In February 2007, Diego Papalia, founder and owner of Ottawa Pianos, was getting ready to meet with his daughter, Carmen, to discuss the strategic future of the company. Five years prior, the father–daughter duo had started separate projects within the business. Diego had launched the digital music centre and Carmen had started a piano school, with a plan to reassess which might be the more lucrative endeavour in five years’ time. The DMC sold guitars, amplifiers, drum kits, and various other electronic musical equipment; however, there was a high turnover requirement as music technology was constantly evolving. Carmen’s piano school had grown to over a dozen instructors and 300 students. The downside was that it took up a lot of space— in this case, the entire basement that could otherwise be used for stock storage—and yielded low profit margins. Diego and Carmen had to decide which of the two projects to retain.
This case describes how Boston Medical Center, a hospital and safety net organization, changed its strategic approach to health equity after realizing that previous efforts were not sufficient to address the health disparities among their patients. In 2021, the Health Equity Accelerator was formed to coordinate this strategic approach, which adopted race-based disparities as their primary focus. Over three years the Accelerator demonstrated impressive reductions in racial and ethnic disparities in health outcomes among pregnant women and patients with diabetes. These results reinforced their drive to scale their innovative approach, and set an example for other institutions nationwide. However, scaling presented significant challenges: balancing replicable and standardized "off the shelf" solutions with distributing a "methodology" to enable other institutions to identify their own solutions to inequities in their patient population.
Wowing Coffee Beans Corporation Ltd. (Wowing Coffee) was established in 1997 in Yunnan Province, China. From the beginning it had embraced improvisation—in both its founding of a coffee plantation in China to its decision to produce specialty beans. In early 2020, just as Wowing Coffee explored the new and innovative idea of pairing its coffee estate with tourism opportunities, the outbreak of COVID-19 disrupted everything. With opportunities and challenges coexisting, where would Wowing Coffee go? Who would they sell their specialty coffee to during the lockdown period, and how should they sell it? Should they continue to invest in exploring new tourism opportunities within the plantation or return to supplying raw materials, like they had in the past, just to survive?
Enterprises that own multiple businesses often have a flawed approach to strategy: They focus too much on the makeup of their portfolios and too little on enhancing the businesses in them. Strategies for adding value to a corporation's businesses fall on a continuum. On one end the businesses in the portfolio are completely unrelated; at the other they have many similarities. Each place on the continuum requires a different kind of organizational structure and specific management processes to support it. To succeed at execution, you need to determine where on the spectrum your business falls and then align your portfolio selection, structure, and processes with your vision of how to add value.
In July 2023, managers at Exide Industries Limited (EIL), a prominent player in India’s power-storage industry, faced a pivotal decision during a strategic workshop led by the company’s managing director and chief executive officer. The company had been presented with a groundbreaking yet uncertain opportunity: to develop a metaverse-powered platform for battery customization and testing. This initiative, championed by the chief information officer, aimed to address specific challenges faced by EIL’s original-equipment-manufacturer clients. However, the decision to invest in the metaverse was complex and laden with uncertainties regarding the technology’s future and its alignment with EIL’s strategic goals. The company would have to evaluate the potential risks and benefits of adopting this new technology in order to decide whether or not to proceed with this ambitious project.
Could rice become as crucial as petrol in the fight against climate change? In 2023, Nguyen Duy Thuan, General Director of Loc Troi Group (Loc Troi) Vietnam, was sceptical. His company, the largest rice producer in the country, faced a pivotal moment in its journey. Following a successful pilot program involving 1,000 farmers, the company had started scaling sustainable rice production (SRP). Sustainable rice had much lower emissions and used fewer resources than traditional rice production, which accounted for 12% of global methane emissions and significantly threatened the climate. The pilot had reduced pesticide use by 12%, water use by 25%, greenhouse gas emissions by a third, and flooding and straw burning by using organic treatments. It had also lowered production costs and increased profit margins by 18%. But despite such demonstrable benefits, Loc Troi continued to struggle to convince farmers to grow sustainable rice, which constituted only 5% of its total export volume, due to the time-consuming and costly new practices. Scaling sustainable rice required large investments and without government grants, could be financially draining for the company. Loc Troi's other businesses, like vegetable seeds and fertilisers, were also profitable, so over-investing in rice could hinder their growth. Thuan pondered on how to scale sustainable rice and tap into future demand with Loc Troi's expertise.
By the early 2010s, Keurig Green Mountain (KGM) had lost the momentum that had made it the name in at-home coffee brewing in North America. Following a series of product missteps, negative media scrutiny, and ongoing challenges to its partner relationships, in late 2015, the company was acquired by JAB Holding Company. Now under private control, new CEO Bob Gamgort led efforts to re-accelerate growth and increase penetration past the Keurig brand's respectable yet plateauing 20 million household mark. In just over a year, he led a successful turnaround, salvaging fractured partner relationships, upping productivity, and reducing costs. He and a handful of key executives thus set their sights on new growth in the Fall of 2017. Four options emerged: 1) take the company public again through an IPO, 2) set out for greater global expansion, 3) combine with another coffee business to become a larger player in North American coffee, and 4) diversify beyond coffee through a "pure play beverage" strategy. Gamgort and his team must decide: what is the right strategy to return Keurig to growth?
<p align="justify">Established in 2002, Chengdu, China’s Four Inter Catering Group Co. Ltd. (Four Inter) was a company specializing in Sichuan cuisine and Sichuan culture dissemination. After 21 years of development, Four Inter formed a business model that emphasized both inheritance and innovation of Sichuan cuisine and provided a broader channel for its growth. In 2023, as COVID-19 came to an end, the food and beverage industry ushered in a new round of development. But Four Inter was caught in the predicament of a regional business model. At this juncture of development, Xiaohong Xu, chairperson and CEO of Four Inter, needed to make a decision about the company’s future direction. Should it deepen the awareness of existing brands (refine) or explore the unknown map (expand)?
The case taps into several contemporary and classical issues in the realm of competitive strategy. Set in the luxury resale business, it explores the business models adopted by The RealReal and several of its competitors, such as Vestiaire Collective, in providing a good foundation for exploring the evolution of different paths to profitability in an intensely competitive environment. In exploring the fortunes of key players in this business, the case helps students to apply core strategy tools such as the Business Model Canvas, and activity mapping to understand the process of creating and sustaining competitive advantage. Focused on The RealReal, the case offers the instructor the requisite details to explore the economics of a business model starting from conceptualization, piloting, and scaling, with particular emphasis on the challenges that firms often encounter at each stage. It touches on a wide range of contemporary issues such as the monetization of AI-based insights to reduce operating costs, digital authentication of valuable luxury products, and promoting circularity and sustainability, in addition to the dynamics of platform models.
This case explores the challenges faced by the University of Virginia (UVA) in defending against sophisticated social engineering cyberattacks. Despite proactive measures, UVA Chief Information Security Officer Jason Belford and his team grapple with evolving threats that exploit human vulnerabilities. The case examines the university's cybersecurity landscape, detailing the methods used by cybercriminals and the institution's response strategies, including phishing training and awareness programs. Students are tasked with analyzing the data from phishing simulations and developing new initiatives to foster a culture of resilience. The case provides a platform for discussing the complexities of cybersecurity in large institutions and the critical importance of organizational awareness and proactive defense mechanisms.
In recent years, as the initial surge of new consumer brands has subsided, attention has refocused on established "heritage brands." The real challenge now under study is how a brand can achieve initial success, scale sustainably, and maintain its legacy over time. This case study traces L'Oreal Group's branding strategy evolution since its entry into the Chinese market. Founded in 1909 with a single hair dye product, L'Oreal expanded through strategic acquisitions to become the world's largest cosmetics group. Today, it boasts a portfolio of over 500 brands encompassing hair color, skincare, makeup, and fragrances. Beginning in 1996, L'Oreal introduced diverse brands such as Lancôme and Garnier to China, achieving significant success in the luxury cosmetics segment. However, its penetration into the broader mass skincare market proved challenging. L'Oreal acquired local favorites like Mininurse and Yue-Sai in 2004 to bolster its presence in this arena. Unfortunately, these acquisitions did not meet expectations and gradually faded from prominence. By 2022, L'Oreal had established an investment firm in China, focusing on equity investments to foster deeper collaboration with local brands. L'Oreal's journey in China illustrates a strategic evolution from brand introduction to local acquisitions and subsequent equity partnerships. Each strategic pivot reflects a nuanced understanding of market dynamics, a critical review of past approaches, and an ongoing commitment to innovation in response to evolving challenges.
"Chi Forest, a beverage company founded in 2016, breathed new life into the long-unchallenged Chinese beverage market with its innovative, internet-focused approach. The company was renowned for rapidly creating differentiated blockbusters, including its signature Sparkling Water, Alien Electrolyte Water, R Tea, and Milk Tea Classic. Its Sparkling Water, launched in 2018, quickly took the market by storm and has since maintained its leading position. Over the next three years, Chi Forest saw its sales revenue skyrocket 15-fold from ¥160 million to ¥2.5 billion, making it a force to be reckoned with in China's beverage industry. Chi Forest's rapid rise to prominence captured the attention of entrenched industry leaders, prompting them to unite in an attempt to thwart its development. These industry giants introduced their own sugar-free sparkling water products mirroring Chi Forest's offerings, pressured distributors to exclude its products from their channels, and persuaded suppliers to cut ties with Chi Forest. Flush with financial and logistics resources, these large companies sought to disrupt Chi Forest's dominance in the market. Faced with these hurdles, Chi Forest recalibrated its operational approach. To mitigate its comparative disadvantages, this internet-based company began adopting strategies similar to those of traditional beverage companies, such as building its own production facilities, expanding its distribution networks, and restructuring its organizational framework. In addition, Chi Forest aggressively ventured into the cola sector, a segment long dominated by the duopoly of Coca-Cola and PepsiCo. By launching cola-flavored sparkling water, Chi Forest aimed not only to disrupt the market with another innovative product but also to demonstrate its boldness and readiness to take on the industry titans.
This case study series delves into the innovative evolution of the Yang brothers' business model, segmented into three main parts: Cases A, B, and C. Case A reveals the captivating transformation of the Yang brothers from comedic influencers to pioneers in live stream sales, marking a significant milestone as they became the first to amass over a hundred million followers on TikTok. Their unprecedented popularity and commercial triumph, however, came with its own set of challenges. Numerous editors began segmenting their live streams into a variety of short clips for unauthorized distribution, aiming for profits but instead causing consumer confusion and discontent. The critical issue at hand is: How do the Yang Brothers intend to tackle the problem of these unauthorized clip accounts? Case B follows Case A and outlines the Yang brothers' clever solution: they began licensing their livestreams to clip editors, thus entering the livestream clip distribution market. This savvy strategy not only boosted their profits but also benefited the clip editors, consumers, and other stakeholders involved. However, the rapid increase in licensed editors eventually led to market saturation. The pressing question now is: What strategies should the Yang brothers employ to address this oversaturation? Case C follows Case B and introduces the launch of 'Everyone's Assistant' by the Yang brothers, a platform embodying a novel business model designed to address the saturation and competitive challenges in the livestream clip market. This platform brought a wide array of clip editors and livestreamers together for collaboration, thereby standardizing the industry and accruing significant benefits for both the Yang brothers and other stakeholders. However, this innovation also ignited discussions on the heightened competition and concerns about product integrity, prompting contemplation on the future trajectory of 'Everyone's Assistant': What strategies should the Yang brothers adopt to ensure sustainable expansion of this business segment? This series illustrates the dynamic process of business model innovation navigated by the Yang brothers against the backdrop of an ever-changing stakeholder landscape. Each phase of innovation not only resolves immediate issues but also introduces new challenges, driving the need for continuous innovative solutions. Through relentless innovation, the "Crazy Yang Bros" brand has seen its value soar, benefiting an expanding network of stakeholders-an exemplary model of adaptability and success worth studying.
Supplement to The Crazy Yang Bros (A): Revolutionizing Live Commerce with Comedy. Case B outlines the Yang brothers' clever solution: they began licensing their livestreams to clip editors, thus entering the livestream clip distribution market. This savvy strategy not only boosted their profits but also benefited the clip editors, consumers, and other stakeholders involved. However, the rapid increase in licensed editors eventually led to market saturation. The pressing question now is: What strategies should the Yang brothers employ to address this oversaturation?
Supplement to The Crazy Yang Bros (A): Revolutionizing Live Commerce with Comedy/ (B): Pioneering Livestream Clip Distribution. Case C introduces the launch of 'Everyone's Assistant' by the Yang brothers, a platform embodying a novel business model designed to address the saturation and competitive challenges in the livestream clip market. This platform brought a wide array of clip editors and livestreamers together for collaboration, thereby standardizing the industry and accruing significant benefits for both the Yang brothers and other stakeholders. However, this innovation also ignited discussions on the heightened competition and concerns about product integrity, prompting contemplation on the future trajectory of 'Everyone's Assistant': What strategies should the Yang brothers adopt to ensure sustainable expansion of this business segment?
This case focuses on the evolution of the hotel industry (red ocean and blue ocean perspectives) and the strategic and innovative creation of a leading boutique hotel brand - W Hotels. Emerging at a time when the industry was relatively stagnant, W Hotels stood out from conventional luxury competitors thanks to novel positioning and value innovation. Case (A) describes the origins and growth of the hotel industry, the standards used (star ratings) to assess properties at the luxury end of the market and other segments, and the competitive landscape in the late 1990s. Case (B) zooms in on W Hotels and its value innovation. Instructors can use the cases as the basis of group exercises, and to discuss other examples of value innovation in the hospitality industry, such as the citizenM and hotelFI brands.
This case focuses on the evolution of the hotel industry (red ocean and blue ocean perspectives) and the strategic and innovative creation of a leading boutique hotel brand - W Hotels. Emerging at a time when the industry was relatively stagnant, W Hotels stood out from conventional luxury competitors thanks to novel positioning and value innovation. Case (A) describes the origins and growth of the hotel industry, the standards used (star ratings) to assess properties at the luxury end of the market and other segments, and the competitive landscape in the late 1990s. Case (B) zooms in on W Hotels and its value innovation. Instructors can use the cases as the basis of group exercises, and to discuss other examples of value innovation in the hospitality industry, such as the citizenM and hotelFI brands.
In 2012, Adobe Systems Incorporated (Adobe) announced that moving forward, its product releases would be available only through the cloud and a subscription model. In 2024, many software companies are pivoting to subscription models for several reasons, including faster time to customer value, seamless onboarding, and flexible pricing. But in 2012, the industry was quite skeptical of this model. This case describes the important decisions that Adobe made between 2012 and 2024. Adobe is now looking at the next step of incorporating artificial intelligence (AI) into its product offerings.
It was November 2022. Shruthi Reddy, Founder and Director of Anthyesti Funeral Services (hereinafter Anthyesti), sat in her Bengaluru office, reflecting on the past five years. Reddy had established Anthyesti in Kolkata, India, in 2017. The societal structure in India was deeply rooted in cultural traditions, which made it difficult for commercially run funeral services to be accepted. Reddy was among the few early entrants in this space. The flourishing start-up ecosystem in India was not open to the idea of investing in professionally run services for coordinating cremations and memorials or facilitating the logistics of funeral management. Thus, for a young woman entrepreneur with no business background, running a service in this space seemed unthinkable. Reddy began by bootstrapping her business with personal funds, and after demonstrating high growth within the first year, she expanded her services to six other cities in the next five years. However, she had to deal with several challenges over the years. In the wake of the COVID-19 pandemic, other players entered the market and established themselves in the funeral management services domain. In light of the growing competition, Reddy considered her next move. How should she continue to grow and earn healthy margins that could attract investors? Should she differentiate her services or try to compete on efficiency and cost? What services or service bundles would offer the best opportunity for sustained growth?