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Intel Centrino in 2007: A New "Platform" Strategy for Growth
Creating Centrino required Intel to make major changes to its strategy and organization. The development of Centrino was part of Intel's "right hand turn" toward increased performance measures, including improvements coming from increased power efficiencies and away from maximizing processor clock speed. This strategic shift, together with the introduction of new multi-core architectures, fundamentally changed the company's definition of success for the future. It was a dramatic move forced on the company, in part, by physics and changing industry and competitive forces; but also made possible, in part, by a radically innovative microprocessor architecture developed by its scrappy, geographically distant microprocessor design center in Israel. -
MYSQL Open Source Database in 2006 (B)
MySQL, an open source software firm, grew from a small $10 million company in 2004 into a successful $60 million business by 2006. As it had anticipated, MySQL attracted the attention of the big three IT companies, IBM, Microsoft, and Oracle. Actively defending their high-margin, $10 billion database business, the big three implemented various strategies to combat their open source competitors. Details these actions and explores MySQL's options for preserving and growing its business in an increasingly competitive and hostile environment. -
SAP AG in 2006: Driving Corporate Transformation
In April 2006, SAP AG CEO Henning Kagermann faces several critical decisions. Over the past two years, Kagermann has put in place a bold growth strategy for the company--one that aims to transform the business software applications giant into a pioneer in the emerging Service Oriented Architecture (SOA) technology field, a leader in the small- to mid-size enterprise market segment, and a relevant solution provider for a broader population of business software users. Concurrent with the formulation of this strategy, Kagermann has instituted many internal changes and initiatives designed to make SAP into a more agile, efficient, and globally aligned organization. In several cases, these changes to organizational design, leadership, management processes, culture, and values directly challenge what many consider to be the foundational principles of this highly traditional, 30+year-old German company. Kagermann's plan and changes are not met with universal enthusiasm by employees or customers. Approximately one year after his public announcement of SAP's new growth strategy, Kagermann must now assess the situation and decide how to proceed. He has made repeated statements to the market that by 2010 SAP would be a company transformed, and even publicized specific quantitative goals that would substantiate such a transformation. However, in the meantime, a new development has occurred. Resurgent demand for SAP's legacy software applications is driving record revenues and profits and pushing SAP's stock price to new heights. As a result, Kagermann must answer several key questions. How can he determine whether the current pace of execution regarding the new growth strategy is right? How should he sequence the rollout of internal changes still required to support the corporate transformation? And given the industry environment and the resurgent growth of SAP's legacy business, how should he balance resource allocation between short- and long-term opportunities? -
Infosys Consulting in 2006: Leading the Next Generation of Business and Information Technology Consulting
Describes Infosys Technologies' approach to growing the company by expanding its service offerings; moving up the value chain to offer higher-end consulting services; improving its brand equity and recognition as a global company; increasing revenue through repeat business from the company's client base; and entering client relationships earlier in the lifecycle by defining problems and identifying solutions before implementation. Considers whether Infosys Technologies--through the creation of a wholly owned U.S.-based subsidiary, Infosys Consulting--has created disruptive change in the IT consulting industry by leveraging its competency in global delivery to create a new model that shortens the lifecycle from business consulting to implementation, reduces the costs of a typical client engagement, and delivers measurable benefits to clients. The case is set in early 2006. An overview of the Information Technology (IT) services landscape is provided for this period. The case profiles leading onshore (U.S.) and offshore (Indian) competitors and describes their different approaches to global delivery in the IT consulting industry. -
Managing the Strategic Dynamics of Acquisition Integration: Lessons from HP and Compaq
Presents a conceptual framework that decomposes the overall acquisition integration process into four sequential and co-evolving processes: formulating the integration logic and performance goals, establishing the integration planning approach, executing operational integration, and executing strategic integration. Managing the strategic dynamics of acquisition integration in fast-changing competitive environments requires attention to all four processes and the feedback loops between them. An analysis of the HP-Compaq merger, however, suggests that creating a strong feedback loop between the operational integration process and the process of formulating the integration logic and performance goals is difficult. At the same time, it is needed to maintain sustained top management attention to the remaining longer term operational integration tasks and to the multiyear strategic activities necessary to meet the dynamic competitive challenges. -
Matrix Semiconductor Inc. (B): Transitioning from Innovation to Execution
An abstract is not available for this product. -
Electronic Arts in 2005: The Next Generation of Convergence
Looks at the challenges and opportunities faced by Electronic Arts (EA) as it seeks to reinforce its leadership position in game making and digital entertainment. While a leader in PC and console games, EA is also interested in creating content derived from traditional media companies, such as film studios, as well as distributing its digital content through new channels, such as cell phones. -
Managing Internal Corporate Venturing Cycles
This is an MIT Sloan Management Review article. For several decades, research about large companies' internal corporate venturing (ICV) has shown that such activities frequently exhibit substantial cyclicality. Companies may enthusiastically launch ICV initiatives, later shut them down, and still later launch new ICV programs again. Describes four common situations that occur in cycles of corporate venturing. Argues that, unless properly managed, corporate commitment to ICV is apt to fluctuate according to the availability of uncommitted financial resources and the growth prospects of the organization's primary businesses. For example, if the corporation has uncommitted financial resources but the growth prospects of the main business are perceived to be insufficient, then the company may launch a top-down "all-out ICV drive" that is vulnerable to costly mistakes. If, however, the growth prospects of the primary business are perceived to be adequate and there are few uncommitted financial resources, top management is likely to perceive ICV as largely irrelevant. Examines factors contributing to ICV cyclicality and suggests that companies can achieve better outcomes if executives recognize the strategic importance of internal corporate venturing activities and view them as a way of gaining insights into emerging opportunities. -
StubHub (A): January 2004
Shortly after entering business school at Stanford's Graduate School of Business, Eric Baker and Jeff Fluhr decided that they would start a business focused on the secondary market for event tickets. Explores how Baker and Fluhr launched their company, the challenges they faced, and the strategies they pursued. Provides detailed information on company operations as well as on competitors, such as eBay. Positions readers to evaluate the original premise on which the company's growth plans were based--cost-effective customer acquisition through high-profile partners--and develop an alternative strategy. -
Better Medicine Through Information Technology
What impact could information technology have on the problems affecting health care in the United States? It seemed that IT would have a fast impact on improving transaction processing (reducing costs), improving the accuracy of diagnoses and treatment (improving quality), and improving the availability of care in some instances. But what had to happen for IT to play a more significant role in health care today and in the future? What forces had to come to bear, what structural and cultural changes were necessary for this? Were there examples of a successful implementation of IT systems in health care today? If so, what was the impact of their investments? -
Matrix Semiconductor Inc.: Tackling Challenges of Strategic Dimensions
In the spring of 1999, Matrix Semiconductor was a young start-up on the verge of what the founders considered to be a major technological breakthrough. For more than a year, the company had focused almost exclusively on the invention of its technology 3-D semiconductor memory chips that would offer acceptable performance at selling prices significantly lower than competitive and substitute products available on the market. As the company neared the completion of its first prototype, the founders recognized the need to create a more holistic business strategy for the organization. Director of Marketing Dan Steere had recently joined the Matrix team. In his new role, he was asked to help define the practical parameters of a 3-D product, choose which markets to pursue, and decide on an appropriate business model for the company. Through an evaluation of the alternatives available to the company, the case explores the importance of strategy and strategic decision making, even in the early phases of a company. Also highlights some of the success factors and pitfalls young companies must address as they prepare to begin focusing on the development of a legitimate new business. -
Matrix Semiconductor Inc. (A): Tackling Challenges of Strategic Dimensions
In the spring of 1999, Matrix Semiconductor was a young start-up on the verge of what the founders considered to be a major technological breakthrough. For more than a year, the company had focused almost exclusively on the invention of its technology: 3/4 3-D semiconductor memory chips that would offer acceptable performance at lower prices. As the company neared the completion of its first prototype, the founders needed to create a more holistic business strategy for the organization. Dan Steere recently joined the Matrix team, and in his new role as director of marketing, was asked to help define the practical parameters of a 3-D product, choose what markets to pursue, and decide on an appropriate business model for the company (drawing on input from the rest of the Matrix team). Evaluates the alternatives available to the company, exploring the importance of strategy and strategic decision making. Also highlights some of the success factors and pitfalls young companies must address as they prepare to stop focusing solely on the definition of a business opportunity and begin focusing on the development of a legitimate new business. -
HP and Compaq Combined: In Search of Scale and Scope
Describes the strategic analysis that went into identifying Compaq as an acquisition target to help HP achieve its objective of becoming the leading technology company in the world. Through in-depth interviews with HP senior executives, including chairman and CEO Carly Fiorina and others, the case describes the planning and execution of the merger and the actual processes created to achieve the strategic, administrative, and cultural integration of the two companies. -
New New HP in 2004 (A): Leading Strategic Integration
In early 2004, with the organizational integration of the Compaq acquisition mostly completed, top management was looking toward capitalizing on the potential competitive advantages of the strategic integration of both companies to achieve the goal of becoming the leading technology company in the world. Top management had to make sure that HP would achieve superior profitable growth with its portfolio strategy. This would require high performance from its individual businesses in increasingly competitive environments, the development of new strategic leadership skills to capitalize on opportunities for strategic integration across the organization, and continued significant innovation. -
Samsung Electronics in 2004: Conquering the Wireless Digital World
Examines the strategic opportunities available to Samsung Electronics in 2004 and beyond as the company attempts to penetrate the digital home. Key issues include the role of horizontal industry models versus vertical industry models in consumer electronics, and how a global conglomerate like Samsung can best participate in the fast-changing, digital-based consumer electronics industry. -
MySQL Open Source Database in 2004
In 2004, MySQL was a small, $10 million Scandinavian software company that seriously challenged the big three IT companies, IBM, Microsoft, and Oracle, in their high-margin, $10 billion database business. A new phenomenon in the software industry--open source--provided ways for new entrants to challenge the incumbents and gain a foothold in a low-cost segment of the market. This case provides the opportunity to study the forces that would determine whether MySQL could change the database software category in the way Linux did for server operating system space. MySQL relied on a low-cost business model with a global, virtual organization, and the case frames the question of whether this innovative, Internet-based business model could be scaled into a large, profitable growth company. The case describes the open source software phenomenon through a specific case, MySQL, and the innovator's dilemma: MySQL gained a foothold by serving the needs of the growing Web services market that was ignored by the big three DBMS players. After the foothold was established, MySQL was in the position potentially to challenge every DBMS player in the market. -
LVMH in 2004: The Challenges of Strategic Integration
Examines the challenges and opportunities for strategic integration at LVMH, global, luxury brands company based in Paris. The company is composed of established and newly developed brands of luxury goods such as apparel, leather goods, watches, wines and liquors, and fragrances, which it manufactures and sells in countries around the world. Includes in-depth interviews with key LVMH executives. -
Electronic Arts in 2002
Electronic Arts (EA) is a highly successful creator of video games for consoles and PCs. The company also creates content for online gaming. EA occupies a unique place in the information processing industry. The company must have the skills of a Hollywood studio to create compelling content, while at the same time negotiate the technological change and uncertainty associated with the platforms (e.g., consoles, PC, Internet) used to operate and distribute the games. -
Disney in a Digital World (D): A Digital Decade? Disney in 2003 and Beyond
Examines the challenges and opportunities that entertainment conglomerate Disney faces as it tries to commit itself to embarking on a "Digital Decade" in 2003. The company has built its business models largely around analog distribution technologies. Although the company has had a difficult time in the past few years, it still generates a tremendous amount of cash. -
Charles Schwab & Co. Inc. (B): In 2003
Examines the challenges and opportunities facing Charles Schwab in 2003. The company is a leading brokerage, but the entire industry has been in a severe downturn over the past few years. Schwab made its name as a discount brokerage and grew tremendously in the 1990s, largely as a result of its successful embrace of Internet technologies and efficient customer service and transaction processing. Now competing with the likes of established brokerage houses such as Merrill Lynch, and amid a severe downturn in trading volume, the company is looking for other avenues of growth. Focuses on Schwab's efforts to extend its business model to financial advisers.