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Consulting's fundamental business model has not changed in more than 100 years: Very smart outsiders go into organizations for a finite period of time and recommend solutions for the most difficult problems confronting their clients. But at traditional strategy-consulting firms, the share of work that is classic strategy has sharply declined over the past 30 years, from 60% or 70% to only about 20%. What accounts for this trend? Disruption is coming for management consulting, the authors say, as it has recently come for law. For many years the professional services were immune to disruption, for two reasons: opacity and agility. Clients find it very difficult to judge a firm's performance in advance, because they are usually hiring it for specialized knowledge and capability that they themselves lack. Price becomes a proxy for quality. And the top consulting (or law) firms have as their primary assets human capital; they aren't hamstrung by substantial resource allocation decisions, giving them remarkable flexibility. Now incumbent firms are seeing their competitive position eroded by technology, alternative staffing models, and other forces. Market research companies and database providers are enabling the democratization of data. The vast turnover at consultancies means armies of experienced strategists are available for hire by former clients, whose increasing sophistication allows them to allocate work instead of relying on one-stop shops as they did in the past. Drawing on the theory of disruption, the authors offer three scenarios for the future of consulting.

Despite the rising power of developing economies, few corporations from emerging markets have succeeded in establishing brands in the West. The problem isn't just that they're late to enter the global market; the perception is that they offer poor-quality products, not next-generation ones. Conventional wisdom holds that they'll have to spend huge sums to overcome these obstacles. But some emerging giants, such as the Indian bank ICICI and the maker of the Mexican beer Tecate, are figuring out ways to build global brands on a shoestring. They are learning to outsmart, rather than outspend, their multinational rivals. One powerful strategy they're using: targeting the emigrants who have left their homelands. Regional concentrations of these individuals can provide excellent springboards into developed markets. The key is to target the right segments of emigrants, say the authors. Assimilators, who quickly try to adopt the customs and practices of their new country, are not likely to purchase products made in their homeland. Neither are marginals, who lack economic and educational opportunities and buy mostly functional, affordable products. But two other categories of immigrants hold promise: ethnic affirmers, who cling fervently to their homeland identity, and biculturals, who tend to be affluent and well-educated and move easily back and forth between their home and host countries' cultures. Biculturals are especially attractive; because they're integrated into their local communities, they can influence other consumers and make good conduits to the general population of their host countries.

Janine Robitaille, Executive Director of Interfaith Partnership for the Homeless (IPH), contemplated the future of the non-profit organization she had led for the past five years. IPH had served the homeless community since 1984 and assisted individuals and families by meeting their immediate needs, helped them find safe, affordable housing, and provided continuing support through long-term case management services. The recent publication of the 2010 annual report provided Janine and her staff an opportunity to reflect on their accomplishments, especially given the financial challenges brought about by the 2008 recession. Janine pondered several challenges facing her staff in the coming year. Nearly all programs at IPH were operating at capacity. The Emergency Shelter, which provided nightly refuge for 30 single men and women, was full. The Drop-In Center had reached the limits of the existing facility and could no longer meet the growing demand for daytime services. There was a waiting list for permanent housing and increased competition for scarce government resources would require stronger evidence of their programs' effectiveness. IPH needed to develop and grow corporate, organizational, and individual sources of support to reduce dependence on government funding; increase in-kind donations; and more effectively use volunteers to reduce operating costs. Janine considered several possibilities. Should they pursue additional capacity in permanent housing as a means for creating more sustainable funding? Was it time to find a bigger facility for the Drop-In Center that would provide space for new partnerships with other providers and increased services for those in need? Did it make sense to expand services or operations in another neighborhood or county? The difficulty was determining which alternatives to pursue and how to fund the existing operations. Janine felt it was probably time IPH engaged in some formal strategic planning.

Brazil's largest dental insurer, a successful and innovative firm, has saturated the corporate market and faces stiffer competition. It must decide whether to enter a new market in Brazil or to expand into other parts of Central and South America.

Marketers may increase the chance of success for a new product launch by using a sub-brand name and a parent brand name simultaneously. In this article, we report the successful case of using two brand names--dual branding strategy--by practitioners in China for the Minute Maid Orange Pulp juice drink launch. A suggestive sub-brand name helps consumers recall the key benefits and features of the new product. A suggestive parent brand name communicates the benefits of the product category. A dual branding strategy addresses the problem of using only one brand name for a new product launch. After the successful launch of the first new product by a parent brand, marketers are able to launch other new products under other subbrand names in the future to meet different consumer needs. Marketers may use the same parent brand to introduce different products to build scale for the brand, and are able to clearly differentiate the different product offerings under different subbrand names. If a company acquires a brand from another company, a marketer may position the acquired brand as a sub-brand under the parent brand if the marketer has defined the business scope of the parent brand broadly enough and with a suggestive parent brand name.

To Jonney Shih, Chairman of ASUSTek Computer, the introduction of Apple's iPad made clear the need to transition his company to a new cloud-computing era. But the company's roots in the manufacture of Windows-powered desktop and notebook PCs bounded the creativity of his design and engineering teams. The case examines the ASUS's efforts to get into the smartphone business, leveraging experimentation it has done in tablets and a range of hybrid devices. Will its experimentation and recombination of features lead it to market success, or simply confuse consumers?

Based on a variety of metrics, Trader Joe's ranked as one of the most successful grocers in the United States in 2013. Experts estimated that the company had the highest sales per square foot of any major grocery chain, even significantly higher than top performer Whole Foods. In 2013, Trader Joe's faced several threats as larger chains such as Wal-Mart and Tesco had begun to open small-format stores that mimicked the Trader Joe's approach. In addition some analysts had begun to question whether Trader's Joe's was losing its authenticity and "quirky cool" as the firm had continued to grow and expand across the country. What should Trader Joe's do to ensure continued growth?

The Ciber Case Series: In early 2012 in the wake of economic uncertainty and industry-wide losses, shipping industry giant Maersk Lines deliberated about its future pricing strategy. Should it continue a strategy of aggressive price cutting as has often worked to its advantage in the past? Or should it consider raising prices for its services despite a weak demand and strong competition?

Student spreadsheet for case CU259.

This note is used in Darden's Postmerger Integration elective. The authors present a guide to help managers prepare for integration challenges and allocate integration resources more efficiently. Although simple at first glance, addressing 20 yes-or-no questions can lead to fruitful in-depth conversations that provide a sound foundation for successful PMI planning and execution. By answering these questions in open dialogue, PMI managers and senior executives will expose the potential weaknesses in an upcoming merger and highlight the arenas in which detailed planning is not only warranted but fundamental.

Every day, hackers use the global network to steal information and compromise businesses. Organizations today have to rethink their defenses and move from reaction to anticipation. In this Vision Statement, Matt Kodama and Bill Ladd of Recorded Future use semantic analysis to track where and when cyber-attacks happen, a method which could help companies predict and head off attacks more reliably.

This Industry Note examines the state of the digital signage industry in 2010. The industry came into being to meet the emerging commercial and communications need for more dynamic messaging. It is a nexus between two industries - those who manufacture the equipment and those who create the messaging content. Together, they created an industry that provides instantaneous messaging at the speed of light. In 2010, the industry was a technically complex, multi-product, multi-segment, multi-channel, highly fragmented market with few dominant firms, rapidly-evolving technologies, and relatively low entry barriers for many segments of the industry. Global opportunities exist and multi-national electronics firms are entering the market. The Note reviews the industry's external environment, the forces that are shaping the industry, its competitive landscape, the emerging industry structure, and the near-term future of the industry. Those firms that emerged as dominant competitors tended to have higher levels of vertical integration, greater financial strength, and greater breadth in their product lines; served multiple market segments; and had the design and engineering capabilities to provide high-level product customization. Increased capabilities in design, product engineering, fabrication, and technology integration led to broader and more diversified product lines and the ability to meet demanding customer requirements in multiple market segments.

The Daktronics ("Dak") case draws attention to what a company can do in the midst of recessionary forces when sales have declined significantly and the company's leadership position may be headed for additional erosion. The case is as of FYE 2010 (May) and examines this B2B firm which is the leading score board design and manufacturing firm. Dak has significant opportunity in various countries abroad, but when and where the company should undertake additional strategic action is not clear. The company's executive team and board confront increasing competition and press pressure. Should the firm wait out the recession or undertake a bold strategic move? Founded in South Dakota by two South Dakota State University engineering professors. Dak produces videographic displays plus related products and services that lead in the sports arena market installations and have applications across a variety of institutional and commercial markets. Among the commercial markets that offer opportunities are digital business advertising venues. To date, the firm has pursued a conservative, but path-breaking technology leadership position in its market. Dak is a B2B case that provides examples of applications which will be of interest to and useful with both graduate and undergraduate level students.

In 2007 Enterprise was celebrating its 50 years in business and its ranking as the largest car rental company in the world--one that had always concentrated on "home city" rather than airport rentals. But when Vanguard (which owned National and Alamo) and the Dollar Thrifty Automotive Group approached agreement on a merger that February, Enterprise decided to step in. By acquiring National and Alamo, the company could radically boost its airport presence. It would, however, face big operational and cultural differences. Vanguard accepted the Enterprise offer, and Taylor's company began what he describes as a "deliberate integration." Being a family-owned organization, Enterprise could resist short-term financial pressure; Taylor announced that as part of the integration process, Vanguard would operate as an autonomous subsidiary for at least a year. During that time Enterprise learned a lot about airport operations--and taught a lot about achieving high customer satisfaction. It also came to see that each of the three brands was positioned to serve a well-defined segment, so it worked to reinforce the distinct character of each while looking for operational ways to leverage joint ownership. The decision to adapt Enterprise's highly decentralized organizational structure meant that its general managers would have to be equipped to oversee big, factorylike operations at airports, and Vanguard managers would need a better understanding of the home-city market. The deliberate approach was a great success: The deal paid for itself in less than three years; total revenue now surpasses $13 billion; and combined market share climbed from about 28% to more than 33%.

This is part of a case series. The case focuses on how a senior executive assesses the opportunity to drive innovation in his division. Jim Slater, Managing Director of Costa Enterprises, is thinking about a management consultant's offer to build the next generation coffee machine for his division. The company's business model has historically been built on incremental improvements, but this proposal would involve a 'step change' in how new products are developed. Costa Enterprises rolls out self-service vending machines ('concessions') that deliver quality coffee to customers in areas not served by premium high street cafes. The proposal Slater is considering is to build the next generation concession. However, handing over control of such an important, venture to an outsider seems like a significant risk for Slater to take.

Supplement to case LBS178

In July 2012, Michael Dell, CEO and founder of Dell, Inc., met with a representative of Silver Lake Partners to explore taking his company private. The company, which he had founded in his dorm room as a college freshman and which had made him the youngest Fortune 500 CEO in history, had been the market leader in PC sales in the early 2000s. In recent years, however, the company had been surpassed by competitors and, worse, the PC market was becoming less lucrative, due to overseas competition, longer turnover rates on PCs, and the rise of tablets and smartphones. Michael Dell hoped to respond to by changing shifting the company form its core to a "new Dell" based around "Enterprise Solutions and Software" (such as servers, consulting, and software-as-a-service) and now claimed he needed to take the company private to do so. By the summer of 2013, the Dell board and its shareholders would have to decide whether to accept his offer to take the company private for $13.65 a share. Meanwhile, Carl Icahn bought a large stake in Dell Inc., accused Dell of trying to steal the company, and urged shareholders to rebel and demand a "leveraged recapitalization" instead. This case presents the information the Dell board worked with as it debated its decision.

In January 2012, Starbucks enters into a 50:50 joint venture with Tata Global Beverages Limited (TGBL), under which Starbucks will own and operate outlet stores in Mumbai. TGBL has a strong reputation and presence throughout the entire coffee production chain - growing, roasting and trading - that has helped Starbucks navigate its entry into the Indian market. But will this alliance be enough for Starbucks to overcome the political, economic, social and cultural challenges unique to the Indian market and establish its stamp? Would it even be possible to do so without a local partner?

The business of surrogacy, a boutique practice with client costs upwards of $100,000, allowed couples and individuals from a variety of backgrounds, ages, and sexual orientations to build families. This case examines Circle Surrogacy (CS), one of the premier surrogacy agencies in the world, as its president and founder, John Weltman, was about to share an executive presentation with his core management team where he would recommend an option to outsource its surrogacy services. While the changing cultural and regulatory environment had made surrogacy possible for more people, it remained cost-prohibitive for the majority of its eligible audience. Weltman's proposal, if enacted, would create a new opportunity for CS, increasingly faced with competition from other agencies, to offer lower cost surrogacies to intended parents. However, the launch of an outsourced surrogacy service would threaten the company's core value proposition and challenge its prevailing high-touch, premium strategy. How should Weltman and CS best proceed?

In mid-2013, Tesla Motors was riding a wave of success: It had launched its first really mass-produced car-the model S-to rave reviews; had recently raised first-year production targets; and had started taking orders for its next car, the Model X. Tesla seemed to be on its way to defying the skeptics and becoming the first US company to enter the car industry with a mass-produced car since WWII and the first to successfully launch a fully electric car. Or was it not?