100 best-selling cases

ecch the case for learning

2009 edition

100 best-selling cases

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This bibliographical supplement presents the 100 best-selling cases from theecch catalogue during 2008. It incorporates abstracts of all the cases and fullbibliographical details such as setting, topics and details of any teaching note.Visit the ecch website at www.ecch.com/bibs to view and download a pdfversion of the bibliography.

Cases appear alphabetically by title, each with its own entry. Teaching notes donot have separate entries. Their reference numbers and lengths appear withinthe corresponding case entry.

Case entry:

404-015-1KIDNAPPED IN COLOMBIA

Rarick, CABarry University, Florida

Dan and Melissa Woodruff, an Americancouple, moved to Medellin, Colombiawhen Dan is offered a position with his.....

Colombia; Textiles; 275 employees;2001

KidnappedColombiaPolitical risk

9ppPublished sources404-015-8 (4pp)

Reference numberTitle

Author(s)Author’s institution

Abstract

Setting

Topics

LengthSourceTeaching note (length)

Reference numberThis is the number to use when ordering the item.TitleCases in a series are generally denoted by the use of (A), (B), (C) etc.Author(s)The individual(s) listed either wrote or supervised the writing of the case.Author’s institutionWhere there are multiple institutions, their names will appear directly under the corresponding author(s).AbstractThe abstract summarises the content of the case and its teaching objectives.SettingThis provides information on the geographical location of the subject of the case, the typeof industry, the size of the organisation and the year(s) of the case event.TopicsThese are key words, subjects and issues within the case which are supplied by theauthor(s).LengthThe length is given either in pages or in minutes if a video; if the item is a CD-ROM this willbe indicated here; s/w means software.SourceThis relates to the main source of data:Field researchPublished sourcesGeneralised experienceTeaching note (length)If a teaching note is available for the case its reference number will appear here followedby its length in pages in brackets.

How to use the case bibliography

Case search at www.ecch.com

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Visit the case search section of the ecch website to identify relevant cases fromthe ecch collection and view over 34,500 full text inspection copies. To searchthe database of over 58,500 items, you have two options: Advanced searchand Quick search. Once you have identified your case, you can order a paperinspection copy or, if authorised, preview it on-line.

Advanced search helps you identify a case that most closely meets yourrequirements. Refine your search by selecting up to four of the following andadditional specific options (eg publication year). The more criteria you select,the more refined your search will be:

• reference number • abstract• title • topic• author • industry• author’s institution • geographic location

Quick search enables you to find a particular case you know of, by inputtingone piece of accurate data (eg reference number or featured company). Be specific,because quick search will display all entries where an exact match is found.

On the ecch website you can find out about the many services ecch provides tosupport the writing and teaching of cases. You can also subscribe to:

• Monthly e-mail updatesA free service giving details of cases registered during the preceding month.

• Case collections updatesPublished quarterly and e-mailed free to all subscribers, these listings give briefdetails of newly released cases, supplementary materials and journal article reprints.

• ECCHOThe ecch magazine, ECCHO includes case reviews, features and informationon the case method, as well as a free case that teachers can use.

Are you having problems findingthe right case? Would you likehints on case searching? ecch provides a free helpline.

Be ready to provide informationon the:• Type of case you are looking for• Setting of the case• Course the case will be used on• Students’ level of experience

ecch helpline: [email protected] or+44 (0)1234 756410.

need help to findthe right case?

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European Case Awards 2009

Overall winner

302-057-1THE EVOLUTION OF THE CIRCUS INDUSTRY (A)W Chan Kim, Renée Mauborgne, Ben M Bensaou and Matt WilliamsonINSEAD

Economics, Politics and Business Environment

206-026-1MAS HOLDINGS: STRATEGIC CORPORATE SOCIAL RESPONSIBILITY INTHE APPAREL INDUSTRYJonathan Story and Noshua WatsonINSEAD

Entrepreneurship

806-015-1MARSTON VENTURE MANAGEMENTJohn Mullins and Julian LloydLondon Business School

Ethics and Social Responsibility

706-057-1PROCTER AND GAMBLE PUR PURIFIER OF WATER™ (A): DEVELOPING THE PRODUCT AND TAKING IT TO MARKETMargaret Hanson and Karen PowellINSEAD

Finance, Accounting and Control

106-016-1INFINITY BANK (A): RETAIL BRANCHES AND CUSTOMER PROFITABILITYIgor Vaysman, INSEADStephen Smyth, Esfren Consulting

Human Resource Management / Organisational Behaviour

405-027-1EXPATRIATION: AN AMERICAN WORKING IN JAPAN: FROM THEPERSPECTIVE OF THE EXPATRIATE, HEADQUARTERS AND THE FOREIGNSUBSIDIARYMarkus PudelkoUniversity of Edinburgh Business School

Knowledge, Information and Communication Systems Management

905-033-1INTERNET ENABLED COLLABORATIVE STORE ORDERING: VEROPOULOSSPAR RETAILER (A)Theodoros Evgeniou, INSEADGeorge Doukidis and Katerina Pramatari, Athens University of Economics and Business

Continued overleaf

European Case Awards 2009 (continued)

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Marketing sponsored by The Chartered Institute of Marketing

505-098-1RED BULL: THE ANTI-BRAND BRAND Nirmalya Kumar, Nader Tavassoli and Sophie Linguri CoughlanLondon Business School

Production and Operations Management

602-029-1LUFTHANSA CARGO AG: CAPACITY RESERVATION AND DYNAMICPRICINGArnd Huchzermeier and Rolf HellermannWHU Otto Beisheim School of Management

Strategy and General Management

305-308-1ZARA: RESPONSIVE, HIGH SPEED, AFFORDABLE FASHIONNirmalya Kumar and Sophie Linguri CoughlanLondon Business School

Special award

THE SUMANTRA GHOSHAL AWARD FOR EXCELLENCE IN CASE WRITINGINSEAD

9-201-028AIRBUS A3XX: DEVELOPING THEWORLD’S LARGEST COMMERCIAL JET(A)

Esty, BKane, ML

Harvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection. In July2000, Airbus Industrie’s supervisory boardis on the verge of approving a $13 billioninvestment for the development of anew super jumbo jet known as the A3XXthat would seat from 550 to 1,000passengers. Having securedapproximately 20 orders for the new jet,the board must decide whether there issufficient long-term demand for theA3XX to justify the investment. At thetime, Airbus was predicting that themarket for very large aircraft (VLA), thoseseating more than 500 passengers,would exceed 1,500 aircraft over the next20 years and would generate sales inexcess of $350 billion. According toAirbus, it needed to sell 250 aircraft tobreak even, and could sell as many as 750aircraft over the next 20 years. This caseexplores the two sets of forecasts, andasks students whether they wouldproceed with the launch given the size ofthe investment and the uncertainty inlong-term demand. Illustrates the basiceconomics of large projects and thecomplexity in estimating even top-linedemand for products with useful lives ofup to 50 years. Also illustrates the role ofgovernments in large projects, both asinvestors and as customers. Finally itexplores the competitive dynamicsbetween a monopolistic and a potentialentrant in which entry costs exceed $10billion.

2000Aerospace industryBusiness-government relationsCapital expendituresCorporate strategyDemand analysisProduct developmentProduct positioningProject financeValuation

20 ppPublished sources5-201-040 (31 pp)

9-599-110ANALYZING CONSUMERPERCEPTIONS Note

Dolan, RJHarvard Business Publishing

Describes the perceptual mappingtechniques in a non-technical fashion.The procedure is useful for the depictionof the structure of the market. Discussesalternative methods, presents examplesof each, and shows how the maps can beused in marketing decision making.

Consumer behaviorConsumersMarket researchMarket structure

13 ppPublished sources

9-706-496APPLE COMPUTER, 2006

Yoffie, DBSlind, M


Apple has reaped the benefits of itsinnovative music player, the iPod.However, its PC and server businesscontinue to hold small market sharerelative to the worldwide computer overthe past few years. Will the iPod lure newusers to the Mac? Will Apple be able toproduce another cutting-edge devicequickly? May be used with: (9-702-469)‘Apple Computer - 2002’; (9-705-469)‘Apple Computer, 2005.’

Cupertino, California (CA); Consumerelectronics, music industry, on-lineinformation services, personal computerindustry; 16,820 employees, $13.9 billionrevenues; 1976-2006

Business historyBusiness modelsCorporate strategyIndustry analysisOperating systemsStrategy formulationStrategy implementationSustainabilityTechnology


9-502-030AQUALISA QUARTZ: SIMPLY ABETTER SHOWER

Moon, YHerman, K


Harry Rawlinson is Managing Director ofAqualisa, a major UK manufacturer ofshowers. He has just launched the mostsignificant shower innovation in recenthistory: the Quartz shower. The showerprovides significant improvements interms of quality, cost, and ease ofinstallation. In product testing, the Quartzshower received rave reviews from bothconsumers and plumbers alike. However,early sales of the Quartz have beendisappointing. Rawlinson is now facedwith some key decisions about whetherto change his channel strategy,promotional strategy, and the overallpositioning of the product in the contextof his existing product line.

United Kingdom; Manufacturingindustries; £8 million revenue; 2001

Consumer behaviorConsumer marketingDistribution channelsMarket entryMarket positioningMarketing strategyProduct developmentProduct introductionProduct positioning

18 ppField research5-503-058 (23 pp)

302-170-1ARM HOLDINGS PLC

Williamson, PO’Keeffe, E

INSEAD

The case traces the development of ARMand its innovative business model, basedon partnering, to become the de factostandard for RISC chips used in mobilephones, storage devices, automotive, set-top boxes, etc. It explores how ARMbuilds and manages an alliance networkfor ‘learning from the world’, theknowledge it needs to stay ahead ofcompetitors and through which itlicenses and manufactures its designs. Adetailed example of how ARM innovates


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is presented. The case can be used inexecutive and MBA programmes toexplore the issues of building andmanaging a global alliance network, todiscuss the innovation process in acompany that must mobilise knowledgefrom around the world, and to illustratethe nature and workings of a ‘meta-national’ strategy that allows companiesto globalise at a much more rapid pace.

UK, Global; Semiconductors; US$250million; 1991-2002

InnovationAlliancesGlobalisationMeta-nationalEntrepreneurshipBusiness modelSpin-offPartnering

23 ppField research

9-292-140ARUNDEL PARTNERS: THE SEQUELPROJECT

Luehrman, TTeichner, WA


This case is part of the Harvard BusinessSchool Premier Case Collection. A groupof investors is considering buying thesequel rights for a portfolio of featurefilms. They need to determine how muchto offer to pay and how to structure acontract with one or more major US filmstudios. The case contains cash flowestimates for all major films released inthe United States during 1989. Thesedata are used to generate estimates ofthe value of sequel rights prior to the firstfilm’s release. Designed to introducestudents to real options and techniquesfor valuing them. It clearly illustrates thepower of option pricing techniques forcertain types of capital budgetingproblems. Also illustrates the practicallimitations of such techniques.

California; Movies; Large, $2.1 billionrevenues; 1992

Capital budgetingDecision treesEntertainment industryOption pricingReal optionsSecurities analysisUncertainty


2078ATLANTIC COMPUTER: A BUNDLE OFPRICING OPTIONS

Bharadwaj, NGordon, JB


This is a Brief Case from HBP. AtlanticComputer, a leading player in the high-endserver market, has detected a marketplaceopportunity in the basic server segment.They have developed a new server, theTronn, to meet the needs of this segment.In addition, they have created a softwaretool, called the ‘Performance EnhancingServer Accelerator’, or PESA, that allows theTronn to perform up to four times fasterthan its standard speed. The centralquestion revolves around how to price theTronn and PESA. Although cost-plus,competition-based, and status-quo pricingare the most common means by whichfirms establish prices for their offerings,these approaches may prevent firms fromfully realizing the benefits that are due tothem. Provides an opportunity to optimizevalue capture for the firm by utilizingvalue-in-use pricing (ie, examining thevalue that a firm’s offering creates for thecustomer, and using the savings generatedas the basis for developing prices). Alsoallows for the exploration of the challengessurrounding the implementation of avalue-in-use pricing strategy. Theseinclude the reactions of competitors,customers, and stakeholders within thefirm. The teaching purpose is to be usedduring the pricing module of the core MBAmarketing course or in an elective courseon pricing. To allow instructors to contrasta customer-focused approach to pricing(value-in-use) with company-centric (cost-plus), competitor-based (competition-based), and status-quo approaches. Toprovide students an opportunity tocalculate the price of a new offeringutilizing the traditional approaches topricing as well as value-in-use pricing, andthen evaluate the respective approachesto see which yields optimal value capturefor the firm. Also to allow students to takeinto consideration how other importantstakeholders (competitors, customers,internal managers, and the sales force) canpotentially impact the implementation ofpricing strategy.

Computer industryBusiness to businessMarketingPricingPricing strategy

10 ppPublished sources2079 (10 pp)

9-694-046BARILLA SPA (A)

Hammond, JHHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection. BarillaSpA, an Italian manufacturer that sells toits retailers largely through third-partydistributors, experienced widelyfluctuating demand patterns from itsdistributors during the late 1980s. Thiscase describes a proposal to address theproblem by implementing a continuousreplenishment program, under which theresponsibility for determining shipmentquantities to the distributors would shiftfrom the distributors to Barilla. Describessupport and resistance within Barilla’sdifferent functional areas and within thedistributors Barilla approached with theproposal.

Italy; Grocery stores; 7,000 employees,US$2 billion revenues; 1990

Distribution planningLogisticsOrder processingSupermarketsSuppliers


597-039-1BAXTER (A): A CHANGING CUSTOMERENVIRONMENT

Vandermerwe, STaishoff, M

Imperial College London

This is the first of a three-case series (597-039-1 to 597-041-1). The overriding aimof the series is to demonstrate how acompany must change from thetraditional transactional productapproach to one more suited to the newworld. The old model is based on sellingmore products at certain margins usingconventional marketing tools, whereasthe new approach is about the lifelongvalue of customers and how to achievethat so that everyone in the system gains.The cases discuss the dilemma facingBaxter Renal Division, in the UKspecifically, and in Europe generally. Theirmain product is the bag and solution fordialysis treatment for kidney disorder.Although Baxter had 80% market shareby the mid-1990s two major threats hademerged: (1) a competing treatment,cheaper on a bag-for-bag basis, wasincreasingly being favoured by new


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economic buyers who had become themore powerful decision makers and; (2)Baxter’s dominance in its product marketwas being challenged by low-costcompetitors. When case (A) opens inJanuary 1997, an unprecedented crisisconfronted Peter Leyland, recentlyappointed UK Business Director: five keyhospital accounts had been lost.Moreover, the key success factors in thebusiness - the number of patientstreated, the kind of treatment received,the number of bags sold, and theproportion or market share of thosecared for with their treatment - were allgoing downhill. Leyland was convincedthat the only route to long term growthand profitability was not by trying to beatthe competition at the same old game,but rather by taking the lead andchanging the way the industry operated.Part of his challenge was getting variouscustomers - buyers, users and influencers- to think and behave differently. Leylandand his team embark on a customer-focused strategy starting with end usersand working backwards. Two videos areavailable to accompany the case series‘597-039-3’ and ‘599-014-3’, the lattergives an update (March 1999) onLeyland’s strategy. **ecch European CaseAwards Category Winner 2002**

Europe; Medical; US$100 million to BaxterRenal; 1996-1997

Strategic customer focusCosting and pricing - new valuebased marketingRelationship marketingValue based customertransformationArticulating ‘market spaces’Value added services


9-673-057BENIHANA OF TOKYO

Sasser Jr, WEKlug, JR


This case is part of the Harvard BusinessSchool Premier Case Collection.Discusses the development of a chain of‘theme’ restaurants. The student is askedto evaluate the current operatingstrategy and suggest a long-termexpansion strategy.

Food industry; Mid-size; 1972Corporate strategyExpansionMultinational corporationsServices


9-794-079BITTER COMPETITION: THE HOLLANDSWEETENER COMPANY vsNUTRASWEET (A)

Brandenburger, ACostello, MKou, J


This case is part of the Harvard BusinessSchool Premier Case Collection. TheNutraSweet Co has very successfullymarketed aspartame, a low-calorie, high-intensity sweetener, around the world.NutraSweet’s position was protected bypatents until 1987 in Europe, Canada, andJapan, and until the end of 1992 in theUnited States. The case series describesthe competition that ensued betweenNutraSweet and the Holland SweetenerCo (HSC) following HSC’s entry into theaspartame market in 1987. Subsequentmove and countermove in both themarketplace and the courts aredescribed. Ends with the finalcountdown to the expiration ofNutraSweet’s US patent. Provides anopportunity to study a game in businessthat takes place at two levels: there is thesurface game of tactics, and there is alsothe underlying game of value. At thetactical level, there are various points atwhich NutraSweet or HSC made a movewith a view to shaping the perceptions ofthe other player. Turning to theunderlying game of value, there are theactions that NutraSweet took during theperiod of patent protection. Theseactions served to maintain NutraSweet’sadded value in the post-patent game,and to deny added value to challengers.

Global; Sweeteners; Large, $2 billionrevenues; 1965-1992

BeveragesCompetitionFoodPatentsStrategy formulation


9-794-080BITTER COMPETITION: THE HOLLANDSWEETENER COMPANY vsNUTRASWEET (B) Supplement

Brandenburger, ACostello, MKou, J


Supplements the (A) case.

United States; Food industry; 1965-1992BeveragesCompetitionFoodPatentsStrategy formulation


IMD-5-0671BLACKBERRY (A)

Ryans, AIMD - International Institute forManagement Development

Research in Motion had successfullylaunched the innovative BlackBerryservice in North America and was lookingto accelerate the growth of the businessin North America and globally. Thecompany had been using a direct salesapproach and was considering a move tousing telecommunications carriers as theprimary channel. A team of executiveshad been charged with recommending astrategy and implementation plan.

Global; Telecommunications; RevenuesUS$220 million; September 2001

Marketing strategyChannel managementBusiness strategyAccelerating growth

20 ppField researchIMD-5-0671-T (14 pp)

9-392-032BODY SHOP INTERNATIONAL

Bartlett, CElderkin, KMcQuade, K


This case is part of the Harvard BusinessSchool Premier Case Collection.Describes the start-up and rapid growthof a company whose founder holds


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strong, non-traditional beliefs about therole of the corporation and itsresponsibility to society. After profilingAnita Roddick as a person, the casedescribes the anti-mainstream approachshe took to building her highly successfulbusiness (no advertising, simplepackaging, non-traditional R&D). Afterelaborating on the strong values she hasimposed on the business, concludes byhighlighting questions of the business’transferability to the United States and itssurvivability as Anita steps back.

United Kingdom; Retailing; Mid-size,2,000 employees, $100 million revenues;1991

Business policyConsumer goodsCorporate cultureCorporate responsibilityEntrepreneurial managementInternational businessRetailing


UVA-F-1017BOEING 777

Bruner, RFGollish, DClausen, HKoggersvol, NChristey, P

Darden Business Publishing

This case is from the Darden Best SellingCase Collection. The general objective ofthis case is to exercise students’ skills inestimating a weighted-average cost ofcapital and cost of equity. The specificneed to estimate a segment WACC drawsout students’ abilities to critique differentestimates of beta and to manipulate thelevered-beta formulas. Thus the caseprovides a complete menu of capital-cost estimation opportunities. Aninstructor Lotus worksheet file is availableon a computer diskette for use with thiscase and teaching note.

Seattle, WA; Aircraft manufacturing;Large; 1990

Capital asset pricing modelCapital budgetingCapital investmentCompetitive analysisCost of capitalValuation

26 ppPublished sourcesUVA-F-1017TN (12 pp)

9-198-048CITIBANK: PERFORMANCEEVALUATION

Davila, ASimons, RL


This case is part of the Harvard BusinessSchool Premier Case Collection. Citibankhas introduced a new, comprehensiveperformance-scorecard system. Aregional president struggles with a toughdecision: how to evaluate an outstandingbranch manager who has scored poorlyon an important customer satisfactionmeasure. This case provides a scoringsheet to be completed by the reader andan explanation of the ramifications of thedecision for the business strategy.

United States; Banking; 1996BankingControl systemsIncentivesPerformance appraisalPerformance measurementStrategy implementation


9-706-447COLA WARS CONTINUE: COKE ANDPEPSI IN 2006

Yoffie, DBWang, Y


Examines the industry structure andcompetitive strategy of Coca-Cola andPepsi over 100 years of rivalry. Newchallenges in 2006 include boostingflagging carbonated soft drink (CSD)sales and finding new revenue streams.Both firms also began to modify theirbottling, pricing, and brand strategies.They looked to emerging internationalmarkets to fuel growth and broaden theirportfolios of alternate beverages like tea,juice, sports drinks, energy drinks, andbottled water. Coca-Cola and Pepsi-Colahad vied for the ‘throat share’ of theworld’s beverage market. The mostintense battles of the cola wars werefought over the US$66 billion CSDindustry in the United States, where theaverage American consumes 52 gallonsof CSD per year. In a ‘carefully wagedcompetitive struggle’, from 1975 to 1995,both Coke and Pepsi had achievedaverage annual growth of around 10%, asboth US and worldwide CSD

consumption consistently rose. This cozysituation was threatened in the late1990s, however, when US CSDconsumption declined slightly beforereaching what appeared to be a plateau.Considers whether Coke’s and Pepsi’s eraof sustained growth and profitability wascoming to a close or whether thisapparent slowdown was just another blipin the course of a century of enviableperformance.

Global, United States; Beverage industry;US$66 billion revenues; 1886-2006

Business historyCompetitionCompetitive strategyCorporate strategyDistribution channelsIndustry analysisIndustry structureInternational businessMarket structureSuppliers


9-580-104CUMBERLAND METAL INDUSTRIES:ENGINEERED PRODUCTS DIVISION -1980

Shapiro, BPSherman, JJ


This case is part of the Harvard BusinessSchool Premier Case Collection.Cumberland Metal Industries hasdeveloped a new product to helpcontractors drive piles faster. They aretrying to decide how to price it. Providessubstantial information on the industry,competition, etc. Students must decidewhat factors are relevant in making anindustrial pricing decision. Decisionsmust also be made about promotion anddistribution channels.

United States; Construction equipment;Small, $18 million sales; 1980

CompetitionConstructionDistribution channelsIndustrial goodsIndustrial marketsMarket entryNew product marketingPricing strategy



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9-503-019CUSTOMER PROFITABILITY ANDLIFETIME VALUE Note

Ofek, EHarvard Business Publishing

Introduces the central concepts involvedin determining customer lifetime value,with detailed analysis and examplesfrom the realm of direct marketing.Implications for marketing strategy andcustomer relationship management arebriefly discussed. Provides students witha basic understanding of the analytictools necessary for calculating customeracquisition costs and customer lifetimevalue.

Customer relationsCustomer retentionDirect marketingMarket analysisMarketing planningMarketing strategy

9 pp

9-200-069DEBT POLICY AT UST, INC

Mitchell, MHarvard Business Publishing

UST, Inc is a very profitable smokelesstobacco firm with low debt vis-a-vis otherfirms in the tobacco industry. The settingfor the case is UST’s recent decision tosubstantially alter its debt policy byborrowing $1 billion to finance its stockrepurchase program. The teachingpurpose is to provide an introduction tooptimal capital structure with emphasison calculation of interest tax shields.

Capital structureDebt managementLong term financingTaxationTobacco industry


504-007-1DIESEL FOR SUCCESSFUL LIVING:BRANDING STRATEGIES FOR AN UP-MARKET LINE EXTENSION IN THEFASHION INDUSTRY

Chandon, PGrigorian, V

INSEAD

Renzo Rosso, the President and Founderof Diesel SpA, the innovative Italiancasual wear company famous for itscontroversial ‘For Successful Living’advertising campaign, is pondering howto brand its new upscale line of clothing:StyleLab. The objectives set for StyleLabare: (1) to enter the new and attractivehigh casual wear market; (2) to create anaura of prestige for the core D-Diesel line;and (3) to provide Diesel’s designers withthe opportunity to experiment with newcuts and fabrics, which may eventuallytrickle down to the main D-Diesel brand.The case focuses on the selection of thebranding strategy for StyleLab: should itbe an independent brand with no link toDiesel, a sub-brand of Diesel, or anindependent brand endorsed by Diesel?It can also be used to discuss criticalissues in the marketing of fashion andluxury brands. In particular, it illustrateshow Diesel has managed to growwithout losing its core identity. The mainobjectives of the case are to develop anunderstanding of the key issues involvedin managing a portfolio of brands and toevaluate alternative branding strategiesfor launching a new brand using astructured approach and tools. The casealso illustrates critical issues in themarketing of fashion and luxury brands,most notably brand extensions. This casehas been successfully taught in an MBAcourse on brand management. It canalso be used in a session on branding in amarketing management course. Thelarge corpus of Diesel’s controversial printand television advertisements also makethe case suitable for an advertisingcourse or the advertising module of amarketing management course. Finally,the case can also be used in a marketresearch course to illustrate the value ofexperimental methods for studying theeffects of branding. A CD-ROM (504-007-9) is available to accompany the teachingnote. The CD-ROM contains 23 of Diesel’sbest television commercials (called‘videotronic guides to successful living’),a PowerPoint presentation containing allthe case exhibits, a PowerPointpresentation of Diesel and StyleLab print

advertising campaigns, before and afterthe time of the case, and a PowerPointpresentation with information on whathappened to Diesel and StyleLab afterthe case. Two separate PowerPointpresentations (in PDF format) ‘504-007-9A’ and ‘504-007-9B’ are available toaccompany the teaching note. **ecchEuropean Case Awards Category Winner2006 and ecch European Case AwardsOverall Winner 2007**

Western Europe; Fashion; 1,000employees, 260 million euros turnover;1999

BrandingMarketingBrand managementBrand extensionFashionLuxury goodsAdvertisingLogos

24 ppField research504-007-8 (22 pp)504-007-9 (s/w)

600-003-1DRAGONFLY: DEVELOPING APROPOSAL FOR AN UNINHABITEDAERIAL VEHICLE (UAV)

Loch, CHDe Meyer, AKavadias, S

INSEAD

IACo is an aerospace company,developing UAVs (uninhabited aerialvehicles). The case describes the projectof developing a bid for a large contractunder severe time pressure. The casediscusses project planning for rapid time-to-market. The case discusses projectmanagement problems occuring duringthe development of a new product. Themain objectives are to illustrate: (1) thedifferent ways of representing projectactivities; (2) the traditional projectmanagement techniques (CPM, GanttChart); (3) extensions of the critical pathapproach (to account for timeuncertainty, loops and rework); and (4)how to focus improvement efforts. **ecch European Case Awards CategoryWinner 2004**

UK; Aerospace; 19999 ppPublished sources600-003-8 (23 pp)


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301-228-1EASYEVERYTHING’S PRICINGPOLICIES

Pagliero, MCourty, P

London Business School

Founded in 1999 by Stelios Haji-Ioannou,easyEverything quickly became thelargest chain of Internet cafes in theworld. Stelios used his experience in theairline industry to introduce dynamicpricing in Internet Cafe. The price in thecafes is automatically updated every 5minutes according to capacity utilisationand, far from discouraging potentialcustomers, the new system has beenwidely accepted. Although this pricingscheme successfully manages to smoothdemand, preventing queues fromforming or having empty stores, Steliosbelieves that it can be improved. Thechallenge ahead is to find new ways toincrease store occupancy without havingto decrease prices below reasonablelevels. The focus of the case is on pricingand it illustrates how the concepts ofdemand and price discrimination areused in practice. The aim of the case is tostimulate students to discuss howeasyEverything manages its pricingpolicies to sort consumers in differentsegments and to make the best use ofstore capacity. Overall, the caseintroduces the reader to the fundamentalissue of how different pricinginstruments can be used to maximiserevenues.

Europe; Internet cafes; 1999-2001Pricing policiesDemand curvePrice discriminationPeak load pricingRevenue managementDynamic pricing


IMD-3-0873EASYJET: THE WEB’S FAVOURITEAIRLINE

Kumar, NRogers, B

IMD - International Institute forManagement Development

Stelios Haji-Ioannou, the 32-year-oldChief Executive Officer and founder ofeasyJet airlines, achieved profitability for

the first time in 1999, almost 4 years afterlaunching his London-based low-costcarrier. The concept behind easyJet was‘to offer low-cost airline service to themasses’, and the airline accomplished thisby adopting an efficiency-drivenoperating model, creating brandawareness, and maintaining high levelsof customer satisfaction. A key issue inthe case is whether the airline willcontinue to grow and survive in thehighly competitive low-cost segment ofthe market. In 2000, Stelios was anxiousto try his hand at launching otherbusinesses, so he started a chain ofInternet cafes. Some questioned whetherStelios would be able to successfullytransfer his low cost business model toInternet cafes. Undeterred, Stelios movedahead with his plan to createeasyEverything, with the belief that hecould make a profit by encouragingcustomers to surf the Internet, send e-mail and shop on-line. This case containscolour exhibits. Instructors should notethat ‘easyJet’ is the first case in a seriesthat includes ‘easyEverything: TheInternet Shop’ (IMD-3-0874) and‘www.easyrentacar. com’ (IMD-3-0875).**ecch European Case Awards CategoryWinner 2001 and ecch European CaseAwards Overall Winner 2002**.

Europe; Airline; 1,000 employees, US$125million turnover; 1999

Marketing strategyIndustry analysisService management


9A97G029ELLEN MOORE (A): LIVING ANDWORKING IN KOREA

Lane, HNicholls, CEllement, G

Richard Ivey School of Business

This case is from the Ivey Best SellingCase Collection. Ellen Moore, a SystemsConsultant, was sent to Korea to managea project involving a team of NorthAmerican and Korean consultantsrepresenting a joint venture between amajor Korean conglomerate and asignificant North American informationtechnology company. The Americanswere to be involved for the first sevenmonths in order to transfer expertise and

knowledge to the South Koreans whohad little experience in this area. Ellen’ssuperior had played an integral part insecuring the contract in Korea due to hisdepth of knowledge on the subject. Hechose Ellen to be the key North Americanproject manager because she hadsignificant project management skillsand impressive international experience.Upon Ellen’s arrival, she discovered thatthe Korean consultants were far lessskilled than she had expected. Inaddition, Ellen had understood that sheand the Korean manager were to be co-managers but immediately tensionsarose regarding who was giving directionto the team and the scope of the project.Tensions escalated until it was clear thatthe project was behind schedule and theKoreans were not taking direction fromEllen. The Koreans insisted that Ellen wasthe problem. Ellen’s superior disagreed;he and Ellen must decide how toproceed. The challenge is to balancestrategic goals with individual action.

Korea; Business services; Large; 1995Intercultural relationsWomen in managementTeam buildingGroup behaviour

20 ppField research8A97G29 (5 pp)

302-058-1EVEN A CLOWN CAN DO IT: CIRQUEDU SOLEIL RECREATES LIVEENTERTAINMENT CASE B

Kim, WCMauborgne, RBensaou, BMWilliamson, M

INSEAD

This is the second of a two-case series(302-057-1 and 302-058-1). Cirque duSoleil very successfully entered astructurally unattractive circus industry. Itwas able to reinvent the industry andcreated a new market space bychallenging the conventionalassumptions about how to compete. Itvalue innovated by shifting the buyergroup from children (end-users of thetraditional circus) to adults (purchasers ofthe traditional circus), drawing upon thedistinctive strengths of other alternativeindustries, such as the theatre, Broadwayshows and the opera, to offer a totallynew set of utilities to more mature and


10

higher spending customers. The caseseries is designed to serve a variety ofpurposes in the value innovation andcreating new market space teachingmodule of an MBA strategy course orexecutive education programme. Thecase series can be equally usedindividually in a standalone module onvalue innovation or as part of a sequenceof three to four sessions. In bothinstances, the instructor can best use it tocover the following topics: (1) the valueinnovation logic (as compared toindustry and competitive analysis); (2) theconcept of value curve; and (3) the sixpaths analysis for creating new marketspace. **ecch European Case AwardsCategory Winner 2008**

Canada, USA, Europe; Circus; 2001Circus and live entertainmentindustryValue innovationStrategyCreating new market spaceRedefining industry boundariesMoving across industriesThinking out of the boxCompetition


302-016-1FLYING INTO A STORM: BRITISHAIRWAYS (1996-2000)

Manzoni, JFBarsoux, JL

INSEAD

This case considers the transition at thehead of British Airways (BA) from LordMarshall, key architect of BA’s spectacularrestructuring and revitalisation in the1980s, to his chosen successor RobertAyling. In an increasingly deregulatedmarket, Ayling’s challenge is to sustainBA’s position of leadership in the airlineindustry. He pursues an ambitiousstrategic alliance, a massive cost cuttingdrive and initiates a controversial changeof corporate identity. Although the stockmarket initially approves of most of hisstrategy, he runs into trouble on theindustrial relations front. A cabin crewstrike in the summer of 1997 hitsemployee morale and triggers asustained dive in the airline’s share price.For all Ayling’s efforts over the followingthree years, he does not manage to

redress the slump and his eventualremoval does not come as much of asurprise. What is surprising is theinsistence by BA’s chairman that Aylinghad set the right strategy, but was thewrong person to implement it. The caseexplores what went wrong. This is a veryrich case that can be tackled from severalangles. On the leadership succession sideit illustrates the difficulties of makingone’s mark when taking over a highlysuccessful company, especially comingafter a very respected leader. On theleadership style angle, the casehighlights the various roles of the leader -as strategist, architect and mobiliser - andthe difficulties of building or rebuildingcredibility and trust. It also raisesquestions on why leaders often becomemore abrasive as time passes and howmuch their style is shaped by their initialbackground and leadership experiences.The case can be used to examine how tobring about radical change, particularlywhen the company is doing well at theoutset and staff’s sense of urgency iscorrespondingly low. It also illustrates theimportance of fair process in radicalchange efforts. Last but not least thecase raises questions on the causes andconsequences of company culture. AsCEO Marshall had created a culture ofemployee and customer care that waswidely admired even beyond the airlinesector, that culture seemed to go awayfairly quickly as service levels droppedand employees felt no longer cared for.What happened? The case can be used asa stand alone case, or following adiscussion of the case ‘Becoming theWorld’s Favourite Airline: British Airways1980-93’ (398-080-1) (which covers theKing-Marshall years). Note: the first 18months of Ayling’s tenure (and hence ofthe period covered in this case) werediscussed in the case ‘Remaining theWorld’s Favourite Airline: British Airways1993-97’ (398-081-1). That case wasfocused mainly on leadership successionand fair process. This new case builds onthis initial period and covers the nextthree years, culminating in the removal ofRobert Ayling. These additional threeyears were very eventful and result in amuch richer set of teaching issues. If youwant to centre the discussion on fairprocess, we recommend using the case‘Remaining the World’s Favourite Airline’:British Airways 1993-97 (398-081-1). Thispresent case will support a broaderdiscussion.

United Kingdom; Airline; Over 60,000employees; 1996-2000

LeadershipSuccessionRadical changeCorporate renewalImplementing a new strategyFair processCorporate cultureCustomer serviceIndustrial relationsCost cuttingService sector


599-038-1FORD KA (A): BREAKING NEWGROUND IN THE SMALL CAR MARKET

Christen, MSoberman, DCothier, G

INSEAD

This is the first of a two-case series (599-038-1 and 599-039-1). In response to thechanges in the European small carmarket, Ford decided to launch a secondsmall car, the Ford Ka. The Ford Ka hasalready been developed, the productioncapacity determined, and the launch setfor October 1996 in France. Before GillesMoynier can get to the specifics of themarketing strategy, he must decide whothe target customer for the Ford Kashould be. The (B) case reveals that Fordchose an attitudinal segmentation andpresents initial sales results. The changein the segmentation approach made itdifficult to assess the success of thelaunch and to determine what needed tobe done next to continue to build thebrand. The Ford Ka case introducesstudents to the fundamental marketingproblem of market segmentation andtarget selection. Ford’s situation does notfit the ‘textbook’ model exactly and thus,the case is an opportunity for students tosee how theory is applied in the realworld. Ford’s problem is not unique.Often firms want to introduce an existingproduct to a new market. At a moredetailed level, the case can be used tohighlight the difference betweensegment formation and segmentidentification and the importance ofconsidering implementation issues of amarketing strategy. The case also exposesstudents to typical market research toolsused for market segmentation.

France; Automobile; Sales FF18 billion(1995); 1996-1997


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SegmentationSegment identificationTarget selectionProduct introduction in newmarketsInternal marketing


9-699-198FORD MOTOR CO: SUPPLY CHAINSTRATEGY

Austin, RDHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection.Describes Ford’s examination of itssupply chain to evaluate whether thecompany should ‘virtually integrate’ onthe Dell Computers model. The teachingpurpose is to examine the challenges ofvirtually integrating supply chains inestablished industries.

Dearborn, MI; Automobiles; Fortune 500,employees 370,000, $144 billionrevenues; 1998

Automobile industryElectronic commerceInformation technologyLogisticsSuppliersSupply chain


9-803-069FOUR SEASONS GOES TO PARIS: ‘53 PROPERTIES, 24 COUNTRIES, 1 PHILOSOPHY’

Hallowell, RBowen, DKnoop, CI


Illustrates how Four Seasons manageshotels in countries with strong anddistinct national cultures. Focuses onhow the chain meets its exacting servicestandards in a variety of settingsworldwide, with special attention on

France. The teaching purpose is toexplore the role of organizational valuesand culture in a global strategy, leadingto the development of a frameworkillustrating what differs and what remainsconstant in a service organization acrossmultiple national settings.

FranceGlobalizationHotels & motelsHuman resources managementOrganizational behaviorService managementValues


9-306-087GE’s GROWTH STRATEGY: THEIMMELT INITIATIVE

Bartlett, CAHarvard Business Publishing

Follows the actions of General Electric(GE) Chief Executive Officer (CEO), JeffImmelt, as he implements a growthstrategy for the US$150 billion companyin a tough business environment. In fouryears, he reinvigorates GE’s technology,expands its services, develops acommercial focus, pushes developingcountries, and backs ‘unstoppable trends’to realign GE’s business portfolio aroundgrowth platforms. At the same time, hereorganizes the company, promotes‘growth leaders’ into top roles, andreorients the culture around innovationand risk taking. Finally, in 2006, he seessigns of growth, but wonders whether itis sustainable.

Global, United States; Energy resources,engine industry; US$150 billion revenues;2001-2006

Business policyConglomeratesGrowth strategyInternational managementLeadershipStrategy implementationVision


9-304-049GE’s TALENT MACHINE: THE MAKINGOF A CEO

Bartlett, CAMcLean, AN


GE believes its ability to developmanagement talent is a corecompetency that represents a source ofsustainable competitive advantage. Thiscase traces the development of GE’s richsystem of human resource policies andpractices under five CEOs (chiefexecutive officer) in the post-war era,showing how the development of talentis embedded into the company’songoing management responsibilities. Itdescribes the development of a 25-year-old MBA named Jeff Immelt, who 18years later is named as CEO of GE,arguably the biggest and most complexcorporate leadership job in the world andhow he frames his priorities for GE andimplements them, pulling hard on thesophisticated human resource levers hispredecessors left him. Immelt questionswhether he should adjust or evenoverhaul three elements of GE’s finelytuned talent machine. May be used with:(9-302-001) ‘GE’s Digital Revolution:Redefining the E in GE’; (9-399-150) ‘GE’sTwo-Decade Transformation: Jack Welch’sLeadership’; (9-304-804) ‘GE’s TalentMachine: The Making of a CEO’, Video.

Global; Fortune 500, 300,000 employees,$132 billion revenues; 1960-2003

Business policyCompetitive advantageCore competencyCorporate strategyDiversified companiesHuman resources managementLeadershipManagement developmentOrganizational behaviorStrategy implementation


9-399-150GE’s TWO-DECADETRANSFORMATION: JACK WELCH’SLEADERSHIP

Bartlett, CAWozny, M


This case is part of the Harvard BusinessSchool Premier Case Collection. GE is


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faced with Jack Welch’s impendingretirement and whether anyone cansustain the blistering pace of change andgrowth characteristic of the Welch era.After briefly describing GE’s heritage andWelch’s transformation of the company’sbusiness portfolio of the 1980s, the casechronicles Welch’s revitalization initiativesthrough the late 1980s and 1990s. Itfocuses on six of Welch’s major changeprograms: The Software Initiatives,Globalization, Redefining Leadership,Stretch Objectives, Service BusinessDevelopment, and Six Sigma Quality.May be used with: (9-304-049) ‘GE’s TalentMachine: The Making of a CEO.’

United States, global; Industrialconglomerate; 293,000 employees, $100billion revenues; 1981-1998

Business policyConglomeratesCorporate cultureCorporate strategyExecutivesLeadershipManagement of changeOrganizational changeOrganizational developmentStrategy implementation


9-599-078GOING TO MARKET Note


Describes the major issues in decidinghow to reach the market. Covers issues ofchannel design and channelmanagement.

Distribution channelsMarketing management

10 pp

9-806-105GOOGLE, INC

Eisenmann, TRHerman, K


Describes Google’s history, businessmodel, governance structure, corporateculture, and processes for managinginnovation. Reviews Google’s recentstrategic initiatives and the threats theypose to Yahoo, Microsoft, and eBay. Asks

what Google should do next. One optionis to stay focused on the company’s corecompetence, ie, developing superiorsearch solutions and monetizing themthrough targeted advertising. Anotheroption is to branch into new arenas, forexample, build Google into a portal likeYahoo or Microsoft Network (MSN);extend Google’s role in e-commercebeyond search, to encompass a moreactive role as an intermediary (like eBay)facilitating transactions; or challengeMicrosoft’s hegemony over the personalcomputer (PC) desktop by developingsoftware to compete with Office andWindows.

Mountain View, California (CA), UnitedStates; Advertising industry, internet andonline services industries, softwareindustry; 5,000 employees, US$6.1 billionrevenues; 2005

Business historyBusiness modelsCompetitionCorporate cultureCorporate governanceCorporate strategyCorporate structureEntrepreneurshipGovernanceInnovationNetwork effectsSearch enginesSocial networksValues

33 ppPublished sources5-806-199 (32 pp)5-807-067 (8 pp)

IMD-3-0861GPS & VISION EXPRESS (A)

Killing, PHorovitz, J


This is the first of a two-case series (IMD-3-0861 and IMD-3-0862). In the summerof 1997 the executive team of GPS, a verysuccessful French retailer in the one hourphoto finishing and one hour eyewearbusiness, is trying to decide whether ornot to purchase Vision Express of the UK.Both companies are very entrepreneurial,fast growing, and have pioneered theone hour service concept in theirrespective countries. The founder ofVision Express was Dean Butler, theAmerican who previously founded LensCrafters in the USA. In spite of their

similarities, the formula for success of thetwo companies is rather different, withVision Express relying on a heavy use ofadvertising featuring ‘two for one’ sales,and GPS competing on high servicelevels and repeat business. Theacquisition, if made, would be GPS’ firstmajor expansion outside France.

England, France; Retail; Medium; 1997Cross border acquisition

15 ppField research

IMD-3-0862GPS & VISION EXPRESS (B)

Killing, PHorovitz, J


This is the second of a two-case series(IMD-3-0861 and IMD-3-0862). Theacquisition referred to in the (A) case wasmade, but it is not going well. Twoexecutives at GPS are proposing arevolution at Vision Express which wouldchange the company’s business modelto be more like the French model. DeanButler strongly opposes the change,arguing that it would ruin Vision Express.The business model may or may not bethe problem. What should GPSmanagement do?

England, France; Retail; Medium; 1997Post merger integration

5 ppField research

IMD-3-1353GREG DYKE: TAKING THE HELM ATTHE BBC (A)

Killing, PKeys, T


This is the first of a three-case series (IMD-3-1353, IMD-3-1354 and IMD-3-1441).This is a teaching case designed toillustrate the challenges facing a seniorexecutive, in this case a CEO (director-general), as he or she takes over a newrole in a new organisation. The BBC hasmajor internal challenges aroundorganisation and culture, in addition tosignificant external market challenges asthe media industry moves from analogueto digital technologies. The case is set onthe day of Greg Dyke’s first speech to staff


13

when he needs to set the agenda for histime as Director-General. Key discussionpoints are expected to be around: thepriorities he sets for tackling the issuesthat face him, how he communicates hisleadership style and the approaches fortackling an unhappy organisation. Avideo ‘IMD-3-1353-V’ is available toaccompany the (A) and (B) cases. **EFMDCase Writing Competition CategoryWinner 2005**

United Kingdom; Media; £3 billionrevenue; 2000

MediaLeadershipOrganisational changeCultureStrategy


404-083-1HELEN RAMSAY: A MEDIATIONATTEMPT

Manzoni, JFBarsoux, JL

INSEAD

Two reasonable people, a boss and asubordinate, find each other ‘impossibleto handle’. Through their descriptions ofeach other’s behaviour we realise thatthey are in a self-perpetuating dynamic.An attempted intervention by thehuman resource manager not only failsto resolve the situation; it actually makesit worse. The teaching objectives are asfollows: (1) to illustrate how cognitivebiases can trigger very different takes onthe same ‘reality’; (2) to discuss themanagement of ‘lower performers’; (3) toincrease awareness of the vicious circlesin which bosses and ‘lower performers’get caught; and (4) to discuss the role ofhuman resources in intervention andprevention. This case replaces ‘HelenRamsay (A) & (B)’ (403-038-1 and 403-039-1). **EFMD Case WritingCompetition Category Winner 2004**

No specific location (English-speakingcountry); Division of a multinationalcompany

Human resources managerBoss behaviourSubordinate performanceManagement and leadershipMotivation and expectations

Self-fulfilling prophecyPygmalion effectCommunicationConflict and mediationCognitive biasesLabellingSelective attentionAttributionsHR (human resources) systems, fairprocess and feedbackVicious circles

8 ppGeneralised experience404-083-8 (24 pp)

9-384-049HONDA (A)

Pascale, RChristiansen, E


This case is part of the Harvard BusinessSchool Premier Case Collection.Describes the history of Honda MotorCompany from its beginning through itsentry into and subsequent dominance ofthe US market. The history is explainedprimarily in terms of strategic factors andquoted from two sources: an earlier caseand Boston Consulting Group report onthe motorcycle industry. Should be usedwith Honda (B).

Japan, United States; Motorcycles; Large;1948-1974

Business policyCompetitionCorporate strategyJapanLearning curvesMotorcycles

9 ppPublished sources5-386-034 (7 pp)5-704-022 (27 pp)

9-384-050HONDA (B)

Pascale, RChristiansen, E


Describes the history of Honda MotorCompany from its beginning through itsentry into and subsequent dominance ofthe US market as seen through the eyesof Honda executives. The history of

Honda’s successful entry into the USmarket is viewed as highly adaptive andfraught with error and serendipity. Honda(A) and (B) are designed to be usedtogether to contrast two differing viewsof major events in a company’s history,both of which are important for a generalmanager to understand.

Japan, United States; Motorcycles; Large;1948-1974

Business policyCorporate strategyJapanManagement of changeManagement stylesMotorcycles

9 ppField research

606-012-1IDEO: SERVICE DESIGN (A)

Sosa, MEBhavnani, R

INSEAD

This is the first of a two-case series (606-012-1 and 606-013-1). This case describeshow IDEO adapts its famed innovationprocess (developed to design newproducts) to the particularities of servicesand their design. The case seriesdescribes four service design projects toshow how IDEO has developed andcodified a series of design methods,which constitute a toolbox from whichteams can pick and choose dependingon the innovation project. The case studyaims to: (1) reinforce the notion of thefive-step innovation process that can beused for any design project, whether it isa service or a product. (The five steps ofthe IDEO process are: (i) observe; (ii)synthesise; (iii) generate ideas; (iv) refine;and (v) implement); (2) highlight thedifferences between product and servicedesign, and the subtle differences in therespective processes; (3) introduce thenotion of IDEO methods as a set ofinterchangeable tools to be usedaccording to the type of project beingworked on, and identify when is it best touse them; and (4) introduce the conceptof knowledge brokering and examinethe ways in which the transfer ofknowledge is carried out across adistributed organisation. This case waspreviously numbered 605-031-1. **ecchEuropean Case Awards Category Winner2008**


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USA, UK; Consulting (transportation,banking, telecommunications, healthcare); 300+ employees; 1999-2005

Innovation managementNew product and servicedevelopmentBrainstormingPrototypingKnowledge brokering


SM151INFOSYS CONSULTING IN 2006:LEADING THE NEXT GENERATION OFBUSINESS AND INFORMATIONTECHNOLOGY CONSULTING

Capur, ABurgelman, RA

Stanford University

Describes Infosys Technologies’ approachto growing the company by expandingits service offerings; moving up the valuechain to offer higher-end consultingservices; improving its brand equity andrecognition as a global company;increasing revenue through repeatbusiness from the company’s client base;and entering client relationships earlier inthe lifecycle by defining problems andidentifying solutions beforeimplementation. Considers whetherInfosys Technologies - through thecreation of a wholly owned US-basedsubsidiary, Infosys Consulting - hascreated disruptive change in the ITconsulting industry by leveraging itscompetency in global delivery to create anew model that shortens the lifecyclefrom business consulting toimplementation, reduces the costs of atypical client engagement, and deliversmeasurable benefits to clients. The case isset in early 2006. An overview of theInformation Technology (IT) serviceslandscape is provided for this period. Thecase profiles leading onshore (US) andoffshore (Indian) competitors anddescribes their different approaches toglobal delivery in the IT consultingindustry. The teaching purpose is toevaluate Infosys Technologies’ strategywith regard to the creation of InfosysConsulting, students are asked toconsider the following themes: (1)

globalization from the perspective of acompany that has its roots in India; (2)company strategy to move up the valuechain in a specific industry; (3) changingthe ‘rules of the game’ in an industry; (4)anticipating competitive responses to‘rule-changing’ strategic actions; (5)interface challenges between the parentcompany, headquartered in India, andthe subsidiary, headquartered in theUnited States; and (6) managing growth.

Global; Consulting, information systems,IT industry

Business modelsConsultingCorporate strategyGlobalizationInformation technologyMarket positioning


307-053-1ING DIRECT: REBEL IN THE BANKINGINDUSTRY

Verweire, KVan den Berghe, LA

Vlerick Leuven Gent ManagementSchool

ING DIRECT is one of the six business linesof integrated financial services providerING Group and active in 9 differentcountries. The case describes how INGDIRECT USA has become the largestInternet-based bank in the United States,and one of the thirty largest banks of anysort in the country. In particular, attentionis paid to the strategic positioning of INGDIRECT in the US retail banking industry,and what strategic actions the bank hasundertaken to achieve and maintain theunique position the bank has achieved sofar. The case depicts how it all started, butalso sheds light on the future challengesof the company.

USA; Financial services; Approximately3,000 employees; 2001-2006

Competitive strategyStrategy implementationDisruptive innovationBlue ocean strategyMarketing strategyMarketing


IMD-5-0543INNOVATION AND RENOVATION: THENESPRESSO STORY

Kashani, KMiller, J


The case traces the development of theNespresso System in a 100%-ownedaffiliate deliberately placed outside ofNestlé’s main organisational structure. Ithighlights the team’s successes andchallenges in creating a new, small, nichesegment in the mature coffee marketand its prospects for growing thebusiness from SFR150 million to SFR1billion within the next decade. A radicaldeparture from most Nestlé lines ofbusinesses targeted to the mass market,the Nespresso story offers provocativelessons about innovation in large, highlystructured organisations. **EFMD CaseWriting Competition Category Winner2003**

Switzerland, Global; Coffee; CHF150million annual revenue in 1999; Autumn 1999

InnovationNew product developmentMarketing a new conceptDirect marketing


9-599-087INTEGRATED MARKETINGCOMMUNICATIONS Note


Describes the major communicationvehicles and the process via which theycan be brought together in an integratedmarketing communications plan.

AdvertisingCommunicationMarketing managementSales promotions

14 pp


15

9-190-002KANTHAL (A)

Kaplan, RSHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection.Multinational company needs animproved cost system to determine theprofitability of individual customerorders. Its strategy is to have significantsales and profitability growth withoutadding additional administrative andsupport people. The new cost systemassesses a charge to each customer orderreceived and an additional surcharge ifthe item ordered is not normally stocked.The goal is to direct sales resources to themost profitable customers: those whobuy standard products in largepredictable quantities with minimaldemands on technical resources.

Sweden; Wire; Mid-size, $160 millionsales; 1987

Cost accountingCost allocationCost systemsCustomer relationsManagement accountingSales strategyScandinavia


9-506-020KINGSFORD CHARCOAL

Narayandas, DWagonfeld, AB


This case is part of the Harvard BusinessSchool Premier Case Collection. Since the1980s, Kingsford had continued to enjoysteady, moderate growth of 1% to 3% inrevenues each year. During most of thistime, the charcoal category as a wholegrew as well. However, the summer of2000 represented the first softening inthe category in several years. Forcesstudents to step into the brandmanager’s shoes, analyze the reasons forthe current situation, and come up withrecommendations related to pricing,branding and advertising, andmerchandising and promotion of theKingsford brand.

North America; Consumer products; $4billion revenues; 2001

AdvertisingBrand managementMarketing planning

Marketing strategyMerchandisingPricing


9-798-063LEADERSHIP ONLINE (A): BARNES &NOBLE vs AMAZON.COM

Ghemawat, PBaird, B


This case is part of the Harvard BusinessSchool Premier Case Collection.Describes the attempt of a traditionalretailer, Barnes & Noble, to counter thechallenges posed by an Internet-basedstart-up, Amazon.com.

20,000 employees, $2 billion revenues;1996-1997

CompetitionElectronic CommerceInternetPublishing industryRetailing


499-021-1LINCOLN ELECTRIC IN CHINA

Galunic, CBjorkman, I

INSEAD

This case looks at how Lincoln Electric,the US-based company renowned for itscompensation scheme, tried toimplement its human resource policiesglobally, and particularly in China. Theobjective is to expose readers to some ofthe difficulties and myths of pushingwell-worn ideas overseas. The case endsoff with an important question regardingthe company’s future, one that dependson its overseas strategy, of which HR iskey. **ecch European Case AwardsCategory Winner 2007**

China, USA, Europe; Manufacturing;1998-1999

CompensationCross-cultureInternational expansionChinaIncentives


IMD-5-0679LOGITECH: LEARNING FROMCUSTOMERS TO DESIGN A NEWPRODUCT

Deschamps, JPBerg, M


In 2005 Logitech launched a new andimproved cordless presenter which wasthe next generation product of itspresentation device line. The entireprocess to launch was unusual forLogitech as the following factors tookplace: a director of engineering played akey marketing role, a new method ofcustomer feedback and research wasused to decide on product features andthe entire project was outsourced to afirm in Taiwan - which was a first for thisproduct unit. The case goes over theissues and challenges that were facedalong the way and how marketing andengineering had to work together in anunusual pairing in order to get to asuccessful product launch.

Switzerland, Taiwan, California;Technology products; 6,000 employees,US$1.35 billion in annual revenues;January 2004 to January 2005

Product developmentCustomer feedbackCustomer researchProject developmentProduct launchTechnologyInnovationMarketingEngineering


9-692-015MANZANA INSURANCE: FRUITVALEBRANCH (Abridged)

Wheelwright, SCHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection. Dealswith performance assessment andimprovement of a service operation inthe insurance industry, a market that ishighly sensitive to response time. Twobranch offices in direct competition aredescribed, and the impact of responsetime on performance is suggested.Management choices that impactresponse time are explored and the


16

poorer performer of the two branchesmust decide how to respond.

California; Insurance industry; 1989-1991CompetitionInsuranceOperations managementPerformance measurementSchedulingService management


503-121-1MARKETING RESEARCH AT P&G

Gupta, VPrashanth, K

ICMR Center for Management Research

US-based fast moving consumer goods(FMCG) major, Procter and Gamble (P&G)is believed to have pioneered themarketing research concept way back in1924. The case gives a brief account ofthe evolution and growth of P&G’smarketing research efforts. The variousmarketing research tools used by thecompany are discussed in detail andseveral real life instances are narrated. Thecase also highlights the recent marketingresearch initiatives of P&G, including thethrust on on-line market research. Thebenefits to the company from its off-lineand on-line market research initiativesare also discussed. The case is structuredto enable the students to: (1) understandthe importance of marketing research fora large, global FMCG company; (2) learnabout various marketing research toolsemployed by P&G and the benefitsreaped; (3) understand how the Internetcould be effectively used to conductmarket research and the benefits ofdoing so; and (4) examine the possiblelimitations of on-line market research.The case is aimed at MBA/PGDBAstudents and is intended to be part of themarketing curriculum. The teaching notedoes not contain an analysis of the case.

US, Europe; Fast moving consumergoods; Large; 1837-2003

Procter and GambleP&GMarketing researchConsumer researchMarket testingProduct developmentQuantitative researchQualitative researchConsumer behaviourAdvertising researchOn-line market research

Concept testingFeedback adviser programmeIntelligence gathering


602-010-1MARKS AND SPENCER AND ZARA:PROCESS COMPETITION IN THETEXTILE APPAREL INDUSTRY

Pich, MVan der Heyden, LHarle, N

INSEAD

This case was written to illustrate theimportance of business process design asa basis for competition in the textileindustry. The case illustrates theimpressive performance of Zara, the newfashion player from Spain, which hasinnovated in process design so as todeliver new collections in its stores with alead-time of 5 to 7 days. The moretraditional approach in textile retailing isillustrated here by Marks and Spencer(M&S), the well-known UK retailer.Notwithstanding M&S’s currentproblems, the case does not fall into anoverly simple comparison between ayoung, innovative competitor and anageing glory. The authors have taughtthis case both in executive education andin the MBA core class on process andoperations management. There are fourimportant concepts that we typicallystress, more or less, depending onpedagogical objectives: (1) newsvendorlosses in the textile industry; (2) the roleof postponement in final design; (3) the‘lean enterprise’ aspect of Zara; and (4)process competition and innovation,embedded in technology evolution.**ecch European Case Awards CategoryWinner 2003 and ecch European CaseAwards Overall Winner 2005**

UK; international, Retail, textile apparel;Large; 1998-2001

Process competitionOperations managementSupply chainRetail apparelDelayed customisationTime-based competitionNewsboy modelInnovation

17 ppPublished sources602-010-8 (37 pp)602-010-9 (s/w)

9-298-101MARRIOTT CORP: THE COST OF CAPITAL Ruback, R

Harvard Business PublishingPresents recommendations for hurdlerates of Marriott’s divisions to select bydiscounting appropriate cash flows bythe appropriate hurdle rate for eachdivision.

Unspecified; Hotels and restaurants;Large, employees 647,000, $164 billionrevenues;1988

Capital costsCapital structureCash flowHotels and motelsRestaurantsValuation


9-799-158MATCHING DELL Rivkin, JPorter, ME

Harvard Business PublishingThis case is part of the Harvard BusinessSchool Premier Case Collection. Afteryears of success with its vaunted ‘DirectModel’ for computer manufacturing,marketing, and distribution, DellComputer Corp faces efforts bycompetitors to match its strategy. Thiscase describes the evolution of thepersonal computer industry, Dell’sstrategy, and efforts by Compaq, IBM,Hewlett-Packard, and Gateway 2000 tocapture the benefits of Dell’s approach.Students are called on to formulatestrategic plans of action for Dell and itsvarious rivals. Designed to be taught inany of several places in an MBA course oncompetitive strategy. Permits anespecially detailed examination ofimitation; illustrates how fit amongactivities and incompatibilities betweencompetitive positions can poseparticularly high barriers to imitation. Canalso be employed to illustrate competitoranalysis, the evolution of industrystructure, and relative cost analysis.

Global; Personal computers; Fortune 500,$19 billion revenues; 1998

CompetitionComputer industryCost analysisIndustry structurePersonal computersStrategic planning



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9-396-357MCKINSEY & CO: MANAGINGKNOWLEDGE AND LEARNING

Bartlett, CHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection.Describes the development of McKinsey& Co as a worldwide managementconsulting firm from 1926 to 1996. Inparticular, it focuses on the way in whichMcKinsey has developed structures,systems, processes, and practices to helpit develop, transfer, and supplyknowledge among its 3,800 consultantsin 69 offices worldwide. Concludes byfocusing on three young consultantsoperating in each dimension of the firm’sorganization - the local office, theindustry practice, and the firm’scompetence center. MD Rajat Guptawonders if the changes he has made aresufficient to maintain the firm’s vitalknowledge development process. Canbe used in general management, servicemanagement, or internationalmanagement courses to focus on theGM’s role in making knowledge andexpertise a source of competitiveadvantage.

6,000 employees, $1.8 billion revenues;1996

Business policyConsultingInnovationKnowledge transferManagement of professionalsMultinational corporationsOrganization


IMD-5-0537MEDI-CULT: PRICING A RADICALINNOVATION

Kumar, NRogers, B


This is a case that highlights the issuesinvolved in the launch of an infertilityproduct and procedure, which allowswomen to become pregnant withouthaving to undergo unpleasant hormonestimulation or experience dangerousside-effects. In bringing its product tomarket, Medi-Cult, a small biotechnologycompany, must deal with regulatoryconstraints, larger competitors, and the

challenges of introducing a new productinto the local and global marketplace.Questions raised are: Should the productbe priced according to its perceivedvalue? Should Medi-Cult pursue apenetration or market skimming strategyin pricing the new product? How will thecontribution margin be affected if aglobal, regional, or multinational pricingstrategy is chosen? What are the ethicalissues in pricing pharmaceuticals? **ecch European Case Awards CategoryWinner 2005**

Worldwide; Biotechnology; 1997 turnoverUS$3 million; 1998

PricingNew productsInternational marketing


IMD-5-0395MEDIQUIP SA®

Kashani, KIMD - International Institute forManagement Development

This case is a revised and updated editionof case ‘582-011-1’ of the same title. Thecase describes the selling activities of asales engineer with respect to a keyaccount. The loss of the order for a CTscanner provides the background foranalysing the dynamics of the buyingsituation and the salesman’s handling ofit. The issues raised are: (1) who are thecast of characters influencing the buyingdecision? (2) what seems to motivatethem? and (3) what sales strategy wouldbe appropriate?

Germany; Medical equipment; 1980-1981Buyer behaviourSales organisationSalesmenSellingStrategy


IMD-3-0423NESTLÉ-ROWNTREE (A)

Ellert, JCKilling, PHyde, D


This is the first in a three part case series(IMD-3-0423 to IMD-3-0425). Nestlé SA isthe world’s largest food company; itsacquisition of Rowntree plc in 1988 was,at 2.5 billion GB Sterling, the largest-everforeign takeover of a British company.This case series is positioned before,during, and after the acquisition ofRowntree by Nestlé, and gives an ‘insidelook’ at a major acquisition. This case (A)includes a note on the world chocolateindustry, and ends at the point whenNestlé must decide whether to launch ahostile bid for Rowntree. The case iswritten from Nestlé’s point of view, andprovides the opportunity to consider thebenefit of various acquisition possibilitiesin the industry. The case also raisesquestions as to why Rowntree became atakeover target, and on Nestlé’s historicalpolicy of not making hostile takeovers.**ecch European Case Awards CategoryRunner Up 1992 and ecch European CaseAwards Category Winner 1997**

Europe, Global; Chocolate confectionery;SFr 35 billion sales; 1988

Mergers and acquisitions (strategy,pricing, tactics)Industry analysisCompany analysis


IMD-3-0424NESTLÉ-ROWNTREE (B)

Ellert, JCKilling, PHyde, D


This is the second of a three-case series(IMD-3-0423 to IMD-3-0425) on the 2.5billion GB Sterling takeover of Rowntreeby Nestlé in 1988. Nestlé has launched ahostile bid for Rowntree; this case ends ata ‘breaking point’ in the process, andplaces us in the middle of a criticalnegotiation session of the most seniorexecutives of the two companies. Thecase is written from Nestlé’s point of view,and raise questions regarding thetakeover price and the potential post-acquisition integration and organizationstructure. **EFMD European Case WritingCompetition Category Winner 1990**

Europe, Global; Chocolate confectionery;SFr 35 billion sales; 1988

Mergers and acquisitionsTake-over bid price-post mergerintegration


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Organisation structureNegotiations


IMD-3-1334NESTLÉ’S GLOBE PROGRAM (A): THEEARLY MONTHS

Killing, PIMD - International Institute forManagement Development

This is the first of a three-case series (IMD-3-1334 to IMD-3-1336). All three casescan be taught in a half-day session. ChrisJohnson has been given the task ofinitiating and managing the world’slargest SAP roll out. The scope is global,the time frame for completion is fiveyears. The cost is estimated at SFr 3billion. Chris has to move to Switzerlandand start building an organisation andgetting Nestlé ready for a new way ofmanaging the business. This casedocuments his first months in his newjob and lays out the early challenges.

Global; Food and beverage; Large; 2000Change managementSAPProject management


IMD-3-1335NESTLÉ’S GLOBE PROGRAM (B): JULYEXECUTIVE BOARD MEETING


This is the second of a three-case series(IMD-3-1334 to IMD-3-1336). This shortcase continues the GLOBE story and isintended as an in-class handout to beused during the discussion of the (A)case. It documents some of the GLOBE-related discussion at Nestlé’s July 2000Executive Board meeting, which raisesfresh issues for Chris.

Global; Food and beverage; Large; 2000Change management


IMD-3-1336NESTLÉ’S GLOBE PROGRAM (C):‘GLOBE DAY’


This is the third of a three-case series(IMD-3-1334 to IMD-3-1336). This finalcase in the GLOBE series is setapproximately 18 months after the B-case. The setting is a meeting of Nestlé’smarket heads who are participating in adaylong event to bring them up to dateon the progress of GLOBE. The morninghas been difficult for Chris Johnson - fullof criticism - and the question is how heshould handle the afternoon.

Global; Food and beverage; Large; 2001Change management

4 ppField research

UVA-F-1353NIKE, INC: COST OF CAPITAL

Bruner, RFChan, J

Darden Business Publishing

This case is from the Darden Best SellingCase Collection. This case is intended toserve as an introduction to the weightedaverage cost of capital (WACC). Althoughthe case already provides a WACCcalculation, it has been intentionallydesigned to mislead students. As such,their task is to identify and explain the‘mistakes’ in the analysis, which aredesigned to highlight conceptual issuesregarding WACC and its componentsthat are often misunderstood bystudents.

US; Investment management; 2001Cost of capitalInvestment analysisValuation

8 ppPublished sourcesUVA-F-1353TN (5 pp)

303-046-1NISSAN’S U-TURN: 1999-2001CONDENSED VERSION OFREDESIGNING NISSAN (A) & (B)

Manzoni, JFHughes, KBarsoux, JL

INSEAD

This case is a condensed version of thecase series ‘Redesigning Nissan (A) & (B)’(303-044-1 and 303-045-1). WhenRenault sent Carlos Ghosn to turnaroundits alliance partner Nissan, observerswere sceptical of his chances. Aftersoliciting recommendations from theemployees, he unveiled a three-year planinvolving plant closures, job cuts, and arefocus on design. Within two years, thecompany had achieved a dramaticrecovery, posting record profits andproposing a dazzling array of newmodels. Case (A) covers the dynamics oftaking charge and case (B) the process ofleading change. The combined andcondensed version is for instructorswishing to cover the material in a singlesession. The cases raise a number ofthemes to do with how an incomingleader establishes credibility, builds acase for painful change, gathers support,provides constant and consistentcommunication, sells growth as well ascuts, enforces accountability, measuresprogress, and sustains momentum forchange. **ecch European Case AwardsCategory Winner 2007**

Japan (and France); Automobile sector,Nissan and Renault; Over 130,000employees; 1999-2001

Automobile, carsAllianceTransformation and turnaroundRestructuring, change and revivalFair process and credibilityCultural differencesStrategyVision and leadershipCost cutting and plant closuresEmpowermentProduct development andproductivityCross-functional teamsDesign and purchasingTrustGrowth



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IMD-5-0358PHILIP MORRIS KK

Turpin, DIMD - International Institute forManagement Development

The marketing manager of Philip MorrisKK (PMKK) must decide how his companyshould react after learning thatcompetitor RJ Reynolds plans tointroduce a Yen 200 cigarette in Japan,attacking PMKK’s position in the lowerend of the Japanese market. **ecchEuropean Case Awards Category Winner2008**

Japan; Food and tobacco; 1987PricingCompetitionMarket positioning


9-302-049PHILIPS VERSUS MATSUSHITA: A NEWCENTURY, A NEW ROUND

Bartlett, CAHarvard Business Publishing

Describes the development of theinternational strategies and organizationsof two major competitors in the globalconsumer electronics industry. Thehistory of both companies is traced andtheir changing strategic postures andorganizational capabilities aredocumented. Particular attention is givento the major restructuring each companyis forced to undertake as its competitiveposition is eroded. A rewritten version ofan earlier case.

Global, Europe, Japan; Electronicsindustry; Large, 270,000 employees, $40billion-$60 billion revenues; 1970-2001

CompetitionElectronicsInternational operationsMultinational corporationsOrganizational changeOrganizational structureStrategy implementation


9-505-038PRODUCT TEAM CIALIS: GETTINGREADY TO MARKET

Ofek, EHarvard Business Publishing

Lilly and ICOS are preparing for thelaunch of a new drug, Cialis, to competeagainst Viagra. To position against theincumbent firm Pfizer, which developedand markets Viagra, and othernewcomers into the erectile dysfunctionmarket, they must determine how bestto segment the market and which targetmarket to focus on. The marketing planshould take advantage of Cialis’ medicalprofile. In particular, they must payspecial attention to the communicationstrategy to patients, physicians, andpartners. The analysis, plan, and actionshould take into account extensivemarket research and recent competitivedevelopments. The teaching purpose isto determine the marketing strategy andplan for an entrant into a marketdominated by an incumbent firm with anexisting reputation and customer base.The product profile of the entrant hasnotable attribute differences fromexisting alternatives. The goal is tounderstand how to translate superiorityin product performance into superiorcommercial success. Includes colorexhibits.

Communication strategyCompetitionMarket researchMarket segmentationMarketing planningPharmaceuticalsProduct positioningTarget markets


9-386-019R&R

Stevenson, HMossi, J


This case is part of the Harvard BusinessSchool Premier Case Collection. Outlinesalternative mechanisms for getting intobusiness. Shows the means by which anexperienced entrepreneur can gaincontrol over the necessary resources inorder to lower the fixed costs of businessentry. Provides a mechanism fordiscussing the role of experience,

credibility, and contacts in thedevelopment of a non-business venture.

New York; Games; Large, $3 billion sales;1984

Capital costsDevelopment stage enterprisesEntrepreneurshipToy industry


505-098-1RED BULL: THE ANTI-BRAND BRAND

Kumar, NTavassoli, NLinguri Coughlan, S


Founded in Austria in 1984, Red Bull wascredited with creating the energy drinkscategory. In 2004, the worldwide energydrinks category was worth 2.5 billioneuros and Red Bull commanded a 70%market share. Sold in over 100 markets,Red Bull was the market leader in theUSA as well as in 12 of the 13 WestEuropean markets where it was present.Central to Red Bull’s success was the useof word-of-mouth or ‘buzz’ marketing.Through its sponsorship of youth cultureand extreme sports events, it developeda cult following among marketing-waryGeneration Y-ers, (18- to 29-year olds)who perceived it as an anti-brand. Whileit purported to be a sports drink, Red Bullwas mostly sold in clubs and bars as analcohol mixer, where its caffeine doseshelped revive clubbers into the earlymorning hours. By playing onassociations with energy, danger andyouth culture, Red Bull carefullycultivated its mystique, which earned itnicknames like ‘liquid cocaine’. Thecompany used additional non-traditionalmarketing techniques, such as consumereducation teams who drove aroundhanding out free cans of Red Bull tothose in need of energy, and studentbrand managers who promoted theproduct on university campuses. In 2004,Red Bull found itself at a crossroads,challenged with defending its marketshare. It faced a maturing market and anonslaught of competitive brands, someof them promoted by beverage industrygiants such as Coca-Cola and Pepsi,others as private labels by mass retailerssuch as Asda (part of Wal-Mart). Red Bullneeded to determine whether it wasoutgrowing its anti-establishment status.As a mature brand, it needed to assess


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whether the time had come to transitionto a more traditional marketingapproach. But this raised a criticalquestion: would this move toward amore mainstream approachfundamentally destroy Red Bull’s anti-brand mystique? This case has beenfeatured on the ecch website.

Europe, USA; Energy drinks; 1.26 billioneuros sales; 1982-2004

Buzz marketingDistributionGrowthBrand buildingGuerilla marketingEnergy drinksIntegrated marketingcommunicationsAdvertisingProduct-life cycleNon-traditional marketing


9-498-054ROB PARSON AT MORGAN STANLEY (A)

Burton, MDHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection. RobParson was a star producer in MorganStanley’s Capital Markets division. He hadbeen recruited from a competitor theprior year and had generated substantialrevenues since joining the firm.Unfortunately, Parson’s reviews from the360-degree performance evaluationprocess revealed that he was havingdifficulty adapting to the firm’s culture.His manager, Paul Nasr, faces the difficultdecision of whether to promote Parsonto managing director. Nasr must alsocomplete Parson’s performanceevaluation summary and conductParson’s performance review. Theteaching purpose is to exploremanagerial problems associated withperformance appraisal and performancemanagement.

Corporate cultureHuman resources managementInterpersonal behaviorInvestment bankingManagement of professionalsOrganizational behaviorPerformance appraisal


9-587-055ROHM AND HAAS (A): NEW PRODUCTMARKETING STRATEGY

Rangan, VKLasley, S


This case is part of the Harvard BusinessSchool Premier Case Collection. JoanMacey, Rohm and Haas’ market managerfor Metalworking Fluid Biocides, foundthat sales of a new biocide, Kathon MWX,was utterly disappointing. This was all themore puzzling since sales of her otherproduct - Kathon 886 MW, a liquidbiocide used only in large-capacity tanks- was well on target and held a steady30% market share. In May 1984, aboutfive months after the new product waslaunched, Joan Macey was reviewing herentire marketing strategy with a view tobringing Kathon MWX sales closer totarget. Of particular concern to her werethe distribution and communicationstrategies used for the new product.

Philadelphia, PA; Chemical industry;Fortune 500, $2 billion revenues; 1984

Distribution channelsMarketing strategyNew product marketing


9A94M005SABENA BELGIAN WORLD AIRLINESSTRIKE

Crossan, MPierce, B


On 25 October, 1992, Sabena announcedits first firings and lay-offs in its history. Onthe evening of the downsizingannouncement, Weytjens is alerted that acrowd of militant workers from anotherpart of the company had entered thecatering building to encourage theworkers to join a strike action which hadstarted earlier in the day. Weytjens had toquickly judge whether there was anybetter way of dealing with the situationthan the accepted reaction of calling involunteers from other parts of thecompany where timeliness was not asessential. Background information isprovided in case 9A94M003 and9A94M004; subsequent related cases are9A94M006, 9A94M007, and 9A94M008.

Belgium; Air transportation; Large; 1992Policy formulation/implementationManagement of change

International businessBusiness policy

3 ppField research8A94M03 (20 pp)

9A94M006SABENA BELGIAN WORLD AIRLINES:A DELEGATION OF CHEFS

Crossan, MPierce, B


On the day that Weytjens demoted asous-chef for having ignored severalwarnings not to eat in the kitchen, whichwas a requirement of ISO 9002 standards,he returned from lunch to find threeother sous-chefs waiting in his office.They were there to complain about whatthey felt was unnecessarily harsh actionand to ask Weytjens to reconsider hisdecision. Background information isprovided in cases 9A94M003 and9A94M004; subsequent related cases are9A94M005, 9A94M007, and 9A94M008.

Belgium; Air transportation; LargeBusiness policyManagement of changeInternational businessPolicy formulation, implementation


9A94M004SABENA BELGIAN WORLD AIRLINES:WEYTJENS’ FIRST ASSIGNMENT

Crossan, MPierce, B


This case is from the Ivey Best SellingCase Collection. The case provides anupdate on the events subsequent to the(A) case, 9A94M003. It outlines thestrategic changes implemented by PierreGodfroid, Sabena’s CEO, and introducesErik Weytjens, a recent graduate of anMBA program. This case outlinesWeytjens first assignment to solve amajor logistics problem in thedishwashing department. The case,along with the follow-on series of casesprovides the opportunity to: (1) makedecisions and take action under realisticconstraints of limited information, timeand credibility; and (2) reflect on how thepattern of actions supports orundermines strategy.


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Belgium; Air transportation; LargeBusiness policyManagement of changeInternational businessPolicy formulation andimplementation


9-683-068SHOULDICE HOSPITAL LIMITED

Heskett, JLHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection. Variousproposals are set forth for expanding thecapacity of the hospital. In assessingthem, serious consideration has to begiven to the culture of the organizationand the importance of preserving it in aservice delivery system. In addition toissues of capacity and organizationalanalysis, describes a well-focused, well-managed medical service facility thatmay well point the way to futureeconomies in the field.

1982CanadaCapacity planningExpansionHospital administrationOrganizational behaviorServicesSocial enterprise


9-803-133SOUTHWEST AIRLINES - 2002: ANINDUSTRY UNDER SIEGE

Heskett, JLHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection. Thecompany’s management is faced withlong-term questions regarding the rateand manner of growth in the wake of the9/11 attacks and general industrymalaise. The teaching purpose is tounderstand ways of achieving andmaintaining both a differentiated and alow-cost service offering.

AirlinesCompetition

Corporate cultureService management


HR1ASOUTHWEST AIRLINES (A)

O’Reilly III, CAPfeffer, J

Stanford University

In 1994 both United Airlines andContinental Airlines launched low costairlines within an airline, to compete withSouthwest Airlines. From 1991 until 1993Southwest had increased its market shareof the critical West Coast market from26% to 45%. This case considers howSouthwest had developed a sustainablecompetitive advantage and emphasizesthe role of human resources as a lever forthe successful implementation ofstrategy. Asks whether competitors cansuccessfully imitate the Southwestapproach. May be used with: (99307)‘Firing Up the Front Line’.

United States; Airlines; 12,000 employees,$2.2 billion revenues; 1994

Corporate strategyHuman resources managementOrganizational behaviorStrategy implementation

27 ppField researchHR1T (3 pp)

9-399-094SPECIALTY MEDICAL CHEMICALS

Doran, LHamermesh, RG


A new general manager is supposed torekindle growth. Seven months later, hequestions the abilities of his directreports. An organizational psychologist isbrought in to assess his people. Thegeneral manager now has to decide whoto keep and how to structure his directreport team.

United States; Medical; 1,600 employees,$425 million revenues; 1998

Employee developmentExecutive selectionHuman resources managementManagement of changeManagement teamsPerformance appraisal

PharmaceuticalsPsychology

23 ppGeneralised experience

9-504-016STARBUCKS: DELIVERING CUSTOMERSERVICE

Moon, YQuelch, JA


This case is part of the Harvard BusinessSchool Premier Case Collection. This caseis part of the Harvard Business SchoolPremier Case Collection. Starbucks, thedominant specialty-coffee brand inNorth America, must respond to recentmarket research indicating that thecompany is not meeting customerexpectations in terms of service. Toincrease customer satisfaction, thecompany is debating a plan that wouldincrease the amount of labor in the storesand theoretically increase speed-of-service. However, the impact of the plan(which would cost $40 million annually)on the company’s bottom line is unclear.

United States; Coffee; 60,000 employees,$3.3 billion revenues; 2002

BeveragesCustomer retentionCustomer serviceMarket researchProfitability


9-602-096STORE24 (A): MANAGING EMPLOYEERETENTION

Frei, FXCampbell, D


Provides a retailing context in whichemployee retention strategies areexplored through analyzing detailedstore-level data.

New England; Retail industry; 800employees, $84,767,816 revenues; 2000to 2001

Employee retentionService management

5 ppField research5-606-036 (11 pp)5-606-107 (35 pp)


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IMD-5-0604TETRA PAK (A): THE CHALLENGE OFINTIMACY WITH A KEY CUSTOMER

Kashani, KShaner, J


This is the first of a four-case series (IMD-5-0604 to IMD-5-0607). The (A) case ofthis series describes a failed attempt tosell new packaging machinery to a keyItalian customer facing declining salesand profits in its milk business. Tetra Pak’sanalysis leads them to propose a newproduct strategy that is summarilyrejected by the customer. The case raisesthe issue of Tetra Pak’s strategy in theItalian milk market and the wisdom of itsproposed customer strategy. The broaderquestion is whether the company isserving the best interest of its keyaccounts. **EFMD Case WritingCompetition Category Winner 2005**

Italy and international markets;Packaging systems; 7 billion Euros, 22,000employees; 2000-2002

Industrial marketingKey account marketingCustomer orientationValue chain marketingCustomer satisfaction surveysMarketing implementationManagement of change


IMD-5-0605TETRA PAK (B): HEAR ME, KNOW ME,GROW ME: THE CUSTOMERSATISFACTION INITIATIVE

Kashani, KShaner, J


This is the second of a four-case series(IMD-5-0604 to IMD-5-0607). The (B) casedescribes Tetra Pak’s second proposal toits key Italian customer, a strategy that isfinally accepted. At the same time aninternational customer satisfactionsurvey shows that Tetra Pak’s keyaccounts, including the Italian customer,are far from happy with their supplier. Thecase provides detailed data on the results

of the customer satisfaction initiative andasks the student to assess theimportance of survey results and whatmight be done in response to them.**EFMD Case Writing CompetitionCategory Winner 2005**

Italy and international markets;Packaging systems; Euro 7 billion, 22,000employees; 2000-2002

Customer satisfaction surveysMarketing implementationManagement of changeIndustrial marketingKey account marketingCustomer orientationValue chain marketing


9-799-129THE ALUMINUM INDUSTRY IN 1994Note

Corts, KSHarvard Business Publishing

After reaching all-time highs in excess of$2,500 per ton in 1988 and 1989,aluminum prices fall dramatically in theearly 1990s as the former Soviet Unionbegins exporting far larger quantities ofmetal. By the beginning of 1994, theprice has hit all-time lows (in real terms)and stands at $1,110. The case containsdata on world consumption by sector; anaccompanying spreadsheet containsdetailed cost data for the world’s 157smelters. Together, these allow athorough supply and demand analysisthat illuminates price fluctuations in thisindustry. A rewritten version of an earliernote. May be used with: (9-799-130)‘Aluminum Smelting in South Africa:Alusaf’s Hillside Project’.

Global; Aluminum; $50 billion revenues;1994

AluminumAluminum industryEconomic analysisIndustry structurePricesSupply and demandVertical integration

21 pp5-700-014 (8 pp)

9-595-057THE BLACK & DECKER CORP (A):POWER TOOLS DIVISION


This case is part of the Harvard BusinessSchool Premier Case Collection. PresentsBlack & Decker’s performance against aJapanese competitor and others in thepower tools market. Black & Decker isanxious to regain its market shareleadership in particular segments of themarket. Allows exploration of issues ofbrand equity, product positioning, andcompetitive strategy in the context ofinternational competition.

United States; Power tools; Fortune 500,$4 billion revenues; 1990

BrandsCompetitionInternational marketingMarketing strategyProduct introductionTools


9-198-117THE CLASSIC PEN CO: DEVELOPINGAN ABC MODEL

Kaplan, RSHarvard Business Publishing

A simple numerical exercise, based onthe Cooper/Kaplan pen factory example,to illustrate the rationale for activity-based costing (ABC). Classic Pen hasdiversified from its core blue and blackpen business by introducing newspecialized colors. But costs have risenand margins on blue and black pens aredecreasing. The controller turns to ABCfor an explanation. Illustrates applicationof ABC.

Activity based costingCost accountingCost analysisManagement accountingOverhead costs

4 ppGeneralised experience5-199-029 (5 pp)


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302-057-1THE EVOLUTION OF THE CIRCUSINDUSTRY (A)

Kim, WCMauborgne, RBensaou, BMWilliamson, M

INSEAD

This is the first of a two-case series (302-057-1 and 302-058-1). Cirque du Soleilvery successfully entered a structurallyunattractive circus industry. It was able toreinvent the industry and created a newmarket space by challenging theconventional assumptions about how tocompete. It value innovated by shiftingthe buyer group from children (end-usersof the traditional circus) to adults(purchasers of the traditional circus),drawing upon the distinctive strengths ofother alternative industries, such as thetheatre, Broadway shows and the opera,to offer a totally new set of utilities tomore mature and higher spendingcustomers. The case series is designed toserve a variety of purposes in the valueinnovation and creating new marketspace teaching module of an MBAstrategy course or executive educationprogramme. The case series can beequally used individually in a standalonemodule on value innovation or as part ofa sequence of three to four sessions. Inboth instances, the instructor can bestuse it to cover the following topics: (1)the value innovation logic (as comparedto industry and competitive analysis); (2)the concept of value curve; and (3) the sixpaths analysis for creating new marketspace. **ecch European Case AwardsCategory Winner 2006**

Canada, USA, Europe; Circus; 2001Circus and live entertainmentindustryValue innovationStrategyCreating new market spaceRedefining industry boundariesMoving across industriesThinking out of the boxCompetition


400-002-1THE HOUSE THAT BRANSON BUILT:FROM COUNTER-CULTURE TOCORPORATE CULTURE

Kets de Vries, MFDick, R

INSEAD

This case provides an opportunity toexplore the person-organisationinterface. From a developmental point ofview, it examines the making of anentrepreneur. The case also allows for anexploration of the vicissitudes ofleadership. It looks at effective leadershipin the context of a high performanceorganisation, and finally, incitesdiscussion about planning for the futureof an entrepreneurial organisation, inparticular the use of brand to enter new,unrelated markets. The case focuses onleadership in a creative, entrepreneurialorganisation. Virgin has made manybrilliant moves and weatheredspectacular setbacks. The case offersinsight into these and othermanagement issues that have come tothe fore in Virgin’s history. Among themare: (1) the transition fromentrepreneurial to more conventional,‘systematic’ management; (2) theformulation of strategy for, and themanagement of, rapid growth aroundstretching of a brand, particularlyexpansion into unrelated areas andexpansion overseas; (3) the managementof strategic alliances; (4) thedevelopment of a corporate culturecentered around youth and informality;(5) a preference for promotion of insiderswho ‘fit’ rather than outside candidates;(6) the management of creativity; and (7)the transition from a private enterprise toa public company and back again toprivate. **ecch European Case AwardsCategory Winner 2002**

Great Britain; Entertainment, airline;Large; 1968-2000

Richard BransonVirginEntrepreneursLeadershipBrand managementVenture capital firm


IMD-6-0249THE ‘MI ADIDAS’ MASSCUSTOMIZATION INITIATIVE

Seifert, RWIMD - International Institute forManagement Development

Many companies are exploring masscustomisation as a way to demonstratemarket leadership and capture pricepremiums. This case examines adidas’recent ‘mi adidas’ initiative, aimed atdelivering customised athletic footwearto retail customers. It discusses thepractical implications associated withexpanding the initiative from a smallpilot to a wider operation with retailpresence. Along the way, the caseenables the reader to evaluate aninterlinked set of issues, from marketing,retailer selection and informationmanagement, through production anddistribution, to project management andstrategic fit. The case offers threealternative routes for moving forward asof October 2001, and challengesparticipants to decide ‘mi adidas’ futuredirection! **POMS International CaseWriting Award Winner 2004 and ecchEuropean Case Awards Category Winner2006**

Europe, Germany; Apparel, athleticfootwear; 2001 Net sales: euros 6.1billion, 14,000 employees; October 2001

Mass customisation


9-693-019TOYOTA MOTOR MANUFACTURING,USA, INC

Mishina, KHarvard Business Publishing

This case is part of the Harvard BusinessSchool Premier Case Collection. On 1May, 1992, Doug Friesen, Manager ofassembly for Toyota’s Georgetown,Kentucky, plant, faces a problem with theseats installed in the plant’s sole product- Camrys. A growing number of cars aresitting off-line with defective seats or aremissing them entirely. This situation isone of several causes of recent overtime,


24

yet neither the reason for the problemnor a solution to it is readily apparent. Asthe plant is an exemplar of Toyota’sfamed production system (TPS), Friesen isdetermined that, if possible, the situationwill be resolved using TPS principles andtools. Students are asked to suggest whataction(s) Friesen should take and toanalyze whether Georgetown’s currenthandling of the seat problem fits withinthe TPS philosophy. The teachingpurpose is to: (1) provide comprehensiveknowledge on Toyota ProductionSystem; (2) exercise advanced root causeanalysis; and (3) demonstrate the totalityof manufacturing, especially the linkbetween production control and qualitycontrol.

Georgetown, KY; Autos; Large, 4,000employees, $1-5 billion revenues; 1992

AutomobilesInternational operationsProcess analysisProduction controlsQuality controlSuppliers


504-009-1UNILEVER IN BRAZIL (1997-2007):MARKETING STRATEGIES FOR LOW-INCOME CONSUMERS

Chandon, PPacheco Guimaraes, P

INSEAD

Unilever is a solid leader in the Braziliandetergent powder market with an 81%market share. Laercio Cardoso mustdecide: (1) whether Unilever shoulddivert money from its premium brands totarget the lower-margin segment of low-income consumers; (2) whether Unilevercan reposition or extend one of itsexisting brands to avoid launching a newbrand; and (3) what price, product,promotion, and distribution strategywould allow Unilever to deliver value tolow-income consumers withoutcannibalising its own premium brandstoo heavily. This case deals with thequestion of whether marketing andbranding create value for really poorconsumers. It can therefore be used in anMBA, executive education orundergraduate core course on marketingmanagement to illustrate the value of

marketing and the marketing approach,or in a brand management course toexplore the frontiers of branding. Thiscase can also be used in a consumerbehaviour course to examine themotivations and decision-makingprocess of low-income consumers.Alternatively, it can be used in a globalmarketing or global strategy andmanagement course to study the waymultinational companies adapt theirstrategy to compete in emergingcountries. **EFMD Case WritingCompetition Category Winner 2004, ecch European Case Awards CategoryWinner 2007 and ecch European CaseAwards Overall Winner 2008**

Brazil; Home and personal care; US$56billion; 1996-2004

MarketingBrandingLow-income consumersPovertyNew product introductionBreak-even analysisAdvertisingPricing


9-504-028VIRGIN MOBILE USA: PRICING FORTHE VERY FIRST TIME

McGovern, GJHarvard Business Publishing

Dan Schulman, the CEO of Virgin MobileUSA, must develop a pricing strategy fora new wireless phone service targetedtoward consumers in their teens andtwenties, many of whom are believed tohave poor credit quality and unevenusage patterns. Contrary to conventionalindustry wisdom, Schulman is convincedthat he can build a profitable businessbased on this underrepresented targetsegment. The key is pricing. Schulman iscurrently debating three pricing options:(1) adopting a pricing structure that isroughly equivalent to the major carriers;(2) adopting a similar pricing structure,but with actual prices below the majorcarriers; or (3) coming up with a radicallydifferent pricing structure. With respectto the third option, Schulman isconsidering various alternatives,

including a reliance on prepaid (asopposed to post-paid) plans and thetotal elimination of contracts. Includescolor exhibits.

United States; Telephone industry; 200employees, $5.2 billion revenues; 2002

Market segmentationPricingPricing strategyTarget marketsTelecommunications


9-498-045WOLFGANG KELLER ATKONIGSBRAU-TAK (A)

Gabarro, JJHarvard Business Publishing

Raises issues concerning: (1)performance evaluation; (2) performanceappraisal; (3) managing ineffectiveperformance; and (4) conflicts inmanagement style. A rewritten version ofan earlier case. May be used with:(R0401H) ‘What Makes a Leader?’ (HBRClassic).

Europe; Beer; Mid-size, US$100 millionsales

BeveragesHuman resources managementLeadershipManagement stylesPerformance appraisalSuperior and subordinate


IMD-5-0702XIAMETER: THE PAST AND FUTUREOF A ‘DISRUPTIVE INNOVATION’

Kashani, KFrancis, I


The case study is about a successfulstrategy formulated at Dow Corning formarketing commodity silicones, achemical used in diverse applications. Itdeals with important issues in B2Bmarketing: refocusing on user needs anddeveloping a ‘needs-based’


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segmentation of industrial customers;bundling and de-bundling of technicalservices; branding of commoditychemicals; web-based low price/no-frillsvalue proposition; making money withcommodities. The case also describes a‘tipping point’ in Dow Corning’s historyand strategy where their leadership inthe silicone business was at stake;management had to chart radically newways to compete in commoditizedmarkets - what they call their ‘disruptiveinnovation’. At the end the students areasked to look at the success of Xiameter(the company’s web-based brand) anddecide its future. The choices are:maintain status quo; incrementally finetune the strategy; go for a majoroverhaul. Xiameter case can be used to:(1) show an example of turning customerinsights into successfully re-definingbusiness and marketing strategies; (2)address issues of segmentation, valueproposition and branding in industrialmarketing; (3) demonstrate how twocontrasting value propositions could beoffered to industrial customers underdifferent brands; (4) discuss valueinnovation in B2B markets; (5) examineand analyze elements of a successfulweb-based business model; (6) learnhow adversity can challenge anorganisation to re-define its business andmarketing strategies for future success.

International, global; Silicones; US$4billion; 2001-2006

Marketing industrial commoditiesStrategic innovatione-CommerceIndustrial segmentationDual branding

21 ppField research

603-002-1ZARA

Ferdows, KGeorgetown University

Domiguez Machuca, JAUniversity of Sevilla

Lewis, MWarwick Business School

The case offers an illustration of a fast-response global supply, production, andretail network. In 2002 Zara, operatingout of La Coruna in north-west Spain, wasthe only retailer that could deliver

garments to its 507 stores in 33 countriesin just fifteen days after they weredesigned. Its unique systems for productdesign, order administration, production,distribution and retailing were behindthis astonishing capability. Itsunconventional approach providesinteresting opportunities for discussionand learning. The case is quite popularwith executives, MBA’s andundergraduate business students. It canbe used in a remarkably wide range ofcourses - from a core operationsmanagement course to electives focusedon international operations, operationsstrategy, global logistics, distribution,retailing, as well as in specialised andgeneral executive programmes. Theteaching note includes severalphotographs from Zara’s operations in LaCoruna, and the appendices are availableas PowerPoint files as the teaching notesupplement ‘603-002-9’. This case was thewinner of the 2003 Indiana UniversityCenter for International BusinessEducation and Research (CIBER)-sponsored Production and OperationsManagement Society (POMS)International Case Competition.

Spain and global; Fashion apparel; Largemultinational; 2002

Global supply chainDesign-product-distribution-retailintegrationFast-response networksFashion retailingQueuing and inventory modelsManufacturing-marketing interfaceTime-based competitionMechanising


9-703-497ZARA: FAST FASHION

Ghemawat, PNueno, JL


Focuses on Inditex, an apparel retailerfrom Spain, which has set up anextremely quick response system for itsZARA chain. Instead of predictingmonths before a season starts whatwomen will want to wear, ZARA observeswhat’s selling and what’s not and

continuously adjusts what it producesand merchandises on that basis. Poweredby ZARA’s success, Inditex has expandedinto 39 countries, making it one of themost global retailers in the world. But in2002, it faces important questionsconcerning its future growth.

Spain, Global; Fashion industry; 26,724employees, 3,250 million eurodollarsrevenues; 2002

Competitive advantageGlobalizationMarket selectionSupply chainTime based competitionVertical integration


9-604-081ZARA: IT FOR FAST FASHION

McAfee, APSjoman, ADessain, V


This case is part of the Harvard BusinessSchool Premier Case Collection. In 2003,Zara’s CIO (chief information officer) mustdecide whether to upgrade the retailer’sIT infrastructure and capabilities. At thetime of the case, the company relies onan out of date operating system for itsstores terminals and has no full-timenetwork in place across stores. Despitethese limitations, however, Zara’s parentcompany: Inditex, has built anextraordinarily well performing valuechain that is by far the most responsive inthe industry. The case describes this valuechain, concentrating on its operationsand IT infrastructure.

Spain; Apparel, retail industry; 32,000employees, US$4 billion revenues; 2003

Computer networksInformation systemsInformation technologyOperations managementProductionSupply chainVertical integration



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305-308-1ZARA: RESPONSIVE, HIGH SPEED,AFFORDABLE FASHION

Kumar, NLinguri Coughlan, S


In 1975, the first Zara store was opened inLa Coruna, in Northwest Spain. By 2005,Zara’s 723 stores had a selling area of811,100 m2 and occupied privilegedlocations of major cities in 56 countries.With sales of 3.8 billion euros in financialyear 2004, Zara had become Spain’s best-known fashion brand and the flagshipbrand of 5.7 billion euros holding groupInditex. Inditex’s stock market listing in2001 had turned Amancio Ortega, itsfounder and a self-made man, into theworld’s 23rd richest man, with a personalfortune that Forbes magazine estimatedat US$12.6 billion. Zara strived to deliverfashion apparel, often knock-offs offamous designers, at reasonable costs toyoung, fashion-conscious city-dwellers.Zara used in-house designers to presentnew items of clothing to customers twicea week, in response to sales and fashiontrends. Thus the merchandise of anyparticular store was fresh and limited. Toproduce at such short notice requiredthat Zara maintain a vertically integratedsupply chain that distributed the clothesthrough a single state-of-the-artdistribution centre. Unlike itscompetitors, 70-80% of Zara garmentswere manufactured in Europe. In 2005,Pablo Isla was appointed the new InditexChief Executive. With plans to double thenumber of its stores by 2009, the rapidpace of growth was necessitatingchanges. First, Zara had opened a seconddistribution centre to increase capacity.Second, expanding into more distantmarkets meant that the number of itemscarried had increased to 12,000. WouldZara’s business model be able to scaleup? Or would the resulting complexitycompromise its speed advantage? WouldPablo Isla be able to maintain the focusthat Zara had established? This case hasbeen featured on the ecch website,

Global; Retail; 3.8 billion euros; 1975-2005

Brand managementNew product developmentSupply chainInternational businessRetailingVertical integrationScalabilityBusiness modelsValue chain analysis

OutsourcingSegmentationStaples vs fashionPrivate labelGross margin return on investment(GMROI)Atmospherics


ESMT-306-0065-1ZOPA.COM

Kupp, MAnderson, J

ESMT European School ofManagement & Technology GmbH

Launched in early 2005, Zopa is a peer-to-peer on-line brokerage that couplesBritish residents who want to lend withthose who want to borrow. The companyrepresents a new business model in theretail financial services industry, and sinceZopa is not technically a bank and doesnot lend money itself, the capitalrequirements to run the business arerelatively small. Compared to a traditionalfull service bank Zopa concentrates ononly a few steps of the value chain. Thiscase study provides an overview of thefinancial service industry, especiallybanks, in the UK in 2006 and how Zopa, avalue innovator, has developed a uniqueposition in the market through aninnovative business model. Rich dataespecially on banking trends is given.Additional data on key players in theindustry is supplied. This data will enablestudents to develop a goodunderstanding of the elements of a valueinnovation and how technologies havethe potential to shake up an establishedindustry structure and its key players.Focus is on the concept of valueinnovation and sustainable competitiveadvantage. The case can also be used toaddress the topic of how incumbentfirms should respond to innovative newbusiness models. This case waspreviously numbered ‘306-610-1’. Thiscase has been featured on the ecchwebsite.

UK; Financial services; End 2006ZopaValue innovationOn-line bankingPeer-to-peerDifferentiationCompetitive advantageNew market space

Firm resourcesFirst-mover advantageUK banking industryOn-line brokerage

22 ppPublished sourcesESMT-306-0065-8 (22 pp)


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