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Scoot: Singapore Airlines' Low-Cost Carrier Strategy
In December 2019, Scoot, the low-cost carrier (LCC) launched by Singapore Airlines Limited in 2011, had successfully established itself in the Asian market, having flown over 65 million passengers to 68 destinations with a fleet of 48 aircraft. Scoot accounted for 14 percent of seat capacity in Singapore, and 43 percent of LCC capacity out of the country. In 2016, SIA fully acquired and integrated the local LCC Tigerair into Scoot. Scoot's growth, along with the integration of Tigerair, enabled SIA to compete for price-sensitive leisure travelers on short- and medium-haul routes, particularly within Asia, and premium passengers on medium- and long-haul routes. Scoot had been essential to building network connectivity within Asia and allowing SIA to compete effectively with competitors entering the market. Reflecting on Scoot's evolution from 2011 to 2019, Goh Choon Phong, CEO of Singapore Airlines Limited felt that the SIA Group had succeeded in fulfilling its strategic intent of being invested and a market leader in both the full-service and low-cost markets. He contemplated the opportunities and challenges ahead for SIA. Because Scoot operated many places where the full-service airline did not fly, Goh thought that SIA could gain tremendously by making connections between flights by Singapore Airlines, Scoot, and SilkAir-the airline's short-to-medium haul premium subsidiary-as seamless as possible. But there were challenges as well, since Scoot provided different service levels and had been established and run with a high level of autonomy. Goh explained, "There are different expectations between the full service and the LCC if there are any delays. But when you are connecting the two of them, how do you manage the expectations? These are all things that we are still learning. But we are determined, and we think it can be resolved. We are just right at the front of the learning curve." -
Joeone Company Ltd.: Business Model Innovation in the Chinese Fashion Industry
From its humble beginnings as a start-up in China's Jinjiang County in 1989, Joeone Company Ltd. (Joeone) had grown to become the country's best-selling producer of men's pants. Over the past three decades, the company's founder and chairperson had faced several substantive turning points, including a quality crisis, a period of mediocre growth, and the need to enhance the sophistication of the company's management approach. These turning points led to continuous business model innovation through the three stages of creation, sustaining innovation, and efficiency. By June 2019, the company was doing very well: an initial investment of ¥720,000 had built a company with sales of ¥500 million by the end of 2003, and the company had been publicly traded since its initial public offering in 2011. Clothes from Joeone's three brand platforms were sold via direct sales channels in key cities and through major online shopping channels. However, the founder was still grappling with questions of how to align the company's strategy to ensure its long-term success. Against the backdrop of pressures to further increase efficiency, expand the business (potentially internationally), and respond to changes in the larger competitive and political environment, how could the company sustain its competitive advantage and further improve its operational efficiency and flexibility? What lessons from the past 30 years could be applied to the company's next 30 years of growth? -
Intellectual Ventures Update 2020
After raising $6 billion and buying 60,000 patents, Intellectual Venture was confronted with a changing legal environment. A number of important legal decision, including the Supreme Court's so-called "Alice" decision, IV had to shift strategy. IV sold off a substantial portion of its IP portfolio, and refocused its efforts on trying to innovate, using its acquired technologies. -
Humans on Demand: Coople's Staffing Platform at a Crossroads
Founded in 2011 by the Swiss entrepreneur Viktor Calabrò, Coople operates the largest on-demand staffing platform in Europe. It has enjoyed rapid growth and is considered one of the most successful Swiss based tech start-up / platform company. The case features Viktor Calabrò, founder of Coople, and his thinking about the future of the company he founded in 2011. The case is set in 2019 where Viktor in his role as major shareholder, founder and Chairman of the board is faced with strategic choices how to continue to drive Coople's growth story and retaliate against copycats which are arising on the horizon. This strategy and business innovation case explores how innovative business models disrupt traditional industries, especially if those industries are not able to self-cannibalize. It covers the key elements of successful platform strategy (network effects, the importance of scaling and automation) as well as theplatform paradox and the strategic choices needed when growing from a start-up into an established company. -
The Indian Express: Reinvention through Digital Business
At the turn of mid-2000, the news industry saw a tectonic shift in the reading habits of people, driven by developments in digital technology. News industry's traditional business model of relying on advertisement income was majorly disrupted. This led to a steep decline in revenues from the print business. The case describes the strategy and organisation-building initiatives of a leading newspaper in India as it transitioned from a print newspaper media ecosystem to a digital news ecosystem. Anant Goenka, a third-generation member of the family, led the digital foray. While Anant created a USD 20 million digital business in four years, the path towards the next goal of achieving a topline of USD 150 million in the next seven to eight years was not clear. Furthermore, it might entail transforming the Indian Express Group, with close to 90 years of legacy of strong editorial ideologies, to adapt and embrace the rules of the game of the digital ecosystem. This case presents an excellent opportunity to learn the nature and extent of challenges involved in building and scaling up a digital news business, including the transition from a traditional newspaper business. -
Student Biryani: Glory to Glitches in a Global Journey
In June 2016, Mohammad Arif, the director of Student Biryani, seemed depressed about the all-time low performance of the franchise in Canada. Hard work and persistence not only enabled the company to become Pakistan's first and largest Pakistani food chain but also to establish a presence in global markets such as Saudi Arabia, Dubai, Oman, and Australia. But the all-time low performance of the Canadian outlet had put severe pressure on Arif because the brand image was at risk. Arif convened an urgent meeting with the management team. The meeting continued for three hours, but members seemed divided and the meeting was adjourned for the next day. Arif needed to find the causes of the problem and how to cope with them. -
Airbnb, Inc.
The case is set in early 2019; and the protagonist of the case is Brian Chesky, co-founder and CEO of Airbnb, Inc.-an online platform that offers global hospitality services. The co-founder and CEO wonders when he should take Airbnb public, and perhaps more importantly, how going public would change the community-based company. In 2019, Airbnb had 5 million listings in over 81,000 cities in 190 countries. Airbnb offers more accommodations than the three biggest hotel chains combined: Marriott, Hilton, and InterContinental. In the same year, Airbnb was valued at $31 billion, making it the third most valuable private company in the world, behind Uber ($72 billion) and Didi Chuxing, a Chinese ride-hailing service, ($56 billion). Airbnb's $31 billion valuation was just shy of that of Marriott, the world's largest hotel chain, that was valued at $37 billion (in early 2019). Airbnb's revenues to reached $4 billion (in 2018), while being profitable for the past few years. -
Should I Rent My Condo? Assessing Risks of a Property Investment
In early 2018, Diana Mulhall was undertaking a career change that would eliminate the need for frequent business trips to Toronto. As a result, she wondered whether she should sell her condo in the heart of the Canadian city or keep it as a rental property to generate income for herself. The housing market in Toronto was booming, so Mulhall believed that the condo would fetch top dollar as a sale. She also thought it would be easy to attract tenants if she kept it as a rental. She had invested in rental property before but never outside of her hometown of Chicago, so Mulhall needed to identify the key risks associated with being a landlord in Toronto. -
Should I Rent My Condo? Assessing Risks of a Property Investment, Student Exhibit Spreadsheet
Student Exhibit Spreadsheet supplement to case KE1115 -
Rakuten: To Stay or Not To Stay In The UK?
In 2016, Rakuten, the largest e-commerce company in Japan, was at the crossroads of its UK operations. After 2008, Rakuten had accelerated internationalization, mainly by acquiring local e-commerce companies. In the foreign markets, Rakuten leveraged its e-commerce platform model, with which it had achieved huge success in the Japanese e-commerce market in the 2000s. In 2011, it acquired UK-based e-commerce company, Play.com. At that time, Play.com faced challenges in the local e-commerce market because of strong competitors, especially Amazon and eBay. Rakuten tried to boost the competitive advantage by adopting its e-commerce model. However, attracting local users and merchants in the UK market proved difficult for Rakuten. Should Rakuten continue its European expansion program? What should the company do in the UK market and with Play.com in particular? Should Rakuten stay in the United Kingdom? -
Amazon Marketplace: Sustaining Strategic Innovation
The vice-president of new product development for Amazon Marketplace was preparing to propose the Seller Fulfilled Prime (SFP) initiative at Amazon.com Inc. (Amazon)'s three-year planning session. The SFP would allow Amazon Marketplace sellers who had proven their ability to meet Prime customers' expectations for exceptional service to provide Prime shipping benefits for products that the sellers fulfilled themselves rather than through the Fulfillment by Amazon process. Because the vice-president did not yet have extensive data on the effects of his proposal, he had to work with an interdisciplinary team to determine the potential benefits and challenges associated with this initiative. -
Democrata: Exploring Opportunities for Local Growth
On May 12, 2016, the founder and development manager of Democrata, was considering the future of his clothing store, in light of an increase in visitors to the area from different regions of Lebanon. Democrata was a clothing and apparel store founded in 1974, providing the latest fashion trends to both women and men. It offered major brands and basic casual and formal wear at competitive prices for customers in all income ranges. With success and affordable prices in northern Lebanon, Democrata grew to attract customers from all over the country. The idea of growth had always interested the development manager, who was seeking the best way to generate organic growth in the business. However, he had to consider the challenges facing the apparel industry. What were Democrata's competitive advantages? How strong was its financial position? What growth strategy would be right for Democrata? -
Amazon's HQ2 in Arlington: New Digs, New Strategy?
When Brian Huseman, vice president of public policy for the Seattle-based internet retailer and technology company Amazon.com (Amazon), prepared to meet economic-development officials and community leaders from Arlington, Virginia, in the wake of the company's February 2019 decision to pull a second headquarters location out of New York City, a lot was on the line. Facing a limit on its growth in Seattle, Amazon had embarked on a search for a second corporate headquarters, dubbed HQ2, in September 2017, and ultimately surprised the country when it announced its decision to split its HQ2 into two locations, Arlington and New York City, in late 2018. New York ultimately failed to give Amazon the warm welcome it was looking for, so Amazon focused solely on Arlington to claim the "biggest economic development prize in recent memory." Amazon was making a huge commitment to Arlington-including plans to develop up to eight million square feet of office space and hire 25,000 employees (each with an average salary higher than $100,000) over the next 15 years -one that would make it the region's largest private-sector employer. Huseman wanted to be sure Virginia was fully prepared to create the right ecosystem for Amazon's HQ2 to thrive. How should the e-retail giant approach the meeting, considering what could be asked of it-and what it should request in return? -
Nashwork: How to Solve the Equilibrium Problem
Nashwork was founded in July 2013 in Beijing and developed into the largest co-working space company in China by focusing on rapid expansion and internal growth. Nashwork received A-round financing, which was followed by B-round financing one year later, before a series of problems surfaced in the basic operations of the company. By 2017, after three rough years building its customer base and occupancy, the main problem facing Nashwork was its dated and incompatible internal operations system. The company had to resolve issues with the company's organizational structure, staff, and skill sets to support the company's strategic transformation. -
Analog Devices
The Analog Devices case explores the complexities of strategy execution post-acquisition. Analog Devices, facing industry consolidation and struggling with the internal challenges associated with developing a critical technology organically, decides to use an acquisition strategy to gain the resources they need to compete effectively. ADI's CEO, Vincent Roche, embarks upon a three-year courtship of Linear Technologies, attempting to convince their CEO and founder to sell the firm. After three years and successively higher offers, Bob Swanson, LTC's founder, agreed to the merger. The case begins as ADI starts the post-merger work to integrate the two firms' operations. ADI's senior management begins to discover the differences between the two firms' cultures, styles, systems (specifically the reward systems), staffing patterns and metrics by which the firms evaluate business opportunities. In addition, ADI faces the prospect of integrating a strong culture formed by LTC's founder and Chairman, whose outsized personality was deeply imprinted in LTC's DNA. ADI's senior management were veterans of the semiconductor industry with a background in both internal operations and acquisition integration. The management team was experienced in both large- and small-scale acquisitions prior to the LTC acquisition. However, the LTC acquisition was their largest acquisition to date. Management realized the need to balance speed of integration against moving too quickly for their staff to adjust to the challenges of this complex integration. Market forces were also in play as larger competitors acquired smaller firms, and value chain activities - especially at the customer specification and design part of the value chain - were changing as customer requirements of increasingly complex production solutions were evolving. -
Grab.in: Enabling Hyperlocal
The case on Grab.in analyzes the hyperlocal delivery business in India, and provides details on how the founders built a business around outsourced delivery of food, grocery, and e-commerce packages. Through meticulously evolved business operations, the founders of Grab have ensured sustenance of the delivery outsourcing model by alleviating business outlets of having to maintain in-house delivery personnel. With growing demand for home service, customer mindset is more open than ever to pay a convenience fee for home delivery of food or grocery from their nearby favorite outlet. Grab.in has piggybacked on this mindset, and backed by increasing penetration of smartphones and Internet, it has enabled local businesses to expand customer reach. When used as an introduction to multi-sided platforms, this case can help the student understand the hyperlocal space, the challenges that food and restaurant businesses face and how these delivery service platforms help address the same. It should help the students appreciate how a technology platform brings differentiation to the traditional food and grocery delivery space, and how a platform business model can provide significant competitive differentiation. By presenting details on Grab.in and the hyperlocal delivery platform, the case study helps illustrate the business model while bringing forth the challenges in the same. -
Zomato Gold: Platform Overreach
This case discusses the hyperlocal food delivery business firm ZomatoTM and its business model. The case outlines how the firm went ahead and enhanced its business model to launch their new loyalty programme called Zomato Gold. It focuses on the sustainability of the hyperlocal business delivery model and the challenges faced by it to succeed and deliver against competition. This case outlines how Zomato put to disadvantage one of the platform participants and how this turned out for the platform as a whole. It also delves into an analysis of the loyalty programme to review the critical aspects of platform overreach and how it altered the network effects of this multi-sided platform business. The case can be used to teach the downsides of multi-sided platform business model - how an overreach on any one aspect of the platform sides can threaten the fine balance of the platform participants, remedial measures that need to be undertaken to restore confidence, and how platforms need to deal with the new normal that emerges after these confidence lowering incidents. -
Halftime for Heidelberg
The case follows President Rob Huntington as he seeks to find a viable way forward for Heidelberg University. Located in Tiffin, Ohio, Heidelberg is a small, private, four-year university. As with many similar institutions of higher education, it currently faces a daunting and mounting set of challenges, most of which stem from financial and demographic changes that are far beyond its control. During Huntington's eleven-year tenure, the university has experimented with a number of efforts aimed at attracting and retaining students. But in 2019, with enrollment, retention, and graduation rates stagnating and the university once again running a deficit, Huntington must consider more drastic measures. What can he do to underscore the "Heidelberg difference" and ensure that the university survives? -
Majid Al Futtaim in 2019: Driving Digital Transformation in a Physical World
Majid Al Futtaim, a retail and entertainment conglomerate based in the United Arab Emirates, undergoes a digital transformation under CEO Alain Bejjani in response to disruption in its four core industries: retail, hospitality, food/beverage and grocery, and entertainment. As a regional leader in these brick-and-mortar industries, Majid Al Futtaim must learn to compete with a variety of digitally native e-commerce, homesharing, food delivery, and video-streaming brands. The case traces Majid Al Futtaim as it blends physical and digital consumer experiences, leveraging its unique understanding of the Middle East and its customers, to ultimately make the whole of its conglomerate greater than the sum of its parts. -
Saving the Soil: Blake Vince's Quest for No-Till Farming
Blake Vince is a fifth-generation farmer who adheres to what appears to be a set of unconventional farming techniques. Most farmers prepare for planting by tilling their fields, turning over weeds and cover crops to expose the dirt underneath. Vince, however, practices "no-till" farming, leaving the top layer of soil undisturbed. Further, he allows for a variety of cover crops to grow alongside the soybean plants he cultivates. This combination of no-till and cover crop farming is thought to be more sustainable in the long run but comes at the expense of crop yields in the short run (for the first few years). There is tradition linked to the practice of tilling, but, according to Vince's research, tilling contributes to reduced soil health, decreases the ability of the soil to hold water and nutrients, and increases agricultural runoff of excess fertilizers into regional water systems. Vince's challenge is how to spread the word that farm owners should plan and act as long-term stewards if they wish to preserve the land for future generations to use. He faces an uphill battle.