Set in April 2022, the case chronicles how Kering-owned luxury-fashion house Gucci underwent a comprehensive creative and cultural transformation, making it more inclusive, agile and digital. Faced with the emergence of the metaverse, Gucci decided to take the lead, bargaining that a test-and-learn approach would mitigate the risk of operating in such a loosely defined, unproven domain. Under the direction of EVP of Brand and Customer Engagement Robert Triefus, Gucci ran a number of experiments in social gaming, established a dedicated metaverse team, launched NFT drops and scooped virtual real estate. As the cash-flow engine of Kering, Gucci could afford to explore the metaverse without needing to generate revenue immediately. But, as Gucci set ambitious medium-term performance targets for itself and competitors flocked to the metaverse, Triefus and his colleagues had to address several questions; from sizing the addressable and obtainable market opportunity to seizing its innovation potential.
Set in September 2018, the case describes De Beers' attempt to halt the escalating disruption to its core business posed by diamonds grown in laboratories. Since its inception over a century ago, De Beers had created and nurtured the perception of diamonds as rare objects and exclusive symbols of love. But lab-grown diamond makers now had the capabilities to mass-produce and sell at a discount diamonds with the same optical, chemical and physical characteristics as natural ones, possibly jeopardising the entire mined-diamond industry. To counter the threat, De Beers introduced its own lab-grown diamond jewellery brand, called Lightbox. Lightbox diamonds were positioned as cheerful fashion items and sold directly to consumers at a substantial discount to generic lab-grown diamonds. Over its history, De Beers had had a remarkable track record of dwarfing competition. Would it succeed this time?
The case analyses how Burberry developed and executed a strategy centered on millennial consumers, British appeal and distinctive digital capabilities, transforming the sesquicentennial brand into an international luxury powerhouse. Burberry's digital transformation was spearheaded by CEO Angela Ahrendts and Chief Creative Officer (CCO) Christopher Bailey. Between 2006 and 2014, the duo launched a multitude of initiatives, such as innovative social media campaigns, livestream fashion shows, and a new e-commerce platform, enabled by a state-of-the-art technological infrastructure and a closely connected organisational culture. When Ahrendts left to join Apple, Bailey assumed the position of CEO and CCO at Burberry. In May 2015, 10 months into his new dual role, Bailey prepared to report mixed results for the last financial year and reveal his plans to address the challenges presented by the changing competitive landscape.
Established in 1969 as a cosmetics lab in the city of São Paulo, Natura grew briskly over the ensuing decades and by 2004 it had become Brazil's largest beauty company. Unlike its competitors, Natura was built on the principle of reconciling socioecological sustainability with value creation. During the 2010s, Natura evolved from a strong regional player focused on a single brand and direct sales to a multinational, multi-brand, multi-channel group and renamed itself Natura &Co. Its three business units, Natura, Aēsop and The Body Shop, operated independently, with decision-making autonomy and their own CEOs and executive teams. Each unit continued to grow and operate sustainably, but group profitability plummeted. In May 2019 Natura &Co announced that it had agreed to acquire mass-market beauty company Avon in a transaction worth $3.7 billion. The takeover would present several challenges, from turning around underperforming Avon to developing a coherent corporate strategy without betraying Natura's sustainability ethos.
Leaders love to talk about corporate culture and values, yet many companies have a disconnect between what leaders preach and what is practiced throughout the organization. Improving corporate culture requires a sustained effort over time. A first step: Look at how well those values are being communicated to the workforce.
Set in January 2018, the case presents the situation facing Ferrari Chairman and CEO Sergio Marchionne as he considers the future of the septuagenarian racing and luxury performance car company. During his tenure, Marchionne steered Ferrari onto a trajectory of sustained profitable growth. He split the company from Fiat-Chrysler, floated it on the New York Stock Exchange and expanded production beyond a self-imposed limit of 7,000 cars per year. Between 2015 and 2017 shipments increased 10% and share price more than 100%. But the auto industry was undergoing structural change, including the emergence of electric-motor technologies, toughening emissions regulations and changing consumer preferences, which could render Ferrari's strategy irrelevant. Marchionne pondered various options, such as the introduction of an electric supercar and an exclusive SUV - options that had profound implications for resource allocation and other strategic decisions.
It's common practice to develop a handful of strategic priorities to focus strategy -but formulated correctly, they're also useful communication tools for both internal and external stakeholders. Clear, credible priorities linked to explicit metrics offer a framework for assessing progress toward the company's goals, in a way that abstractions like vision or mission cannot.
This is an MIT Sloan Management Review article. Businesses develop strategies to address complex, multi-layered business environments and challenges -but to execute a strategy in a meaningful way, it must produce a set of specific priorities focused on achieving clear goals. Rather than trying to boil the strategy down to a pithy statement, executives will get better results if they develop a small set of actions that everyone gets behind.
This is an MIT Sloan Management Review article. When developing strategy for execution, managers often want to start by setting their strategic priorities, but that's a mistake. Management teams should start by identifying the corporate vision and critical vulnerabilities -both of which help clarify and shape priorities.
This is an MIT Sloan Management Review article. Organizations often struggle with corporate strategy because executives lack clarity on how parts of the business fit together to create and capture economic value. A simple framework can help leaders understand the relationship between corporate and business unit strategies.