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Choosing the Right Esports Business Model
Two esports entrepreneurs must choose on which business model to focus their time and money. After successfully launching an online esports coaching platform, a number of new opportunities emerge in the rapidly growing esports space which now has close to 1 billion gamers and an online audience that is greater than the Superbowl. Should they focus on a B2C business, a B2B business? Develop an analytics capability to support "sabremetrics" for esports or a content creation capability? How can they best exploit ownership of the world's top team in the "Hearthstone" league. The choice will depend on the future industry structure and how the two can most effectively "follow the money". -
Roshan and M-Paisa: The Promise of Mobile Money in Afghanistan
In 2008, Roshan, Afghanistan's leading telecommunications provider, launched M-Paisa, its mobile money transfer service, which allowed Afghans to use their mobile phones to transfer funds, receive and repay microfinance loans, make purchases, and disburse and receive salaries. The company was committed to building a financial ecosystem for transparent, safe, convenient, and secure services, which would also contribute to the long-term development of Afghanistan's society. Utilizing technology from Vodafone Group Plc, which had been successful in Kenya, Roshan enjoyed several successful pilots, but it still faced a myriad of issues as it sought to scale the service amid a challenging operational environment. In 2011, three years after its launch, the M-Paisa service had yet to make a profit. Roshan's chief executive officer and chief operating officer wondered what more they could do to turn M-Paisa around and, ideally, make an even more significant social impact. -
The Punjab National Bank: The Modi Fraud-System Failure or People Failure?
In February 2018, Punjab National Bank (PNB) in India reported a US$1.8-billion fraud related to the illegal issuance of letters of undertaking. The fraud was engineered by one of the leading diamond jewelers of India, Nirav Modi; his uncle, Mehul Choksi; and employees of PNB's Brady House branch in Mumbai. Indian investigative agencies found that the previous top management of PNB along with other employees had also been involved in or had prior knowledge about the fraud. PNB's current chief executive officer, Sunil Mehta, was trying to steer PNB out of the crisis. What key challenges did Mehta face with respect to managing the operational risks of PNB? Was Mehta right to consider the fraud a people issue and not a systems issue? -
Negotiating for Success in Asia: Adapting to a Multipolar World
An executive at a North American-based multinational company contacted an old friend and former business associate in Indonesia in hopes of collaborating with him to purchase Asian software companies. After several emails, the two disagreed and disengaged. The North American declined the Indonesian's advice to invest time in developing the relationships required to access this market. Three months later, after realizing he had closed the door on a huge and growing market, the North American again contacted his Indonesian associate. He realized that his North American style of negotiation was ineffective in this market and that the Asians had their own preferred approach. He planned a phone call to Indonesia to try to restart the process. What style of communication should he use this time in an effort to generate a better understanding and success? -
Coesia (B): The Strategic Enabler Model
Despite initial skepticism throughout the company, by 2015 Coesia had achieved its "Ambition 2015" by exceeding the revenue goal of €1.5 billion. The company had created legitimate diversification beyond the tobacco industry, while at the same time significantly strengthening its competitive position in tobacco machinery. All the evidence suggested that Coesia's transformation had been a success. In mid-2016 a new goal, "Ambition 2020," was set with the aim of further doubling the 2015 business. The group had made the crucial choice of adopting an operating model that was referred to as the "strategic enabler" model. The enabler model ensured that the individual companies had significant autonomy and P&L responsibility. Functions such as HR, R&D, marketing and finance were created at group level to support the individual companies. A regional structure was added to enable the companies to access global markets. A Coesia identity and culture was also emerging. By the end of 2018, the group had expanded from 12 companies in 2010 to 21. The dramatic increase in size - both in terms of revenue and number of companies - brought new opportunities, challenges and dilemmas. The enabler model had delivered successful results, but the leadership team was reflecting on what, if any, changes were needed to make it scalable and efficient for a larger group. -
New Delhi Television
Set in 2018, the case describes the evolution of New Delhi Television Limited (NDTV) in the Indian news broadcasting industry. Starting as a news production company in 1988, NDTV ventured into general entertainment, media consulting, and e-commerce over the next three decades. Students analyze how the firm tailored its activities to pursue a differentiation strategy in news broadcasting. They also assess the challenges faced by NDTV when it diversified into new businesses and its ability to leverage core assets (star journalists) in these businesses. -
Swiggyâ„¢, Foodoraâ„¢, and Yelpâ„¢: Hyperlocal Platforms
The case on Siwggy, Foodora,and Yelp analyzes the hyperlocal food delivery business models that are popular in their respective markets. These multi-sided firms bring together local businesses such as restaurants and salons with their patrons through assistance in service discovery and delivery. This case elaborates how the foodtech space is evolving in countries such as India, Germany, and the United States, and how each of these hyperlocal platforms are adopting different strategies to sustain their business in their primary markets. When used as an introduction to multi-sided platforms, this case can help the student understand the hyperlocal space, the logistics challenges that food industry faces and how these delivery service platforms help address the same. This case also looks at what threats these platforms pose to its different sides and how envelopment possibilities emerge. It should help the students appreciate how a technology platform brings differentiation to the traditional food industry, and how a platform business model can provide significant competitive differentiation. By presenting three different hyperlocal platforms in as many geographies, the case study helps illustrate the commonality of business models while bringing forth the nuances of each market and its operational complexities. -
Zashita Ltd.: Identifying Opportunity in Safety
In 2018, the chief executive officer (CEO) of Zashita Inc. (Zashita) was contemplating the future strategic direction of his security and electrical contracting firm based in Irkutsk, Russia. The company had experienced outstanding sales growth since its founding in 2013, and this trend was expected to continue into 2019 with the existing business. Despite this, the CEO had identified a new, untapped opportunity in Irkutsk-smart home technology installations-and was trying to determine whether he should risk expansion into this expensive but potentially highly profitable market. Alternatively, he could focus on spending his resources on Zashita's existing business or look elsewhere for new opportunities. The CEO needed to decide on the future strategic direction of Zashita and determine the best course of action for allocating the company's resources to ensure future profitability for the company and its workers. -
ENGIE's GEM business unit: Towards a new way of working
The case is set in early 2019. Edouard Neviaski is CEO of the Global Energy Markets (GEM) division of Engie, a very large French energy company. He has been pushing a major programme of change over the previous three years and is considering the next steps: how to maintain momentum, what additional initiatives to pursue and whether to encourage other parts of Engie to apply a similar approach in their divisions. The case provides a lot of detail on the internal organisational changes in GEM from 2016-2019. In particular, it focuses on how some parts of GEM adopted 'holacracy' - a self-organising system in which individual teams take full responsibility for defining their own work and how it fits with others. The case also provides a lot of detail on the broader cultural change and the high levels of investment in professional training around new techniques and concepts. -
Strategy Needs Creativity
When business school students are taught strategy, they dutifully study mapping the five forces, for example, and drawing a value net, but they know that game-changing strategies come from somewhere more creative. To generate groundbreaking strategies, executives need tools explicitly designed to foster creativity. A number of such tools already exist, often in practitioner-friendly forms. They take their inspiration more from how our thought processes work than from how industries or business models are structured. Thus they can help strategists invent a genuinely new way of doing business. The author explores four approaches to a breakthrough strategy: (1) Contrast. Identify--and challenge--the assumptions undergirding the status quo. (2) Combination. Connect products or services that seem independent from or even in tension with one another. (3) Constraint. Look at limitations in an organization and turn them into strengths. (4) Context. Consider how a similar problem was solved in an entirely different context--surprising insights may emerge. -
Sell Direct-to-Consumer or Through Amazon? (HBR Case Study and Commentary)
For a company that's trying to reach more customers, selling on Amazon might seem to be a no-brainer. But there are plenty of risks: A firm might get dragged into a price war with low-cost competitors, and Amazon, not the firm, will own the data on customers--and could use it to create its own competing products. In this fictional case study, the head of marketing at a young e-bike maker thinks through the pros and cons of selling on Amazon and of sticking with a direct-to-consumer strategy, and considers the long-term implications of each for his brand. -
Sell Direct-to-Consumer or Through Amazon? (HBR Case Study)
For a company that's trying to reach more customers, selling on Amazon might seem to be a no-brainer. But there are plenty of risks: A firm might get dragged into a price war with low-cost competitors, and Amazon, not the firm, will own the data on customers--and could use it to create its own competing products. In this fictional case study, the head of marketing at a young e-bike maker thinks through the pros and cons of selling on Amazon and of sticking with a direct-to-consumer strategy, and considers the long-term implications of each for his brand. -
Sell Direct-to-Consumer or Through Amazon? (Commentary for HBR Case Study)
For a company that's trying to reach more customers, selling on Amazon might seem to be a no-brainer. But there are plenty of risks: A firm might get dragged into a price war with low-cost competitors, and Amazon, not the firm, will own the data on customers--and could use it to create its own competing products. In this fictional case study, the head of marketing at a young e-bike maker thinks through the pros and cons of selling on Amazon and of sticking with a direct-to-consumer strategy, and considers the long-term implications of each for his brand. -
Kids & Company in 2018
This case reveals to readers what has transpired at Kids & Company in the year following the decision point presented in Kids & Company: Entering the U.S. (case 418-011). -
BKK: Commercializing a New Drug
Dr. Brad Worthington, surgeon and anesthesiologist, has created BKK, a nonopioid surgical pain reliever. A combination of three FDA-approved drugs, BKK has beneficial properties beyond those of the individual medications of which it is made. Having obtained a patent for BKK, Worthington and his business partner, Thurman Ballard, are evaluating three paths to market, each with its own risks, costs, timelines, and possible outcomes: 1) seek venture capital investment to fund a New Drug Application for FDA approval; 2) partner with a compounding pharmacy that can manufacture and distribute the drug wholesale; or 3) develop a relationship with a manufacturer that can produce convenience kits containing all three drugs, bottled separately, with directions for mixing and administering them. This case provides a close look into the barriers to entry for new drug commercialization for an individual or small business. Innovations in healthcare delivery, medical technology, and even new drug development or new uses for existing drugs are often generated by those closest to patient care-nurses, doctors, and other medical personnel. But without significant resources, even the most ingenious new ideas require entrepreneurial thinking to bring them to market. Students have the opportunity to build a decision tree and explore the qualitative and quantitative data presented to justify all three options. Which should Worthington and Ballard choose? -
MoviePass
Mitch Lowe, the CEO of MoviePass, was having trouble convincing people of the viability of the company's business model. The company was building a multi-sided platform, and was planning to extract value from increasing traffic to movie theaters through a number of mechanisms. It also appeared to making assumptions around its flat-rate pricing model. By making some assumptions, this case affords an opportunity for students to practice with discovery-driven planning. -
BMW Mini: Big Decisions Under the Brexit Cloud
In April 2017, BMW AG (BMW) faced a big decision regarding which plant should receive the mandate to produce the first electric version of BMW's iconic Mini car. The leadership team of BMW's UK operations was determined to keep the Mini at its historical home base in the United Kingdom. However, given the uncertainty arising from the United Kingdom's decision to leave the European Union-a move commonly known as "Brexit" -how would the team be able to convince corporate headquarters? -
Airtel Payments Bank Limited: Furthering Financial Inclusion
In early January 2018, a leading non-governmental organization in the Indian state of Rajasthan was considering an alliance with Airtel Payments Bank Limited (Airtel Payments), the first "payments bank" in India. Although India showed economic growth in key areas, financially inclusive growth was poor. Airtel Payments and its competitors were expected to strengthen financial inclusion with technological expertise, wide distribution networks, and substantial revenue to sustain losses during initial start-up phases of the payments banking Industry in India. Airtel Payments paid a 7.25 per cent interest rate for customer deposits, the highest among the payments banks. However, the non-governmental organization needed to address several questions before initiating an alliance with Airtel Payments for financial inclusion: Could Airtel Payments play a significant role in financial inclusion and help solve India's persistent age-old issue of last-mile connectivity? Was it viable to offer higher interest rates than competitors? Did the environmental factors favour Airtel Payments? Was the payments bank industry competitive? What would be the impact of Airtel Payments's previous unethical practice of opening bank accounts without informed consent? -
Costco Wholesale Corporation: Market Expansion and Global Strategy
In 2015, Costco Wholesale Corporation (Costco) was ranked as one of the world's largest global retailers based on sales revenue, second only to Walmart Inc. It had successfully expanded into eight international markets: Canada, Japan, South Korea, Spain, Mexico, Taiwan, Australia, and the United Kingdom, managing to grow despite the turbulent economic conditions prevalent in these countries. Costco challenged stereotypes and employed unconventional business strategies to position itself as a leading transnational retailer. Costco's business model was crucial to the company's financial success and expansion over the years. Key company success factors included its membership-based operating model, its focus on low-cost efficiencies, the perceived quality and value of the Kirkland Signature brand, and its philosophy of rewarding human capital. However, as Costco made plans to expand its operations, it faced challenges due to intensified competition in the global retail industry and policies and regulations in local markets that restricted big box retailers. In this context of uncertain international markets, which markets should it enter next? What was the best entry method for each individual market? -
Innovate Safely-CT Scanners and Radiation Risk