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PittaRosso, a traditional Italian shoe retailer, is implementing an AI system to provide pricing and promotion recommendations. The system allows them to implement changes that would affect both the top of funnel and bottom of funnel activities for the company: once the objective function was defined, they could plan the season and choose which products to markdown and by how much, which additional promotions to apply and when, and how much to spend on online marketing. But what was the right objective function? Should they focus on revenues, margins, or the sell through of older inventory? Each department had different views. The case supplement spreadsheet contains a simplified version of the AI system to allow students to examine the effect of different strategic and tactical decisions and make data informed choices and arguments, in addition to the information provided in the case.

Spreadsheet supplement to case 522046.

Sirona Hygiene Private Limited (Sirona Hygiene) started operations in 2015 with its launch of PeeBuddy—a portable urination device for women. For Sirona Hygiene, the first four years had been extremely satisfying, as the company was able to launch five unique products and 15 differentiated products across its three brands—PeeBuddy, Sirona, and BodyGuard. Each brand had its own unique value proposition and operated in a different product space. The company’s founder was looking for additional funding as he moved toward achieving his mission of tripling the company’s growth by 2022. When it came to investor mindsets, most investors were traditional in their thinking and sought to invest in single brands. As such, the company’s founder was considering consolidating all of the brands under the corporate brand—Sirona Hygiene. Brand articulation, strategy formulation, and fundraising were all interlinked, and to steer the firm to its next journey, a sequential path was imperative. The question was clear, but there were no straight answers.

After a child was seriously injured by a toy that was alleged on social media to be one of Magformers' products, Chris Tidwell, CEO of the company, had to determine the best way to deal with the crisis. Magformers' signature products were sets of shaped plastic pieces with strong cylindrical magnets embedded in the edges that allowed children to build things. Beck White, a 4-year-old, ingested 13 magnets from a copycat product sold by IMDEN on Amazon's website. He needed surgery to remove parts of his colon, intestine, and appendix. On December 27, 2018, Beck's mother, Jennifer, posted a warning about the danger of magnetic toys to other parents on Facebook. The post generated a social media firestorm in which Magformers was incorrectly identified as the toy at fault. At the close of the case, Chris Tidwell faced two problems. First, Tidwell needed to figure out how to restore the brand reputation of Magformers in the aftermath of the Beck White incident. Second, he needed to figure out how to address inferior and unsafe products that were sold on Amazon.

Ludesco, an international festival of games and gaming experiences held in Switzerland, had enjoyed growth since its inception in 2010, leading to an impressive 10,000+ visitors during the tenth edition of the festival in 2019. The success of the festival was owing to the unique, fun, and unforgettable experiences in which visitors could immerse themselves throughout the festival weekend. However, misfortune struck in 2020, when the organizing committee was forced to cancel the event due to the global COVID-19 pandemic.<br><br>With no end to the pandemic in sight, the committee wondered if this could be the opportune time to pursue a stronger social media presence. What challenges would Ludesco face in creating digital engagement? How could Ludesco’s organizing committee increase digital engagement through social media that complemented the offline festival? What type of content could encourage participation and create a sense of community, while simultaneously generating build-up for the festival?

Ludesco, an international festival of games and gaming experiences held in Switzerland, had enjoyed growth since its inception in 2010, leading to an impressive 10,000+ visitors during the tenth edition of the festival in 2019. The success of the festival was owing to the unique, fun, and unforgettable experiences in which visitors could immerse themselves throughout the festival weekend. However, misfortune struck in 2020, when the organizing committee was forced to cancel the event due to the global COVID-19 pandemic.<br><br>With no end to the pandemic in sight, the committee wondered if this could be the opportune time to pursue a stronger social media presence. What challenges would Ludesco face in creating digital engagement? How could Ludesco's organizing committee increase digital engagement through social media that complemented the offline festival? What type of content could encourage participation and create a sense of community, while simultaneously generating build-up for the festival?

The case is a narration of the 20-year journey of the All India Society for Electronics and Computer Technology (AISECT), a social enterprise offering information and computer technology (ICT) services, including skill development, higher education, financial inclusion, and e-governance, to youth in rural and semi-urban areas of India. It reflects the vision of AISECT's Founding Chairman, Santosh Choubey, to build a social organization aimed at disseminating science and technology (S&T) knowledge, services, and solutions to underserved rural areas in India and generating job opportunities for rural youth. In its initial years, AISECT joined a Government of India initiative to introduce and offer basic computer education to students in government high schools in Bhopal. AISECT developed a model in which it trained local youth to become entrepreneur-trainers who could operate ICT centers at the government schools, receiving a share of the government's funds. During the early nineties, AISECT set up ICT training centers in the selected government schools in MP and built a franchisee network of sustainable multipurpose training centers (MPTCs). The centers, owned and operated by village-level entrepreneurs (VLEs), would provide ICT-based and other skill-based education and services to rural communities. Through the MPTC model, AISECT not only penetrated and spread IT literacy in the semi- urban and rural areas of the state but also generated job opportunities for rural youth through its "train the trainer" model. The case is set in March 2005, when Choubey relives the struggles, challenges, and successes along the way and is gradually carried forward into the future. The case ends with Choubey contemplating the road ahead for AISECT. With the skill education landscape changing and new entrants competing for limited government funds, what should AISECT do to maintain its leadership position and ensure its sustainability and continued expansion across India?

Dalian Xinyi Electronics Co., Ltd. (Dalian Xinyi), founded in 2014 and based in the province of Liaoning, China, had created a catch doll brand, Paw Toy, and operated more than 10 physical catch doll stores across the country. To deal with fierce competition from offline competitors, Dalian Xinyi had developed an online claw game application (app) in 2018 and had become a domestic Chinese catch doll brand, operating both an online app and offline stores. Although the performance of the online catch doll app was improving, especially in the context of the COVID-19 pandemic, Zefei Su, the founder and president of Dalian Xinyi, knew that the online app still faced design flaws such as a lack of ranking and sharing functions, problems with simple brand promotion strategies, and fierce competition from other online catch doll apps. Su was facing an important decision concerning Dalian Xinyi’s future: Should the company return its focus to the operation of offline catch doll stores, even while online catch doll gaming seemed to be a future trend?

Dalian Xinyi Electronics Co., Ltd. (Dalian Xinyi), founded in 2014 and based in the province of Liaoning, China, had created a catch doll brand, Paw Toy, and operated more than 10 physical catch doll stores across the country. To deal with fierce competition from offline competitors, Dalian Xinyi had developed an online claw game application (app) in 2018 and had become a domestic Chinese catch doll brand, operating both an online app and offline stores. Although the performance of the online catch doll app was improving, especially in the context of the COVID-19 pandemic, Zefei Su, the founder and president of Dalian Xinyi, knew that the online app still faced design flaws such as a lack of ranking and sharing functions, problems with simple brand promotion strategies, and fierce competition from other online catch doll apps. Su was facing an important decision concerning Dalian Xinyi's future: Should the company return its focus to the operation of offline catch doll stores, even while online catch doll gaming seemed to be a future trend?

Entering a new product category or new geographic area may mean adding one or more new competitors with names similar to that of the now-extended brand names those competitors have trademarked or can claim by common law as first users. A company extending its brand therefore may be unable to use its own trademark legally unless it can show the brand extension as a natural expansion. Most such lawsuits settle, but this study uses legal research methods to examine 12 that went to trial. Results show a brand extender most often prevailing in court if and only if (1) its extension into a new product category is seen as similar to its current offerings or (2) its geographic expansion is seen as simply moving into an area in which it already has market presence. By contrast, a firm may lose out to a company already using a similar name for a diverse set of reasons: products differing from their current offerings, differing trademarks, weak marks, or if buyers seem unlikely to encounter both users of the name in question. But no bright line divides winners from losers.

On April 17, 2021, the United States Consumer Product Safety Commission (CPSC) released an “urgent” warning to consumers regarding the Peloton Tread+ after thirty-nine incidents had been reported related to the treadmill in which children and pets were injured. The treadmill was sold by Peloton Interactive Inc. (Peloton), a US company that sold fitness equipment such as exercise bikes and treadmills, as well as on-demand fitness classes. According to the CPSC, the accidents could have happened as a result of design flaws in the Peloton Tread+, including the height of the treadmill, which allowed a small child or pet to crawl underneath. The CPSC requested that Peloton recall the product but Peloton refused, claiming that there were no safety issues with the product and that users had failed to follow proper instructions. Industry experts suggested that Peloton was not wise to hold consumers responsible for misuse, and some consumers filed lawsuits against Peloton. The company had to decide whether to reconsider the decision to not issue a recall and determine how to avoid similar incidents in the future.

Pai’s Bakery was a 30-year-old family business based in Belagavi, in the southern Indian state of Karnataka. The owner was working on a sales territory realignment plan in response to complaints from the company’s sales team. Sales representatives claimed that their wages were not proportionate to their efforts and that productivity was hampered by poor territory planning and restrictive business policies. The Pai’s Bakery owner wanted to address the sales representatives’ concerns and improve the company’s relationship with all retail outlets to achieve key business objectives. Based on these priorities, she prepared a realignment plan for the sales territories. However, she was surprised by the negative reaction by the sales representatives, who opposed the new plan. Pai’s Bakery had to find a mutually beneficial path forward immediately to avoid serious damage to the company’s business operations.

On April 17, 2021, the United States Consumer Product Safety Commission (CPSC) released an "urgent" warning to consumers regarding the Peloton Tread+ after thirty-nine incidents had been reported related to the treadmill in which children and pets were injured. The treadmill was sold by Peloton Interactive Inc. (Peloton), a US company that sold fitness equipment such as exercise bikes and treadmills, as well as on-demand fitness classes. According to the CPSC, the accidents could have happened as a result of design flaws in the Peloton Tread+, including the height of the treadmill, which allowed a small child or pet to crawl underneath. The CPSC requested that Peloton recall the product but Peloton refused, claiming that there were no safety issues with the product and that users had failed to follow proper instructions. Industry experts suggested that Peloton was not wise to hold consumers responsible for misuse, and some consumers filed lawsuits against Peloton. The company had to decide whether to reconsider the decision to not issue a recall and determine how to avoid similar incidents in the future.

In April 2012, Qingke Facilities Leasing Ltd. (Qingke), a technology-based real estate management company, was founded to provide a long-term apartment rental service to young professionals in Shanghai and some other cities. The goal was to rent constructed but vacant apartments on the Shanghai market by leveraging information technology resources for all operations and by employing a model of standard apartment renovation.<br><br>A decentralized long-term apartment rental model was introduced to China’s market in 2014 by leading Internet-based companies and was booming by 2017. At the end of 2018, Qingke was one of the top ten brands in the long-term apartment rental market, running 100,000 renting units in coastal cities in China with revenue of ¥1.2 billion that year. However, to sustain rapid market growth and create a large-scale Internet economic model, Qingke would have to overcome many uncertainties and challenges, including capital acquisition; strong competition; constraints to its financial resources, team building efforts, work force development, and sustainability; and extension of the business model.<br><br>By the beginning of 2019, Qingke had come a long way; the US$100 million in funding he received in 2018 signified a major accomplishment in Qingke’s progress since its establishment in 2012. However, competitors were targeting Qingke with the aim of overtaking its market share. How could the recent funding strengthen Qingke’s position in the housing rental market and gain sufficient market share? Should Qingke increase investment in information technology to upgrade its data processing abilities and capacity, or should it build its brand to promote market exposure and awareness?

The general manager of Lidu Liquor Co. Ltd. (Lidu) was considering the next phase of the company’s marketing plan. From 2016 to 2018, unit sales had risen from ¥80 million to ¥300 million, largely due to Lidu’s unconventional marketing programs. But by mid-2019, national and domestic brands had noticed Lidu’s success. With competition increasing, Lidu’s future growth might not come as easily. The general manager wondered how best to modify the company’s immersive experiential marketing plan so that Lidu could stay ahead of the competition.

The general manager of Lidu Liquor Co. Ltd. (Lidu) was considering the next phase of the company's marketing plan. From 2016 to 2018, unit sales had risen from ¥80 million to ¥300 million, largely due to Lidu's unconventional marketing programs. But by mid-2019, national and domestic brands had noticed Lidu's success. With competition increasing, Lidu's future growth might not come as easily. The general manager wondered how best to modify the company's immersive experiential marketing plan so that Lidu could stay ahead of the competition.

In early December 2020, the sales controller for Star Medical Equipment, Brazil, was working on the sales forecast for 2021. Sales in 2020 had been severely affected by the COVID-19 pandemic, but ultimately recovered, and the company had ended the year with about 7 per cent growth over 2019. Predicting the market demand for 2021 was uncertain, as the pandemic was not over and newer strains of the virus were afflicting different parts of the world, again and again. What was certain was that freight costs and transfer prices would increase significantly in 2021. If the sales controller attempted significant sales growth, the organization's gains could be high; its success was uncertain, while a reduction in profitability was certain. He had to decide whether he should play it safe and follow global business guidelines to increase profitability or gamble with ambitious sales and market share growth plans for 2021.

ComfortDelGro Taxi, the leading taxi company in Singapore, was established in 1970 as NTUC-Comfort Taxi. In 2015, it was the dominant taxi operator in Singapore. However, starting from 2012, the company began to face increasing competition from third-party ride-hailing (TPH) companies like Grab and Gojek, whose respective market capitalisations far exceeded that of ComfortDelGro Taxi. Even though the company consistently adopted new technologies to improve its performance and stay ahead of the competition, the challenge posed by these new entrants was unprecedented. In 2020, the Covid-19 pandemic dealt a further blow to the company within an already tough operating environment. ComfortDelGro Taxi was quick to respond with a slew of initiatives to support its drivers and the community. Meanwhile, a new regulatory framework for the point-to-point (P2P) transport industry was implemented by the Land Transport Authority. Notwithstanding the above, commuters appear to have embraced third-party ride-hailing companies, resulting in an exponential growth in their vehicle population, and a massive 40% reduction in ComfortDelGro Taxi's fleet within 5 years. How should ComfortDelGro Taxi meet these challenges?

In mid-2021, Maaz Sheikh, cofounder and CEO of STARZPLAY, a Dubai-based subscription video on demand (SVOD) provider that catered to the Middle East and North Africa region, was wrestling with how to find the right balance between continued subscriber growth and profitability. Founded in 2015, the company was the first major SVOD player in the region providing high quality and affordable Hollywood content. STARZPLAY rapidly grew its subscriber base through a business model sensitive to the varied tastes and payment preferences of households in the region and was able to maintain leadership even after global players like Netflix and well-funded homegrown companies entered the market. At the time of the case, several U.S. major studios, including the likes of Disney, Paramount, and HBO, were in talks with local operators about potential partnerships. Sheikh needed to prepare an appealing proposal, knowing full well that other regional players were likely doing the same and that these studios might decide to enter independently. He had to think carefully about the company's brand position and its plans regarding content, pricing and payment options, and marketing spend in order to fuel continued growth, while managing the increasing pressure from investors to drive the business toward profitability. Sheikh and his management team had big ambitions for STARZPLAY. What would be the plan that ensured the company continued to prosper despite the mounting competition?