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Kodak and the Digital Revolution (A)
The introduction of digital imaging in the late 1980s had a disruptive effect on Kodak's traditional business model. Examines Kodak's strategic efforts and challenges as the photography industry evolves. After discussing Kodak's history and its past strategic moves in the new landscape, the case 'Kodak and the Digital Revolution' questions how CEO Daniel Carp can use digital imaging to revitalize Kodak. A rewritten version of an earlier case. -
Starwood Hotels & Resorts Worldwide Inc.: Asia Pacific
The case describes how Starwood Hotels and Resorts Worldwide Inc. grew under the visionary leadership of Barry Sternlicht, its founder and CEO. It documents how Sternlicht acquired, financed and integrated two leading hotel brands - Westin and ITT Sheraton to become a globally diversified leading hotel chain. The company's newly appointed president of Asia Pacific was given the goal of boosting the share of operating profit from 10 to 25 percent by 2007. -
The U.S. Health Club Industry in 2004
In 2004, the $16.8 billion U.S. health club industry continued its strong record of growth. There were almost 27,000 health clubs in the United States, up from 6,700 two decades earlier, and these clubs claimed 41 million members, over 14% of the U.S. population. Nearly 67 million people used these clubs in 2004. As the industry grew, many large chains began to emerge, opening new outlets and buying up smaller chains and independents. Most industry observers believed the growth and consolidation would continue, providing many opportunities for investors. However, few health club chains were publicly listed, and the leading listed company, Bally Total Fitness, was under U.S. Securities and Exchange Commission investigation for accounting irregularities. Yet this investigation did little to dampen enthusiasm for the new personal health phenomenon, and rumors abounded of private equity deals in the offing. The key question for investors seemed to be how best to take advantage of the opportunity. -
Math for Strategists
Great strategists rely heavily on numbers as they go about their work. Offers an overview of the high- and low-brow quantitative tools that students encounter during the Strategy course. The class explores high-brow tools in detail; the focus here is on low-brow calculations. Such calculations come up often in class but because they seem so simple, they get little airtime or explanation. From past class experience, roughly 20% of the students in each section come into the course with the intuition and experience to do these simple calculations themselves. The other 80% understand the calculations after they see them and grasp their value, but don't spot the opportunities to do the math themselves, before class. -
Lesser Antilles Lines (B)
The case is a continuation of Lesser Antilles Lines (UV0351) which describes the price competition between two duopolistic shipping companies facing inelastic demand for cargo volume. Customers have inelastic and time-sensitive demand, restricting their strategic possibilities. The fictional case introduces additional pricing instruments to this setup. The duopolists can now offer price guarantees and include most-favored-customer clauses and last-look provisions in their contracts. -
Ice-Fili (Abridged)
Designed as an overview of all aspects of the strategy process: industry analysis, positioning, dynamics and sustainability, and scope issues of corporate strategy, including vertical integration, horizontal diversification, and location issues. Ice-Fili is the largest ice cream producer in Russia in 2002, but is facing strong competition from Nestle despite its success over other multinational competitors. Contains detailed exhibits, allowing deeper analyses. A rewritten version of an earlier case. -
Exclusive Resorts: Entrepreneurial Positioning and Nonmarket Defense
In the summer of 2002, Brad and Brent Handler established Exclusive Resorts, a luxury vacation residence venture, to meet the demand for luxury vacation residences that avoided the hassles of owning a second home and being tied to a single location. The challenge was to position the venture in both the market and nonmarket environments. The positioning in the market environment was successful, and Exclusive Resorts was an instant success. In the nonmarket environment, Exclusive Resorts was organized like a country club, allowing it to avoid state time-share regulations. The success of Exclusive Resorts soon spurred others to enter the luxury vacation residence club industry and, at the same time, nonmarket threats began to grow. The American Resort Development Association (ARDA) had many concerns: Were luxury vacation residence clubs operating outside the law (consumers were not protected by state time-share law)? Were contractual arrangements transparent to consumers? Could possible fraud or failures among the clubs tarnish the entire resort development industry, including its members? ARDA sought to have luxury vacation residence clubs registered in the states in which they held properties and in which they sold memberships. If state registration were required, Exclusive Resorts would be subject to costly and burdensome regulations. Indeed, a core component of the Exclusive Resorts business model, inventory replacement via the sale of residences, would be prohibited. -
Note on the PELP Coherence Framework
The PELP Coherence Framework is designed to help district school leaders identify the key elements that support a district-wide improvement strategy, bring those elements into a coherent relationship with the strategy and each other, and guide the actions of people throughout the district in the pursuit of high levels of achievement for all students. The Framework is intended to help school district leaders effectively implement their strategy by strengthening coherence among actions at the district, school and classroom level, and ultimately, improve student performance at scale. Achieving high-performance at scale--in every school, for every student in a district-- is an imperative for school systems given today's heightened accountability environment. The framework emerged out of interactions with hundreds of U.S. public school leaders eager to identify ways to better organize and manage their complex organizations. Although it resembles models used in the business and nonprofit sectors, the framework was designed to fit the unique context and challenges of managing in public education. -
How Offshore Work Affects Your Industry
Economics professors Andrew B. Bernard and Peter K. Schott, and J. Bradford Jensen of the Institute for International Economics, dispel the myth that all U.S. manufacturing is headed offshore. -
Patent Medicine
For the past two decades, say economics professor Adam B. Jaffe and business professor Josh Lerner, U.S. patent laws have gummed up the gears of innovation. -
Elixir Technology--Entry into the Middle East
Elixir Technology is a small software development company based in Singapore that develops data analysis and report generation software and provides technical training and consulting services. By May 2003, it had successfully sold this software to corporate clients in Singapore, China, and Japan, following a very adaptive marketing strategy in each market. Now the managing director is contemplating entering the Middle East, but must choose an entry strategy quickly to capitalize on the current window of opportunity. Available entry choices include direct entry and several partnership options. -
Lexar Media: The Digital Photography Company?
Examines growth options for a start-up that has parlayed its core technology in flash memory controllers into a rapidly growing position in the emerging digital photography industry. The new CEO must decide whether LexarMedia should maintain its identity as a digital photography company and pursue market-driven growth by extending its photography presence, or pursue technology-driven growth by applying Lexar's technology in emerging markets such as USB flash drives and MP3 players. Key learnings include: managing new industry creation, managing start-up growth, and the role of firm identity in guiding strategy. -
Making China Beautiful: Shiseido and the China Market
Describes the multinational growth of Shiseido, the world's fourth-largest cosmetics company, with a focus on its strategy in China since 1981. Explores the challenges facing firms in the globalization of a culturally specific industry such as cosmetics. The Japanese company displayed an early interest in international expansion, but its early investments were lost during World War II. Thereafter, it sought to build businesses in Europe and North America, but was challenged by market conditions quite different from those in Japan. Even within its home market, deregulation and the entry of foreign firms during the 1990s led to a significant loss in market share. Shiseido entered China in 1981 and built Aupres, a large cosmetics brand specifically aimed at Chinese women. Further growth followed, and in 2003, plans were announced to build a large network of voluntary chain stores. Highlights managerial challenges of growing the China business further in the face of increasing competition and provides a framework for discussing the challenges of prioritizing the allocation of resources in a global business. -
Kids Market Consulting
The founder of Kids Market Consulting, a market research firm dedicated to kids, tweens, and teens segment, faces increasing competition and slowing revenue and is exploring the future strategic direction of the business. In particular, she must formulate the best plan for protecting the niche market and decide how aggressively to pursue expansion. In addition, Kids Market Consulting is part of her business partner's group of marketing firms. Any changes the founder chooses has to respect this relationship, restricting her options. The over-arching corporate objective for the company is to defend the market from larger businesses that want to increase their share of the market research industry. -
The Battle for Logan Airport: American Airlines versus JetBlue (A)
JetBlue will begin flying out of Boston's Logan Airport-and American Airlines was feeling the heat. JetBlue was growing eight times faster than Southwest Airlines, the longtime leader among low-cost carriers, and the rapidly expanding low-cost segment of the industry-30% of all U.S. flights, projected to rise to 40% by 2006-presented an increasing challenge to the "major" airlines. For American, JetBlue's entrance into Boston via Logan signaled a moment of reckoning. Should the airline opt for a standard competitive response, such as price reductions and frequent flyer programs? Should it take on JetBlue at Logan only, or across all the markets where it would compete with the low-cost challenger? American must weigh the importance of the Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the economic conditions affecting the airline industry; the business models of three main types of airlines-major, low-cost, and regional-and their strengths and vulnerabilities in terms of recent competitive market conditions. The B case involves American's counter-attack and the C case the responses of other airlines and JetBlue, including an examination of the resulting financial and market costs and benefits. -
The Battle for Logan Airport: American Airlines versus JetBlue (B)
The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue's prices and remain profitable. It must weigh the importance of the Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the recent economic conditions affecting the airline industry; the business models of the 3 main types of airlines--Major, Low-Cost Carriers, and Regionals--and their strengths and vulnerabilities in terms of recent competitive market conditions; and the economic role airports play. This case is divided into 3 parts: A, B, C. The B case involves American's counter-attack--a free ticket promotional offer from American on the day JetBlue opens. The C case discusses the responses of other airlines and JetBlue and a preliminary analysis of the fallout: resulting financial and Market costs and benefits. See related cases (A case: UV3906; and C case: UV3909). -
The Battle for Logan Airport: American Airlines versus JetBlue (C)
The entrance of JetBlue into the Boston area low-cost carrier market in 2004 is viewed as a direct attack on Major airlines and prompts American Airlines to decide whether or not to respond and if so, how to respond. American, already weakened financially, cannot match JetBlue's prices and remain profitable. It must weigh the importance of Boston market in its overall economic picture and the potential responses of other airlines to whatever action it takes. This case reviews the recent economic conditions affecting the airline industry; the business models of the 3 main types of airlines--Major, Low-Cost Carriers, and Regionals--and their strengths and vulnerabilities in terms of recent competitive market conditions; and the economic role airports play. This case is divided into 3 parts: A, B, C. The B case involves American's counter-attack--a free ticket promotional offer from American on the day JetBlue opens. The C case discusses the responses of other airlines and JetBlue and a preliminary analysis of the fallout: resulting financial and market costs and benefits. See related cases(A case: UV3906; and B case:UV3908). -
AT&T 2000-2004
Provides an update on CEO Michael Armstrong's "Project Grand Slam" strategy to build the value of AT&T by offering a complete, integrated telecommunications solution to both corporate and residential customers, including wireless and wire line telephone, Internet, cable television, and network management. By July 2004, AT&T sold its cable business to Comcast, sold its wireless business to Cingular, and was downgraded to junk bond status. Soon thereafter, AT&T announced that it would abandon its local telephone service due to a ruling by the FCC that made them uncompetitive as resellers. The strategic question is whether AT&T can find ways to grow and create value for its shareholders, or is it time to sell out to one of the RBOCs? -
Rakuten
Rakuten, a native Japanese, e-commerce start-up and highly successful company, is expanding into new categories and new countries. It must figure out how to continue its trajectory of growth and profitability. A rewritten version of an earlier case. -
Team and Concepts Ltd.: Managing the Growth of a Small Business
Team and Concepts Ltd. (TnC), an IT company founded by David Lee and his partners in 2003, was not a typical small business. Its owners were innovative, business-savvy entrepreneurs with audacious goals who worked daily to grow the business and transform it into a successful company. Such a transformation required comprehensive changes in many aspects of the business. Facilitating this transition required enhanced managerial, financial, marketing, and R&D capacities. In 2004, the company was facing the challenge of working with new investors and partners who would likely set conditions for the business and require it to adopt new behaviors and a new management structure. TnC was also exploring the trade-offs between acquiring outside funds and retaining control to make wise decisions about its future strategy.