haji-Ioannou was anxious to try his hand at launching other businesses, so he started a chain of Internet cafes. Some questioned whether Haji-Ioannou would be able to transfer his low-cost business model successfully to Internet cafes. Undeterred, Haji-Ioannou moved ahead with his plan to create easyEverything, with the belief that he could make a profit by encouraging customers to surf the Internet, send e-mail, and shop online. A 2002 and 2001 ECCH award winner.

Stelios Haji-Ioannou, the 32-year-old CEO and founder of easyJet airlines, achieved profitability for the first time in 1999, almost four years after launching his London-based, low-cost carrier. The concept behind easyJet was to offer low-cost airline service to the masses, and the airline accomplished this by adopting an efficiency-driven operating model, creating brand awareness, and maintaining high levels of customer satisfaction. A key issue in the case is whether the airline will continue to grow and survive in the highly competitive, low-cost segment of the market. In 2000, Haji-Ioannou was anxious to try his hand at launching other businesses, so he started a chain of Internet cafes. Some questioned whether Haji-Ioannou would be able to transfer his low-cost business model successfully to Internet cafes. Undeterred, Haji-Ioannou moved ahead with his plan to create easyEverything, with the belief that he could make a profit by encouraging customers to surf the Internet, send e-mail, and shop online. A 2002 and 2001 ECCH award winner.

Since 1993, the Aravind Eye Hospital had grown significantly in terms of service delivery and infrastructure, having added a fourth hospital to its operations. Plans were underway in 2000 to set up a fifth hospital. Aravind had also made progress in two other key areas. First, it set up its own manufacturing facility, Aurolab, to produce an intraocular lens (IOL), given that cataract surgery using IOL implants was most successful in treating blindness. Second, Aravind created the Lions Aravind Institute of Community Ophthalmology, a training facility designed to educate health-related and managerial personnel in the development and implementation of efficient and sustainable eye care programs in India, Asia, and Africa. In July 2000, Aravind's founder, Dr. Venkataswamy, now 81 years old, continued his campaign to spread the Aravind model to every corner of India, Asia, and Africa. Ends with a conversation between Dr. Venkataswamy and the case writers, during which he explains what still needs to be done to eradicate blindness around the world.

In June 1999, Leif Abildgaard, the managing director of Akzo Nobel UK, faced a difficult decision: he had to figure out how to revive the company's trade business. Akzo Nobel UK had two principal lines of business: the retail business, which sold paint to the domestic, do-it-yourself market, and the trade business, which sold paint to professionals using a network of traditional paint merchants, builders merchants, and the company's own distribution outlets. Abildgaard, along with some of his more senior managers, decided in 1999 to reduce the number of brands in the trade business portfolio. Although Akzo Nobel had successfully reduced the number of brands in its retail business portfolio, no attempt had ever been made to drop brands from the trade portfolio. Because the trade business consisted of professionals who tended to be brand loyal, Abildgaard knew that any decision he made would likely alienate some of his customers. Nevertheless, Abildgaard pressed ahead in his effort and had to decide which brands to discontinue.

Highlights the issues involved in the launch of an infertility product and procedure that allows women to become pregnant without having to undergo unpleasant hormone stimulation or experience dangerous side effects. In bringing its product to market, Medi-Cult, a small biotechnology company, must deal with regulatory constraints, larger competitors, and the challenges of introducing a new product into the local and global marketplace. Questions raised are: Should the product be priced according to its perceived value? Should Medi-Cult pursue a penetration or market skimming strategy in pricing the new product? How will the contribution margin be affected if a global, regional, or multinational pricing strategy is chosen? What are the ethical issues in pricing pharmaceuticals?

Manufacturers and retailers traditionally have seen each other as adversaries, but the benifits generated by trusting relationships between such old foes as Procter & Gamble Co. and Wal-Mart Stores show that fear and intimidation may not be the most effective way for manufacturers and retailers to deal with each other after all. Studies of manufacturer-retailer relationships in a variety of industries reveal that exploiting power has three major drawbacks: it can come back to haunt a company if the balance of power changes; victims will ultimately seek ways to resist such exploitation; and working as partners allows retailers and manufacturers to provide customers with greater value than they can when they try to exploit each other. Moving a relationship from the power game to the trust game is difficult, requiring a change in culture, management systems, and attitudes. But the success of organizations such as Marks & Spencer, Kraft, and E.J. Ekornes all testify to the benefits of making the effort. In rapidly changing environments, success will go to those who learn to make the leap of faith.