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Drybar (A): The American Beauty Salon Industry in 2008
Drybar was launched in 2010 with the tagline "No cuts. No color. Just Blowouts!" by hair stylist Alli Webb and her brother Michael Landau. Blow-drying had long been provided in most hair salons, but was considered an add-on or infrequent stand-alone service that did not incur a significant and consistent revenue stream. Alli recognized an untapped business opportunity in blowout services and turned it into a US$70 million business with 55 locations across the United States in just five years. The case looks at how Drybar changed the concept of professional blow-drying and made it compelling to women regardless of age or background. The case is presented in two parts. Part A describes the industry landscape of the American beauty salon industry in 2008, before Drybar entered the scene. It reviews the nature of the industry throughout history, and the structure and competitive forces that shaped conventional practices. Part B illustrates how Drybar was conceived with a different strategic approach and what made Drybar stand out from conventional hair salons while achieving lower costs. Part B is presented in an innovative cartoon storybook format to help enhance participants' understanding of Drybar's offering through an entertaining experience that is both informative and emotionally engaging. Supplementary Video and Lecture Slides can be obtained at https://www.blueoceanstrategy.com/teaching-materials/drybar/ -
Tony Hsieh at Zappos: Structure, Culture and Radical Change
After 18 months of attempting to transition the company to holacracy, Tony Hsieh, Zappos' celebrity CEO, decided it was time to make the change happen. In March 2015, he sent an email to all Zappos employees offering them 3 months' severance pay if they felt that self-management was not for them. One month later, 14% of the workforce had quit, including 20% of the tech department, potentially putting at risk a complex transition to a new online platform mandated by parent company Amazon. The case recounts how Tony Hsieh financed, championed, and ultimately became CEO of online shoe retailer Zappos. A passionate entrepreneur who made millions at a young age, Hsieh was known for his penthouse parties, for what he referred to as his "tribe". He brought the same sense of community to Zappos, which he moved from San Francisco to Las Vegas where employees could "be like family". Despite the company's unabashedly weird culture, it had the lowest employee turnover rate in the industry. Widely admired for its outstanding customer service, Zappos was repeatedly listed among Fortune's "Best Places To Work." When in 2009 Amazon acquired Zappos for $1.2 billion, it promised to preserve its management and culture. But Hsieh's decision to implement holacracy - a form of organizational self-management that replaces job titles and hierarchy with "circles" that employees step in and out of according to their preferences and skills - was less popular than hoped. Hence his "rip the Band-Aid" approach, to ensure that only employees committed to the change remained at the company. -
AccorHotels and the Digital Transformation: Enriching Experiences through Content Strategies along the Customer Journey
The case focuses on AccorHotels' ambitious digital transformation, aiming to put the customer back at the center of its strategy and operations. Responding to a powerful wave of digital disruptions in the hospitality ecosystem, from the emergence of review websites, online travel agents and active forums to the rise of new competitors such as Airbnb, the transformation entailed: (1) designing and implementing an innovative content marketing strategy (including online content creation or co-creation, curation and dissemination) (2) incorporating e-reputation as a core business objective, and (3) creating and/or adapting organizational structures - from management to operations - to support this new dynamic and maximize value creation. The case starts in Fall 2015, when Olivier Arnoux, SVP Customer Satisfaction at AccorHotels, and his team, are asked to devise an ambitious plan to address the new challenges facing major players in the hotel industry brought about by digital disruptions. It follows the decision-making process step by step, from (1) understanding the nature and impact of online content in the customer journey, to (2) building a strategic plan to integrate online insights into AccorHotels' core business objectives (in particular the importance of e-reputation), (3) redefining where and how value is created, and creating incentive structures aligned with the new objectives. Participants have multiple opportunities to put themselves in the shoes of the protagonists so as to understand the logic behind the decisions taken. What is novel is the systematic articulation of how digital and social media impact the customer journey, as well as the integration of online content into marketing strategy (i.e., content marketing) and organizational design (i.e., team structure, incentive system), underlining how embracing the digital revolution entails breaking traditional silos between functions such as marketing, strategy, finance and human resources. -
INEOS ChlorVinyls (A): A Positive Vision for PVC
When a Greenpeace campaign to boycott PVC products seemed to spell disaster for Hydro Polymers, it embraced the challenge and embarked on a drive for sustainability using The Natural Step framework. The strategy was maintained after Hydro was acquired by INEOS, and ultimately led to significant changes throughout Europe's PVC industry. The case shows how positioning sustainability as a business opportunity rather than a threat can yield substantial commercial success while addressing environmental impacts. Please visit the dedicated case website http://cases.insead.edu/ineos to access supplementary material. -
Biba: Stitching Plans for Growth
After solidifying its brand as a national leader in the ready-made, ethnic wear market in India, Biba Apparels Pvt. Ltd. (Biba) was at a crossroads when it came to determining future growth strategies. By 2014, Biba had 150 exclusive brand outlets and 225 multi-brand outlets all over India as well as an online presence. Faced with fierce competition from trendy western retailers and local competitors creating chic Indo-Western fusion clothing, Biba recognized that its customers' preferences were changing. In order to retain its leadership status, Biba had to decide how to grow its brand. What was the best way to compete against western retailers attracting the country's teen and young women's market? What marketing strategies could Biba adopt? Was Biba doing enough to remain relevant in the fast-changing women's clothing market? -
Shriram Transport Finance
In December 2012, the stock of Shriram Transport Finance Company (STFC) had just breached the ₹750 mark, signifying an appreciation of close to 80 per cent for the calendar year of 2012. Texas Pacific Group (TPG), the global private equity firm, had invested in STFC at a time when the share price was hovering around ₹100. As was the case with most private equity firms, a successful exit from an investment was of paramount importance for TPG in order to reap handsome returns. In the course of charting the exit path from an investment, private equity firms had to consider several critical issues including exit structure, timeline for exit, and regulatory hurdles. There were three usual choices of exit routes: initial public offering, trade sale, or secondary sale. Each of the exit routes had its own advantages and disadvantages. Was this the right time for TPG to exit STFC? If yes, which option should TPG pursue? -
Greendust: Revolutionizing the Returns Process
GreenDust, a company established in 2009, sold branded, unused, seconds, surplus, and refurbished products at low prices. This traditionally had been an unorganized sector. With increased pressures on the bottom line, rapid changes in technology (and fast obsolescence), strategies of channel cleaning by the competition, and imminent e-waste regulations enforced by the Indian government, GreenDust tried to mitigate these factors by revolutionizing the returns management of consumer goods by streamlining it. While it succeeded in reducing the high costs associated with product returns, the company had to determine whether its business model was sustainable in 2014. Could GreenDust succeed in other emerging markets? How could the firm leverage its strength as an environmentally sustainable business? -
Vendedy: The World's Street Markets in Your Pocket
Vendedy was the world's first mobile network connecting global travellers to local street markets. Inspired by the emergence of the sharing economy, Vendedy's founder and chief executive officer had always been passionate about uniting social and economic empowerment with entrepreneurial development. A complex platform linking street vendors in some of the world's poorest countries to travellers seeking authentic tourism experiences and souvenirs, Vendedy's founder faced numerous challenges. Where should the venture's focus be? How quickly should she try to roll out the platform, and across how many countries? How was she going to recruit a full-time team for Vendedy? Could the company succeed in transforming how global travellers accessed the products and stories of street vendors around the world? -
Divided We Stand: Gay Marriage Rulings and Official Disobedience
On June, 26, 2013, the U.S. Supreme Court determined that the federal Defense of Marriage Act violated the U.S. Constitution's Fifth Amendment protection of equal liberty, effectively overturning the law. Pennsylvania, however, banned same-sex marriage. Despite the state law, D. Bruce Hanes, a register of wills in Pennsylvania, agreed to honor a request from two women seeking a same-sex marriage license-an act of official disobedience that immediately threw Hanes under a national spotlight. Citing his oath to uphold both the Pennsylvania and U.S. constitutions and noting that the two were "diametrically opposed" on the issue, Hanes said: "I decided to come down on the right side of history and the law." On June 26, 2015-precisely two years later-the Supreme Court ruled that the U.S. Constitution guaranteed a right to same-sex marriage. The day the ruling was released, Kentucky Governor Steve Beshear announced that he had instructed state agencies and county clerks to comply immediately with the court's ruling. Nevertheless, on Monday morning, June 29, Rowan County Clerk Kim Davis refused to issue marriage licenses to any couples-same-sex or heterosexual. Davis said that she decided to deny marriage licenses to all couples because of her religious convictions and said that "Marriage is ordained by God to be a man and a woman." Using the context of contemporary same-sex marriage laws, the case explores two sides of the same coin: at a time and in a state where same-sex marriage is illegal, one official decides to defy the law; at a time and in a state where it is legal, another chooses to refuse to obey. The case asks students to consider if and when official disobedience-the refusal by a public official, acting in an official capacity, to follow the law-is justified. -
vineyard vines and The Brotherhood of the Traveling Pants
This case, "vineyard vines and The Brotherhood of the Traveling Pants," introduces students to a unique partnership in the social media advertising world. Preppy clothing powerhouse vineyard vines had a history of interacting with its customers by featuring user-generated content in its catalogs and on its website and decided to continue this tradition on social media by partnering with a group of fans called The Brotherhood of the Traveling Pants. This successful and authentic social media marketing campaign resulted in increased sales for vineyard vines and influencer status for the members of The Brotherhood. At the end of the campaign, the vineyard vines marketing team is left debating how to grow its social media presence through partnerships. The case has been used as part of a social media marketing course and would be effective in any undergraduate- or graduate-level marketing course. -
Patina of Glamour: Forging Alliances to Investigate the Underside of the Fashion Industry
Modeling is a glamorous and lucrative profession only for the very few. Most fashion models make little money, and often they are subject to indifferent or even abusive working conditions, putting them at elevated risk of sexual harassment and eating disorders. Legislators in the fictitious U.S. state of Columbia are the latest to join in the global movement to rectify some of the most egregious wrongs done to models in the fashion industry, after the death of a teenage model with an eating disorder prompts a new law and attention to the problem. Safiya Goplani, a physician and researcher in Hamilton, Columbia's capital, is eager to investigate the new legislation and hopes to apply the methods of community-based participatory research to develop a close partnership with professional models. But as Goplani and her team quickly learn, establishing priorities and shared goals requires a lot more attention to the partners' unique perspectives than a typical research study. Will Goplani and her team be able to successfully forge a partnership with the model community and carry out the new research study? -
Changing the Culture of Education: Key Shifts at the Ministry of Education from 2011 to 2015
This case discusses how Singapore's Ministry of Education set out to make the education system even more student-centric and sharpen the focus on holistic education - centred on values and character development. -
MacPhie & Company: The Growth Imperative
In March 2015, consulting firm MacPhie & Company was at a crossroads. Founded in 2004 in Toronto, Ontario, the company offered consulting services related to strategy development, marketing and communications, reputation management, and branding. MacPhie & Company maintained an entrepreneurial culture that fostered innovation and continual learning, while ensuring that all client projects followed the "MacPhie Way." Although MacPhie & Company had been financially successful over the years, it had struggled with growth, so the company's founder set a goal of growing MacPhie & Company to at least 20 consultants by 2020. He knew that in order to do that, he would need to consider all facets of the business: revenue generation to support a larger model; ensuring consistent profit margins; appropriate client mix; the services that were offered; teachable methodologies and consulting processes; effective organizational structure and human resources; geographic locations; and the employment of awareness-building efforts. After more than a decade, it was time to be bold and push MacPhie & Company to the next level. With the goal set, the challenge was how to get to the desired level of growth and then to sustain that level of growth once it had been reached. -
Aquasi Marketing: Building and Managing an Online Brand
In February 2013, the senior marketing manager of Aquasi India (Private) Limited (Aquasi) met with the company's chief executive officer to consider the challenges faced by Aquasi that had arisen due to globalization after March 1997. India's competitive environment had completely changed; new technology had swept into the country and workers did not possess the essential skill sets to use the new machinery. Given sharp declines in quality and production output, Aquasi's sales suffered significantly. The number of competitors increased and began to eat into the company's market share. In the midst of these problems, Aquasi planned to develop and grow a web-based portal to manage the business in hopes that it would enable the company to move forward and survive in the difficult times ahead. However, the question remained as to how to implement this new online strategy; Aquasi's marketing and information technology teams were novices with respect to digital media, and would face several challenges. -
Applied Mobile Labs: Valuation of a Start-Up
An angel investor had invested seed capital in a start-up company that aggregated and sold value-added services for mobile telecommunications in India. The company had done well since its inception in 2009, but the revenue growth figures reported for 2014 were concerning. According to the performance report, the start-up had grown 12 per cent in 2014-less than half of the estimated industry revenue growth figure for mobile value-added services. The investor wondered if his investment was profitable despite the negative cash flows and significant lifetime company losses incurred during the first three years of operation. Should the investor stay invested with, or divest from, the start-up? What would the company's exit value be? -
Moonka Auto: Recruiting Salespeople
In April 2016, the owner of Moonka Automobile, a two-wheeled vehicle dealership for Honda Motor Company Ltd., was facing some difficult decisions regarding recruitment for Moonka Automobile's new branch in Jamshedpur, India. The owner wanted to improve the process for recruiting salespersons for this second branch. In addition to the constraints of a tight budget, limited managerial time and availability, and the need to complete the recruitment quickly, the owner's challenges included (1) identifying the knowledge, skills, and attitude he needed to look for in potential salespersons; (2) encouraging the appropriate candidates to apply for the job opening; and (3) improving the process to be followed for recruitment. The owner certainly did not want to rush things and end up recruiting unsuitable employees, which could have disastrous consequences for the business. At the same time, he needed to get sales underway in the new branch. How could the owner balance his many responsibilities while finding the right salespersons for Moonka Automobile? -
Cafe Coffee Day: Brand Transformation through Repositioning
Café Coffee Day pioneered retail café culture in India with its entry into the market in 1996. After enjoying success for more than a decade, the brand felt the need to evolve in order to suit consumer preferences and better compete in the market space. The Café Coffee Day management team commissioned a brand image study to better understand consumer perceptions. The results showed that although Café Coffee Day's "regular guy/girl" brand archetype had evolved over time, there was a clear gap between the intended brand identity and the image that was projected. To make the brand relevant to Café Coffee Day's core target group (i.e., young, urban Indian consumers), the company had to make sure that its positioning was relevant and clear, its brand identity was refreshed, and its café experience was well defined and differentiated. Café Coffee Day wanted to identify various positioning platforms through analysis of the company, its competition, and its customers, and then to evaluate these platforms to arrive at an appropriate positioning choice. -
Lucinda Creighton and the Irish Abortion Bill Vote
On June 16, 2013, the Irish government sponsored the Protection of Life During Pregnancy Bill, which proposed to allow abortions when doctors determined the procedure was necessary to save the life of the mother. The bill was introduced in Ireland's House of Representatives to much debate. Some Representatives who were opposed to the bill felt that that they should be entitled to vote their conscience rather vote the party line. The consequences of voting against the party were considerable: Representatives who did so would be immediately ousted from the party. Creighton voted against the bill and was automatically expelled from Fine Gael, her parliamentary party; the Government won the vote, 130 to 24. When asked about Fine Gael's pre-election commitment to keep abortion illegal, she said, "I know in my own mind we made a clear commitment before the last election. I repeated that commitment, I meant it and held it sincerely. This legislation is a breach of that commitment." The case is designed to facilitate discussion of the differences between the trustee and the delegate models of representation and an evaluation the relative merits of each as they pertain to definitions of 'good representation.' Students will formulate a personal definition of 'good representation,' identifying those characteristics specifically tied to representative 'quality.' Students should be able to analyze the interaction between intensity of preferences and public (or personal) assessment of representative 'quality.' Through the case and the class discussion, students will learn to develop personal frameworks and metrics for assessing the work of legislators in representative democracies; appropriately apply these frameworks and metrics to existing situations; demonstrate the capacity to engage in systematic comparative analyses of both normative and empirical information; and, justify arguments using articulately crafted, evidence-based ideas. -
C.W. Dixey & Son
C.W. Dixey & Son is about to be re-launched as a luxury eyewear brand after a fifty-year absence from the marketplace. This case focuses on reviving a dormant brand with a 200-year plus heritage of innovation, craft excellence, and luxury. Drawing on extensive historical research, brand owner Dr. Simon Palmer believes that the brand's authenticity is perfect for wealthy customers looking for refinement and inconspicuous luxury in an age of ostentatious logo-centric branding. Drawing upon the brand's extensive associations with previous users, most notably Sir Winston Churchill, Palmer is ready to re-launch the brand into a crowded market full of well-resourced luxury brand names with high brand awareness. Palmer needs to consider a range of positioning driven decisions in order to ensure C.W. Dixey & Son is re-launched successfully. -
Singapore Airlines: Premium Goes Multi-Brand
Singapore Airlines had long been considered the gold standard for its innovative customer service. However, the company was faced with new sources of competition, from the rapid growth of Southeast Asian low-cost carriers on the one hand, to the expansion of premium Gulf carriers on the other. The company therefore decided to launch a low-cost airline of its own called Scoot, the fourth brand in its portfolio. Now CEO Goh Choon Phong must consider how to grow all four airlines without cannibalizing its own market share or diluting the sterling brand of the parent airline.