Professional Documents
Culture Documents
S T R A T E G Y – II
www.ibscdc.org
Business Divisions; Hanjin Group; declined by 5% from that of 2004. This
Airfreight; Air Cargo; Corporate case looks into the difficulties that AOL
Corporate TTransformation
ransformation
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The case details the evolution and growth foreign subsidiaries) to One Equity Partners • To understand the competitors
S T R A T E G Y – II
of Polaroid as a corporation and a brand. (OEP), a partner of Bank One marketing strategies
It ends on a debate over a question of Corporation. Although OEP Imaging
Polaroid's success as a brand vs its failure Corporation changed its name to Polaroid • To analyse HP’s marketing campaign in
as a corporate entity. Holding Company (PHC), the original comparison to its competitors
Polaroid Corporation changed its name to • To analyse HP’s focus on Integrated
Pedagogical Objectives Primary PDC Inc. In April 2005, Petters Marketing.
Group Worldwide (PGW) announced its
• To understand the importance of acquisition of PHC for US$426 million. Industry Personal Computers
peripheral vision Reference No. COT0005K
The case details the evolution and growth Year of Pub. 2006
• The importance of innovation in a of Polaroid as a corporation and a brand. Teaching Note Not Available
dynamic industry like imaging It ends on a debate over a question of Struc.Assig. Not Available
• To discuss why Polaroid a globally Polaroid's success as a brand vs its failure
successful brand failed as a corporate as a corporate entity. Keywords
entity.
Pedagogical Objectives HP; PC; Dell; IBM; Canon.
Industry Photographical & Digital
Equipments • To understand the importance of
Reference No. COT0007A peripheral vision ABB India: Gaining Power
Year of Pub. 2007
Teaching Note Not Available • The importance of innovation in a The top line of ABB India, a 52% subsidiary
Struc.Assig. Not Available dynamic industry like imaging of ABB Global, Switzerland, was Rs. 8068
• To discuss why Polaroid a globally million in the year 2000. However, it was
Keywords
successful brand failed as a corporate struggling to grow both in terms of revenues
Polaroid; Corporate Transformation Case entity. and profits, and at the same time its parent
Study; Instant Photography; Edwin Herbert was in trouble with constant restructuring.
Land; Innovation; Core Business; Business Industry Photography ABB India at that time was required to
Strategy; Patents; Product Development; Reference No. COT0006A contribute more to the groups bottom-line
Product Positioning; Technological Year of Pub. 2007 and hence in September 2001, Jurgen
Change; Change Management; Teaching Note Available Dormann, CEO, ABB Global brought back
Organisational Inertia; 'Chapter 11' Struc.Assig. Not Available Ravi Uppal from Volvo India to become
Bankruptcy; Takeover and Acquisitions; the country head for ABB India. This case
Leadership Styles; Financial Restructuring; Keywords details the leadership style of Ravi Uppal
Digital Imaging and Competition; Kodak and the restructuring initiatives he started
Polaroid; Instant Photography; Edwin at the company. This case takes an inside
Herbert Land; Innovation; Core Business; look at ABB’s unprecedented
Business Strategy; Patents; Product transformation under Ravi Uppal. ABB
The Downfall of Polaroid: Development; Product Positioning; India was focusing on extensive use of
Corporate Lessons(Part A) Technological Change; Change channel partners, is there any other way it
Management; Organisational Inertia; can plan market penetration. Industrial IT
In October 2001, Polaroid Corporation, 'Chapter 11' Bankruptcy; Corporate
the pioneer of instant photography filed initiatives and investment into R&D will
Transformation Case Study; Takeover and help ABB India in the long run.
for federal bankruptcy protection under Acquisitions; Leadership Styles; Financial
Chapter 11 bankruptcy protection. Though Restructuring; Digital Imaging and
it was a global brand name in 2007, the Competition; Kodak Pedagogical Objectives
corporate entity of this pioneer got lost in
• To discuss the main reasons that led to
the way.
improved performance at ABB India.
Founded in 1937 by Edwin Land, Polaroid HP: Reinventing Itself Was it – Change of Leadership, Market
entered the imaging industry in 1948 with forces, Restructuring, or Government
advent of first ever instant camera. In 2006, HP planned a million dollar global reforms
Polaroid soon developed a cult status for marketing campaign. Through this
campaign the company wanted to send a • To discuss the organisation culture at
instant cameras. But soon its golden years
message to its consumers that they were ABB India
got over. In late 1980s, the digital
technology revolutionized the picture also one of the prime sellers of personal • To discuss whether the shift from
taking industry. Polaroid under the computers and not only high quality projects to standardised products and
influence of its immensely valued core printers. HP's goal was to make the personal services needed.
business of instant photography could not computer a more powerful personal tool
anticipate magnitude of challenges from for the customers. This included ads on the Industry Power Energy
Digital evolution and it also entered in the internet, TV, print and billboard. The Reference No. COT0004B
game late. The company not only failed company felt that this campaign would Year of Pub. 2004
to position itself in digital imaging but also increase momentum of its PC sales. The Teaching Note Not Available
lost its drive for instant photography. case gives an insight into HP’s history from Struc.Assign. Not Available
its inception with the challenges it faced
In spite of being a research-and- Keywords
from its competitors. The case also focused
development-driven company, Polaroid on HP's integrated marketing. leadership; Change Management;
could not save its technology driven core Organisational Culture; Restructuring;
business of instant cameras. In October Pedagogical Objectives Reorganisation; Power technology;
2001, the corporation after bankruptcy Automation Technology Engineering
sold most of the business (including the • To understand the challenges faced by Industry; R&D; Exports; Channel
“Polaroid” name itself and non-bankrupt HP Partners; Cost Cutting, Human Resource
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Management; Organisation Structure; Indian Banking Industry and 1949; Scheduled and Non-scheduled Banks;
Transformation. Bank of Baroda: The Need for Public Sector Banks and Private Sector
Corporate TTransformation
ransformation
Indian Cable and Satellite Industry; Industry Banking Horizontal vs vertical monopoly; Single
Doordarshan; Zee Telefilms; Star TV; Sony Reference No. COT0002 channel marketing; Central selling
TV; Subash Chandra; TRP Ratings; TAM Year of Pub. 2006 organisation; The diamond cartel; Buyer
& INTAM Star TV; Sony TV; Subash Teaching Note Available of last resort; ‘A Diamond is Forever’; De
Chandra; TRP Ratings; TAM & INTAM Struc.Assign. Available Beers and Alrosa; Lev Leviev; Synthetic
Operator; Essel World; News Corporation; diamonds; US antitrust; Supplier of choice;
Transition. Keywords The ‘Forevermark’; Conflict diamonds;
Making money the De Beers way.
Indian Financial System; Reserve Bank of
India Act, 1934; Banking Regulation Act,
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right from its inception. It has presence in involved in diverting the focus from the
S T R A T E G Y – II
many parts of the world and its apparels core parent brand.
and accessories were much sought after by
Nokia Diversifying into Services: the global customers. At a point of time, Pedagogical Objectives
when the competition in fashion industry
Rediscovering its Business was limited, UCB was the manifestation of • To discuss strategies adopted by
Portfolio not only Italian fashion houses but the Starbucks to replicate its coffee success
In 2007, Nokia, the world's largest mobile entire Europe’s. However, with many • To analyse the risks involved in diverting
phone manufacturer held 36% of the global players entering the arena and competition the focus from the core parent brand.
market share. Driven by trends of intensifying, the family-owned UCB was
technology convergence and rapid growth losing steam. The company which was Industry Music Industry
across market for internet services, Nokia ranked within the top 200 family-owned Reference No. DIS0024B
decided to re-define its business portfolio business in the world was struggling. Its Year of Pub. 2007
to create a new business group around attempts to diversify its brand were not Teaching Note Available
Internet services and software. While this paying off. The revenues started to Struc.Assig. Available
transformation helped Nokia in exploring plummet and the family-owned company
decided to open its share to outsiders. The Keywords
new growth avenues in the global mobile
telecommunication market, analysts company also started diversifying into Coffee; Diversificatio; core brand;
remained skeptical regarding the success unrelated sunrise ventures like McDonalds; Apple; Digital piracy; Growth
of Nokia’s transformation from a infrastructure and aviation. Whether this Strategy; Brand Equity; Diversification
manufacturer of wireless hardware into a attempt to revive the family’s fortune would Strategies Case Study; Sczultz; Hear Music;
provider of Internet services. Further the pay-off, is yet to be seen. XM Satellite Radio; Paul McCartney;
fact that such a move would make Nokia Unification of two Brand
confront big players like Google and Yahoo Pedagogical Objectives
in the internet industry posed serious
• Trends in the European fashion industry
concerns. Whether Nokia would succeed Philips: Divesting the Semi-
in transforming its business portfolio • UCB's growth in its apparel business conductor Business
without loosing its focus on its core mobile
phone business was yet to be seen. • Need for diversification In order to reduce the volatility associated
• Analysing UCB's diversification with the cyclical business-pattern of the
Pedagogical Objectives strategies semiconductor industry, Royal Philips
Electronics N.V. (Philips) decided to divest
• To understand the concept of • Can UCB sustain a diversified profile? its semiconductor unit and focus more on
'technological convergence' in the the emerging profitable businesses of the
mobile communication industry Industry Apparel Industry
Reference No. DIS0025 health-care segment. Philips also decided
• To analyse the evolution of Nokia's Year of Pub. 2008 to drop the word 'electronics' from its
business portfolio Teaching Note Available company name to emphasise the change.
Struc.Assig. Available The case discusses the corporate
• To understand the competitive dynamics
of global mobile communications Keywords repositioning of Philips from an
industry electronics-goods manufacturer to a
UCB; United Colors of Benetton; healthcare and wellness driven company.
• To analyse the shifts in Nokia's growth Acquisition; Diversification Strategies Case
strategy and its implications. Study; Family Business; Benetton group; Pedagogical Objectives
Fashion Apparel; European Fashion house;
Industry Wireless Telecommunication • To discuss about Philips semiconductor
Luciano; Perfumes; Mergers; Unrelated
Equipments business
Diversification
Reference No. DIS0026A
Year of Pub. 2008 • To understand the global healthcare
Teaching Note Available industry
Struc.Assig. Available Starbucks Diversion from Coffee:
• To debate on Philips decision to divest
Will it Work?
Keywords the semiconductor business
In 1999, Starbucks’, the most famous • To argue on Philips repositioning
Nokia; Mobile Telecommunication
specialty coffee shop chain in the world, strategy.
Market; Diversification Strategies Case
acquired Hear Music to push itself
Study; Mobile Handset Industry; Industry
aggressively in the music retail market and Industry Semiconductors
Convergence; Technology Convergence;
achieved immense success. It became a Reference No. DIS0023K
Business Portfolio; Diversification; Core
recognised music retail outlet due to the Year of Pub. 2007
Competencies; Change Management;
success of albums by Ray Charles, Bob Dylan Teaching Note Not Available
Organic Growth; Inorganic Growth;
and others that had been sold in its stores. Struc.Assig. Not Available
Internet Services; Growth Strategy;
Motorola; Samsung Meanwhile, Starbucks coffee chain posed Keywords
a threat with the increased competition in
coffee business. The company decided to Philips; Semiconductor; Divestment; Sense
and Simplicity; Health care and lifestyle;
UCB: Expanding through expand into diverse business by leveraging
Diversification Strategies Case Study;
on its parent coffee brand. Analysts had a
Unrelated Diversification Gerard Kleisterlee; Volatility; Ageing
skeptical view that it may be risky for
Starbucks to be shifting its focus away from population; Care cycle; Telemonitoring;
United Colors of Benetton (UCB), the
its coffee brand. It discusses strategies Ambient experience solution; Rural-urban
reputed international fashion house from
adopted by Starbucks to replicate its coffee migration; Interbrand; Consumer wellness
Italy, is losing its shine. UCB, founded in
the year 1965, has had a bullish trajectory success. This case highlighted the risks
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NYTimes: Diversifying Online Pedagogical Objectives Page Rank Technology; Google Search;
Revenue Partnerships; Advertising Revenue Model;
Diversification Strategies
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Microsoft’s history from its inception with Edition; Gateway shield; Ultra portable the slack period following the 9/11 attacks
S T R A T E G Y – II
the challenges it faced from the online notebook; Advanced logic research; and subsequent slump in the travel sector,
organisations and also from the open Beyond the box strategy. the company realised that it was not
source software companies. Moreover it immune to such turbulence. Lonely Planet
deals with the initiatives taken by the decided to strengthen its focus on non-
software genius Ray Ozzie who was hired travel content through its business solutions
Campbell Soup Company in
by Microsoft to make the major makeover. division. The company had the advantage
2006 to draw content from its expertise as a
Pedagogical Objectives The case study narrates the efforts of the travel publisher. It helped Lonely Planet
Campbell Soup Company in the US to to deliver customised solutions to various
• To understand the software industry transform its business in 2006. The companies such as Sony, Nokia, Virgin
• To understand the internet based Campbell Soup Company in the US, after Atlantic and many others. But the point
companies several years of decline witnessed growth of debate is whether Lonely Planet was
in one of its major product lines, condensed right in moving in this direction. Has the
• To analyse the difference between open soups, in 2005. It was believed that this company lost focus? Or, as always, is this
source and proprietary software significant growth was the result of the Lonely Planet’s unusual way of
company’s relentless efforts since 2002. strengthening its brand?
• To discuss the competitive dynamics of
web based companies Campbell took several measures such as
strengthening the soup market in the US, Pedagogical Objective
• To discuss how Microsoft planned to shift introducing new and easy packaging for its
from its core business to increase its • To understand how Lonely Planet
entire soup line, focusing on advertising
revenues. and promotions and also enhancing the witnessed growth.
merchandise display at the retail stores. Industry Publishing/Travel
Industry Software
Having achieved success with these Reference No. DIS0015B
Reference No. DIS0018K
measures in 2006, the company initiated Year of Pub. 2006
Year of Pub. 2006
to transform major product lines across Teaching Note Available
Teaching Note Not Available
the world. Struc.Assign. Not Available
Struc.Assign. Not Available
Keywords Keywords
Pedagogical Objective
Microsoft, Google; Software; Advertising. • To highlight the efforts of Campbell Lonely Planet; Travel; Guidebook;
Soup Company to transform its business. Business; solutions; budget; Tony Wheeler;
Shoestring; Hippe Trail; Sony; Six Degrees;
Industry Consumer packaged goods LP; Nokia; Independent Traveler; Thorn
Gateway Computers Managing Reference No. DIS0016B Tree; Virgin; Atlantic.
the Transaction Year of Pub. 2006
Teaching Note Not Available
Gateway is the third largest computer
technology company in the US. It
Struc.Assign. Not Available
GHCL: Global Aspirations
pioneered the ‘built to order’ production Keywords
GHCL, a Sanjay Dalmia group company
system and direct sales model to sell
Campbell; Campbell’s soup; CPG industry; was India’s third largest soda ash
computers at low costs. However, since
condensed soup; transformation; V8 manufacturer and also had its presence
late 2000, Gateway suffered losses and lost
chunky soup; Godiva; disinvestment; home textiles product and Information
its place in the Fortune 500 listing. This
diversification; restructuring; pepperidge Technology Enabled Services (ITES)
case study discusses the causes resulting in
farm; trading up; new markets; pack design. sector. With the abolition of quota regime
the decline of Gateway Computers and the
in textile industry, GHCL decided to
strategies it has adopted to make a
strengthen its position further in the home
comeback.
textiles industry. In December 2005, it
Lonely Planet – On the Road Less acquired Dan River, the third-largest home
Pedagogical Objectives Traveled textiles player in the US for $93 million.
• To discuss the dynamics of the US This case study is about Lonely Planet, GHCL with the help of its low-cost
consumer electronics industry considered to be the world’s most successful manufacturing facility in India planned to
independent travel information company. leverage the strong distribution channel of
• To discuss the factors leading to the Dan River which spread across China,
The case, though narrative, makes a subtle
decline of Gateway computers Pakistan.
reference to the issue.
• To discuss Gateway computers strategies Moreover, GHCL was confident in
Since publishing its first travel guide in
to make a comeback. emerging as a global player in home textiles
1973, Lonely Planet has grown to become
the largest independent travel-guidebook industry with the future acquisitions planned
Industry Information Technologies
publisher in the world with over 600 titles. in England, German, France and Italy. The
Reference No. DIS0017P
The company has a reputation for analysts were sceptical about the global
Year of Pub. 2006
providing comprehensive and up-to-the- aspirations of GHCL as it possessed a low
Teaching Note Not Available
second travel information. The company presence in textile sector. The case
Struc.Assign. Not Available
is at the forefront of print and electronic discusses GHCL’s global foray into home
Keywords publishing of travel content. textiles industry and the challenges ahead
of it.
Gateway Computers, Brand integration; Over the years, the company has broadened
Direct sales model; Built to order its market not only by covering places that Pedagogical Objectives
production system; Gateway country were less traveled but, by also publishing
stores; Circuit ity; Best Buy; eMachines; titles for different kinds of readers. Though • To discuss the market entry strategies
Office depot; Comp USA; Platinum the company managed to survive through
• To analyse the diversification strategy
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• To discuss the prospects of inorganic The Virgin Group in 2005 account of the challenges faced by ITC in
diversification strategy its core business of cigarettes and its
Diversification Strategies
In 2005, the Virgin Group operated over diversification into non-tobacco business
• To analyse the prospects of acquisition 200 disparate businesses and the brand is also traced. The case presents an
and its chances of success. virgin was one of the most known brands overview of the Indian tobacco industry,
in the world. Its founder Sir Richard various players in the industry and the
Industry Textiles and Soda Ash
Branson, a brand by himself was famous in challenges confronting them. The case
Reference No. DIS0014A
media and business circles for his study provides a useful setting for teaching
Year of Pub. 2006
entrepreneurship, leadership style and diversification strategy of conglomerates
Teaching Note Not Available
publicity stunts. The group started by mail being employed by a large firm (ITC) in a
Struc.Assign. Not Available
order records business, gradually diversified fast developing economy (India). The
Keywords into disparate businesses like music, focus of the case study is on the challenge
retailing, airlines, beverages etc. Virgin of transformation of ITC from a
GHCL; Sanjay Dalmia; Dalmia Group; Dan companies were renowned for its
River; Home Textiles; Soda Ash; Market concentric firm (tobacco and cigarette
innovative service standards, employee and major) to a highly diversified corporate
share; Market potential; Market customer-centric approach. Branson’s
Diversification; Acquisition; Restructuring; enterprise.
personal management style encouraged
Quota regime; Global player; Roseby; S C risk-taking, delegation and participation.
Bega Upsom. Pedagogical Objectives
His disrespect for hierarchy led to a cordial
and fun work environment. • To identify the motivations for ITC to
diversify
The case describes the origin, growth and
Hallmark Card Inc. in 2006
evolution of the Virgin Group and the • To analyse the mode of diversification
Hallmark Inc. founded by J C Hall gradually indispensable part played by its leader employed by ITC to increase its
grew to become the market leader (with throughout. The guiding principles of the shareholders value and discuss its
market share of 50%) in social expression Virgin Group and its insistence on appropriateness
industry. Hallmark attained the leadership innovative services for the customers and
• To debate on the challenges that ITC
in greeting card segment with a requisite welfare of the employees on a continuous
would face in the new businesses that it
knowledge base of employee and basis has been highlighted. While the group
has diversified into: To chart the future
undertaking constant changes in brand has been successful in majority of its
of ITC.
management, distribution facilities, product ventures, it also faced failures in quite a
differentiations and technological up- few. The case in the end raises the question Industry Tobacco
gradations. In the mean time, Hallmark that whether the unrelated diversification Reference No. DIS0011
ventured into entertainment business and of the Virgin Group has led to the dilution Year of Pub. 2006
started an entertainment channel, which of the virgin brand. Teaching Note Not Available
also gained significant success. But due to Struc.Assign. Not Available
the lack of appropriate back-up of full Pedagogical Objectives Keywords
fledged media partner, Hallmark felt it was
difficult to manage its financial position • To analyse the diversification strategies ITC (Indian Tobacco Company); Global
and decided to exit from the entertainment and innovations undertaken by the tobacco companies; Cigarette companies
business. In 2006, Hallmark decided to Virgin Group in India; Tobacco companies in South-East
launch lifestyle magazines targeting the • To discuss the personal management Asia; Anti-tobacco regulations in India;
women segment. style of Sir Richard Branson BAT (British American Tobacco);
Diversification strategies; Shareholder
The case discusses how Hallmark, at regular • To debate whether extensive unrelated value; Indian tobacco industry; Indian fast
intervals of time pursued unrelated diversification by a company could lead moving consumer goods (FMCG) sector;
diversification. At the end it attempts to to dilution of its brand. Indian hospitality industry; Indian ready-
initiate the debate that whether Hallmark to-eat market; Indian confectionery
would be successful in the magazine business. Industry Music, Retailing, Airlines,
market; Indian branded atta market; Indian
Beverages, etc.
apparel industry.
Pedagogical Objectives Reference No. DIS0012A
Year of Pub. 2006
• To study the various diversification Teaching Note Not Available
strategies undertaken by Hallmark Struc.Assign. Not Available Merck KGaA’s ‘Focused
Diversification Strategy’: The
• To discuss the entry strategies for Keywords
Hallmark Prospects and Perils
Richard Branson; Virgin; branding;
• To analyse the prospects of Hallmark leadership; entrepreneurship; innovation; Traditionally, the global pharmaceutical
in the magazine business. Virgin Atlantic; management style; industry has leveraged on its blockbuster
franchising; work environment; model to become one of the most
Industry Social Expression Industry
diversification; brand stretching; brand profitable industries in the world. However,
Reference No. DIS0013A
dilution; publicity; marketing; space since the 1990s, the industry has been
Year of Pub. 2006
tourism; focus; brand image; brand witnessing a rapid growth in the generic
Teaching Note Not Available
personality. drug business worldwide and to add to its
Struc.Assign. Not Available woes even with increasing investments in
R&D, drug innovations have declined. It is
Keywords
opined that the industry is heading towards
Hallmark; Greeting cards; social expression ITC: Adding Shareholder Value a consolidation and this prompted Merck
industry; lifestyle magazines; Hallmark through Diversifications KGaA, a German pharmaceutical group,
entertainment channel; diversification; to bid for another German company,
The case “ITC: Adding Shareholder Value Schering AG. However, Schering refused the
brand management; market leader.
through Diversifications” offers a detailed
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bid on the grounds that Merck had Industry Tobacco Products paper forced the company to diversify into
S T R A T E G Y – II
underestimated its value. Reference No. DIS0009 various businesses. Over the years Kores
Year of Pub. 2005 diversified its operations to include
Pedagogical Objectives Teaching Note Not Available businesses like: (1) computer systems; (2)
Struc.Assign. Not Available business machines; (3) auto component
• To understand the reasons and foundry; (4) labeling systems; (5) art
consequences of the changing business Keywords materials; and (6) writing instruments.
model of the global pharmaceutical ITC Ltd (ITC); Tobacco products industry; Kores was confident that its diversification
industry Market leader and market share; Fast strategy would be beneficial to the company
• To discuss the probable synergies that moving consumer goods (FMCG); in the future. However, analysts were of
Merck might accrue by acquiring Diversification strategy; Segmentation the opinion that Kores would face tough
Schering. strategy; Customisation of products; Brand competition in the businesses it has
image enhancement; Hospitality industry; diversified into.
Industry Pharmaceuticals Manufacturers Product mix and positioning of products;
Reference No. DIS0010 ITC’s e-Choupal initiative; Branded foods Pedagogical Objectives
Year of Pub. 2006 and apparel; Supply chain management;
Teaching Note Not Available Vertical integration; Information • To provide an insight into the evolution
Struc.Assign. Not Available technology and ITC Infotech. of Kores and the diversification strategy
adopted by the company
Keywords
• To discuss whether the diversification
Blockbuster model of global pharmaceutical
Novo Nordisk: The Danish strategy based on leveraging Kores’ brand
industry; Growth of generic drugs; name would be a successful one.
Consolidation in the global pharmaceutical Pharmaceutical Company’s
industry; Decline in drug innovations; Diversification Strategies Industry Scientific & Technical
Increasing costs of drug innovations; Instruments
Novo Nordisk from Denmark is the world’s
Traditional drug manufacturers going Reference No. DIS0007
leading insulin maker with a global market
generic; Constraints of new drug research; Year of Pub. 2005
share of 50%. Along with diabetes care it
Patent expires of blockbuster drugs; Rise Teaching Note Not Available
also operates in biopharmaceutical
of generic drug manufacturers. Struc.Assign. Not Available
segments like haemostasis management
and growth hormone therapy. However, Keywords
with increasing competition from Eli Lilly,
Kores India Ltd; Diversification strategy;
ITC: The Indian Tobacco Major’s Pfizer and Sanofi-Aventis in its core
Core competency; Product line extension;
Diversification Strategies for business of anti-diabetes drugs, Novo
Product portfolio management; Brand
Market Leadership Nordisk has diversified into other areas like
leverage; Office equipment suppliers;
oncology and analgesics.
ITC has transformed itself from a leading Convergence of distribution channel;
Banking and office automation industry;
cigarette manufacturer to an umbrella Pedagogical Objectives
group that offers a diversified product mix Information technology (IT) peripherals
to enhance its brand image and reduce • To highlight the diversification sector.
dependency on tobacco related products. strategies of Novo Nordisk
It has forayed into the hospitality service • To discuss Novo Nordisk’s ability to
industry and has become a major player in successfully enter new therapeutic areas, Yamaha Motor Corporation’s
the hotels segment. Its position in the where it lacks core competency. Diversification Strategies
FMCG (fast moving consumer goods)
business is also on a growth curve; Industry Pharmaceutical Manufacturers From the 1960s, Yamaha Motor
especially its confectionery and biscuits Reference No. DIS0008 Corporation started diversifying into other
which are slated to achieve the top ranks Year of Pub. 2005 businesses to reduce the company’s
among its peers. It has made heavy Teaching Note Not Available dependence on its motorcycle business. The
investments to strengthen its IT Struc.Assign. Not Available company’s management was confident that
(information technology) segment and to the diversification strategies being followed
compete with the big players like Infosys Keywords would be beneficial to the company in the
and Wipro. Although the ITC group is Competition in global anti-diabetic market; long run. Several analysts were also of the
marketing its image as an ideal corporate Eli Lilly; Pfizer; GlaxoSmithKline; opinion that the company was correct in
citizen and a company that takes its social Research and development expenditure by diversifying into other businesses. But
responsibility seriously, it still earns 80% pharmaceutical companies; Sanofi- others were sceptical about Yamaha’s
of revenues from selling cigarettes and Aventis; Haemostasis management; diversification strategies and opined that
other tobacco related products. Growth hormone therapy; Anti-diabetes the company should have stuck to its core
care; Biopharmaceuticals; Non-steroidal business of manufacturing motorcycles.
Pedagogical Objectives anti-inflammatory drugs; Diversification
of global pharmaceutical companies. Pedagogical Objectives
• To highlight ITC’s need to diversify its
portfolio of product mix • To understand the evolution of Yamaha
over the years and analyse the rationale
• To highlight the strategies adopted by Kores: Reinventing itself through behind the company’s diversification
ITC to maintain its position as one of Diversification into businesses other than motorcycles
India’s leading companies
As the market leader in the Indian carbon • To discuss whether Yamaha was right in
• To discuss the future possibilities of diversifying into other businesses.
paper market, Kores India Ltd. had donned
strategic planning by ITC.
the image of ‘the carbon paper company’.
Industry Automobile and Transport
However, decline in the demand for carbon
Reference No. DIS0006
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Year of Pub. 2005 giants like Wal-Mart. The company Lagardere: Unrelated
Teaching Note Not Available witnessed a 45% increase in its sales and a Diversification to Related
Diversification Strategies
Struc.Assign. Not Available fourfold increase in its net profits between Diversification
1996 and 2004. By 2004, with net revenue
Keywords of $29 billion, PepsiCo was the world’s There have been many instances in history
Yamaha Motor Corporation; third largest food and beverage company. when an industry or a particular company
Diversification strategies; Asian financial experienced a 10x change. Lagardere, a
crisis; Motorcycle industry; Outboard Pedagogical Objectives French media and technology company
industry; Automobile engines; Power under the leadership of Arnaud Lagardere
products; Aeronautical operations; • To highlight the PepsiCo’s witnessed a similar shift in strategy; from
Intelligent machinery technology; diversification strategies unrelated diversification to related
Biotechnology; Semi-conductor cycle. • To discuss the challenges faced by diversification, as opposed to the
PepsiCo’s in diversifying its portfolio. traditional practices.
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Teaching Note Not Available Industry Entertainment Keywords
S T R A T E G Y – II
Struc.Assign. Not Available Reference No. GGL0001
Year of Pub. 2009
Food Chains; McDonald's; Pizza Hut;
Keywords Teaching Note Available
Subway; KFC; Business Model; Culture;
Struc.Assig. Available
Liberalisation; Supply Chain; Growth
Dell Inc.; Direct Model; Diversification; Strategies Case Studies; Marketing;
Handhelds; Printers; Consumer electronics; Keywords Distribution; Franchisee; Market Entry
Consumer electronics products; Dell in Strategies
handhelds market; Dell in printers market; Bollywood, Hollywood, Synergies, Value
Dell in consumer electronics market; Dell’s Chain of film industry, Studio-driven,
new consumer electronics products in US; Financing, Strategic Inflection Point, Star-
Competition in consumer electronics driven, Collaboration IBM's 'On-Demand' Strategy :
market; Dell and Hewlett-Packard; Dell The Strategic Rationale
and Sony; Dell and Apple.
IBM is the world’s largest provider of
information technology and consulting
services. The company combined, operates
both business and IT services, which
The Global and Local Strategies comprises of the following three categories
– business value, infrastructure value and
of the International Food Chains
Hollywood in Bombay – in India
component value. Since 1992, IBM had
struggled through some difficult years as it
Bollywood in Beverly Hills: Indian
had failed to sustain the pace of innovation
Film Industry's New Global Value With the rising disposable income, living
in personal computers. By 1993, IBM was
standards and western influence, more and
Chain on the verge of bankruptcy due to huge
more Indian consumers are shifting towards
This case study's primary objective is to lifestyle products and one among them is debt burden. The appointment of Louis
enable a discussion on pros and cons of the 'fast food restaurants'. Growing at a rate of Gerstner in the same year saw IBM's
alliances between Hollywood and 25%–30%, the INR 11 billion Indian turnaround into one of the leading 'IT-
Bollywood and provides insights about the organised food and retail sector attracted services' provider in the world – second
possible synergies between the two. various global food chains. Besides, only to Microsoft. It emerged with a
liberalisation made their entry more renewed focus on customer value. After
Amidst stagnation in movie business in attractive and easier. As a result, many Louis Gerstner's handing over of the
mature markets, Hollywood sets an eye on major food chains like McDonald's, Pizza mantle to Samuel J. Palmisano
the emerging markets. Seeking ample Hut, Subway and KFC forayed into the (Palmisano) in 2002, IBM continued to
opportunities to grow, it forayed into India country through franchisee route. successfully serve from its service
by aligning with Indian production houses However, their global business model faced platform. For the same, in 2007, IBM
such as UTV Motion Pictures and Yash a major challenge as the country implemented it's 'On-Demand Strategy'
Raj Films by means of 'Co-production'. But traditionally has had a rich and diverse fast successfully and used it as a strategic
the differences in operating modes of both food culture as well as eating habits. This rationale in their business services and IT
Hollywood and Bollywood, besides forced them to adapt to the local industries. Palmisano's new business agenda
understanding the likes and dislikes of the environment and tailor their menu for IBM was shifting to the service
audience, posed challenges for Hollywood. offerings to make a mark in the industry, platform and a strategic alignment of its
Challenging the convention, the movie dominated by local food chains specialising products and services. Analysts inquire if
Slumdog Millionaire set an example of the in Indian snacks. However, it remains to he would steer IBM's succeess amidst tough
fusion of Western and Eastern ways of see whether these global food giants will be competition.
movie making, winning accolades across able to make a mark in the country.
the globe. The emerging synergies between Pedagogical Objectives
the two premier film industries of the world
Pedagogical Objectives • To study the growth strategies of a
however would be successful only if they
adapt to the overall culture of the two • To discuss and analyse the Indian fast technology firm
distinct industries. food retailing industry • To understand the applications of On-
With the two very different business and • To understand the business model of Demand strategy in the IT business
operating models, yet, the question remains global food chains – McDonald's, Pizza • To discuss Louis Gerstner's turnaround
– can both of them leverage on one Hut, Subway and KFC initiatives for IBM
another's strengths?
• To discuss and contrast the strategies • To evaluate whether IBM's strategic shift
used by these food chains globally and in
Pedagogical Objectives from software to service platform would
India help retain IBM's leadership amidst
• To study the strategic inflection points competition from Microsoft, Hewlett-
• To understand the need to adapt to the
of Indian film industry and examine its Packard, Dell and other IT-related
local business environment to succeed
transformation companies
in a culturally sensitive country like India
• To examine the operating and business • To evaluate if Palmisano's strategies of
• To debate on the success of these global
model of Indian film industry and combining both product and services
retailers in India.
analyse the feasibility of replicating would increase the customer potential
some of the key strengths when it goes Industry Fast Food Retailing in the long run.
global Reference No. GRS0274
Year of Pub. 2008 Industry IT Industry
• To examine reasons why Hollywood Reference No. GRS0273C
Teaching Note Available
finds this industry lucrative Year of Pub. 2008
Struc.Assig. Available
Teaching Note Available
• To examine the synergies for both the
Struc.Assig. Available
Indian and foreign players in this industry.
11
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Keywords as it is operating on loss since the last few • To evaluate changing consumer tastes
years. But on the other hand, analysts were and preferences and its effects on the
Boston Beer Company; Sam Adams; C Jim
Growth Strategies
Rediff, Indian Communication • The US Airline Industry, its dynamics, Growth Strategy; European alcohol
Giant’s Strategies : Beat Rivals at operations, regulations and the beverage industry; Vodka; Vodka in France;
competition in the industry Entry level strategies; Changing Consumer
Home? taste and preferences; Binge Drinker;
• Lufthansa's expansion strategy in the Premium spirits; At-home beer
Internet is a powerful democratising force;
US Airline Industry consumption; Russian Standard Original;
offering great economic, political and social
participation to communities and helping • Analyse whether the purchase of stake Scotch whisky market; Russian Standard
developing nations meet pressing needs. from JetBlue will help in Lufthansa's in France; Growth Strategies Case Study;
India is also in a phase of internet growth in the US. Obesity concerns; Changing lifestyles; At-
revolution. Rediff, the first independent home beer consumption
Industry Airline Industry
Indian portal not only provided a platform
Reference No. GRS0271B
for Indians worldwide to connect with one
Year of Pub. 2008
another online but also provided weekly
Teaching Note Available Kingfisher Airlines International
newspapers like India Abroad for the Indian Route Expansion Plans : Will it
Struc.Assig. Available
American community. In 2000-2001,
Succeed?
when most of the dotcoms were going bust, Keywords
Rediff continued to click. However, since With its takeover of Air Deccan, Kingfisher
2006, Rediff was losing its share to Lufthansa; JetBlue; Growth Strategies Case has pre-planned its strategy for overseas
competitors' www.yahoo.co.in (Yahoo) Study; US Airline Industry; Open Skies; operations, anticipating Deccan's eligibility
and www.google.co.in (Google) in terms of Regulations; Deregulation; Expansion; to fly on international routes by August
usage preference and top of the mind recall. Stake; J F K International Airport; Low 2008. But as per Indian government
In order to maintain a leadership position Fares; Low-cost carrier; Tie-up; European regulations for international operations,
in its home market, Rediff decided to invest airlines; Global aviation; Alliance it would need to increase its ownership
heavily in product innovation. stake to 51% from the current 46% to
qualify to fly on overseas routes, or it should
Pedagogical Objectives Russian Standard's Global sport Deccan's colours to its tail. For its
• To analyse the growth strategy of the Growth Strategies overseas operation, Kingfisher planned to
adopt a game-changing model, offering
Indian Dotcom Industry Russian Standard, a manufacturer of Vodka nonstop flights on long-haul route, first
• To analyse Rediff's strategy to beat its founded in 1992, enjoyed leadership among Indian overseas flights. Kingfisher
rivals position in the Russian Vodka market with planned to position itself as a first class
60% market share. It was ranked '4th fastest (one first class seat equals between eight
• Analysing the sustainability of Rediff's growing premium spirits brand globally' in and ten economy seats) and business class
competitive advantages and product 2006 by 'Impact' magazine. Russian (one business class seat equals between six
innovation strategies. Standard Vodka was exported to more than and eight economy seats) airline in
50 countries across Europe, Asia, North outbound category. It also planned to
Industry Communication
and South America. In Europe, changing revolutionise international air travel by
Reference No. GRS0272B
consumer tastes and preferences offered extending some of the services offered to
Year of Pub. 2008
tremendous opportunities to Russian first class and business class in outbound
Teaching Note Available
Standard. As part of its growth strategy, it category to economy class passengers with
Struc.Assig. Available
decided to enter France's emerging Vodka all new aircraft. Initially, Kingfisher
Keywords market where young drinkers were turning intended to target the key US-India route,
to Vodka. Apart from France, it also which is already occupied by other
Rediff.com; Yahoo; Google; IndiaTimes; planned to enter various European markets international rivals like Air India, Delta
Indian portal; Microsoft; Rediffusion- where Vodka consumption was rising. But, Air Lines, and Continental Airlines.
Dentsu Young and Rubicam; Sify.com; established industry players like LVMH, Analysts pointed out that, Kingfisher's
Indian Digital Media; Growth Strategies Pernod Ricard, and Diageo provided stiff plans might be right for overseas operations
Case Study; Emails and Messaging; Product competition to Russian Standard in its but were skeptical in the wake of its
Innovation; iShare; YouTube; Dotcoms objective to become the leading Vodka domestic losses. Whether, Kingfisher
player in France. would be able to succeed in the highly
competitive international airline market
Lufthansa Spreading its Wings in Pedagogical Objectives needs to be seen.
the US through JetBlue
• To understand dynamics of the European
Pedagogical Objectives
On 13th December 2007, Lufthansa alcohol beverage industry
announced its purchase of 19% stake worth • To understand the competition and
• To understand the growth strategies
$300 million in JetBlue Airways Corp. a consolidation in Indian aviation industry
opted by Russian Standard in France's
low-cost carrier. The deal, without doubt,
Vodka market • Analyse the dynamic business expansion
is a boost to JetBlue's financial condition
strategy of Kingfisher Airlines
12
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• To understand the positioning strategy Keywords Fortis Healthcare Limited :
Corporate Hospital’s Growth
S T R A T E G Y – II
of Kingfisher Airlines on international
Britannia; Indian Biscuit Industry; Organic
route – the business model
Growth; Inorganic Growth; Brand Strategies in India
• Analyse the competition on Repositioning; ITC; Parle; Product Since its establishment in 2005, Fortis
international air travel route. Positioning; Product Portfolio; Growth Healthcare Limited (FHL), a New Delhi-
Srategy; Product Portfolio Management; based corporate hospital, gained
Industry Aviation Sector
Product Innovation; Growth Strategies remarkable brand reputation in a short span
Reference No. GRS0269A
Case Study; Market Segmentation; Brand of time. It operated through multi-specialty
Year of Pub. 2008
Extension; Competitive Advantage hospitals, providing healthcare in key
Teaching Note Available
Struc.Assig. Available specialty areas like cardiac care, renal care,
neuro-sciences, orthopedics, etc. Besides,
Keywords Growth Strategies for Emerging it operated a boutique style hospital, Fortis
Indian Aviation Market; Passenger Traffic Markets : Nokia in India La Femme - focusing exclusively on
Growth; International Route; Government women’s health and maternity care. To
In 2006, Nokia, the world’s largest producer provide quality service, FHL differentiated
Regulations; Business Model; Positioning;
of mobile phones, was the market leader itself with its contemporaries in India by
Full Cost Carriers; Low Costs Carriers;
in India with 78.8% of the market share. adopting unique hospital design, services,
Growth Strategies Case Study; Overseas
Since its entry into Indian mobile market and programmes that comply with
Operations; Competition; Kingfisher
in 1995, it focused on manufacturing of international standards. The demographic
Airlines; Simplifly Deccan; Foreign Airlines
mobile handsets based on GSM technology. shift and higher longevity of Indian
In India; Long Haul Non-Stop Flights
Nokia built a strong brand image with population offered tremendous
focused marketing and distribution opportunities to many private corporate
network. It started focusing on the low- hospitals. To tap such lucrative
Growth Strategies of Britannia : cost mobile phone segment for rural opportunities, FHL followed hub-and-
India's Emerging Food markets in India, but, faced stiff spoke model. To counter competition,
Conglomerate competition from Sony Ericsson, Samsung, FHL, going a step further, started acquiring
and Motorola who also started offering other hospitals. Also, it planned to
In 2007, Britannia, one of the India's low-cost handsets. Nokia’s under developed integrate backward and set up medical and
largest biscuit brands held a market share infrastructural facilities and low coverage nursing college in addition to research labs.
of 38% in terms of value. Indian biscuit were the biggest challenges for it to reach The case discusses whether FHL would be
industry, the third largest producer of the rural customers. The case facilitates a able to achieve leadership position in a
biscuits in the world was highly under- discussion on whether Nokia will be able to highly fragmented Indian healthcare sector
penetrated. This presented numerous improve its performance and sustain its by means of inorganic growth.
growth opportunities to new as well as leadership position in India
existing players. Apart from the presence
Pedagogical Objectives
of big players like ITC Foods and Parle, Pedagogical Objectives
the local manufacturers of biscuits and • To assess the opportunities and
other Indian snacks had been raising • To understand marketing strategies in challenges in the burgeoning Indian
concerns for Britannia. Besides mass markets healthcare sector
competition, Britannia faced critical
• To understand the demand dynamics of • To evaluate the feasibility of the growth
challenges due to declining margins in the
the rural mobile handset market in India strategies of FHL
biscuit industry due to the increasing costs
of raw materials. Its profit had been on a • To analyse growth strategies of Nokia • To examine the sustenance of private
decline since 2005. Though Britannia had in the wake of increasing competition corporate hospitals in India in the midst
forayed into dairy and bakery products, from other global players of competition.
90% of its revenues still came from its
core business in biscuits category which was • To analyse the strategic challenges faced Industry Health Care
largely driven by product innovation. The by Nokia in marketing in the rural mobile Reference No. GRS0266A
case, highlighting the Britannia's growth handset market in India. Year of Pub. 2008
strategies, provides scope to analyse Teaching Note Available
Industry Mobile Phone
opportunities and challenges for Britannia Struc.Assig. Available
Reference No. GRS0267A
in the Indian biscuit industry. Year of Pub. 2008 Keywords
Teaching Note Available
Pedagogical Objectives Struc.Assig. Available Indian Healthcare Sector; Private
Corporate Hospitals in India; Inorganic
• Product portfolio management, brand Keywords Growth Strategy; Hub-and-Spoke Business
extension and market segmentation of Model; Fortis Healthcare Limited; Lifestyle
Britannia Nokia; Mobile Handset Market; GSM
Technology; CDMA Technology; GPRS; Diseases; Mergers and Acquisitions; Multi-
• Analysing product innovation strategies Communication Strategy; Motorola; specialty Hospitals; Fortis La Femme;
of Britannia as its competitive advantage Samsung; LG; Growth Strategies Case Study; Growth Strategies Case Study; Ranbaxy
Sony Ericsson; Nokia Siemens Village Limited; Escorts Heart Institute and
• Organic and inorganic growth strategies Research Centre Limited (EHIRCL);
Connection; Product Innovation;
of Britannia to face the challenges in American Institute of Architects (AIA);
Marketing Strategy; Competitors
the Indian biscuit industry. Greenfield Investment; Indo-Italian
Chambers of Commerce and Industry
Industry Ready to eat Industry
(IICCI); Institute of Enhanced Leadership
Reference No. GRS0268A
Development
Year of Pub. 2008
Teaching Note Available
Struc.Assig. Available
13
www.ibscdc.org
Bionade Soda (B): The Organic began wondering if it was time for • To discuss the challenges faced by players
Growth Conundrum Zuckerberg to sell. Facebook needs to decide in participating across segments in such
Growth Strategies
S T R A T E G Y – II
banks and fast-growing domestic financial products and services to the adjust or retaliate against Gol's moves?
companies. In 2002, Citigroup’s Russian customers. BBVA adopted high growth and
subsidiary forayed into the retail banking low risk acquisition strategy for the Pedagogical Objectives
arena in Russia in its bid to tap the ever- international expansion. On February 16th
increasing Russian retail market and since 2007, BBVA announced to acquire 100% • To analyse the cost structures of both
then developed themselves at a fast pace Compass Bancshares Inc. (Compass) for LCCs and traditional network carriers
due to overwhelming customer demand for $9.6 billion for further expansion in US, (full service carriers)
the bank’s products and services. Russia especially in the 'Sunbelt' area. The product- • To study the service value chain of
was one of the promising markets and the driven US banking industry remained airline operations
biggest growth area in Eastern Europe. In fragmented and provided further scope for
anticipation of enhancing their businesses consolidation. Spanish banks entered US • To find ways to cut costs and attain
across Europe, it was obvious that because the US banks failed to acknowledge operational efficiencies
Raiffeisen would aim to strengthen its and trust the growing ethnic immigrant
• To discuss the competitive strategies in
foothold in Russia. In a bid to retain its population in the US. BBVA planned to
dominance in the consumer, corporate and target the Hispanic market, where a consolidated market environment –
wealth management sectors; the global bank Hispanics, the largest minority group were competitor analysis
had established around 40 branches in Russia geographically dispersed and had potential • To critically evaluate Gol's plan to
at the end of 2006 with 190 new branches - three times more 'unbanked' than the acquire Varig.
scheduled to be opened in 2007. Analysts average US adult.
were also surprised at the Citigroup’s Industry Civil Aviation
Reference No. GRS0259
strategy of not adopting the path of Pedagogical Objectives
inorganic route of expansion in Russia to Year of Pub. 2007
grab a major piece of the country’s banking • To understand merger and acquisition as Teaching Note Available
market. Critics opined that the rising an expansion strategy Struc.Assig. Available
branch expansion strategy in Russia instead • To analyse the structure, trends and Keywords
of inorganic growth might not turn out to segmentation of the US banking industry
be a fruitful business proposition for the Low-cost Carriers (LCCs); Varig; TAM;
US bank in the long run. • To discuss the factors that define the Traditional Network Carriers; Global Civil
attractiveness of foreign banks towards Aviation; Growth Strategies Case Study;
Pedagogical Objectives the US Hispanic market Deregulation; Hub-and-spoke model; Code-
sharing agreements; Service value chain of
• To understand the growth strategies of • To analyse the growth strategy of BBVA airline operations; Load factor and capacity
Citigroup • To discuss the impact of BBVA's utilization; No-frills service; Cost Structure
• To analyse the benefits and drawbacks acquisition of Compass Bancshares Inc. Analysis; Productivity and Profitability of
of expansion strategies associated with on the US banking industry. airlines; Competitor Analysis;
banking companies Consolidation in aviation industry;
Industry Banking Cooperation vs Competition
• To study the impact of Citigroup on the Reference No. GRS0260A
Russian banking sector Year of Pub. 2007
Teaching Note Available
• To understand the trends and Struc.Assig. Available Cosmetics Industry (B) : L’Oreal’s
developments in the Russian banking Globalisation Strategies
sector Keywords
With their home markets getting saturated,
• Tounderstand the pros and cons of the Banking Industry in US; Banco Bilbao cosmetic companies are skidding into
Russian banking sector reforms. Vizcaya Argentaria; Spanish Banks; Growth emerging markets for growth. L’Oreal is
Strategies Case Study; Foreign Banks; no different and its globalisation strategy
Industry Banking Hispanic Market; Fragmented market; amply proves this. A huge – yet diverse –
Reference No. GRS0261K Acquisition; Compass Bancshares Inc; customer base and its spending power drew
Year of Pub. 2007 Ethnic Immigrant Population; Financial it to these markets. But cultural complexity
Teaching Note Available Institutions; Consolidation; BBVA and indifference to premium products is
Struc.Assig. Available
deterring them nonetheless.
Keywords
Gol, Brazil's Low-cost Airline : Pedagogical Objectives
Citigroup; Russia; CAGR (combined annual
growth rate); Strategy; Assets; Credit;
Popularising Air Transport • To discuss the opportunities and
Deposits; Growth Strategies Case Study; Brazil's low-cost airline, Gol broke news in challenges emerging markets offer to
CEE (Central and Eastern Europe); 2007 because of its brazen move the cosmetic players
Corporate; ROE (return on equity); CAR previous year. It was ambitious to acquire
(capital adequacy ratio); CBR (Central • To discuss L’Oreal’s globalisation
the country's decrepit flag carrier, Varig. strategies.
Bank of Russia); Domestic; Retail; Global Thereby, trying to out-compete its rivals
like TAM. Obviously, they have opposing Industry Cosmetics
business models: Gol is a low-cost carrier, Reference No. GRS0258
Banco Bilbao Vizcaya whereas Varig is a full-service carrier. Year of Pub. 2007
Argentaria's Growth Plans Students will be gripped to debate whether Teaching Note Available
Gol can really take off? Studying the cost Struc.Assig. Available
Banco Bilbao Vizcaya Argentaria (BBVA), structures and service value chain of the
Spain's second largest bank was formed carriers forms the basis for such analysis. Keywords
through a merger of Banco Bilbao Vizcaya Spotlight is also on the consolidation in Globalisation Strategies; Strategies for
and Argentaria in 1999 with it's long history Brazilian aviation – should Gol cooperate Saturated Market; Strategies for Emerging
15
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Market; Opportunities in Emerging five year strategy to enhance shareholders Samsung : Betting on High-end
Markets; Manufacturing Strategy vs value called the 'Managing for value' Mobile Phones
Growth Strategies
The case analysed how General Motors • To argue whether Samsung would benefit
Pedagogical Objectives from its strategy once next generation
entered India through a particular segment
• To discuss the similarities, dissimilarities and created a complete product portfolio, mobile services take off.
and challenges of the developed and in order to cater to all the segments in the Industry Wireless Telephone Handsets
developing cosmetic markets industry. It expanded its product line over Reference No. GRS0254K
the years and had created a premium brand Year of Pub. 2006
• To discuss the challenges developing for itself. In the year 2005, it entered the
markets pose to the players. Teaching Note Not Available
small car segment by introducing 'Spark'. Struc.Assig. Not Available
Industry Cosmetics By the end of 2012, General Motors
Reference No. GRS0257 planned to capture a 10% market share. Keywords
Year of Pub. 2007 Samsung Electronics; Nokia; Motorola;
Teaching Note Available Pedagogical Objectives Mobile phone; Code division multiple
Struc.Assig. Available access (CDMA); Global system for mobile
• To understand the Indian automotive
Keywords industry communications (GSM); Sony-Ericsson;
Siemens; Growth Strategies Case Study;
Trends in the Global Cosmetics Industry; • To discuss the profile of General Motors Camera phone; 3G (third-generation cell-
Critical Success Factorsin Cosmetics in India phone technology); Global mobile
Industry; Growth Strategies Case Study; communication industry; High-end
• To analyse General Motors strategic
Basis for industry Segmentation; 5 Force phones; Smartphone; RAZR; Average
initiatives.
Analysis; Ram Charan Matrix; Growth selling price of handsets
Strategies; Opportunities in Emerging Industry Auto Manufacturing
Markets; Distribution and Retailing Reference No. GRS0255K
Strategies; Ansoff Matrix Year of Pub. 2006
Jollibee Foods : Going Global
Teaching Note Not Available
Struc.Assig. Not Available Founded in 1975, Jollibee Foods
HSBC's Growth Strategy Keywords
Corporation quickly became the biggest
restaurant chain in the Philippines. It
HSBC Holdings, one of the largest banking General Motors; Automotive sector; started offering American-style fast food
and financial services organizations, has Maruti Udyog Ltd; Suzuki; Daewoo; Growth items that were prepared according to the
decided to launch concrete strategies to Strategies Case Study; Chevrolet; Saturn; Philippine taste. The consumers liked it
attain market leadership in the financial Opel; Umbrella brand; Multi-utility vehicle; very much and soon Jollibee became a
world. A growth oriented company since Premium segment car; Mid size segment; house-hold name in the country. Its local
its inception, in 1998 HSBC launched a Sports Utility Vehicle roots were so strong that even McDonald's,
16
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the global fast food giant, faced a tough films that conformed to international medium-priced appliances was diminishing.
S T R A T E G Y – II
competition when it entered the Philippine standards in terms of content, presentation, Foreign players, who had entered the US
market in 1981. By mid 1980s, Jollibee duration, etc. In this scenario, analysts market, intensified the competition
established itself as the market leader in its wondered whether or not Indian further. Maytag, like other companies,
domestic market and decided to expand moviemakers would change their style to increased its operational efficiencies,
overseas. Starting from neighboring be accepted globally. thereby tried to reduce costs and increasing
countries, it later entered the US and China competitiveness. In response to the
too. However, it could not replicate its The case deals with the evolution of challenging market conditions, Maytag
success in the foreign markets. Bollywood-style movies and their growing made several acquisitions by taking the
Subsequently, it decided to focus its popularity in the overseas markets. It also advantage of its cash rich condition.
international expansion on the US, China discusses how they are performing in the Through these acquisitions, the company
and India. non-traditional markets and raises a debate diversified into other product segments,
on whether the Indian producers would apart from laundry and kitchen appliances
The case begins with a short history of the change their style of moviemaking. where it had core competence. It also
company and then discusses how it expanded its geographic reach to newer
established itself in its home country. The Pedagogical Objectives markets worldwide. Though Maytag
next section gives an overview of the changed its traditional high-quality, high-
Philippine fast food market. The • To discuss the evolution of Bollywood
into the world's largest film industry priced positioning, it failed to maintain its
subsequent sections highlight Jollibee's profitability. During 2001–2004, the
acquisitions and off-shore expansion. The • To assess how more and more Bollywood company's revenue was almost stable, but
case also attempts to present the problems movies are gaining acceptance in foreign return on sales declined. In 2004, the
faced by the company in its overseas markets company even recorded a net loss.
expansion, and its future plans.
• To understand how Indian producers & The case deals with the growth trap in
Pedagogical Objectives directors went ahead and entered non- which Maytag fell. It discusses the
traditional markets too company's success phase, when it had
• To understand the strategies adopted by turned out to be the most profitable
Jollibee to strengthen its presence in its • To understand the changes required in
company in the industry, catering only to
home country Bollywood movies in order to customize the niche upscale market segment with
them for local audiences high-quality, premium-priced laundry and
• To get an idea of the fast-food market
of the Philippines • To discuss whether Bollywood movie kitchen appliances. The case has also
directors would change their style of covered the detailed inorganic growth
• To discuss how Jollibee successfully film-making in order to gain strategy that the company followed.
expanded into the neighboring countries international acceptance. Finally, the case offers a scope for
discussion about the consequences of such
• To discuss why Jollibee failed in Industry Entertainment strategy.
Indonesia, Saudi Arabia, China, Kuwait Reference No. GRS0252K
etc Year of Pub. 2006
Pedagogical Objectives
Teaching Note Not Available
• To analyse how Jollibee plans to
strengthen its overseas presence. Struc.Assig. Not Available • To understand the market dynamics of
Home appliance industry in US
Industry Fast Food
Keywords
Reference No. GRS0253K
• To analyse Maytag's STP strategy
Bollywood; Indian film industry; Indian
Year of Pub. 2006 entertainment industry; Hollywood; Hindi • To understand the concept of growth
Teaching Note Not Available movies; Crossover movies; Oscar; BAFTA trap in the context of Maytag.
Struc.Assig. Not Available (British Academy of Film and Television
Industry Home Appliances
Keywords Arts); Monsoon Wedding; Lagaan; Growth
Reference No. GRS0251K
Strategies Case Study; Devdas; Bend it like
Year of Pub. 2006
Jollibee; Philippine fast food industry; Beckham; Kabhi Khushi Kabhie Gham
Teaching Note Not Available
Yumburger; Greenwich; Growth Strategies (K3G); Song-and-dance sequence; Cannes
Struc.Assig. Not Available
Case Study; Delifrance; Chowking; Red film festival
Ribbon; Yonghe King; Chun Sui Tang Tea Keywords
House
Maytag Corporation; Growth Strategies
The Growth Trap : A Case of Case Study; Major home appliances;
Maytag Corporation Laundry appliances; Operational
Brand 'Bollywood': Going Global efficiency; Growth through acquisition;
Maytag Corporation (Maytag) was one of
By mid-2000s, Bollywood movies (the the most profitable companies in home Premium brands; Brand positioning; High
Hindi language movies produced in India) appliance industry. During 1983–1987, the quality, high priced positioning; Full-line
were going global. These movies were company's revenue and net profit, grew at appliance manufacturer; Growth trap;
attracting larger audiences in the overseas more than 5% and 9% annually, Hoover; Amana appliances
markets than ever. They were gaining respectively. Traditionally, the company's
popularity not only in traditional markets product line was restricted to washers,
such as the UK and the US but also in dryers and dishwashers. It had always LCD Flat Panel TV – Sony's
countries like Germany, Israel, France, targeted the niche market with premium- Growth Strategy
Japan, etc. With time, more and more priced products and not the price-conscious
Bollywood movies were released overseas market segments. During 1980s, the Sony Corporation (Sony), a leading
and enjoyed by a larger audience. With a premium-quality niche for laundry and Japanese consumer electronics company
rapidly growing overseas market, foreign kitchen appliances started eroding as the enjoyed undisputed leadership in the TV
distributors demanded extensive changes consumers became aware that the quality market with its CRT TVs. During early
in the style of movie-making. They wanted difference between high-priced and 1980s, the company's leadership position
17
www.ibscdc.org
was first challenged by the changing By the end of 2004, the CEO of Shanda, for railways, earth moving equipments,
preferences of the customers, who were Mr. Chen Tianqiao, intended to expand it hydrocarbons, sugar, steel, coal, ship
Growth Strategies
looking for flat and large screen TVs. CRT as a global entertainment company and building, oil and gas, refinery and general
technology had a drawback that it could not restrict it to online gaming only. engineering equipments. Globally, BFL was
not be used for making large screen TV. However, Shanda was facing increasing known for its operational excellence,
Sony continued with its CRT TV to cater competition from rivals like The Online technical supremacy and cutting edge
the changing customers' needs just by and Kingsoft Co. Besides, the company know-how. The cutting edge technology
increasing the screen size. As a result the was adversely affected by technical and manufacturing excellence helped the
company witnessed declining market share problems such as hacking of its servers company to become the preferred supplier
which affected its financial performance. through cheat programs and legal problems of global automotive companies. It had an
The major initiatives to revive its TV related to copyrights. This case deals with enviable buyers list from global automotive
business were taken by Sony when Howard the competitive landscape of Chinese companies, like General Motor,
Stringer (Stringer) became the CEO of the online game industry, the strategies adopted DaimlerChrysler, Volvo, Mitsubishi
company in June 2005. by Shanda to become a market leader, Corporation, Toyota Motor Corporation
challenges it might face to retain its and Hyundai Motors. It also had tie-ups,
The Case discusses the initiatives of Howard leadership position and strategies adopted joint venture and technology sharing with
Stringer to revive the fortune of Sony while by Shanda to meet the challenges of the leading auto component manufacturers and
analyzing its ability to sustain the success competitive market. original equipment manufacturers like
in the long run. Meritor, Carpenter Technology
Pedagogical Objectives Corporation, Rockwell International and
Pedagogical Objectives Delphi Corporation. As a part of the
• To discuss the online gaming industry in growth strategy, the company opted for
• To discuss about the flat panel TV China
industry both green-field expansion and brown-field
• To understand the strategic initiatives expansion. BFL made a few significant
• To understand the challenges faced by taken by Shanda Interactive acquisitions globally to mark its presence.
Sony's flat TV Among the list of the acquisitions, Carl
• To discuss the challenges faced by the Dan Peddinghaus, CDP Aluminiumtechnik
• To discuss the strategic initiatives taken company and Imatra Kilsta AB were the most
by Sony significant ones.
• To argue about its growth strategies.
• To debate on Sony's success in the long This case study discusses in detail about
run. Industry Entertainment
the expansion strategy of Bharat Forge
Reference No. GRS0249K
Industry Consumer Electronics Limited; how the company became the
Year of Pub. 2006
Reference No. GRS0250K global leader in auto forging industry,
Teaching Note Not Available
Year of Pub. 2006 management philosophy of the company,
Struc.Assig. Not Available
Teaching Note Not Available expansion strategy adopted by the
Struc.Assig. Not Available Keywords company to become the global leader,
business model of the company and
Keywords Shanda Interactive; On-line game; Internet glimpses of the domestic and global auto
infrastructure; Interactive game; Internet component industry. This case further
Sony; LCD (liquid crystal display) TV; CRT service provider; Role-playing game; Game
(cathode ray tube); Growth; Sharp; WEGA offers a scope for discussion about the
software; Virtual community; Business trends and strategy of the industry, strategy
(industry’s first flat screen CRT TV); model; Research and development; Growth
Samsung; Growth Strategies Case Study; adopted by the company to become the
Strategies Case Study; Short messaging market leader and how it leveraged its
Howard Stringer; Consumer electronics; service; Market capitalisation; Literature
Road to recovery; Diversification; New advantages to mitigate the pitfalls and
portal; On-line entertainment market; limitations of the strategy.
initiatives; Non-core business; Product mix; Beta testing
Branding
Pedagogical Objectives
18
www.ibscdc.org
Teaching Note Not Available emerge as the casino capital of the world. 25 years, it had yet to prove itself on the
S T R A T E G Y – II
Struc.Assig. Not Available Gambling has been legal in Macau for over global scale. Tata Steel had an objective to
150 years, and the place has for long been increase its production capacity to more
Keywords known as a tourist center associated with than 30 MT and become a global company
Bharat Forge Limited (BFL); Original casinos. However, for about 40 years (from by 2015. Starting its journey on the global
equipment manufacturer (OEM); Auto 1961 to 2001), the casino business was the growth path, Tata Steel made two major
forging; Auto component; Tier 1 supplier; monopoly of one local company - acquisitions namely, Singapore based
ACMA (Automotive Components Sociedade de Turismo e Diversoes de Macau NatSteel in 2004 and Thailand based
Manufacturers Association); Delphi (STDM), managed by Stanley Ho. A Millennium Steel in 2005. In October
Corporation; Crankshafts; Single die quantum leap in the casino business was 2006, Tata Steel made a bid to acquire the
forgings; Dana Kirkstall; CDP triggered by the local government's world’s 9th largest steel company, UK-
Peddinghaus; DaimlerChrysler; Growth decision in 2001 to open out the gambling based Corus Group. If approved by Corus
Strategies Case Study; General Motors; industry to foreign companies. The shareholders, the deal would create the
Mitsubishi Corporation; Greenfield objective was to attract more tourists and world’s fifth-largest steel firm and the
expansion visitors to Macau, in turn increasing tourism largest Indian takeover of a foreign
revenues. Two major Las Vegas companies, company. Besides, Tata Steel had plans of
Las Vegas Sands Corporation and Wynn capacity expansion in various countries
Resorts Ltd. took their chances and risked through various projects. However, the deal
L’Oreal’s Growth Strategy : The entry into Macau. In 2004, Sheldon to acquire Corus was not finalised yet, as it
Body Shop Acquisition Adelson's Las Vegas Sands, the world's took a new turn when Brazil’s CSN
The United Kingdom-based The Body Shop largest gaming company, was the first to (Companhia Siderugica Nacional)
International (Body Shop) was a retailer step into Macau. Adelson was known to be approached Corus’ board with a higher offer
of natural-based cosmetics. L’Oreal, a a visionary, who had successfully promoted than Tata Steel. Critics of Tata Group’s
leading brand in the global market, was a Las Vegas, a casino gambling haven, as a globalisation spree argued that the group
French company dealing with cosmetics business convention center as well. had intended to overpay for overseas
and beauty products. This case deals with Adelson's entry into Macau was followed acquisitions. Moreover, Ratan Tata, who
the proposed acquisition of Body Shop by by others, and at least a dozen new casinos had been leading Tata Steel for more than
L’Oreal. It provides brief overview about of sizeable magnitude have opened shop 12 years, would retire in 2007 at the age of
the two companies and highlights L’Oreal’s or are under development. Though skeptics 70. The case highlights the globalisation
growth through acquisitions. It then feel otherwise, casino gaming revenue has aspirations of Tata Steel and the challenges
discusses in details, the company's recent been growing at a galloping pace, and Macau ahead. It traces the journey of Tata Steel
proposed acquisition. The case also deals is soon expected to overtake Las Vegas as from domestic company to global entity.
with the expected synergies and possible the casino capital of the world. The case presents a dilemma, would Tata
challenges that will result from the Steel be able to realise its ambitions of
acquisition. Pedagogical Objectives putting its brand name on the world map
in the volatile steel industry? How
• To understand the gambling industry in successful would its expansion strategies
Pedagogical Objectives general and casino business in Macau be?
• To understand the global cosmetics • To analyse the competition and
industry innovation in gambling industry in Pedagogical Objectives
• To discuss the core competence of Macau and how Macau is emerging as • To understand growth strategies of Tata
L’Oreal and Body Shop the World's Casino Capital Steel
• To analyse the probable synergies of the • To assess the impact of gambling • To discuss whether Tata Steel would
acquisition. industry on tourism. succeed in its expansion strategies.
Industry Gambling/Casino
Industry Personal Care Products Industry Steel
Reference No. GRS0246B
Reference No. GRS0247K Reference No. GRS0245A
Year of Pub. 2006
Year of Pub. 2006 Year of Pub. 2006
Teaching Note Not Available
Teaching Note Not Available Teaching Note Available
Struc.Assig. Not Available
Struc.Assig. Not Available Struc.Assig. Available
in the Chinese market whereby the auto renowned brands and had emerged as the the 1997, Asian crisis and 2001, attack of
parts supplier of the Toyota group entered leading international luxury hotel chain in twin tower in the US, which was a major
in China before production of finished cars China. It had ambitious plans to further market for LVMH.
initiated. Toyota launched its world famous boost its presence. Other international
Camry Sedan in China with a mission to hotel chains were also looking at China in The nature of business in which LVMH
achieve 10% market share in the Chinese a big way, leading to a clutter of world operated demanded high level of creativity
automobile industry. famous hotel brands. The cut-throat and innovation at a faster pace. LVMH
competition especially among the luxury managed its various brands in close
The case deals with the different joint hotel operators was expected to intensify, association with its designers. With
venture partnerships of Toyota which driving the unprofitable ones out of competitors like Gucci, Richemont, with
focused on product localisation approach. business. In such a situation, it remained a financial muscle and battalion of talented
The case discusses the upcoming challenge for Starwood to continue to designers, LVMH had to be audacious and
Government policy regarding enjoy its dominance. expeditious in its endeavors to retain its
implementation of European emission luxury leadership.
standards, the competition scenario and
product recall problems. Would Toyota be Pedagogical Objectives The case covers the global luxury goods
able to surpass its rivals by acquiring bigger industry, the competitive landscape for
• To discuss the economic growth and LVMH, the establishment and growth of
share of the Chinese automobile market? growth of tourism industry in China and LVMH empire and its business groups. The
its spill-over effect on the hotel industry case analyzes the business model followed
Pedagogical Objectives by LVMH and its core competency of
• To discuss the entry and growth strategies
• Analyse the Chinese Automobile of Starwood in China building Star Brands. The strategies
Industry and its importance for the followed by LVMH for growth is discussed
foreign Automobile manufacturer • To analyse the challenges ahead for including the issues of Talent management,
Starwood in China and chart out developing and achieving skill set for
• Toyota's expansion strategies strategies to overcome them. designers and counterfeiting.
• Toyota's Strategies to tap Chinese Industry Hospitality
automobile market. Reference No. GRS0243A Pedagogical Objectives
Year of Pub. 2006
Industry Automobile Industry • To understand the dynamics of the global
Teaching Note Not Available
Reference No. GRS0244A luxury goods industry
Struc.Assig. Not Available
Year of Pub. 2006
• To understand the core competencies
Teaching Note Not Available Keywords of LVMH in creating 'Star Brands'
Struc.Assig. Not Available
Starwood; luxury hotels; resorts; Westin; • To discuss the growth and competitive
Keywords Sheraton; St. Regis; The Luxury collection; strategies of the industry leader, LVMH
Growth Strategies Case Study; Le Meridien;
Toyota; Global automobile industry; China Four Points by Sheraton; W aLoft; • To discuss future challenges and strategies
automobile industry; Camry Sedan; Organic ELEMENT; China; Beijing; Olympic for the global luxury good giant.
growth; entry level strategies; Joint Games; Asia; InterContinental; Hilton;
ventures; Growth Strategies Case Study; Hyatt; competition; growth strategies; Industry Luxury Goods Industry
Original equipment manufacturer; Kiichiro brand positioning; brand strategy Reference No. GRS0242A
Toyoda; International business expansion; Year of Pub. 2006
European emission standards; FAW; BAIC; Teaching Note Not Available
SAIC; Chinese government policy; Struc.Assig. Not Available
Competition scenario; Product recall LVMH in 2006 : Managing
Fashionable Growth Keywords
LVMH (Louis Vuitton Moët Hennessy);
LVMH - Moët Hennessy - Louis Vuitton
Starwood Hotels & Resorts in S.A. (LVMH), the world's leading luxury
Richemont; Guccio Gucci; Pinault-
China - Strategies for Growth Printemps-Redoute (PPR); Growth
goods conglomerate, was the parent to
Strategies Case Study; Fashion accessories;
around 50 prestigious brands with
Starwood Hotels & Resorts Worldwide, Inc. Luxury goods in Asia; Luxury goods in
international retail network of more than
based in New York, was one of the leading Europe; Cosmetics; jewellery; Product line
1,700 stores. LVMH posted a profit of
hotel and leisure companies in the world extension; Positioning; Multi branding
¤1668 million with revenues of ¤13,910
with about 850 properties in over 95 strategy; Growth strategy; Innovation;
million in 2005. Led by a dynamic leader
countries and 145,000 employees in 2006. Branding strategy; Business models;
Bernard Arnault, LVMH developed
Starwood owned, managed and franchised Entering international markets; Star brand;
competency in building not just
hotels and resorts under 8 internationally Consumer goods; France; Strategy
recognizable brands but "Star Brands".
renowned brands namely Westin, Sheraton, implementation; Managing the global
LVMH's philosophy of extraordinary
St. Regis, The Luxury Collection, Le conglomerate; Decentralized organisation;
quality and staying at top position in any
Meridien, Four Points by Sheraton, W and Mergers and acquisitions; Synergy; organic
area it chose to operate earned it the title
aLoft. growth; competition; Brand Portfolio
of the leader of the luxury goods industry.
management; Leadership; Creativity
After North America and Europe, Asia The clientele to which LVMH catered to
emerged as the most dynamic region were very elite and rich, who could afford
fuelling growth in hotel industry. In Asia, to buy the highly priced LVMH products.
China was considered the hottest Lukoil : Russia’s Largest Oil
With increasing incomes, the number of
destination due to its booming economy, people falling in the category of elite
Company’s Global Strategies
emergence as one of the leading tourism increased rapidly, expanding the market
destination and the upcoming Olympic LUKOIL, one of the worlds' leading
for LVMH. Being a luxury goods company vertically integrated Russian oil and gas
Games to be held in Beijing in 2007.
20
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company with the business of exploration, second largest with 63,028 route Industry Railways
S T R A T E G Y – II
production and marketing of oil, gas and kilometers, 108,706 track kilometers and Reference No. GRS0240A
petroleum products, was the second largest busiest rail networks in the world. IR was Year of Pub. 2006
privatised oil and Gas Company after the world’s largest commercial utility Teaching Note Not Available
Exxon Mobil with 20.3 bboe (billion barrel employer, with more than 1.6 million Struc.Assig. Not Available
of oil equivalent) proved hydrocarbon employees.
reserve which accounted for 1.3% of world Keywords
oil reserves, 0.4% of world gas reserves A legacy from the British rule, IR had been
a socio-economic entity, striving to Indian Railways (IR); East India Railway
and 18% of Russian crude oil production. Committee; Operations of IR; Social
achieve its justifiable economic existence.
LUKOIL was founded by Vagit Alkeperov, With the liberalization of Indian economy responsibility versus profitability;
who had strong political support from since 1991, the policies of the railways Bureaucracy; Operational inflexibility;
Russian Government. With an enormous became obsolete. To become economically Railway board; Subsidized fares; Growth
retail presence in the US and huge refining viable in the competitive era, IR faced Strategies Case Study; Social obligation
capacity, oil and gas reserves out side of hurdles like duality of objectives, hazards cost; Commercialisation of Indian
Russia, it aimed to transform itself over of safety considering its organisational size Railways; IR (Indian Railways); Views on
the next decade into one of the world’s and the emergence of competition from privatization of Indian Railways; Railway
largest fully integrated energy company. other means of transport like airlines, finances; Partition of India; Pension
The company planned to double its output particularly low cost airlines. liability of Indian Railways; Railway zones
of oil and gas together with substantial
revenue growth in order to become next In 2001, IR was written off as the
burgeoning responsibility for the
oil superpower in the world. Global Wine and Spirits Giant
government. Experts opined that by
The case mentions the competitive obliging to political and social agendas, IR Pernod Ricard’s Growth
strategies adopted by the company in order failed to utilize its capacity and achieve its Strategies
to secure its leadership position. The case profit goals. Amidst criticism, IR stabilized France-based Pernod Ricard S.A. though
highlights important strategies of LUKOIL its financial situation in 2002-03. was a major player in alcoholic beverages
starting from privatization to its but lagged behind the market leader Diageo
geographical expansion and its growth In 2004, Lalu Prasad Yadav (Lalu), a
famous political leader, was given charge in the wines and spirit market. Following
strategy of acquisition of various the acquisition of Seagram in 2001 and
companies not only in the Russia but in of Ministry of Railways, one of the most
sought after portfolios in the government Allied Domecq in 2005, Pernod Ricard
the periphery of Russia. grew from a local company to an
owned utilities of India. He proved to be a
dark horse, as under his leadership, IR international company. The stagnant
Pedagogical Objectives adapted and implemented cost effective domestic market and growing international
strategies to raise the revenues. For the demand, forced Pernod Ricard to make it
• To understand Russia's oil and gas
first time the passenger fares and freight big in wines and spirit market.
industry
rates were not hiked to increase revenues After the successful acquisition of Allied
• To understand Lukoil's growth strategy but the, per train load was increased by 4- Domecq, Pernod Ricard aimed to become
as a market leader of Russian oil and gas 5 tonnes on selected tracks to yield higher No. 1 player. Besides expanding into the
industry revenue. Such measures combined with a growing markets like UK and US with its
• To analyse the effect of political factor "value for customer" philosophy and Premiumisation strategy, the company also
on private companies of Russia considerations of IR as an economic aimed to explore the emerging markets of
enterprise, were elementary in bringing Asia with its decentralized approach.
• To understand the benefits of about Indian Railways' turnaround. The Despite a promising outlook, in terms of
geographical expansion on the growth Railway Budget 2006-07 had great plans sales and market share, a shadow loomed
of Lukoil for expansion and growth for railways and over Pernod’s future, with the retirement
a landmark Dedicated Freight Corridors. of Chairman Patrick Ricard in 2007
• To understand Vertical integration in oil
and gas industry. But the critical question was with the without an obvious family successor had
change in political scenario or with the put the company in a dilemma.
Industry Oil & Gas
end of tenure of the incumbent The case traces the journey of Pernod
Reference No. GRS0241A
government, would IR still be able to sustain Ricard and highlights the organic and
Year of Pub. 2007
its unprecedented performance in the inorganic growth strategies of the
Teaching Note Not Available
future? company. The case explores the various
Struc.Assig. Not Available
strategies the group had adopted for its
Keywords Pedagogical Objectives growth with its opportunities and
LUKOIL Oil; Gas; Privatisation; Growth challenges in store for the company. With
• To understand the dynamics of rail
Strategies Case Study; Expansion strategies; all its efforts for expansion, would Pernod
transport industry in India and the
transformation strategies; Exploration; Ricard be able to realise its dream to be No.
monopoly of Indian Railways
Production; Gas Strategy; Marketing; 1 before Patrick Ricard retired in 2007?
Market Leader • To analyse the conflicting goals of Indian
Railways as a public utility organization Pedagogical Objectives
vs a self run profitable organisation
• To analyse the market entry and market
Indian Railways : The Juggernaut • To scrutinize the leadership roles played penetration strategies in emerging
Turns Around by various politicians and its impact on markets
the growth and development of Indian
Indian Railways (IR), a state-owned railway Railways • To understand the competitive strategies
company, had a near monopoly in the and strategic shift of Pernod Ricard
country’s rail transport. It was also the • To debate on the future strategies of
Indian Railways • To study market leader and challenger
strategies.
21
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Industry Alcoholic Beverage Industry Diversified Conglomerate Keywords
Reference No. GRS0239A Reference No. GRS0238A
Accor hotels; hospitality and travel; growth
Growth Strategies
S T R A T E G Y – II
Reference No. GRS0235A Reference No. GRS0234A
Offshore outsourcing; Service operations; Year of Pub. 2007 Year of Pub. 2006
Managing risk and fraud; Service Teaching Note Available Teaching Note Available
performance improvement, eBay; China; Struc.Assig. Not Available Struc.Assig. Not Available
Taobao; e-Commerce; Growth Strategies
Case Study; On-line auction; Alibaba.com; Keywords Keywords
Yahoo!; Competition; Revenue model; On-
line payments; Emerging markets; Danone Group; Dannon Inc.; Probiotic Cyworld; SK Communications; Social
Marketing strategy; Competitive foods; Activia; functional foods; Growth networking site; Global expansion strategy;
strategies; Asian markets; Chinese Internet Strategies Case Study; US yogurt market; Demographic of US Social Networking
market cultural shift; American food culture; Market; MySpace; Market-entry
shifting food habits; acculturation; product strategies; Culture-oriented market
roll-out; launching strategies; changing penetration; Localisation as global
customer needs expansion tool; Privacy policies of social
Danone's Probiotic Yogurt networking sites; Business model; Growth
Activia : Latching on to the Strategies Case Study; Monetizing of social
Health Bandwagon Cyworld, South Korea’s Social networking sites; Consumer behaviour;
South Korean Market Leader; Major
French food giant, Danone Group, is a world Networking Site’s Global players in US Social Networking Sites (SNS)
leader in bottled water by volume and fresh Expansion Strategies industry
dairy products and second in biscuits and
cereals, with presence in over six Cyworld, a South Korean social networking
continents. Group's sales growth increased site started its operation in 1999, since its
8.1% from euro 13,024 million in 2005 to inception it captured 40 per cent of the Castrol India Limited in 2006
euro 14,073 million of which Europe South Korean market. It started wooing
the tech-savvy youth in United States in Castrol India Limited (Castrol), subsidiary
contributed 60.98% in 2006. Danone of UK based British Petroleum group (BP)
decided to roll-out its tried-and-tested 2006. In South Korea, a world leader in
broadband usage rate 96% of people in the was one of the active players in the retail
product named "Activia"-yogurt with an automotive lubricant market in India in
active probiotic culture in US in 2006. 20 - 29 age groups were Cyworld members
and in China, the site recorded nearly 3.5 2005. It had capacity to produce 300
Americans ate less yogurt compared to million registered members since its launch million tonnes per annum of lubricant.
Europeans and preferred fruits and in June 2005. From a minor oil company with market
vegetables and relied mainly on the tablets, share of 6% in 1991, Castrol grew to
piles syrups etc. Dannon Inc. (US subsidiary In 2005, Cyworld built its global strategy become second largest lubricant company
of Danone group) faced a great challenge to deploy the Cyworld brand regionally and with market share of 22% in Indian
as Americans' food habits resulted into a accordingly launched its services, first in lubricants market in 2005. Castrol was also
cultural battle and minimal awareness about China and then, Japan and Taiwan. After a market leader in the retail automotive
probiotics. Dannon invested heavily to announcing its US expansion plans in lubricants segment. In BP's worldwide
create awareness and generate positive October 2005, Cyworld officially launched operations, Castrol in India was second in
response to such cultural foods, educate its US version in August 2006. terms of volume of lubricants sold after
them about health benefits offered by US, and third in terms of profit next to US
Analysts were skeptical about the success
Activia. They initialized many and Germany.
of Cyworld in the US, especially with
promotional activities like direct mailing, MySpace, a US based social networking site In 2005, Castrol initiated a new
advertising on TV, radio, sponsored survey, controlling the market. MySpace communication and re-launch exercise,
internet marketing, free samples, etc. It dominated the US social networking scene laying emphasis on the liquid engineering
had also faced difficulties in designing the with about 123 million users and reinvented concept, and technology upgradation. The
packaging and making the advertisement an internet culture since its inception in company repositioned products on value
in line with the FDA (Food and Drug July, 2003. But as Cyworld was backed by proposition, filled up gaps in the product
Administration) and FTC (Federal Trade the deep pockets of South Korea's SK range and emphasized on customer benefits
Commission) guidelines. Telecom Co., it could carve out a lucrative in each and every application. Castrol also
The case also discusses American food spot in American market also. introduced computerized vehicle service
culture, their foods, shifting of eating habits centers and entered into strategic marketing
The case describes Cyworld's growth and
and impact of FDA and FTC guidelines. tie-ups with original equipment
expansion strategy, particularly in the US.
But analysts were debating whether the manufacturers (OEMs). Castrol had served
It ends with a debate whether Cyworld can
tried-and-tested product rollouts really over 30 million customers and expected
make a dent in MySpace dominated US
work, all times? Would it be possible for to add another 50 million customers in
social networking market.
Danone to cultivate success based on 2006. Would Castrol be able to sustain its
probiotics targeting niche market? marketing advantage with repositioning in
Pedagogical Objectives Indian lubricant market?
Pedagogical Objectives • To understand dynamics of the social
networking business Pedagogical Objectives
• To discuss American food culture, shifting
of eating habits and impact of FDA and • To understand the global expansion • To understand the Indian Lubricant
FTC guidelines strategy of social networking site market
• To discuss the challenges faced by • To study the growth strategies of • To analyse the marketing strategies of
Danone in America Cyworld in US market Castrol in India
• To discuss whether Danone continue to • To understand the competitive scenario • To discuss the importance of brand
win the hearts of consumers through in social networking industry. repositioning as a marketing strategy.
their troubled stomachs in future?
23
www.ibscdc.org
Industry Lubricant Keywords • Various growth strategies of GE.
Reference No. GRS0233A
Al-Jazeera Arabic; Al-Jazeera English;
Growth Strategies
• Various growth strategies of GE. • GE's dismal performance in the plastics • Future strategies for success for a
and insurance divisions computer maker
Industry Media (News)
Reference No. GRS0232A • The trends in Asian markets and GE's • Challenges and Competition faced by
Year of Pub. 2007 reasoning in venturing into these Apple in its new ventures.
Teaching Note Not Available markets
Struc.Assig. Not Available
24
www.ibscdc.org
Industry Computer Industry Pedagogical Objectives Pedagogical Objectives
S T R A T E G Y – II
Reference No. GRS0230C
Year of Pub. 2007
• To give a detail about the European • To discuss the reasons behind the
Teaching Note Available
automobile industry, trends and patterns meteoric rise of Sun
Struc.Assig. Not Available • To understand the segmentation- • To discuss as to how the company failed
Keywords targeting and positioning strategy in to perform amidst rising competition
automobile industry and threats particularly from Microsoft.
Apple Inc.; iPhone; iPod; Steve Jobs; Steve
Wozniak; Macintosh/Mac; Apple TV; • To understand the different segment in Industry Servers and Mainframes
Consumer Electronics; iTunes; Product automobile industry Reference No. GRS0228K
Year of Pub. 2006
line; Growth Strategies Case Study; New • To understand the marketing strategy Teaching Note Not Available
Product Development; Apple's Future adopted by automobile company to Struc.Assign. Not Available
launch a new model
Keywords
• To understand the innovative
Mercedes: In Search of Growth promotional strategies to make a brand Sun Microsystems; Operating system;
In 2005, according to the survey conducted successful one UNIX; Hewlett-Packard; Microsoft; Dell;
by Interbrand and J P Morgan Chase, IBM; Dotcom; Server; Solaris; Hardware;
• To understand the key success factors Intel; Linux.
'Mercedes', the brand synonymous with that make a particular auto brand a
quality in the global automobile industry, success story.
slipped to the 11th position from its
previous year's ranking at the 10th place. Industry Auto Manufacturing KFC in Asia
In the same year, Daimler Chrysler, owner Reference No. GRS0229K
of the Mercedes brand, planned to withdraw Year of Pub. 2005 In 1986, PepsiCo acquired Kentucky Fried
1.5 million vehicles from the US and Teaching Note Not Available Chicken (KFC) and it started operating
European markets due to quality problems. Struc.Assig. Not Available under PepsiCo’s global restaurant company,
Along with problems in quality, the Yum! Brands Inc, from 2002. KFC was a
Keywords huge success in the US with its special
company also experienced a sluggish
growth rate in its premium segment, where Chryslers corporation; Five pointed star offering of ‘fried chicken’. Due to the
it was facing severe competition from design; Growth Strategies Case Study; staggering growth of the US fast food
Japanese auto makers, like Toyota, Nissan, Daimler-Benz AG; Daimer-Benz's industry, the company decided to go global.
Honda and Mitsubishi. The company competitors; Daimler-Chrysler; VSP of the KFC’s first entry in the Asian market was
launched Mercedes A class (popularly brand; Crisis in the European market; New in Japan in 1970. Initially the company
known as the Baby Benz), which was an marketing initiatives of Mercedes; The faced some impediments, but eventually,
instant hit in the European market. dilemma it turned out to be a profitable unit. By the
Analysts predicted that this was the main end of 2004, KFC had opened 1159 outlets
reason behind Mercedes' slip in brand rating in Japan. Its second foray in the Asian
as Mercedes lost its exclusivity. The main market was in Malaysia in the year 1973.
dilemma therefore, was the tradeoff
Sun Microsystems: A Case of It was the first fast food multinational chain
between product volume and exclusivity Missed Opportunities to enter into the Malaysian market. Being
of the brand. Daimler Chrysler also wanted the first mover in Malaysia, KFC went on
Sun Microsystems started its operations in
to consolidate its presence in the emerging to become the market leader. It entered
1982, with an office in Santa Clara, US.
Asian markets. Therefore, the popular China in 1987 and became an instant hit.
Sun’s biggest break came in 1995, with the
Mercedes A class was unveiled in China and By the end of 2004, KFC had 1243 outlets
development of Java, a universal software
Malaysia as well. The company further in China alone. KFC ventured into India in
program that enabled its developers to write
introduced several innovative marketing 1995 and started facing problems. Since
a program in one language that could be
strategies, customer relationship then, it could not expand as much in India
run on any platform. The company netted
management practices and promotional as it had in other Asian countries. The case
huge profits during the dot com boom of
methods to enhance the visibility and analyses the various strategies applied by
late nineties when its expensive but high
presence of its premium 'Mercedes' brand KFC in the three countries where it tasted
performing servers (working on Solaris
in the Asian countries, particularly in success. The case also analyses the reasons
operating system and powered by SPARC
China, South-East Asian countries and behind KFC’s limited growth in India.
chips) were in great demand. However after
India. A group of analysts also opined that its meteoric rise, Sun started losing out on
the company's plans to consolidate its its business towards the end of the dotcom Pedagogical Objectives
presence in the Asian market might not era in 2000-2001. During that period a
succeed as envisaged. Though Asia was the • To understand the fast food market of
number of dotcom and telecom companies Asia
most lucrative market for Daimler went bankrupt; thus bringing in recession
Chrysler, the premium segment was very in the world economy. As the demand for • To analyse KFC’s growth strategies in
limited and the compact car segment high end products fell, Sun’s competitors various Asian countries
already had a huge number of automobile started manufacturing and marketing
brands. The entry of premium players • To discuss why KFC succeeded in some
servers powered by low-cost Intel chips
(Rolls Royce, GM and BMW) in the niche Asian countries while it failed in some
and nearly free Linux operating system.
category would make the niche segment other
Sun however failed to read customer’s mind
overcrowded and fiercely competitive. and continued pushing its high end products, • To debate about KFC’s future in Asia.
Industry experts were skecptical whether although much cheaper versions introduced
'Mercedes' could maintain its exclusivity by the competitors were then already Industry Fast food & quick service
as well as its growth in terms of production available in the market. This lead to a sharp resturants
volume fall in profit & market share of the Reference No. GRS0227K
company. Year of Pub. 2006
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Teaching Note Not Available became one of the largest cruise lines in • To analyse the restructuring strategies
Struc.Assign. Not Available the world. In order to extend its services of Kraft Foods
Growth Strategies
S T R A T E G Y – II
activities could be used in long-term brand
building initiatives
Vodafone Group Plc. (Vodafone), the In 2005, Deutsche Bank, the second-largest
leading mobile telecommunications • To discuss the US retailing industry and investment bank in the world by revenue,
company, followed a twin strategy of global the seasonality associated with it registered net revenues of •25 billion and
expansion and offering mobile-only • To understand the competitive forces was able to reach its set target of pre-tax
service, to achieve huge economies of scale. in the US departmental stores industry return on average active equity of 25%.
However, its strategy failed in two of its Based on the continuous restructuring and
important markets – the US and Japan, • To understand the US shopping trends cost-cutting initiatives of its CEO, Josef
where it had to adopt the local technology in the festive season and the consumer Ackermann, Deutsche Bank was able to bring
to suit the market demands. Vodafone was psychographics associated with it. itself back to profitability. In 2006, it was
left isolated when almost all the telecom ranked No.38 in the BusinessWeek’s
Industry Retail Department Stores
operators offered a combined package of rankings for Europe’s top performing
Reference No. GRS0221K
fixed & mobile telephony, broadband and companies against a ranking of 126 in 2005.
Year of Pub. 2006
television services.
Teaching Note Not Available The case focuses on the various
The case, while highlighting Vodafone’s Struc.Assign. Not Available restructuring initiatives of its CEO and its
global strategies, discusses their pitfalls and consequences on the business model and
Keywords
questions their viability in the long run. profitability.
Saks Fifth Avenue; Promotion; holiday
Pedagogical objectives Strategy. Pedagogical Objectives
• To critically analyse Vodafone’s • To discuss the restructuring initiatives
globalisation strategy vis-à-vis undertaken by Deutsche Bank to restore
localisation strategy Nokia: Surging Ahead in China its profitability
• To discuss the potential loopholes in By 2005, Nokia Corporation (Nokia) was • To understand the changing landscape
‘bigger is better’ strategy and the the leading mobile phone manufacturer in of the European banking industry after
drawbacks of economies of scale China with 31% market share. China was the introduction of Euro
anticipated to emerge as the single largest
• To discuss the viability of Vodafone’s market for the company, with an estimated • To understand the optimum mix of
‘mobile-only’ strategy, when majority mobile subscriber base of 630 million by business portfolio
of the other operators were focusing on 2010. In its efforts to surge ahead of its
bundled offering • To discuss the business model of
competitors, Nokia offered inexpensive Deutsche Bank and its sustainability in
• To understand the changing dynamics phones for the mass markets without the long-run.
of the mobile market and the technology compromising on the quality. It also
associated with it. restructured its sales force and reorganised Industry Banking
its distribution channels to reach the low- Reference No. GRS0219K
Industry Wireless network operators end customers in the rural markets. Year of Pub. 2006
Reference No. GRS0222K Teaching Note Not Available
Year of Pub. 2006
The case, while providing an overview of Struc.Assign. Not Available
Teaching Note Not Available
the mobile industry in China, discusses the
Struc.Assign. Not Available
strategic moves of Nokia to emerge as the Keywords
undisputed leader in the country.
Keywords Deutsche bank; invest banking; Personal
asset and wealth management.
Vodafone; CDMA; GSM; 3G. Pedagogical Objectives
• To understand the localisation strategy
as applied by Nokia in China Carrefour in 2004: Managing
US Retailing: Saks Fifth Avenue’s • To discuss the initiatives taken by Nokia Globalization
Holiday Strategy to tap the low-end market segment and In fiscal 2004, Carrefour, the largest retailer
In December 2004, the total sales of Saks exploit the huge growth potential in in Europe and second-largest in the world,
Inc., a departmental store, increased by China registered a 14.9% decrease in the net profit.
7.1% compared to the previous year. The • To understand the mobile phone industry Carrefour began to under-perform in some
company attributed this seasonal surge, to in China of the foreign markets and the company’s
its promotional campaign, particularly the CEO, José Luis Duran, decided to withdraw
Holiday Snowflake Spectacle programme • To discuss the viability and the potential from these markets and concentrate only
introduced in the flagship store of Saks risks involved in the introduction of on those, where it was among the top three.
Fifth Avenue. The campaign also aimed to mobile phones for the masses and the
build the brand image of Saks. consequent brand dilution. The case, while highlighting on the
challenges faced by Carrefour in various
The case, along with highlighting the Industry Wireless telephone handsets foreign markets, also focuses on the
holiday strategy of Saks Fifth Avenue, also Reference No. GRS0220K initiatives taken by the company to restore
gives an overview of the competitive Year of Pub. 2006 profitability and global competitive
landscape of the US retailing industry. Teaching Note Not Available position.
Struc.Assign. Not Available
Pedagogical Objectives Keywords Pedagogical Objectives
• To discuss the promotional activities of Nokia; China; Multimedia; Motorola; • To understand strategic concentration
Saks Fifth Avenue to maximise seasonal Samsung; Mobile services. and divestment of resources to maximise
revenue revenue
27
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• To understand the French retail industry Carrefour China: A Success Story • To discuss the competitive scenario
• To discuss the initiatives taken by in Retailing therein.
Growth Strategies
Carrefour to reorganise its business Carrefour, the world’s second-largest Industry Memory Chips and Module
portfolio and restore profitability retailer, entered the Chinese retail market Reference No. GRS0215K
in 1995. With less than five retail stores Year of Pub. 2006
• To understand the localisation strategy Teaching Note Not Available
as applied by Carrefour. in 1995, by 2006, the company had
expanded its operations to 73 Struc.Assig. Not Available
Industry Grocery, Retail hypermarkets across 29 cities, along with Keywords
Reference No. GRS0218K its Champion supermarkets and Dia
Year of Pub. 2006 convenience stores. In fact, in the same Sandisk; Toshiba; samsung; Flash Memory;
Teaching Note Not Available year, it was the largest foreign retailer of SD and Multimedia cards.
Struc.Assign. Not Available China. The case discusses how the company
acclimatised itself to the Chinese
Keywords
customers’ tastes and preferences. It Palm’s Growth Strategies
Carrefour; Globalisation; Hyper-market; analyses the company’s innovative and
Super-market; Discount store. flexible business strategies of localisation Palm Inc was the world’s largest supplier
of management and low-price and high- of personal digital assistants (PDA’s). The
quality of its goods. In addition, the case company was troubled by the declining
provides a brief description of the emerging annual shipments of its products, which
Adidas: Cashing In on World Cup and lucrative retail market of China. many analysts felt were primarily due to
Football their slow technological obsolescence and
The adidas Group (adidas), the second- Pedagogical Objectives increasing popularity of converged mobile
largest sports goods manufacturer devices. The case provides the reader a
• To discuss the growing retail market of broad overview of the company, the
worldwide behind Nike, was the official
China existing market scenario, Palm’s growth
sponsor of the FIFA World Cup ’06, the
greatest football tournament across the • To discuss Carrefour’s entry strategies strategies and the future outlook of its
world. With the World Cup’s global TV in China business.
and web audience exceeding that of the
Olympics or any other sporting event, • To discuss the company’s innovative and Pedagogical Objective
adidas aimed to capitalise on the four- flexible business strategies of localisation
of management and low-price and high- • To discuss the existing market scenario
yearly sporting extravaganza and expected
quality of its goods, with respect to its handhelds and smart phones, Palm's
to achieve record sales in the football
Chinese rivals. growth strategies and the future outlook
category. adidas expected to generate •1
of its business.
billion in revenues from football in 2006 Industry Retail
itself and aimed to benefit from the Reference No. GRS0216K Industry Personal Computers
extensive visibility of the brand through Year of Pub. 2006 Reference No. GRS0214K
World Cup-specific product offerings. Teaching Note Not Available Year of Pub. 2006
Struc.Assig. Not Available Teaching Note Not Available
The case, while providing a broad overview
Struc.Assig. Not Available
of the company, discusses the promotional Keywords
strategies of adidas and its competitor Nike Keywords
for the 2006 FIFA World Cup. Retail; Super Market; Wal-Mart; Tesco;
Carrefour; Chinese Retail Market. Palm; PDA; Smartphone; Handheld;
Microsoft.
Pedagogical Objectives
• To understand the dynamics of sports
Sandisk: Growth Opportunities in
and sporting lifestyle market
Emerging Markets Imation: A Leading Name in
• To understand how promotional Data Storage
activities and advertising campaigns are Sandisk Corporation was a leading supplier
of flash memory cards. However, the Imation was a leading developer of
used in brand-building measures of adidas
company was troubled by the cyclical removable data storage products. The
• To understand the viral marketing nature of its flash business. With rising demand for data storage was increasing
strategy as applied by Nike competition, the flash memory market rapidly due to increasing availability of
was witnessing an increasing degree of high-speed computers, proliferation of the
• To critically analyse the pros and cons Internet and declining storage costs. The
commoditisation. In the emerging business
of Above the line (ATL) and Below the case intends to provide the reader a broad
scenario, Sandisk found new opportunities
line (BTL) communication strategy overview of the company, the market
for growth in the MP3 player and cellular
• To understand how event sponsorship is phone markets. This case provides the scenario in the removable data storage
being used to reach to the mass market. reader with a holistic understanding of the business, and the various strategies that the
flash memory business, the prominent company followed to increase its market
Industry Footwear players therein, Sandisk’ s business profile share.
Reference No. GRS0217K and its growth strategies.
Year of Pub. 2006 Pedagogical Objectives
Teaching Note Not Available
Pedagogical Objectives
Struc.Assign. Not Available • To discuss the market scenario in the
• To discuss the global flash memory removable data storage business
Keywords
business
• To discuss the various strategies that the
Adidas; World Cup Football; Nike; Reebok; company followed to increase its market
• To discuss Sandisk’s profile as the number
Promotion Management; Celebrity share.
two player and its future growth
endorsement.
strategies
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Industry Data Storgae Devices Natsteel: The Growth Catalyst in Teaching Note Not Available
Asian Steel Industry
S T R A T E G Y – II
Reference No. GRS0213K Struc.Assig. Not Available
Year of Pub. 2006
Teaching Note Not Available This case analyses the globalisation Keywords
Struc.Assig. Not Available strategy of TATA Steel, the flagship of NatSteel; tata Steel; Tata Group; Primary
INR 480 billion TATA Group and the steel making; secondary steel making.
Keywords second largest steelmaker of India. TATA
Imation; Storage; CD; DVD. Steel, with an annual capacity of 4.3 mtpa,
was ranked 56th by World Steel Institute.
The company had a plan to increase its Checkmate Mittal Steel: What
production capacity to 15 mtpa, thereby Went Wrong (Part – B)
Unocal Acquisition: Chevron’s becoming one of the top 10 steel
Growth Strategy On 26th January 2006, Laxmi Niwas Mittal,
companies of the world. To fulfill its the chairman and CEO of Mittal Steel,
On 4 th April 2005, David O’ Reilly, the mission, the company chose to increase globally the largest steel maker made a bid
CEO of Chevron Corporation announced the capacity of its existing facilities, set for Arcelor SA, globally the second largest
that Chevron, the second largest petroleum up greenfield projects and acquired new steel maker. Mittal’s bid for the European
company of the US (after Exxon Mobil) companies. Due to the emergence of South- crown jewel made entire Europe frenzy.
had acquired Unocal, the ninth largest oil East Asian countries as the major steel Spain, France, Luxembourg and Belgium
and gas company of US, for US$17 billion. consumers, it acquired Nat Steel to have government strongly opposed the deal.
This acquisition was considered as one of an access to these markets. TATA Steel Arcelor choose to merge with Severstal,
the most politicised corporate takeover had plans to manufacture primary steel at the largest steel maker of Russia. The case
because both the US government and its plants in Jamshedpur and Orissa, (slated discusses what went wrong with Mittal steel,
Chinese government were involved in the to start production from 2006), places how Severstal plan to leverage the merger
deal. After this acquisition, Chevron having large deposits of iron ore. This with Arcelor and the strategic rationale
became the fourth-largest oil and gas would help the company in transporting behind it.
company globally and projected a growth the semi-finished products to the Asian
of 5% during the period 2005-2009. markets and also producing and selling the Pedagogical Objectives
However, both, the investors and industry finished goods. Apart from traditional steel
analysts were sceptical about this • To discuss the bidding process involved
manufacturing, the company also forayed in an acquisition
projection as Chevron had a history of
into value added steel products (automobile
promising more than it could deliver. What • To discuss the trends, patterns of global
steel and ferro chrome) to strengthen its
are the problems that Chevron might face steel industry and consolidation as a
in leveraging itself after the acquisition and presence in the global market and became
a global company from a local one. The major strategy in fragmented steel
how it planned to overcome these industry globally
challenges. case study offers scope for discussing the
trends and present strategies in the global • To discuss acquisition process of Arcelor,
Pedagogical Objectives steel industry and how TATA Steel planned the largest steel company of Europe and
to grow according to the recent trends. second-largest globally by Mittal Steel,
• To discuss the trends and patterns of potential synergies and problems
global oil and gas industry Pedagogical Objectives associated with the acquisition
• To discuss the key success factors in the • To discuss the trends, patterns of global • To discuss how acquisition as a growth
acquisition process for oil and gas steel industry and consolidation as a strategy help companies to consolidate
industry major strategy in fragmented steel in fragmented steel industry
• To discuss the value chain of oil and gas industry globally
• To discuss the key factors which make
industry • To discuss acquisition process of NatSteel an acquisition a successful one
• To discuss the ‘upstream activities’ and by Tata Steel, potential synergies and
• To discuss in details about the problems
‘downstream activities’ in oil and gas problems associated with the acquisition.
of acquisition and how the maximum
industry • To discuss how acquisition as a growth leverage can be gained
• To discuss the problems associated with strategy help companies to consolidate
• To discuss the bidding process and
any acquisition process and how the in fragmented steel industry
thereafter funding of an acquisition
companies plan to mitigate those • To discuss the key factors which make
problems • To discuss the concept of ‘white knight’,
an acquisition a successful one
‘black knight’ and ‘poison pill’.
• To discuss the bidding process in the oil • To discuss in detail about the problems
and gas industry. Industry Steel
of acquisition and how the maximum
Reference No. GRS0210K
Industry Steel leverage can be gained
Year of Pub. 2006
Reference No. GRS0212K • To discuss, the bidding process and Teaching Note Not Available
Year of Pub. 2006 funding of an acquisition Struc.Assig. Not Available
Teaching Note Not Available
Struc.Assig. Not Available • To discuss the value chain of the steel Keywords
industry and primary steel making
Keywords process and secondary steel making
Mittal Steel; Arcelor; Consolidation;
Nippon Steel; Severstal.
UNOCAL; Chevron; growth strategy; process.
global petrochemical industry; upstream Industry Steel
operation; downstream operation. Reference No. GRS0211K
Year of Pub. 2006
29
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Arcelor Mittal Group: Mittal's Year of Pub. 2006 Efficiency – GLOBE; Consumer Trends
Master Stroke (Part – C) Teaching Note Not Available and Preferences; Decentralisation; New
Growth Strategies
30
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Industry Electronics alliance with UPS and USPS; Google Talk; markets in the least developed regions
S T R A T E G Y – II
Reference No. GRS0206C small and enterprise level business; Google of China so as to become a national brand
Year of Pub. 2005 Checkout; Google Talk.
Teaching Note Not Available
• The threat from competitors, both local
Struc.Assign. Not Available
business houses and foreign retail groups
31
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Cisco’s Chambers – The Route from 2000 to 2005 and lists the growth Pedagogical Objectives
Ahead plans and strategies adopted. The
• To discuss the reasons for Jet Blue’s
Growth Strategies
S T R A T E G Y – II
Inditex Group; Fastest Growing Fashion In fiscal 2004, Intuit’s revenue growth has • The case discusses Infosys’ earlier
Retailer; Short Lead Time Strategy; fallen from 26% in 2003 to 13% in 2004. business model – the global delivery
Strategy of Limited Styles; Strategy of Intuit’s revenue is expected to grow by just model, its growth strategy and its efforts
Infrequent Shortages; Producing More 6% to 9% in fiscal 2005. In the eyes of to become a globally competitive
Style Quantities; Vertical Integration Wall Street, the premier high-growth company
Business Concept; Distinctive Operational company has become a value stock. Intuit’s
Structure; Strategy of Zero Advertising; • It discusses the growth of offshore
core brands – Quicken for personal finance,
Pricing Strategy; Gap Inc.; Hennes & software development, the challenges
QuickBooks for small-business finances,
Mauritz AB; Global Expansion Strategies; faced by such developers and their future
and TurboTax for income-tax filing are
Location Identification Strategy; Zara market leaders in their respective segments. • The case also discusses Infosys’
Home. However, wth slowing growth rates, Intuit ‘scalability model’.
is facing the possibility of its first-ever
year of single-digit revenue growth. CEO Industry IT (Information Technology)
Reference No. GRS0196P
Nordstrom: The Fourth Stephen Bennett is launching several
Year of Pub. 2006
initiatives to make Intuit once again a ‘safe
Generation Expansion Strategies Teaching Note Not Available
and hot’ company with annual growth rates
of 15% to 20%. Struc.Assign. Not Available
Nordstrom, one of the largest specialty
retailers in the US, was started as a shoe Keywords
store in 1901 by John Nordstrom and his Pedagogical Objectives
friend Carl Wallin in Seattle. When its shoe Infosys; Growth; Global Delivery Model;
business started to decline, the second • The case discusses Intuit’s growth Competitive.
generation Nordstroms diversified into strategy. The effective manner in which
apparels. Under the third generation it has retained market leadership and
tackled competition despite having
Nordstroms, the company went public. Yum! Brand’s Key Growth
competitors ten times its size
The third generation of Nordstroms Strategies
handed over the reins of the company to • The case can be used to highlight how a
John Whitacre under whose leadership, the small company with little resources can KFC, Pizza Hut and Taco Bell are the
company witnessed a decline in profitability take on big players by being in tune with world-wide leaders in Chicken, Pizza and
due to its decentralised buying structure and its buyers and their requirements. Mexican food restaurants respectively. All
overall customer dissatisfaction. The these are sister brands and belong to Yum!
fourth generation Nordstroms took over Industry IT (Information Technology) Brands Inc. Yum is one of the world’s largest
the company after Whitacre’s resignation. Reference No. GRS0197P quick service restaurant companies and
They restructured the company, brought Year of Pub. 2005 owns two more brands: A&W Restaurants
in new technologies, expanded into new Teaching Note Not Available Inc. and Long John Silver’s. The restaurant
markets and transformed the company Struc.Assign. Not Available company faces competition from brands
into one of the largest family-run businesses like McDonald’s and Subway. To combat
Keywords
in the world. competition the company implemented
Bennett; Strategy; Quickbooks; Software; certain strategies. The case discusses these
Pedagogical Objectives Marketing. innovative strategies and their success.
Yum’s strategies have helped the company
• To understand the traditional business in improving its brands and have placed
model of Nordstrom through three them among the top brands in the food
generations Infosys’ Growth Strategies industry globally.
• To analyse the reasons behind the Infosys Technologies (Infosys), one of the
financial downturn of Nordstrom under fastest growing companies in India is Pedagogical Objectives
John Whitacre growing at an annual rate of over 40%.
Infosys believes it has a strong and resilient • To discuss the growth strategies adopted
• To discuss the expansion strategies business model, which has been successfully by Yum! Brands globally
adopted by the fourth generation adapted to the changing market • To discuss the concept of multibranding
Nordstroms requirements over the years. Infosys has innovated and employed by the
• To discuss the dynamics of a typical added services like independent software restaurant group and its advantages
family-run business. testing and enterprise applications to its
offerings. It has also re-organised itself • To discuss the strategies behind the
Industry Apparel and Accessories retail along verticals or industries compared to success of all the brands in the group.
Reference No. GRS0198 the geography-specific orientation it had Industry Food Industry
Year of Pub. 2006 conformed to earlier. Reference No. GRS0195P
Teaching Note Available
To maintain its scorching pace of growth Year of Pub. 2005
Struc.Assign. Available
Infosys has devised a new business model. Teaching Note Not Available
Keywords It intends to build a super-efficient platform Struc.Assign. Not Available
that could offer the entire range of software Keywords
Apparel Retailer; John Nordstrom; Return services, from consulting to business
Policy; Commission selling; Faconnable; process outsourcing, and layer it over with Yum; KFC; Pizza Hut; Fast Food/Food
Inverted pyramid structure; Customer new initiatives, such as the emphasis on Industry; Taco Bell; China; Tricon;
service; Decentralised purchasing process; business solutions, to ensure that the PepsiCo; Long John Silver’s; A &W
Merchandise mix; Perpetual inventory; company does not fall into a commodity Restaurants; Multibranding strategy; Dual
Multi-channel integration; Fashion trap. “Scalability is the name of the game,” brands.
industry. points out N.R. Narayana Murthy,
chairman and chief mentor.
33
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TCS in 2006: India’s First IT Rotarians in 32,000 Rotary clubs spread Ikea in 2005: Evolution of Global
Services Multinational across 170 countries. Since 1994-1995, the Marketing Strategy
Growth Strategies
34
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ultimate question is how can eBay fend off • What steps should STAR India take to Airlines; Jet Airways; LCC Business Model;
S T R A T E G Y – II
encroachment from rivals, maintain its retain its leadership position? Aviation Infrastructure; GoAir; IndiGO.
focus and build the infrastructure and
management team to continue to evolve. • Can STAR India replicate the success of
its flagship channel, STAR Plus?
Four Seasons Hotels and Resorts
Pedagogical Objectives Industry Satellite Television
Reference No. GRS0189B Four Seasons Hotels and Resorts, the
• The case discusses eBay’s unique business Year of Pub. 2005 world’s leading operator of luxury hotels
model, its CEO Meg Whitman’s Teaching Note Not Available with a history spanning four decades and a
initiatives, its work environment and its Struc.Assign. Not Available portfolio that extended worldwide, was
global expansion strategy. EBay’s managing 63 properties in 29 countries by
management has well-responded quickly Keywords 2004. In addition, 21 properties, to be
to new challenges and crisis. It has operated under the Four Seasons brand
expanded without jeopardising its core STAR TV; Satellite television industry;
Cable operators; TV industry; Cable name were under development in another
business. Its a business model scaled seven countries around the world. The
extremely well operators; Programming; Content
development; Revenue sources; company owed its success to its business
• The case discusses eBay’s growth Advertising revenue; Subscription revenue; strategy based on four decisions, i.e. to focus
strategy and the challenges that lie Soaps; Movies; Carton Channels; on small to medium sized luxury hotels,
ahead. Marketing television channels Zee TV; concentrate on managing rather than
Sony TV. owning the hotels, and most notably the
Industry Online auction business company built on customer service coupled
satellite Television with employee satisfaction. This case
Reference No. GRS0190P narrates in detail the growth of Four
Year of Pub. 2006 Low-Cost Carriers in India: A Seasons over the decades on the four pillar
Teaching Note Not Available Smooth Ride? business strategy it adopted. It also
Struc.Assign. Not Available emphasises on the company’s future plans
The aviation sector in India is booming
for growth and expansion and highlights
Keywords with a growth of 24% in 2004-2005. Much
the probable challenges it might have to
of this growth is attributed to the Open
eBay;online auction; e-marketplace; face.
Sky policy of the Government and the
business model; Meg Whitman; global advent of Low Cost Carriers (LCCs) which
trading platform; product life cycle; skype; led to a drastic drop in air fares. Air Deccan Pedagogical Objectives
Networking; Eachnet site; China; unique was the first LCC in the country followed
selling proposition; pay-per-call • Four Seasons’ expansion strategy in the
by Kingfisher Airlines and Spicejet. This changing geopolitical environment
advertising; Taobao.
spurt in growth of LCCs is affecting the
market shares of the mainstream carriers • Future of Four Seasons if Isadore Sharp,
such as Jet Airways, Sahara Airlines and founder, chairman and CEO quit the
STAR India: Time for Indian. These airlines too have entered the company.
Consolidation? fight by introducing discounted fares and
• “Customer Satisfaction is achieved
customer loyalty programs to retain their
The case is set in 2004 and talks about through employee satisfaction” was the
customers.
STAR India, a constituent unit of STAR motto of Four Seasons; could its success
Group. STAR Group is a Hong Kong based Given the vast population of the country, be related to this factor alone
satellite television unit of Rupert there is great potential for the LCCs and
• Four Seasons was concentrating on small-
Murdoch’s News Corp. Started in 1991, the market is yet to see a number of new
to-mid-sized hotels only; should it
STAR India became a leading television entrants. High fuel costs, lack of adequate
change its focus towards more of large-
network in the country. It brought in many infrastructure and trained personnel have
sized convention hotels
new and innovative programming and been the challenges faced by the LCCs.
marketing concepts in the newly Experts opine that conditions in the India • Managing hotels was reaping high profits
deregulated Indian television market. The are not favourable to the growth of the over owning hotels, but could this impact
business unit has been so successful that LCCs and hence could be a major hindrance Four Seasons’ brand and quality
STAR Group’s primary focus for growth to their success.
• Expanding to more diverse locations
within Asia was shifted from China to India.
across countries threaten its integrity.
The case talks about the cable and satellite Pedagogical Objectives
television industry in India, and the key Industry Upscale and Luxury Hotels
success factors for success in the industry. • To discuss the effect of LCC on airlines
Reference No. GRS0187B
The case maps in detail how STAR went industry
Year of Pub. 2004
on to create and implement its successful • To understand the benefits and Teaching Note Not Available
operations in India. The case also talks limitations of LCC in India. Struc.Assign. Not Available
about the steps being taken by STAR to
increase its revenues and consolidate its Industry Airlines Keywords
leadership position in India. Reference No. GRS0188B
Hotels and Motels; Human Resource
Year of Pub. 2006
Management; Customer Service; Service
Teaching Note Available
Pedagogical Objectives Management; Business Model; Isadore
Struc.Assign. Not Available
Sharp; Long lasting CEO; Growth Strategy;
• Structure and economics of satellite
television industry in developing nations Keywords Hotel Management; Luxury Hotels;
Organisation structure; Business Strategy;
• Designing and programming issues of Business Model; Low-Cost Business Model; Revenue Per Available Room (Rev PAR);
television content Budget Carriers; Domestic Aviation Occupancy rate; AAA Five Diamond
Industry; Indian Airlines; Air India; Air Awards.
• Marketing television content Deccan; Air Sahara; Spicejet; Kingfisher
35
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Macau: The Next Las Vegas? Pedagogical Objectives Retail Operations; Growth Strategy;
Expansion Strategy; Product Design and
• To understand about the online banking
Growth Strategies
36
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the creation of unparalleled Bose the next several decades, it seemed that at • To discuss whether it is beneficial for
S T R A T E G Y – II
Corporation in 1964. The privately-held least two Asian “emerging-market” other countries to invest in BRIC.
company went on to become a sound countries, China and India, would move
Industry Not Applicable
transnational, with an annual sales turnover into the front rank of the world’s
Reference No. GRS0181B
in excess of $1.7 billion in 2005-2006 economies and would increasingly exercise
Year of Pub. 2006
(5.9% revenue growth over last F.Y.) and a influence as global powers. Analysts
Teaching Note Not Available
reputation of building the world’s best audio thought that a change of such magnitude
Struc.Assign. Not Available
systems and a paragon so difficult to in the global power balance was likely to
emulate by others. According to industry challenge the positions of even the most Keywords
experts, it was this zeal, passion and powerful Western countries or at least, the
innovation that had made Bose existing G-7 countries would have to adjust BRIC; Brazil; Russia; India; China;
Corporation a highly valued company with their policies to accommodate the interests Goldman; Sachs; economic size; economic
deep roots in principles, philosophy, quality of these rising powers. growth; international trade; global demand;
and R&D, resulting in Bose being featured currency; sustainability; growth; dollar;
on the 2006 Forbes Billionaires list with The rapid expansion of the BRIC international relations.
$1.2 billion. The company anticipated economies was creating a powerful paradox
continued growth for the foreseeable future in which both opportunities and threats
are emerging. Paramount to the success of
and 100% of profits were reinvested in the
CEOs worldwide was their ability to make Gazprom: The Leading Energy
company’s growth and development. Bose Giant Going Global
loudspeakers were the best selling in the this clash of interests work to their
United States and throughout the world. advantage. Gazprom was the largest Russian company
The closely held company recently Were Asia-Pacific CEOs willing to conduct and biggest natural gas extractor with
reached another milestone. Bose was and build their businesses in these market capitalisation of US$300 billion.
ranked in 2006 as the most trusted economies, despite the growing threat of The company restructured its business
consumer brand by far among 22 well- competition? And if so, which country’s processes to implement vertical
known tech companies, ahead of market opportunities did they perceive as integration. Gazprom, headquartered at
heavyweights like Apple, Microsoft, Dell, having the most potential, as well as the Moscow, employed 396,571 people and
Intel, and Sony, according to a survey of most likely competitive threat? was the world’s largest gas company with a
4,732 US households by Forrester Despite the cautious language of the GS 25% of the global gas reserves. In May,
Research. The company gained nine points report, its authors were reasonably 2006, Gazprom had market capitalisation
of market share, to a total of more than confident that their long-term economic of US$300 billion and earned revenues of
20%, and is now second in market share in projections are sound. Although US$50,824.4 million in 2005. Gazprom’s
home audio to heavyweight Sony in US conservative growth rates were used, GS assets included gas reserves, world’s longest
market. projections did rely on stable growth and pipeline network with 150,000 km,
development. GS agreed that disruptions banking, insurance, media, construction
But Bose was not without its criticism. and agriculture. The core activities of the
Critics said that the company’s products in growth would alter the projections
significantly, but noted that the projections company were gas exploration,
were overpriced and gimmicky – and that production, transportation, processing and
Bose overspent on marketing to the were nonetheless useful in imagining the
economic potential that the BRIC marketing. It supplied gas to every region
detriment of sound quality. Bose of Russia and exported to more than 25
Corporation said the criticism was economies possess. Discussion amongst
analysts and economists largely centered European countries. The company relied
unfounded. The company had consistently heavily on Western exports and
claimed ‘Better Sound Through Research’. around the plausibility of the projections
given the difficulty in imagining stable, partnerships.
So was its reputation more than quality
that had given Bose consistent success? consistent growth in the BRIC economies. In 2005, Gazprom restructured its gas
They wondered whether sufficient business to increase profitability, efficiency
attention had been paid to the political
Pedagogical Objective factors and substantially large population
and scalability of operations. In 2005-
2006, Gazprom was looking forward for
• To understand about the growth of Bose under poverty that could affect the futures the Central and Eastern European
Corporation. of these four large nations. For many countries along with the Asia and America
people it seemed that the time was not for the gas markets. The company planned
Industry Audio-system right to invest funds in the BRIC, but GS’s
Reference No. GRS0182B
for global expansion to become the world’s
report did clearly suggest that shifting a biggest gas producer. It focused on the global
Year of Pub. 2006 share of investment portfolio to the four
Teaching Note Not Available
market especially the European, Asian and
coming giants might not be a bad idea. American markets. New approaches were
Struc.Assign. Not Available Although the title of the report had words devised for the expansion. Gazprom faced
Keywords “dreaming with BRICs”, the dream could challenges of investments and risks with
turn into reality and in consequence the its expansion plans. Would Gazprom be
Bose, Amar Bose; direct/reflecting radical changes the future could unfold. able to succeed with its global plans?
speakers; sound; Acoustimes; leadership; More important still, it suggested that
entreperenuership; MIT; research; western politicians who thought that the
marketing; approach; ethics. current world order would last through this Pedagogical Objective
century needed to do some serious • To understand Gazprom’s strategy to
rethinking. Was it too early to start achieve excellence in its business.
rethinking?
BRIC: Building Blocks of the New Industry Oil and Gas
World? Reference No. GRS0180B
Pedagogical Objectives
Year of Pub. 2006
Goldman Sachs’ (GS) forecasts of global
power shifts and long-term economic • To understand about the BRIC Teaching Note Not Available
projections were treated with caution, economies Struc.Assign. Not Available
given the number of variables in action. In
37
www.ibscdc.org
Keywords market need. And to compete and retain McDonald’s Instigating Price War
Oil; Gas; Gazprom; Russia; Globalization;
its position in this changing market, in in the US: Winning strategy?
Growth Strategies
38
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• To discuss the retail expansion strategies Deutsche Bank – Managing Keywords
Growth
S T R A T E G Y – II
of VF Corp.
Growth Strategy; Labour market;
Industry Apparel In 2005, Deutsche Bank AG (Deutsche), Germany; Social responsibility;
Reference No. GRS0175 one of the leading financial services Globalisation; Restructuring organisations.
Year of Pub. 2006 providers in the world with •840 billion in
Teaching Note Not Available assets; employed more than 65,400
Struc.Assign. Not Available people, with operations spread over in 74 Wikipedia: Will Pernod Ricard
Keywords countries. The group reported net profits Say Cheers With Champagne?
of •2.5 billion ($3.2billion; £1.7billion) in
Retailing; Expansion strategies; Lee; 2004, 87% higher on y-o-y basis. The highly fragmented alcoholic beverage
Wrangler; Stagnation in US apparel industry comprised mainly of three
market; US retail market; Retail In spite of the huge profits, Deutsche’s segments: Beer, Spirits and Wine. Amongst
acquisitions; Changes in customer management team had triggered off a the grand array of wines, ‘Champagne’,
preferences; Changes in the US retail controversy by announcing job cuts at a the most famous sparkling wine was
market; Speciality stores; Restructuring; time when Germany’s unemployment rate supported by strong international demand
Mackey McDonald. was at its highest since the 1930s. The and registered a growth rate of 2%-3% per
bank’s management had been accused of year.
wrong doing in the Vodafone takeover bid
by paying high bonuses. The restructuring The France-based Pernod Ricard S.A. was
Kikkoman, The World’s Leading drive undertaken by the bank involving the second-largest player in the overall
Soy Sauce Maker: Globalisation employee lay-offs was also highly wine & spirits segment. Though it was a
and Localisation Strategies controversial. With Deutsche planning to major player in other segments of alcoholic
cut a total of 6,400 jobs from its domestic beverages, the company lagged far behind
Kikkoman, the world’s largest soy sauce and global workforce, German politicians the market leader LVMH in the champagne
manufacturer was started in Japan as a accused the company of lacking social market. It ranked No.4 in the global
cottage industry in the 17th century. Forced responsibility. champagne market. Following the stagnant
by a decline in the Japanese consumption domestic market and growing international
of soy sauce, the company expanded into The job cuts were aimed at bringing demand, Pernod Ricard had huge ambitions
other countries, developing new markets Deutsche’s cost base in-line with its to make it big in worldwide champagne
and coming out with new products by international competitors. The current market. Besides expanding into the growing
employing new technologies. By the late weakness in the German economy and high markets like UK and US, the company
20th century, Kikkoman had its operations labour costs could have a negative impact aimed to explore the emerging markets
across Europe, Asia and in the US. The on Deutsche’s profitability. With the like Russia and China. But analysts predicted
guiding principle behind Kikkoman’s global banking industry consolidating globally, that Pernod Ricard would have to strive
growth has been its ability to cater to would Deutsche be able to sustain its growth? hard to meet its global ambitions in
consumer tastes in each market it entered champagne business as the brand portfolio
The case describes the growth strategies
and educating them about the versatility of the company still lacked major
followed by Deutsche. It highlights the
of its products. champagne brands. Moreover, Pernod
dilemma faced by the bank to operate
efficiently in the competitive global Ricard missed an opportunity of acquiring
Pedagogical Objectives banking and financial services industry a big champagne house “Taittinger”.
• To highlight the strategies that enabled while balancing the labour cost in a highly The case traces the journey of Pernod
Kikkoman to grow from a cottage protected German economy. Ricard and highlights the organic and
industry to a global enterprise inorganic growth strategies of the
Pedagogical Objectives company. The case explores the
• To analyse the localisation strategies of
opportunities and challenges in store for
Kikkoman for its global products • To understand the German economical
the company and aims at ensuing a debate
environment in which Deutsche bank
• To understand the importance of that whether Pernod Ricard will emerge as
operated
innovative marketing ideas, innovative the prominent player in the global
products and menu proposals according • To discuss the growth strategies followed champagne market.
to local tastes, for a global food retailer. by the Deutsche bank
Pedagogical Objectives
Industry Sauces and Condiments • To analyse the dilemma faced by
Reference No. GRS0174 Deutsche to operate efficiently in a • To highlight the entry strategies for new
Year of Pub. 2006 competitive environment markets and market regaining strategies
Teaching Note Not Available in highly fragmented markets
• To understand the structure of banking
Struc.Assign. Not Available
and financial services industry (globally), • To discuss the competitive strategies of
Keywords the consolidation wave and its impact Pernod Ricard
on Deutsche bank
Customer Insights; Shoyu; Value added • To exemplify the inorganic growth
products; Production plants; • To debate the goal duality of social strategy in business development
Diversification; Product innovations; responsibility vs profitability.
Brand awarness; Promotional strategy; Industry Alcohol Beverage Industry
Industry Banking and Financial Reference No. GRS0172A
Globalisation; Localisation; Expansion
Services Year of Pub. 2006
strategies of a global food retailer.
Reference No. GRS0173A Teaching Note Not Available
Year of Pub. 2006 Struc.Assign. Not Available
Teaching Note Not Available
Struc.Assign. Not Available Keywords
Pernod Ricard; Business Strategy; Strategic
Management; Mergers and Acquisitions;
39
www.ibscdc.org
Organic Growth; Inorganic Growth; Market Samsonite In 2006 • To discuss the growth strategies followed
Entry Strategies; Market Development by the market leader Samsonite
Growth Strategies
40
www.ibscdc.org
operation and initial success in China, competition. They competed for the same • To discuss the growth strategies followed
S T R A T E G Y – II
Starbucks had moved China up to the No. market. At the same time, they shared a by Yahoo in a competitive market
1 priority and proclaimed it to be the second common goal of luring customers away
largest future market after the US. from the burger joints. One analyst believed • To analyse the unique model of Yahoo
Starbucks was all prepared, but according Quiznos offered a better product than and its pros and cons
to industry analysts, the task of Subway but might have limited its growth • To debate on the success of such a model
popularising coffee, primarily a western potential by positioning itself between fast for Yahoo and whether its a competitive
concept, in a traditionally tea-drinking food and fast casual. Quiznos’ aggressive advantage for Yahoo.
country, was gigantic and will not be easy. movements signaled intentions similar to
How Starbucks continues to bolster its Subway’s early ambitions. Could Quiznos Industry Information Technology
success and achieve its aspiration remains up root Subway from the number one Reference No. GRS0167A
to be seen. The case is targeted at position in the sandwich franchise market? Year of Pub. 2006
management students and can be taken up Teaching Note Not Available
Struc.Assign. Not Available
in their Strategic and General Management Pedagogical Objectives
curriculum. On the background of the Keywords
information provided in the case, the • To discuss the growth and expansion
students can discuss and chart out further strategies of Quiznos, a relatively small Innovation; Peripheral Vision;
strategies of Starbucks in China and the company and how it posed threat to the Diversification in related Industries;
roadmap of its success. market leader Challenging the Leader; Growth Strategies
• To discuss various advertisement of an Innovator; Competitive Advantage;
Pedagogical Objectives campaigns of Quiznos Search Engine Industry.
• To trace the journey of Starbucks from • To analyse the unique business model of
a modest start to its becoming the market Quiznos.
leader; worldwide and in China Albertsons Incorporated’s
Industry Fast Food Industry Dilemma
• To analyse the Chinese beverage market Reference No. GRS0168A
on the basis of Michael Porter’s five Year of Pub. 2006
Albertsons Incorporated, America’s second-
force model Teaching Note Not Available
largest supermarket chain with more than
Struc.Assign. Not Available
2,500 stores and revenue of around $40
• To discuss the growth and competitive billion enjoyed a presence across 37 states
strategies of Starbucks in China and Keywords of the US. It operated under various brand
debate on its future potential keeping in names including Albertson’s, Acme
view the increasingly fierce competition. Quiznos Subs; Subway; Fast Food
Markets, Bristol Farms, Jewel, and Shaw’s.
Restaurant; Fast Casual; Sandwich Chain;
Industry Specialty retailing/Beverages Submarine Sandwich (Subs); Franchise; Albertsons faced competition from Kroger,
Reference No. GRS0169A Marketing; Advertising; Promotion; Low Safeway and Wal-Mart. The supercentres
Year of Pub. 2006 Carb sandwich; Business Model; industry of Wal-Mart, which offered products at
Teaching Note Not Available leader; Product Differentiation. lower prices, affected the net income of
Struc.Assign. Not Available Albertsons, which fell from US$865 million
Keywords in 2003 to US$556 million in 2004. In
Yahoo in 2006 spite of the revival efforts undertaken by
Starbucks; Howard Schultz; Seattle; Japan; Albertsons, the net income further declined
China; specialty coffee; instant coffee; Yahoo Inc. recorded revenues of $5.2 to US$474 million in 2005. CEO Larry
coffee culture; third place concept; barista; billion in 2005. Started as a web directory Johnston eventually decided to sell the
differentiation; market expansion; spoke in 1994, during the dotcom boom, Yahoo chain but faced dilemma whether to sell
and hub strategy; word-of-mouth rapidly established itself as a leading web the whole or a part of it.
promotions; market entry strategy; joint portal. But with the dotcom bust in 2000,
venture; competitive scenario; market The case traces the origin, growth and
Yahoo’s revenues saw a steep downturn.
structure; market development; Starbucks various acquisitions undertaken by
The company reported a loss of $9.2
experience; Frappuccino; lifestyle Albertsons, the second largest supermarket
million in 2001. The leadership change in
marketing; market leader strategies. chain in US. The case focuses on the
2001 was a rescue effort. Under Terry Semel,
revival efforts carried out by Albertsons to
Yahoo staged a comeback by undertaking
sustain competition from Wal-Mart
various strategic initiatives. By 2006,
supercentres and ends with the dilemma
Quiznos Sub in 2006 Yahoo emerged as an integrated online
faced by Larry.
media company. But some analysts opined
Quiznos was a fast food sandwich chain that Yahoo’s diversification strategy made
specialized in toasted submarine sandwiches it lose focus and rendered it without any Pedagogical Objectives
in North America. Though still a fraction competitive advantage in any particular • To discuss growth and competitive
of the size of Subway, it had over 4400 area. strategies in retail industry
outlets in the US alone, over 300 in Canada,
and 100 other outlets scattered in 13 other The case describes the growth strategies • To analyse the competitive scenario
countries. The company was aggressive at followed by Yahoo. It highlights the created by the presence of new store
expansion; it opened a new store every 16 competitive advantage Yahoo acquired in formats.
hours. The Subway restaurant chain was various industries and the case ends with a
debate whether Yahoo’s jack of all trades Industry Retail chains
the world’s largest submarine sandwich
strategy make it master of none? Reference No. GRS0166A
franchise chain and had held number one
Year of Pub. 2006
position since 2001. By February 2006,
Subway had opened more than 25,000 Pedagogical Objectives Teaching Note Not Available
Struc.Assign. Not Available
restaurants in 83 countries. Subway and • To understand the structure of search
Quiznos were locked in an unusual engine industry
41
www.ibscdc.org
Keywords research-intensive healthcare groups and Subway had opened more than 25000
its core businesses were pharmaceuticals restaurants in 83 countries. Subway had
Albertsons Inc.; Supermarket industry; Joe
Growth Strategies
and diagnostics. Roche employed about franchises throughout the US and in several
Albertson; Larry Johnston; Kroger; 65,000 people in 150 countries. Roche countries, in locations such as freestanding
Safeway; Wal-Mart; Supercentres; Acme entered China in 1926 and had established buildings, airports, convenience stores and
Markets; Bristol Farms; Jewel; Kohlberg its subsidiary in Shanghai. But for almost sports facilities. It employed about 150,000
Kravis Roberts & Co.; Consumer spending; six decades, it did not have significant people worldwide.
Consumer purchase behaviour; automation; operations and presence and returned to
distribution; customer relation; acquisition; the Chinese market in 1988. Roche had The fast food chain was criticized for its
competitive strategy; price war; market largely made its presence felt in China franchising policies. It was claimed that
share; buyout; bidders; management through joint ventures and it is only Subway was involved in many legal disputes
dilemma recently that it has opened a research with franchisees, usually for its over
centre in China. In 2004, Roche opened aggressive expansion (one Subway was very
its new R&D center in Shanghai, China, close to other Subway, which ended in
competing with each other) and high
The Chocolate Trail which was part of Roche’s global R&D
operations and which worked in royalties. The DAs were blamed as it was
Sweet snacks dominated the global snack collaboration with its other global centers. in their best interest to saturate markets
market with sales exceeding US$112 billion This is indicative of the growing with Subway outlets in a region. Subway
annually. Chocolate was the largest sector importance of China for Roche and the was sued by some of its franchise owners.
in terms of value within the global snack pharmaceutical industry of the world. Subway included arbitration clause in its
market. The industry was faced with a franchise agreements. As 2006 got under
sluggish economy, market consolidation, The case traces the entry, re-entry, growth way, the Subway management wondered
rising costs and intense competition. Even and ambitions of Roche in China. The case what direction the company should take.
though the growth of global confectionery analyses the pharmaceutical industry in
China and attempts at identifying the The case discusses the growth and
was tortuous, but still there was an
potential and challenges the country expansion of a restaurant chain which
increasing demand for premium chocolates,
presents for Roche. The long term aim of became number one in the industry in a
healthier confections, exotic flavours and
Roche in China is to discover and optimize short span of time. The case also discusses
colours. The developing markets had
new molecules which would address the different ad campaigns of the company to
ample growth opportunities through
unmet medical needs of China and the gain consumer attention. The case
effective market segmentation.
world. How Roche capitalised on the highlights unique business model adopted
Like coffee, chocolate was going complex growing pharmaceutical industry of China by the company and its product
and upscale. The latest rage for chocolate and realised its ambitions remained to be differentiation strategies. The industry
in the US was to go to a ‘Chocolate Bar’ seen. leader is now criticised for its over
instead of buying a ‘chocolate bar’. The aggressive expansion policies.
history of chocolate houses was being
Pedagogical Objectives
repeated. Would the chocolate lounges be Pedagogical Objectives
able to give a Starbucks-like experience • To analyse the pharmaceutical industry
and increase the consumption of in China and its growing relevance in • To discuss the growth and expansion
chocolates? the global pharmaceutical industry strategy of the market leader
42
www.ibscdc.org
Jimmy Wales (founder of Wikipedia) along After taking over SIA in 1984 as CEO, were rising which hurt exports. An outdated
S T R A T E G Y – II
with his friend Larry Sanger initially started Cheong stretched the airline worldwide. family-controlled corporate structure was
Nupedia, an encyclopedia which was Cheong left in mid-2003 after running SIA also a concern for Samsung. Would Samsung
reviewed by experts. Later on with the for 19 years. be able to sustain its growth when it was
adoption of software Wiki, Nupedia lost facing competition from local as well as
importance and Wikipedia prospered. In 2006, SIA faced new competition not global players?
Though within a short period, Wikipedia only from low cost airlines, but also from
gained enough prosperity it often faced players like Emirates Airlines which The case discusses how a market follower
criticisms on the reliability of the data on operated out of a hub in Dubai. The carrier company restructured and turned itself into
its website. and its base had modeled themselves on a leading global electronics manufacturer
SIA and Singapore’s Changi Airport. in the span of 10 years. The case highlights
The case discusses how both Jimmy Wales OneWorld, SkyTeam and Star Alliance how the investment in Research and
and Larry Sanger started Nupedia, why they (SIA’s partner) were three predominant Development, even in times of financial
shifted to Wikipedia and the loss of global alliances. The open-skies restraints crisis, helped the company achieve growth
compatible corporate governance between forced SIA to join the Star Alliance. SIA and become market technology leader. The
them, which forced Larry to leave had become the sixth-largest airline in the case details out Yun’s style of leadership
Wikipedia and start his own encyclopedia, world in terms of international passenger- and the strategies he implemented to
Digital Universe. kilometers. Meanwhile, SIA faced various transform the company. The company’s
concerns. It was fraught with low yield emphasis on Research and Development,
Pedagogical Objectives among all major international airlines due marketing, brand equity, human resource,
its hub and spoke model. and inventory management helped
• To study the concept of open source company to gain market share. As the
software and its benefits Pedagogical Objectives company’s main source of income was
• To discuss the success of Wikipedia through exports, managing the fluctuation
• To illustrate brand management, in the Won-Dollar exchange rates also
• To discuss the corporate governance and customer service management, growth became a matter of concern.
ethical issues in the Wikipedia strategies
• To discuss the growth strategies followed • To discuss the growth strategies of an Pedagogical Objectives
by Wikipedia. airline • To discuss the growth strategies followed
Industry Open content online • To illustrate the leadership qualities of a by Samsung
encyclopedia CEO and crisis management. • To discuss the leadership at Samsung and
Reference No. GRS0162A its impact on the corporate strategy
Industry Airline Industry
Year of Pub. 2006
Reference No. GRS0161A
Teaching Note Not Available • To debate the sustenance of its growth
Year of Pub. 2006
Struc.Assign. Not Available in future.
Teaching Note Not Available
Keywords Struc.Assign. Not Available Industry Consumer Electronics Industry
Reference No. GRS0160A
Wikipedia; Open content online Keywords Year of Pub. 2006
encyclopedia; Nupedia; Wiki; Product Singapore International Airlines; Teaching Note Not Available
cannibalisation; Leadership issues; Ethics; Leadership; Strategy; Managing Global Struc.Assign. Not Available
Corporate governance; Britannica; Airline; History of SIA; Quality Customer
Reliability of information. Keywords
Service; SARS; Fuel Prices; Cost;
Innovation; youngest fleet; Chew Choong Samsung Electronics; Electronics Industry;
Seng; Cheong Choong Kong; Star Alliance; Consumer Electronics; South Korea;
Singapore International Airlines Hub and spoke model. Chaebol (Conglomerate); Dynamic
in 2006 Random Access Memory(DRAM); Static
Random Access Memory (SRAM); flash
Singapore Airlines Limited (SIA), one of memory chips; flat panel LCD displays;
the most successful airlines in the world Samsung Electronics in 2005
cell-phones; LCD monitors; NAND flash
was a favourite among business travelers In 2004, Samsung Electronics (Samsung), memory; nano; Technology; Yun Jong
on long flights. Chew Choong Seng, the the flagship company of Samsung Group, Yong (Yun); Organisation Restructuring;
CEO, faced the challenge of ensuring that was the world’s largest memory chip maker Transformation; Leadership; Research and
the travellers kept flying SIA even as and Asia’s biggest electronics manufacturer. Development; Product Innovation;
competition intensified. While full-service Samsung’s revenues accounted for 6.6% of Inventory management; Core
airlines were facing a global decline in 2003, Korea’s GDP. It had strategic alliances with Competence; Business Strategy; Human
with the US and the European Air carriers various global companies such as Sony, IBM, Resource Management; Marketing;
going bankrupt and slashing staff, flights Microsoft, Hewlett Packard and Dell. In Branding; Corporate Governance; Niche
and passenger amenities, SIA was flying 1997, the company was facing problems market; Strategic Alliance; Globalisation.
high. In 2004, SIA began its first ever non- due to Asian Financial Crisis, and at the
stop air services between Singapore and same time, demand and prices of memory
the United States. The major drivers of
the SIA brand were innovation, genuine
chips were falling. Yun, the CEO, took steps Westside in 2004
and transformed the image of the company
quality and excellent customer service. SIA from manufacturer of me-too products to In 2004, the Indian retail market was at
maintained the youngest fleet of aircraft stylish, premium, latest technology products INR 8,000 billion, with the organised
and replaced older aircraft with newer and helped company to gain market share sector accounting for a measly 2%. The
better models. in each product segments. In 2005, the case examines the foray of Tatas, one of
Cheong Choong Kong had led SIA through management of the company was worried the largest business houses in India, into
the Asian economic crisis in 1998, when as dollar was depreciating; growth of cell organised retailing with Westside – a chain
most travelers and airlines were grounded. phone markets were shrinking and oil prices of department stores.
43
www.ibscdc.org
The case highlights the key decision Pedagogical Objectives Keywords
variables and the winning elements in
• To discuss and bring out the importance The Otto Group; Multi-channel sales
Growth Strategies
44
www.ibscdc.org
AT&T and BellSouth Merger: Disney in the Digital Age: Dell in India: The Growth
Reshaping the US Telecom Profiting from New Media Strategies
S T R A T E G Y – II
Industry? Platforms
In 2001, Dell, the world’s largest PC
This case captures the evolution of the US Disney-ABC, a part of the Media Networks manufacturer, set up its first fully-owned
telecom industry and the competitive of Walt Disney Company had established subsidiary in India. In 2003, Dell India
scenario of the industry after the itself well in the traditional broadcast TV. witnessed sharp decline in its business as it
implementation of the But the broadcast media was going through had to encounter the anti-outsourcing
Telecommunications Act of 1996. Besides, a frenetic phase with the emergence of backlash in the US. However, it bounced
the rapid technological changes in new media platforms, such as Digital Video back within a short span of time and has
telecommunications sector coupled with Recorders (DVRs or PVRs), Video On emerged as the biggest contributor to Dell’s
digitisation and integration of Demand (VOD), and portable viewing strategic vision of global dominance in the
telecommunication services with technologies like Video iPod, Mobile TVs PC market. By the end of 2005, Dell India
computers have created intense pressure and the Internet. The potential of earning became Dell’s biggest base outside the US
on traditional pricing structure, especially incremental revenues from subscriptions, and it is believed to play a stellar role to
in voice telephony. This has led to a licence fee and advertising had attracted help Dell achieve its goal of becoming a
consolidation in the US telecom industry, major media companies to adopt these $80 billion company by 2010.
the biggest example being the proposed technologies. Disney-ABC, in October
merger between AT&T and BellSouth. 2005 entered into an agreement with Apple Pedagogical Objectives
However, analysts observe that the prime Computer to offer its content through
challenge for the US telecom industry would Apple’s iTunes Music store. But it • To describe the growth strategies of Dell
be the question of survival, as consumers encountered opposition from its affiliate India amidst challenges like anti-
might be unwilling to pay a premium for stations who feared the threat of outsourcing backlash in the US and
the innovative services which the telecom cannibalisation. Added to this, research unavailability of trained personnel to
companies are introducing in rapid showed that customers preferred the perform complex functions
succession. traditional broadcast model to video iPod. • To understand how Dell India
Analysts say that the new media platforms transformed itself from an outsourcing
Pedagogical Objectives are only additive to the traditional TV destination to one of the strategically
viewing. It remains to be seen whether important operations for Dell
• To understand the evolution of the US Disney-ABC would manage to add more
telecom industry, the rise of AT&T as a viewers to its base with the use of the • To focus on how Dell is trying to gain
monopoly and the effect of telecom emerging media platforms. prominence in the lucrative Indian PC
deregulation on the industry market against challenges like the
Pedagogical Objectives presence of a big unorganised sector, low
• To discuss the concept of digital
internet penetration and intense price
convergence and how it is transforming • To understand the changed dynamics of competition from other major global
the once segmented US telecom market the television and broadcasting industry vendors like Lenovo and HP.
into a converged market and its resultant effect on the media
companies Industry Personal Computers
• To discuss the role of the Federal
Reference No. GRS0153
Communications Commission in • To learn about new media platforms such Year of Pub. 2006
allowing small telecom companies in the as DVR, VOD, iPod, Mobile TVs and Teaching Note Not Available
US to consolidate and form a few big the Internet, and their advantages and Struc.Assign. Not Available
companies to offer similar products disadvantages
through different media Keywords
• To analyse whether Disney’s adoption
• To analyse the financial viability of the of the new media technologies would be The global personal computer (PC)
AT&T and BellSouth merger. profitable manufacturing industry; Global PC market;
Dell India; Pertech Computers Limited;
Industry Local Exchange Carriers
• To understand the limits of competition Dell’s initial operational constraints in
Reference No. GRS0155
and unearth various issues Disney-ABC India; Dell’s captive centres across the
Year of Pub. 2006
has to resolve while adopting new media. globe; Dell’s Global Development Centres;
Teaching Note Not Available
Dell’s Direct Model for India; Growth of
Struc.Assign. Not Available Industry Television and Broadcasting
the Indian PC market; Dell’s competitors
Reference No. GRS0154
Keywords Year of Pub. 2006
in India.
45
www.ibscdc.org
a dynamic and experienced management Industry Direct Broadcast Services world’s third-largest retailer, to expand into
team, and an ever-growing mining business. Providers foreign markets for sustaining its future
Growth Strategies
To continue its growth, the group was Reference No. GRS0151 growth in the global retail industry. The
planning to establish its operations in other Year of Pub. 2006 company initiated its international
European countries as well as in Asia Teaching Note Not Available expansion strategy by venturing into
through acquisitions. Struc.Assign. Not Available Central Europe, Asia and the US. Despite
having sufficient scope to expand globally,
Keywords
Pedagogical Objectives Tesco faced challenges like varied customer
British Sky Broadcasting Group Plc.; High demands, different cultures and declining
• To understand the evolution of the Density Television; Growth strategies of sales growth in different markets.
domestic Russian steel industry BSkyB; Differentiating strategies of
• To discuss the strategies adopted by BSkyB; Convergence in communications Pedagogical Objectives
EvrazHolding to establish itself as the industry; UK television broadcasters; James
Murdoch’s strategies; UK television • To understand both the organic as well
dominant steel producer in Russia as the inorganic growth strategies of
broadcasters; Sky services; Easynet
• To discuss the future growth strategies acquisition; Triple play service providers. Tesco as a part of its International
of EvrazHolding to be a leading producer expansion strategy
of steel globally by establishing itself in • To discuss the market entry strategies
other European countries as well as in
Asia through acquisitions Starbucks in China: Expansion adopted by Tesco to enter the US retail
Strategies market· To address Tesco’s challenges
• To debate whether EvrazHolding would in its international expansion.
be successful in its future growth In the 1990s, Starbucks Corporation, the
Industry Grocery Retail
strategies in face of increasing world’s No.1 specialty coffee retailer from
Reference No. GRS0149
competition. the US, started expanding into
Year of Pub. 2006
international markets. After its success in
Industry Steel Teaching Note Available
Japan in the mid-1990s, it started focusing
Reference No. GRS0152 Struc.Assign. Not Available
on China in the late 1990s. In 2005, after
Year of Pub. 2006 its initial expansion in the major cities of Keywords
Teaching Note Not Available China, Starbucks embarked on an
Struc.Assign. Not Available expansion spree into China’s second-tier Retailing industry in UK; Global top
markets. However, analysts opine that in retailers; Retailing in Asia; Retailing
Keywords scenario in Europe; Carrefour; China’s
this initiative, Starbucks might face
Russian steel industry; EvrazHolding; challenges like cultural differences, high retailing industry; Localisation strategies;
Alexander Abramov; Evroazmetall; EAM real estate prices, unavailability of land and European retailers in the US; Expansion
Group; Vertical integration; Inorganic suitable employees. in Asia; Market entry in the US retail
growth strategy; Acquisitions and mergers; market; Wal-Mart; Metro.
Economies of scale; Operational efficiency Pedagogical Objectives
at EvrazHolding.
• To understand the market entry strategies Hynix’s Cost Efficiencies: The
of Starbucks in the Asian market and
how it became successful in Japan
South Korean Chipmaker’s
BSkyB: James Murdoch’s Growth Strategies
“Differentiating” Growth • To discuss how Starbucks rapidly
Hynix Semiconductor Inc. was established
Strategies expanded in the major cities of China
in 1983 as Hyundai Electronics Industries
and which factors might restrict its plans
British Sky Broadcasting Group plc. to capture China’s second-tier markets. Co. Ltd. Between 1997 and 2001, Hynix
(BSkyB), the largest Pay-TV service was on the brink of bankruptcy due to a
provider in the UK, has been at the Industry Speciality eateries downturn in the global chip market that
forefront of introducing new technologies Reference No. GRS0150 left a huge debt burden on the company.
in UK’s Pay-TV market. It has eight Year of Pub. 2006 However, it managed to come out of the
million subscribers and plans to introduce Teaching Note Not Available crisis and transformed itself as the world’s
the High Density Television Service in Struc.Assign. Not Available second-largest and the most efficient
2006. In 2003, James Murdoch, the son of manufacturer of memory chips in the
Keywords
Rupert Murdoch of News Corp., was world.
appointed as the CEO of BskyB. Despite Coffee retailing in the US; Coffee business
criticisms against this appointment, the in Europe; Growth strategies of Starbucks; Pedagogical Objectives
company has grown rapidly under his China’s coffee market; Joint ventures
leadership and is expected to attain its goal among coffee retailers; Competitive • To understand the growth of Hynix from
of having 10 million customers by 2010. strategies; McDonald’s; KFC; Brand the early 1980s and its decline in the
building by coffee retailing chains; Shanghai late 1990s
Pedagogical Objectives President Coffee Co.; Starbucks in Ireland; • To discuss the strategies adopted by
Maxim’s caterers. Hynix to recover from the brink of
• To describe the growth of BSkyB amidst bankruptcy and become the second-
challenges posed by convergence of largest memory chip manufacturer in the
technologies
Tesco, UK’s Largest Supermarket world by efficiently managing its costs.
• To discuss how BskyB is trying to Group: International Expansion Industry Memory Chips & Modules
establish itself as the leader in the British Strategies Reference No. GRS0148
Broadcasting market by differentiating Year of Pub. 2006
itself through technological innovations In the mid-1990s, saturation in its domestic
Teaching Note Available
and value-added services to its customers. market forced Tesco, UK’s largest and
Struc.Assign. Not Available
46
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Keywords competition and its absence in the ‘wealthy’ Teaching Note Not Available
S T R A T E G Y – II
southeast England, the bank faced the Struc.Assign. Not Available
World’s top memory chipmakers; South problem of ‘too many branches, too few
Korean chipmakers; Cost efficiency in chip customers’. It was forced to sell off its Keywords
manufacturing; DRAM (Dynamic Random Irish banks and focus on its core UK
Access Memory) chip manufacturers; Chinese telecom market; China telecom;
business. To revamp its declining sales, the Competition; China mobile; Expansion
Hyundai Electronics Industries Co Ltd; bank launched various cross-selling
Micron; Samsung; LG Semicon; Corporate strategies; Localisation; Cisco; Motorola;
initiatives, changed its work culture and Research and development innovation;
restructuring in South Korea; redesigned its offices to offer its customers
STMicroelectronics; NAND (Not And) Acquisitions and partnerships; Alcatel;
a club-like ambience. Market share; Wireless; Challenges for
flash chip manufacturer; ProMOS
Technologies Inc; Deutsche Bank AG; ZTE.
Ekahau RTLS System; Downturn in global Pedagogical Objectives
chip market. • To discuss the various cross-selling
strategies adopted by National Australia AIG in China: The Expansion
Bank Strategies
Kodak in Asia. • To discuss whether it can achieve its Although AIG’s Chinese connection could
Eastman Kodak Company, established in targeted growth in the highly be traced back to the property/casualty
1881, is the world’s largest manufacturer competitive European banking industry. insurer American Asiatic Underwriters
of photography and optical equipments (established at Shanghai in 1919), it was in
Industry Banking and Financial
apart from being the No.1 in photographic 1992, that AIG officially entered China by
Services
films. However, since the 1990s, the setting up a subsidiary there. Over the years,
Reference No. GRS0146
company has been witnessing rapid AIG was able to establish itself as a leading
Year of Pub. 2006
transition from film-based photography to insurance company in China. However, the
Teaching Note Not Available
digital imaging. As Asia has traditionally company faced several challenges in the
Struc.Assign. Not Available
been considered a big market for traditional future and critics were sceptical about the
products like films and film cameras, Kodak Keywords company’s continued success in China.
expected to continue its traditional business
NAB (National Australia Bank); Cross Pedagogical Objectives
profitably in this region. However, Kodak’s
selling initiatives; Expansion through
calculations went berserk when the Asian
acquisitions; European banking industry; • To highlight the expansion strategies
market embraced digital technology much
Restructuring strategies; Organisation work being followed by AIG in China
faster than its Western counterparts.
culture; Streamlining of operations;
Australian banking industry; Yorkshire and • To discuss whether the company would
Pedagogical Objectives Clydesdale Bank; Autonomy and decision be able to achieve continued success in
making; Trading scandal in National the Chinese market.
• To discuss the reasons for Kodak’s
misinterpretation of the Asian market Australia Bank (NAB); John Stewart; Industry Banking and Financial
Customer relationship management; Services
• To debate the appropriateness of the Integrated Financial Solutions Centre; Reference No. GRS0144
strategies adopted by Kodak to transform Customer satisfaction and retention Year of Pub. 2006
itself into a digital imaging company and Teaching Note Not Available
tap the growing Asian markets. Struc.Assign. Not Available
Industry Photographic & Optical ZTE Corporation: The Chinese Keywords
Equipment/Supplies Telecom Equipment Maker’s
Manufacturers Global Expansion Strategies American International Group (AIG);
Reference No. GRS0147 Chinese insurance sector; State-owned
Year of Pub. 2006 Shenzhen-based ZTE Corporation is one monopolies; American International
Teaching Note Available of the largest telecommunications Assurance Co. Ltd.; Underwriting; World
Struc.Assign. Not Available equipment manufacturers and local wireless Trade Organisation; Wholly-owned
service providers in China. With increasing branches; Expansion strategies; Joint
Keywords competition in the domestic market, ZTE ventures; Regulatory framework; Maurice
Kodak’s film photography business; began to expand in the international Greenberg; Martin Sullivan.
Emergence of digital imaging; Digital markets. The company is planning to have
competitors of Kodak; Kodak’s Asian a strong presence in Asia, South America
and Africa. ZTE, which invests 10% of its
market; Kodak going digital; Digital Caterpillar Inc.: World’s Leading
annual income in its research and
photography business in Asia; The new
development, is also planning to foray into Earthmoving Machinery
logo of Kodak; Kodak’s region-wise sales
North America and Europe. Manufacturer’s Growth Strategies
globally; Kodak’s digital cameras.
In 2005, Caterpillar set out its vision for
Pedagogical Objectives 2010 – to become a $50 billion company.
National Australia Bank in UK: • To understand the growth of ZTE in Deriving its business from industries that
are cyclical in nature, Caterpillar adopted
Cross-Selling Strategies China and analyse the competitive
scenario in its domestic market a strategy to generate profits during times
Since its entry into Europe in the late of economic downturn. The company
1980s, National Australia Bank has focused • To discuss its global expansion strategies. believes that the strength of its strategy
on expansion through acquisitions and has lies in its remanufacturing division, which
Industry Telecommunications
been operating as a one-stop shop for all recycles old parts and engines and sells them
Equipment
the financial needs of its customers. to its clients at half the price of new ones.
Reference No. GRS0145
However, in the UK, due to intense
Year of Pub. 2006
47
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Pedagogical Objectives John Hood’s Plans to Reinvent the CEO of HP. Hurd took initiatives to
• To discuss the growth strategies of Oxford University: The cut down costs, lay off employees and went
Growth Strategies
48
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alliances; Synergy; O2; Cesky Telecom; Keywords the margins from engine-sales. By 2005,
S T R A T E G Y – II
Telecom industry in Europe; Telefonica due to increased customer focus, servicing
Movilles. Baidu.com; Sohu.com; Growth strategies; revenues contributed 59% of the total sales
Competition; Google; Chinese search of Rolls Royce.
engine market; Yahoo!; Chinese Google;
Robin Li; Alexa; Acquisitions and
Mittal Steel in Asia: Growth partnerships; 3721; Market share; Pedagogical Objectives
Strategies SINA.com; Challenges for Baidu. • To highlight the growth of Rolls Royce
in the global civil aerospace business
Mittal Steel, the world’s leading
manufacturer of steel has operations in four • To discuss Rolls Royce’s customer-driven
continents and 14 countries. To enhance Avid Technology Inc.: The US competitive strategies for its growth in
its global presence and to tap the sudden Digital Tools Provider’s Growth the future.
rise in global steel demand, Mittal Steel is Strategies
planning to increase its production capacity Industry Aerospace and Defence Parts
by foraying into developing and low cost In October 2005, Avid Technology Inc, Manufacturing
markets of Asia. which was started in 1987 in Massachusetts Reference No. GRS0135
(US), unveiled the Unity ISIS server, which Year of Pub. 2006
can store and share thousands of hours of Teaching Note Not Available
Pedagogical Objectives
digital video. Within eight years of its Struc.Assign. Not Available
• To highlight how Mittal Steel became inception, Avid Technology has become a
world leader in digital editing and Keywords
the largest steel company in the world
professional audio systems with revenues Rolls Royce; Global aero engine market;
• To discuss its expansion strategies in Asia. of $589.6 million. Civil aviation industry; Divestments;
Industry Steel Customer-driven strategies; Competitive
Reference No. GRS0138 Pedagogical Objectives strategies; Aircraft service and
Year of Pub. 2005 maintenance; Battle of Britain; Trent
• To highlight Avid’s core ability to
Teaching Note Not Available engine; Mergers and acquisitions; John
provide innovative technologies to the
Struc.Assign. Available Rose; 1977 bankruptcy; Cost-cutting
digital media industry
strategies; Total care; GE (General Electric
Keywords Inc) and Pratt & Whitney.
• To discuss Avid’s strategy of growing both
Growth strategies; Expansion strategies; through acquisitions and restructurings.
Acquisition strategies; Steel industry in
Industry Multimedia, Graphics and
India; Steel industry in China; Lakshmi
Publishing Software Geox: The Italian Shoemaker’s
Niwas Mittal; Ispat International;
Reference No. GRS0136 Expansion Strategies
Turnaround strategy; Acquisition
Year of Pub. 2006
integration process; Posco; Bao Steel; Tata Geox was started in 1995 by Mario Moretti
Teaching Note Available
Steel; Global steel consumption; Pricing Polegate to manufacture and market his
Struc.Assign. Not Available
trends in steel industry. invention, ‘the breathing shoe’. Geox
Keywords distributes shoes and apparels through its
278 mono-brand stores, 9,000 multi-brand
Top digital tools providers; Macintosh stores and 10,000 retail distributors in 68
Baidu.com: China’s Google? systems; Apple computer; Post production countries. The company, which earned
Beijing-based Baidu.com Inc. is China’s editing system; Open Media Framework revenues of •340 million in 2004, plans
leading Internet search engine company (OMF); Digidesign Inc; Digitally edited to foray into the US, the largest sports
with a market share of 37%. It started its film; Softimage Inc; Digital film composer shoe market in the world.
operations in 2000 and broke even within systems; Image manipulation software;
Avid Broadcast Video Board (ABVB); Non-
three years. As its website is similar in Pedagogical Objectives
appearance to Google.com, it is often linear media composer systems; Interactive
referred to as ‘China’s Google’. Some 3D software technology; Miramax’s • To highlight the growth of Geox in Italy
experts feel that Baidu, the Chinese project Greenlight; Pinnacle Systems Inc.
• To discuss the expansion strategies of
language search engine, does a better job Geox in the competitive but fragmented
than Google. However, the going seems to global footwear market.
be getting tough with other domestic Rolls-Royce’s Civil Aerospace
players intensifying their competitive Business: ‘Customer Driven’ Industry Footwear
efforts. Reference No. GRS0134
Growth Strategies
Year of Pub. 2005
Pedagogical Objectives Rolls Royce, the world’s No.2 commercial Teaching Note Not Available
airline engine manufacturer, started as a Struc.Assign. Not Available
• To highlight comparison between Baidu carmaker and then diversified into aero-
and Google Keywords
engines and power generation machinery
• To discuss growth of Baidu in the highly businesses. With increasing demand for aero- Global footwear industry; Italian footwear
competitive Chinese search engine engines, the company divested many of its industry; US footwear industry; US sports
market. businesses to increasingly focus on aero- shoe market; Core competency of Geox;
engine manufacturing. However, faced with Competitive advantage of Geox; Breathing
Industry Internet Search and Navigation intense competition from companies like shoe technology of Geox; Product
Services General Electric. and Pratt & Whitney, its diversification at Geox; Product
Reference No. GRS0137 revenues started declining. This prompted differentiation at Geox; Growth through
Year of Pub. 2006 the company to enter the growing market global expansion; Distribution network of
Teaching Note Not Available of aircraft services and maintenance where Geox; Supply chain management at Geox;
Struc.Assign. Available the margins were usually 30%, much above Nike; Timberland; Adidas-Reebok.
49
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Genpact, GE’s Outsourcing Arm: to the increasing costs of compliance AstraZeneca’s Growth Strategies
Global Expansion Strategies with regulations after the introduction
Growth Strategies
50
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Keywords over 26 brands in various categories, its Keywords
S T R A T E G Y – II
products are sold in 130 markets worldwide.
Sanofi; Aventis; Global pharmaceutical QUALCOMM; Paul Jacobs; Growth
industry; Growth strategy; Europe; strategies; Communication technology;
Takeover; Acquisition; Jean Francois Pedagogical Objectives Telecom industry; Chipsets; Innovations;
Dehecq; Decision making; Research and • To discuss the growth of the Estée Lauder Value addition; Acquisitions; International
development; Synergy; Merger. empire under three generations of expansion; Brand awareness; Patent
Lauders infringement.
51
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preferences and tastes of the Japanese were Coca-Cola in China acquisitions allowed the drugstore chain to
also a cause for concern for the company. improve its geographical reach and withstand
Growth Strategies
The history of sugar in the Caribbean can competition from other retail giants.
be traced back to the 17th century when
Pedagogical Objectives However, while expanding inorganically,
the Dutch introduced sugarcane to these CVS had to incur expenses to renew and
• To highlight the growth strategy of islands in the 1640s. Since then, the sugar relocate some of the existing stores to
Starbucks in Japan industry had been the backbone of the improve its sales figures.
Caribbean economies. In 1965, the
• To discuss whether Starbucks would be Caribbean region, with its ten sugar
able to sustain its growth in the country. Pedagogical Objectives
exporting countries, had a peak annual
Industry Speciality Eateries sugar production of 1.4 million tons. • To discuss the two different growth
Reference No. GRS0124 However, in just thirty years, by 1995, the strategies, organic and inorganic, being
Year of Pub. 2005 Caribbean sugar production had dropped followed by Walgreen and CVS
Teaching Note Not Available to 0.8 million tons per annum and the
region was left with only six sugar exporting • To analyse which one of the two growth
Struc.Assign. Not Available
countries. strategies is more appropriate.
Keywords Industry Drug store Retail
Starbucks Corporation; Growth strategies; Pedagogical Objectives Reference No. GRS0121
Global expansion strategies; Japanese Year of Pub. 2005
• To highlight the strategies adopted by
coffee culture; Kissatens; Global brand; Teaching Note Not Available
the company to become the leading soft
First-mover advantage; Starbucks culture; Struc.Assign. Not Available
drinks manufacturer in China
Brand recognition; Local competition. Keywords
• To discuss whether Coca-Cola would be
successful in holding on to its leadership Walgreen; CVS (Customer Value Store);
position in the Chinese soft drinks Drug store chains; Competition; Growth
SNOCAP: Can Shawn Fanning’s
industry. strategies; Market share; Pharmacy stores;
New Venture Replicate Napster’s Acquisitions; Marketing.
Success? Industry Beverages
Reference No. GRS0122
In 1999, Napster, an illegal music file- Year of Pub. 2005
sharing service was created by Shawn Teaching Note Not Available Wachovia Corporation: The US
Fanning, which went on to become a huge Struc.Assign. Not Available Bank’s Expansion Strategies
success registering 26.4 million users onto
its network by February 2001. But Keywords US-based Wachovia Corporation had
concurrently the success of Napster was expanded its operations through a number
Coca-Cola; Soft drinks industry in China;
resulting in huge losses for the music of mergers and acquisitions. Wachovia’s
Carbonated and non-carbonated drinks;
industry and later led to lawsuits and management was confident that the
‘Open door ’ policy; Technological
Napster ’s closure. Undeterred by the expansion strategies would facilitate future
development; Bottling and distribution
closure of Napster, Fanning founded growth of the bank. Some analysts
activities; Joint ventures; Retail distribution
SNOCAP, which acts as a clearinghouse however, were sceptical about the success
network; Growth strategy; Marketing and
and an intermediary between the music of Wachovia’s expansion strategies. Others
promotion activities; Domestic
users, file-sharing networks, on-line music speculated about merger of Wachovia with
competition.
retailers and the copyright owners. But to another bank, which would elevate its
replicate the success of Napster, SNOCAP position to the second-largest bank in the
has to overcome several challenges. United States.
Walgreen vs CVS: Growth
Pedagogical Objectives Strategies of the US’ Top Pedagogical Objectives
Drugstore Chains
• To highlight Napster’s success story and • To understand the formation of
SNOCAP’s new business model The US drugstore retail market is highly Wachovia and the expansion strategies
competitive, consisting of a number of big followed by the bank
• To discuss the viability of SNOCAP’s chain stores like Walgreen, CVS (Customer
business model and the challenges that • To discuss the rationale behind
Value Store), Rite Aid, Wal-Mart, Target,
lie ahead for the company. Wachovia’s expansion strategies.
etc. Together, Walgreen and CVS occupy
Industry Internet Music Distribution about one-fifth of the total US pharmacy Industry Banking and Financial
and Downloads retail market. Ever since its inception in Services
Reference No. GRS0123 1901, Walgreen had believed in growing Reference No. GRS0120
Year of Pub. 2005 organically and had opened more than 4,850 Year of Pub. 2005
Teaching Note Not Available stores in the US. While Walgreen was Teaching Note Not Available
Struc.Assign. Not Available building its new stores, CVS was increasing Struc.Assign. Not Available
its store count by acquiring existing retail
Keywords chains in the country. After opening its first Keywords
store in 1963, CVS acquired other Wachovia Corporation; Expansion
SNOCAP; Shawn Fanning; Napster; Success
pharmaceutical chains like Peoples Drug, strategies; Mergers and acquisitions; First
story; P2P (Peer to Peer) network;
Big B, Revco, Arbor Drugs and Eckerd stores Union Corporation; Credit quality problems;
Technology; Music file sharing; File
and by July 2005 it had grown to more than Merger integration process; Account access
swapping service; Music industry; Quality.
5,400 stores. Walgreen’s organic strategy problems; Organic growth; Economic
of growth helped the company to make conditions; Retail banking; Assets-per-
planned investments in new locations and broker; Expansion plans; Merger of equals;
save future expenditure on renovations. Cultural integration issues.
Whereas CVS’ strategy of growth through
52
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Indian Institutes of Management Industry Retail Brokerage label brands; Carbonated Soft Drinks
(IIMs): Going Global
S T R A T E G Y – II
Reference No. GRS0118 (CSD); Mergers and acquisitions; Growth
Year of Pub. 2005 strategy; Wal-Mart; Retail industry; Asda.
In mid-2005, India’s premier management Teaching Note Not Available
institutes, the Indian Institutes of Struc.Assign. Not Available
Management (IIMs), based at six cities
across India initiated their global expansion Keywords AXA in Asia: The Growth
plans. The global initiatives involved Strategies
Indian capital market; Indian retail
setting up campuses abroad, designing brokerage firms; Regulatory reforms in France-based AXA is the second-largest
courses for imparting global management Indian capital market; Initial Public insurance company in the world with a
education, international student exchange Offerings (IPOs); Venture capital; history that dates back almost 200 years.
programmes and offering other Diversification strategies of Indiabulls; The company, after establishing its
postgraduate programmes to foreign Retail finance and asset management; presence in Europe, ventured into North
corporations like the post graduate Foreign Institutional Investors (FIIs); America, South America, Australia and New
programme for executives. However, IIMs Indiabulls’ direct and indirect channels of Zealand. It entered Asia (Hong Kong) in
are expected to face stiff competition from business; Financial product distribution; 1986 and gradually expanded its operations
premier B-Schools like INSEAD and Indiabulls’ centralised back office into different Asian countries like Japan,
Chicago School of Business that have operations; Mechanisation of operations Singapore, China, Thailand and Indonesia
dominated management education in Asia. at Indiabulls; On-line share trading at through a series of mergers and
Indiabulls; Risk management system; Stock acquisitions. In the late 1990s, as the
Pedagogical Objectives market scams in India. economy and demand for insurance
boomed across the region following the
• To highlight the contribution of the
Southeast Asian crisis, AXA aimed to
IIMs to management education in India
consolidate its position in the Asian market.
Cott Corporation, World’s Biggest
• To discuss the strategic initiatives of the But, with an under developed insurance
Maker of Retailer-brand market, regulatory constraints and intense
IIMs to become a global brand.
Carbonated Soft Drinks: The competition, AXA faces major challenges
Industry Management Education Growth Strategies for its future growth.
Reference No. GRS0119
Year of Pub. 2005 Canada-based Cott Corporation was
founded by Harry Pencer, as an importer Pedagogical Objectives
Teaching Note Not Available
Struc.Assign. Not Available of bottled soft drinks in 1955. The • To highlight the growth strategies
company grew under the leadership of his adopted by AXA to expand and
Keywords son, Gerry Pencer, to become the largest strengthen its operations in Asia
Indian Institute of Management (IIM); supplier of private label Carbonated Soft
Drinks (CSD) in the world. Cott established • To discuss various opportunities and
India; Education sector; Globalisation;
itself in Canada and gradually expanded its challenges that AXA might face in the
Strategy; Indian Institute of Management;
operations into the US and the UK through future.
Ahmedabad (IIMA); Management
education; INSEAD; Harvard Business a series of mergers and acquisitions. Its rapid
Industry Banking and Financial
School; International expansion; growth made it a top competitor of soft
Services
Singapore; Dubai; MBA; B-schools. drinks giants, Coca-Cola and Pepsi. With
Reference No. GRS0116
Wal-Mart as its top customer, it obtained
Year of Pub. 2005
a ready market for its products. The
Teaching Note Not Available
consolidation of the retail industry, and
Indiabulls: The Indian Retail increasing acceptance of private label
Struc.Assign. Not Available
Brokerage Firm’s Growth brands by customers presented Keywords
Strategies opportunities to Cott for further growth.
However, recession in the CSD market and AXA; AXA Asia Pacific; Insurance; Growth
Since its inception in 2000, despite rising the prevalent perception that private labels strategies; Mergers and acquisitions;
competition and the ongoing consolidation are inferior to branded products posed Regulatory environment; Bancassurance;
in the Indian brokerage industry, Indiabulls major challenges to Cott’s future growth. Smart Lady; Privatisation; Liberalisation;
has recorded a year-on-year growth of Deregulation; Tariffs; Asian financial crisis.
100%. By 2005, Indiabulls had 135 offices
Pedagogical Objectives
in 95 cities in India offering diversified
financial services, ranging from stocks to • To highlight the growth strategies PCCW: Hong Kong’s Integrated
real estates. Indiabulls is one of the largest adopted by Cott to expand and
brokerage firms in India with a market
Communication Company’s
strengthen its operations in Canada, the
capitalisation of INR 2,000 crore as of US and the UK Growth Strategies
mid-2005. The company aims to achieve Since its inception in 2000, Hong Kong-
a market capitalisation of INR 22,000 • To discuss the various opportunities and
challenges that Cott might face in the based Pacific Century CyberWorks Limited
crore by 2010. (PCCW) has grown to be one of Asia’s
future.
leading integrated information technology
Pedagogical Objectives Industry Beverages and communications companies through
Reference No. GRS0117 different strategic acquisitions and
• To highlight growing importance of
Year of Pub. 2005 alliances. In June 2005, PCCW re-entered
online share trading in India
Teaching Note Not Available the mobile telephony market by acquiring
• To discuss the strategy adopted by Struc.Assign. Not Available the Hong Kong-based Sunday
Indiabulls to become one of the Communications Ltd.
Keywords
prominent players in the Indian
brokerage industry within a short span Cott Corporation; Gerry Pencer; Pepsi;
of five years. Coca-Cola; Cadbury Schweppes; Private
53
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Pedagogical Objectives Teaching Note Not Available Industry Internet Auctions
Struc.Assign. Not Available Reference No. GRS0112
• To analyse the reasons behind the
Growth Strategies
S T R A T E G Y – II
Services Challenges and opportunities.
ASDA, since its takeover by Wal-Mart in Reference No. GRS0109
1999, has been implementing several Year of Pub. 2005
successful strategies, including the ‘price
rollback’ and ‘Every Day Low Prices’ to
Teaching Note Not Available
GE in India: The Growth
Struc.Assign. Not Available
attract customers. It has been, for eight Strategies
successive years, ranked as the ‘cheapest Keywords
In November 2004, General Electric Co.
supermarket’ by the Grocer, an independent
Standard Chartered (StanChart); Inorganic (GE) sold 60% of its stake in its Business
magazine in the UK. However, continuous
growth strategies; Korean First Bank; Process Outsourcing division in India,
lowering of prices has reduced the profit
Global corporate strategy; Asian financial GECIS (General Electric Capital
margins of ASDA and led to a severe price
crisis; Mervyn Davies; South Korean International Services), in order to focus
war in the UK retail industry. ASDA has
financial services industry; International on its core business operations that included
announced plans to diversify into non-food
expansion strategies; KorAm Bank; healthcare, transportation equipment,
stores and financial services to improve
Citigroup HSBC; Acquisitions and mergers; financial services and infrastructure. This
profitability.
Business strategy corporate strategy; marked the third phase of investment by
Funding strategy; Private banking; GE. According to Jeffery Immelt, chief
Pedagogical Objectives Consumer banking. executive officer, the growing business
• To highlight competitive landscape of opportunities in India would allow GE to
the British retail industry leverage on the advantages of the Indian
Pernod Ricard: The French market, such as strong consumer and
• To discuss the competitive strategies commercial finance sectors, which would
adopted by ASDA and the challenges Beverage (Wine & Spirits) enable GE to realise revenues worth $5
faced by it in the retail sector. Company’s Growth Strategies billion by 2010.
Industry Grocery Retail Pernod Ricard is the world’s third-largest
Reference No. GRS0110 spirits and wine company behind Diageo Pedagogical Objectives
Year of Pub. 2005 and Allied Domecq. Its founder chairman
• To highlight the growth strategies
Teaching Note Not Available Ricard has transformed the French pastis
followed by GE to capitalise on the
Struc.Assign. Not Available business into a multinational wine and spirit
growing opportunities in the Indian
maker by diversifying into other businesses
Keywords market
like fruit juice manufacturing through a
ASDA; Wal-Mart; Retailing; ‘Every Day series of acquisitions. However, due to the • To discuss the investment opportunities
Low Prices’; Price war; Supermarkets; declining profits and increasing debts, the for GE in India.
Tesco; ‘Price rollback’; UK; Consolidation company decided to focus on its core
business, and began to divest its non- Industry Not Applicable
in UK retail sector; Acquisitions; Grocery Reference No. GRS0107
retail; Strategy; Discount retail chain. alcoholic operations since 2001. In 2004,
Pernod Ricard was named the ‘Best Year of Pub. 2005
Company in Europe’ by Global Finance Teaching Note Not Available
magazine. In April 2005, the company Struc.Assign. Not Available
StanChart in South Korea: announced a deal to buy Allied Domecq, Keywords
Expanding through Inorganic which would transform Pernod Ricard into
Growth Strategies the second largest player in the industry. General Electric (GE); India; Business
process outsourcing (BPO); General
As part of its global corporate strategy, Electric Capital International Services
Pedagogical Objectives
UK-based banking group Standard (GECIS); Healthcare; Financial services;
Chartered (StanChart), decided to • To highlight the growth strategies of US; Strategy; Economy; China;
concentrate on Asia for its future growth. Pernod Ricard over the decades Information Technology Enabled Services
Within Asia, the bank was concentrating (ITES); Knowledge capital; Offshoring;
on India, China and South Korea. For its • To discuss the success of Pernod Ricard’s
Service sector; Foreign direct investment.
expansion in South Korea, Asia’s third acquisition of Allied Domecq and the
largest economy, the bank was following prospects and challenges for the
an inorganic growth strategy. Many company.
analysts were confident that this strategy
Caremark Rx Inc.: Growth
would enable the bank to get a strong
Industry Alcoholic Beverages
through Pharmacy Benefit
Reference No. GRS0108
foothold in the South Korean market and Year of Pub. 2005
Managers
enable it to fulfill its global strategy Teaching Note Not Available Caremark is the second-largest pharmacy
objective of acquiring leadership position Struc.Assign. Not Available benefit management company in the US
in the continent. But some others were
Keywords health care industry. The company was
skeptical about the strategy.
originally established to provide home
Pernod Ricard; Paul Ricard; Patrick Ricard; treatment to seriously ill patients, but
Pedagogical Objectives Growth strategies and diversification; eventually, it expanded into the
• To highlight StanChart’s global Acquisition and merger; core business; prescription drug management, Physician
corporate strategy, its growth strategies Third largest wine and spirits company; Practice Management (PPM) and mail
in South Korea and the bank’s business Restructuring plan and divesting; Diageo order pharmacy businesses. Although
strategy for the South Korean market and Allied Domecq fortune brands; Chivas initially, Caremark’s PPM business
Regal whisky; Wine and spirit industry; achieved a high growth rate, the company
• To discuss whether StanChart’s growth Loss-making businesses; Wine and spirits was unable to consolidate its success. A
strategy in South Korea would enable it distribution; Ready to drink market; pastis turnaround specialist, Edwin Crawford, was
to achieve its global strategy objective. maker; Constellation brands; Seagrams appointed to bring the company back to
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profitability. Crawford divested the PPM mobile phones; Macromedia; Flash Lite increased its activities in Iceland and was
business and concentrated on developing technology; Enterprise software market; granted the licence for investment banking
Growth Strategies
Caremark’s prescription drug management Web application development powerhouse; in 1997 and commercial banking in 2002.
business. Microsoft; Macromedia; Integrated Since 2002, Kaupthing started expanding
desktop publishing suite. its reach to other Nordic countries. In
Pedagogical Objectives 2005, it expanded its presence in the UK
market, by acquiring Singer & Friedlander
• To highlight the growth of Caremark Group plc., an independent merchant bank
from near bankruptcy to one of the US’ Metro AG: The German Retailer’s
in London.
leading Pharmacy Benefit Managers Internationalisation Strategies
through ‘Cash & Carry’ Model
• To discuss the future of the company in Pedagogical Objective
the light of a tighter regulatory Started as a wholesale store in 1964,
• To highlight growth strategies of
environment and growing competitive Dusseldorf (Germany)-based Metro AG
Kaupthing Bank and understand how
challenges. transformed itself into the largest retailer
Kaupthing achieved its aim of becoming
in Germany and the third-largest in the
Industry Health Care a leading Nordic investment bank.
world. Though the company generated the
Reference No. GRS0106 majority of its sales from its home market, Industry Banking and Financial
Year of Pub. 2005 retail sales in Germany began to show a Services
Teaching Note Not Available decline during the early 21st century due to Reference No. GRS0103
Struc.Assign. Not Available a high unemployment rate, the country’s Year of Pub. 2005
Keywords faltering economy, a rise in inflation and Teaching Note Not Available
an increase in taxes. As a result, Metro Struc.Assign. Not Available
Caremark; Pharmacy Benefit Manager ended up operating in a high-cost structure
(PBM); Physician Practice Management environment and living with low profit Keywords
(PPM); Growth strategy; Turnaround; margin, which in turn had an adverse effect Iceland’s largest bank; International
MedPartners; Edwin Crawford; Larry on the company’s profits in Germany. To expansion; Expansion into Nordic regions;
House; Medco; Express scripts; Advance offset the declining sales in its domestic Presence in the UK; Acquisition strategy;
PCS; Pharmaceutical Care Management market, Metro pursued a strategy of Investment banking.
Association (PCMA); Customer loyalty; expansion and internationalisation
Transparency regulations; Unfair through its ‘Cash & Carry’ business model,
Prescription Drug Practices Act. and started focusing on emerging markets
in Asia and Eastern Europe. Analysts Bank of America’s Acquisition of
opined that Metro’s focus on international MBNA: Growth Challenges in
Adobe Systems: Bruce Chizen’s markets had been instrumental in driving American Credit Card Market
Growth Strategies its growth in the light of the slowed growth
in its home country. Bank of America announced its decision
to acquire MBNA, the largest credit card
Adobe Systems Incorporated (Adobe), a
issuer in the world, in June 2005. This
pioneer in the field of desktop publishing, Pedagogical Objectives marked the re-entry of Bank of America
faced declining sales by mid-1998. Bruce
• To highlight the international expansion into the credit card business, which had
Chizen (Chizen), its new Chief Executive
strategies adopted by Metro through its taken a back seat after the bank spun off
Officer (CEO) implemented several growth
‘Cash & Carry’ business model to offset its BankAmericard operations in 1968.
strategies that are considered to be
the declining sales in its domestic market With the acquisition, Bank of America is
instrumental in making Adobe a major
expected to become the number one player
player in the document sharing and • To highlight the initiatives taken by the in the US credit card market with a 20.2%
publishing business. However, some experts company to strengthen its position in share. Nevertheless, analysts expressed
expressed doubts whether Chizen could run the emerging markets of Asia and concerns on the deal opining that it would
the company successfully in the long run. Eastern Europe. be difficult for Bank of America to make a
mark in the already saturated business.
Pedagogical Objectives Industry Retail
Giant companies such as American
Reference No. GRS0104
• To highlight Adobe’s historical Year of Pub. 2005
Express, Citicorp and Capital One are
background and the growth strategies Teaching Note Not Available
expected to give Bank of America tough
adopted by Chizen Struc.Assign. Not Available
competition.
S T R A T E G Y – II
Consolidation in the banking industry; Struc.Assign. Not Available
Bank of America’s acquisition strategy; • To highlight Breweries industry in the
American Express; Competing in the Philippines Keywords
saturated market; Shift towards consumer • To discuss the inorganic growth strategies Axel Springer; Market leadership in
lending. of San Miguel in its domestic as well as Germany; Related diversification; Joint
the Asian market. ventures; Customised content; Targeted
acquisitions; Umbrella branding;
Industry Brewers
Tesco: The British Supermarket Reference No. GRS0100
International growth strategies; Strong
Chain’s Global Expansion Year of Pub. 2005
product-focus; Trend driven perspective.
Strategies and Challenges Teaching Note Not Available
Struc.Assign. Not Available
Tesco Plc. is the UK’s largest and the world’s Orascom: The Egyptian
third-largest retail supermarket chain. Keywords Conglomerate’s Expansion
Established in 1929 by Jack Cohen, Tesco
steadily increased its presence in the UK Beverages and food products market; Strategies
by concentrating on customer needs and Product diversification; Expansion into
The Orascom Group is Egypt’s largest and
their convenience. By the mid-1990s, South East Asian Market; Joint venture
most diversified conglomerate. Founded by
saturation of the UK market led Tesco to with Coca-Cola; Joint venture with Nestlé;
Onsi Sawiris in 1950, it is now managed by
expand its activities to other countries. It Acquisition of domestic companies;
his three sons Naguib, Samih and Nassef,
initiated expansion plans in the developing Outsourcing of non-core activities;
each handling a different business.
markets of the Central European and Asian Acquisition of global manufacturing plants;
Traditionally Orascom had been known for
countries, which provided scope for growth Emerging markets of Asia; Consumption
its construction projects such as water
of retail business. In 2005, Tesco planned trends in Asia.
treatment plants, railways, hotels and
to continue its international expansion skyscrapers. Later it diversified into
activity by opening a number of different businesses like, production of
hypermarkets in Hungary, Poland, Czech Axel Springer Group: The building materials, telecommunications and
Republic, China, Thailand and South German Publishing Firm’s tourism development. These businesses
Korea. ‘Targeted’ Growth Strategies went on to form Orascom Construction
Industries, Orascom Telecom Holdings and
Pedagogical Objectives Axel Springer Verlag, the German Orascom Hotels Holdings.
publishing house is the owner of Germany’s
• To understand and discuss the market most widely read daily, Bild. Since its
entry strategies of Tesco Pedagogical Objectives
establishment in 1946, the company had
• To analyse the challenges it faced in focused on its core business of publishing • To highlight the successful
catering to the varied needs of the newspapers and magazines in its home diversification strategies implemented
customers in markets across countries country. It gave importance to building by Orascom
and the competitive strategies adopted strong brands and launched its new
publications under existing successful • To discuss Orascom’s growth in Egypt
by it in those countries. and its entry and growth in other
brands. To establish itself as an international
Industry Retail media company, Springer started countries with economic indicators
Reference No. GRS0101 expanding to Central and Eastern European similar to its home market.
Year of Pub. 2005 countries in the late 1980s. By Industry Not Applicable
Teaching Note Available implementing a targeted growth approach, Reference No. GRS0098
Struc.Assign. Available it entered the European countries, either Year of Pub. 2005
through a joint venture with a local Teaching Note Not Available
Keywords publisher, or through the introduction of Struc.Assign. Not Available
Tesco; Competition among British local editions of some existing top brand
supermarkets; Gap; International publications. In 2004, it entered the Keywords
expansion strategies; Expansion into German electronic media market through Orascom Group; Onsi Sawiris;
Central Europe and Asia; Hypermarkets; agreements with Internet companies. While Diversification; Conglomerate; Middle
Growth challenges; Varied customer needs; digitising helped Springer to make its East; Egypt; Orascom Telecom; Orascom
Localisation strategies. presence known worldwide, the company Constructions; Orascom Technologies;
planned to expand its printing activity to Investments in Iraq.
other countries.
San Miguel: The Philippines
Pedagogical Objectives
Brewery Giant’s Growth Mobile Telephony in Africa:
Strategies • To highlight the growth plans of Axel Celtel International’s Growth
By 2005, San Miguel Corporation, a
Springer Strategies
Philippines-based beverages and food • To discuss challenges faced by company By the end of the fiscal year 2004, Celtel
products manufacturer, is one of the top to expand its operations in Europe International BV, one of the largest mobile
20 brewers in the world. It has its operations operators in Africa, reported a profit of
• To analyse the company’s acquisition
in 40 countries with manufacturing US$147 million against US$74 million in
and localisation strategies in realising its
facilities across Asia. By leveraging its the previous year. In early 2005, Celtel
expansion plans.
strong domestic market presence, the became a subsidiary of Mobile
company plans to be among the top 10 Industry Publishing Telecommunications Company (MTC), a
beverage and food products companies in Reference No. GRS0099 Kuwait-based communications company
Asia. Year of Pub. 2005 with operations in 18 countries. Celtel, with
its operations in 13 countries in Central
57
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and West Africa, intends to expand its McLennan; Securities and Exchange Pedagogical Objectives
operations across the continent by Commission (SEC) investigations
• To highlight the evolution of
Growth Strategies
58
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Keywords strikes, consolidations, bankruptcies and overcome the image that its PC software
S T R A T E G Y – II
increasing pressure to cut costs. is ‘unreliable and error prone’.
Capital One Financial Corporation;
Consumer lending services; Motor vehicle Industry Development Tools, Operating
financing; Mortgage and home equity loans Pedagogical Objectives Systems and Utility Software
European; Market leader and market • To discuss the initiatives taken by Reference No. GRS0090
share; Brand positioning; Credit card Wegmans to become one of the most Year of Pub. 2005
industry; Diversification strategy; Super- admired retailers in the food business in Teaching Note Not Available
prime; prime and sub-prime customers; the US Struc.Assign. Not Available
Information-based Strategy (IBS); Bad debt
and charge-off; Financial portfolio and • To understand the unique business model Keywords
sourcing of funds; Origination of loans; of the company that centred on worker Microsoft; PC (Personal Computer)
Competitive advantage; Investment and customer relations. software; Monopoly; Media centre PC;
banking and insurance. Industry Grocery Retail Digital vision; Consumer electronics; Entry
Reference No. GRS0091 barriers; Diversification; PC-based home
Year of Pub. 2005 entertainment; Convergence; Integrated
Novartis’ Generic Drug Business: Teaching Note Not Available PC’s; New product development.
The New Growth Driver Struc.Assign. Not Available
59
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footwear has chalked out a five-year plan • To discuss IBM’s Mach 1 Project. Industry Internet Content Providers
for doubling its size by 2010. The success Reference No. GRS0085
Growth Strategies
60
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Pedagogical Objective base of 10 million people. Having Sohu.com: The Growth Strategies
S T R A T E G Y – II
operations across 16 countries in Africa,
• To discuss how Apollo built a billion- Shoprite plans to further expand and Sohu.com is China’s leading web portal and
dollar business by carving a niche for increase its share of non-South African directory. Through partnerships and
itself in the ‘working adult students revenues from 10% to 50%. continuous innovation in services, Sohu
education market’, which for long had turned into the premier destination for
remained unattended by the traditional Chinese Internet users and advertisers. But
universities. Pedagogical Objective
the company incurred significant net losses
• To highlight the strategies behind the since its inception. To move towards
Industry Education
rapid growth of Shoprite against the profitability it changed the business strategy
Reference No. GRS0083
backdrop of trade restrictions, from on-line advertising to selling services
Year of Pub. 2005
bureaucracy and inflation, that has been such as on-line games, dating services,
Teaching Note Not Available
the perennial hurdles for the company. e-marketing, e-subscriptions and
Struc.Assign. Not Available
e-commerce, targeting individual
Industry Grocery Retail
Keywords consumers and other value-added services.
Reference No. GRS0081
For-profit education; Working adults; John Year of Pub. 2005
Pedagogical Objective
G Sperling; Todd S Nelson; University of Teaching Note Not Available
Phoenix; Institute for Professional Struc.Assign. Not Available • To highlight the evolution of Sohu, and
Development; Western International the growth strategies it followed to
University; UOP (University of Phoenix) Keywords
address the challenges in the existing and
on-line; Axia College. Shoprite Holdings Ltd; Shoprite’s emerging web services business.
Geographical expansion; Horizontal
Industry Internet Search and Navigation
integration; Supermarket industry in South
Services
The Body Shop: The Ethical Africa; Shoprite’s retail formats; South
Reference No. GRS0079
Beauty Retailer’s Growth Africa’s formal retail sector; South African
Year of Pub. 2005
Development Community; Retailing in
Strategies Teaching Note Not Available
South Africa; Department of Trade and
Struc.Assign. Not Available
The Body Shop International, a UK-based Industry in South Africa; Flood inflation
speciality beauty retailer, known for its in South Africa; Pick n Pay. Keywords
environment-friendly product testing and
socially conscious activism, offers 600 Sohu; Sina; Internet; China IT industry;
Paid searches; Charles Zhang; Internet
products and 400 accessories across 50 Reckitt Benckiser: Growing statistics; Growth strategy; On-line games;
countries. The global retailer, with a 40% through Innovations
increase in profits in 2004, intends to Internet advertising; e-Commerce;
expand into the lucrative Asian and African NetEase; Web portals; Yahoo; Google.
Since its inception in 1999, Reckitt
markets through the concept of Direct Benckiser has constantly been improving
Home Selling, which the company its core brands while coming out with new
introduced in its home market in the 1980s. brands. The company has offset challenges Royal Caribbean Cruises Limited:
of exchange rate fluctuations and hike in The Growth Strategies
Pedagogical Objective the prices of its raw materials through
constant product innovations and cost Despite unforeseen events like the
• To discuss how the Body Shop is making optimisation techniques. It has constantly September 11 terrorist attack, SARS
attempts to expand its business globally held the world’s No.1 position in household (Severe Acute Respiratory Syndrome)
by leveraging on its image as an ethical cleaning items and has posted five straight outbreak and the Iraq war, the world’s
beauty retailer. years of above industry average growth. second-largest cruise line, Royal Caribbean,
recorded total revenues of $4.6 billion in
Industry Cosmetics, Beauty and Perfume
Pedagogical Objective the year ended 31st December 2004. With
Retailing
a fleet of 29 ships, the company catered
Reference No. GRS0082
• To discuss how constant product to 160 destinations across the world. The
Year of Pub. 2005
innovations has enabled Reckitt increasing demand in the cruise industry
Teaching Note Not Available
Benckiser to transform itself into the forced Royal Caribbean to further expand
Struc.Assign. Not Available
world’s largest household cleaning its passenger capacity amidst the
Keywords products manufacturer apart from challenges of rising oil prices and a debt
becoming one of Britain’s most burden of $5.8 billion.
The Body Shop International PLC; Ethical innovative companies.
retailer; Niche marketing; Specialty
Industry Cleaning Products
Pedagogical Objective
retailer; Anita Roddick; Community trade;
Brand image; Body Shop at home; The Reference No. GRS0080 • To discuss the growth and expansion
Body Shop tour; Humane cosmetics Year of Pub. 2005 strategies adopted by Royal Caribbean
standard; Masstige price. Teaching Note Not Available against the backdrop of some major
Struc.Assign. Not Available problems and challenges faced by the
Keywords company.
Shoprite: South African Retailer’s Industry Travel Agencies and Services
Reckitt Benckiser; Growth strategy;
Growth Strategies Reference No. GRS0078
Innovations; Consumer products
Year of Pub. 2005
Started in the late 1970s with a chain of manufacturer; Household cleaning; Cost
Teaching Note Not Available
eight supermarkets in South Africa, optimisation techniques; Diversification;
Struc.Assign. Not Available
Shoprite Holdings Ltd. (Shoprite), by 2004, Expansion; Line extentions; Organic
has become Africa’s largest food retailer growth; Innovative marketing; Exchange
with more than 900 outlets and a customer rate fluctuations; Dettol; Lysol.
61
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Keywords company. Total tried to overcome its Foundation; News guerillas; Competitive
problems through its negotiations with strategies; Readers’ Voice.
Royal Caribbean Cruises Limited; Cruise
Growth Strategies
S T R A T E G Y – II
was unclear and (3) the Japanese handset Reference No. GRS0070
Advanced Micro Devices (AMD); Growth market was nearing saturation. To offset Year of Pub. 2005
strategies; Chipmaker; Microprocessors; the declining sales, Japanese handset makers Teaching Note Not Available
Flash memory devices; 64-bit processors; initiated steps to explore opportunities Struc.Assign. Not Available
AMD Opteron; AMD Athlon; Customer- outside their domestic market. They felt
centric innovation; Licensed second source that the advanced technologies of their Keywords
manufacturer; Connected business model; handsets would help in attracting customers
Mergers and acquisitions; Intel; Growth of emerging economies; The BRIC
in foreign countries. By all accounts, (Brazil, Russia, India and China)
Technological collaboration; Innovations. Japanese handset makers could capitalise economies; Brazil’s real plan; Brazil’s
on their expertise in 3G technologies with inflation-targeting regime; Russia’s
its advent in European countries and China. structural reforms; Economic reforms of
NCsoft: The World’s Largest India; China’s economic development;
Independent Online Game Pedagogical Objectives Growth imperatives for the BRIC
Company’s Growth Strategy economies; Hindrances in growth of the
• To analyse the factors that contributed BRIC economies; Transparency
NCsoft, the world’s largest independent on- to the slowdown in the growth of the International; Human Development Index;
line game company, was established in Japanese handset market G-6 nations (US, Japan, Germany, France,
1997. Under the leadership of CEO (Chief Italy and Britain).
• To discuss the efforts initiated by the
Executive Officer) and president, Tack Jin
Japanese handset makers to make a
Kim, NCsoft’s premier product ‘Lineage’
foray into the foreign markets
became an instant hit among on-line
gamers around the world. NCsoft continued • To discuss the challenges faced by Citibank in Asia
to publish new games and modify old ones Japanese handset makers ahead in By 2004, Citibank was the leading financial
to suit worldwide consumer tastes and emerging as strong contenders in the services provider and one of the top 10
preferences. It entered foreign markets global handset market. consumer brands in Asia. Since the late
through acquisitions and partnerships with 1990s, the consumer business of Citigroup,
Industry Wireless Telephone Handsets
well-established domestic companies. But, the parent company of Citibank, recorded
Reference No. GRS0071
as NCsoft sought to continue its expansion a compound annual growth rate of 20% in
Year of Pub. 2005
spree around the world, a face-off with US Asia. A steady economic growth in Asia
Teaching Note Not Available
giant Microsoft and Japan’s Sony seemed coupled with the absence of a Pan-Asian
Struc.Assign. Not Available
likely. financial services group offered crucial
Keywords opportunities to the financial mega-brand
Pedagogical Objectives in this region.
Japanese handset makers; 3G (third
• To discuss the growth strategies adopted generation) technology; Saturation in
by NCsoft to capitalise on the lucrative Japanese mobile phone market; Pedagogical Objective
on-line games market Dominance of network operators in Japan; • To discuss the opportunities and
Japan’s mobile phone market; Advanced challenges faced by the global bank in
• To highlight the various opportunities
features in Japanese handsets; Wideband the competitive Asian market.
and challenges that NCsoft might face
code division multiple access; Sony
in the future. Industry Banking
Ericsson; Roll out of 3G services in China.
Industry Entertainment and Games Reference No. GRS0069
Software Year of Pub. 2005
Teaching Note Not Available
Reference No. GRS0072 Growth Strategies of BRIC Struc.Assign. Not Available
Year of Pub. 2005
Economies
Teaching Note Not Available Keywords
Struc.Assign. Not Available In 2004, countries in Latin America, Asia
and Europe experienced their fastest GDP Citibank NA; Asian financial crises; Bank
Keywords consolidation in Asia; Household financial
(Gross Domestic Product) growth rates
Japanese handset makers; 3G (third since the 1970s. Favourable external assets; Consumer banking; Household
generation) technology; Saturation in factors such as reduced global interest rates, credit; On-line banking; Credit cards;
Japanese mobile phone market; high demand from the US and the Citigold; Suvidha scheme; Travelers Group;
Dominance of network operators in Japan; depreciation of the US dollar against the Competitors for Citibank in Asia;
Japan’s mobile phone market; Advanced respective currencies facilitated this Segmentation of the Asian bank customers.
features in Japanese handsets; Wideband growth. Brazil, Russia, India and China
code division multiple access; Sony collectively called the BRIC economies,
Ericsson; Roll out of 3G services in China. started featuring along with the G-6 nations PC Industry’s Next One Billion
in terms of the purchasing power parity
Customers: Exploring the Growth
(PPP), due to their high GDP. It was also
estimated that the BRIC’s would outpace Avenues
Japanese Handset Makers: the G-6 nations by 2040 and emerge as the The global PC industry was looking for
Exploring New Growth global economic powerhouses in the future. new avenues for growth as its traditional
Opportunities markets matured. Penetration levels in the
Since the beginning of the 21st century, the Pedagogical Objectives US PC market as well as other European
Japanese handset makers experienced a nations were as high as 60%. The industry
• To highlight the economic growth
slump in their sales in the domestic market. behemoths like Dell, Microsoft, IBM and
strategies of the BRIC countries
The factors attributed to the fall were: (1) a Hewlett-Packard believed that developing
fall in new subscriber growth (market • To discuss the growing importance of countries like Brazil, India, China and
penetration was approaching 60%) (2) The BRIC countries in the global economy. Russia were the next ‘one billion market’.
63
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While the companies were tapping the un- Giorgio Armani’s Growth mines in Australia; Chinese appetite for
met needs and were adapting themselves Strategies steel; Iron ore mines in Australia; Bauxite
Growth Strategies
Hershey Foods Corporation, the largest Nokia in China; Nokia (China) Investment
North American snack food maker’s origin Co. Limited; Nokia entry strategy in
dates back to the 19th century. Since then, BHP Billiton: The Australian China; China mobile phone market; China
the company has concentrated on Mining Company’s Growth cellular market; Domestic and foreign
producing a wide variety of chocolates to Strategies cellphone players in China; Xingwang
suit the customers’ taste. Hershey’s strategy Industrial Park; Nokia cell phone models
encompasses extension of its product line In 2001, BHP, an Australian ‘natural in China; Nokia investment in China;
that provides the company a distinct resources company’ and Billiton, a British Nokia GSM (Global System for Mobile
advantage over its competitors like Mars mining company, merged to form the Communications) phones in China
and Nestle. In addition, Hershey’s focus world’s largest mining company – the BHP
on acquisitions of well-known brands, Billiton Group. Since its formation, the
group has been focusing on global
discontinuing weak product lines, apart Hennes & Mauritz (H&M): The
from appropriate marketing of its products expansions, leveraging on BHP’s expertise
in natural resources and Billiton’s vast
Growth Strategies
enabled the company to achieve net sales
of $4,172.551 million in 2003. experience in the mining industry. By June From a single store selling womenswear in
2004, the group had a market 1947 to over 900 stores in 2003, the
Pedagogical Objective capitalisation of US$54 billion. Swedish fashion retailer H&M had come a
long way. By then, the company with
• To discuss the strategies adopted by Pedagogical Objectives operations in 20 countries and a turnover
Hershey to grow in the competitive US of SKR57 billion had become the largest
snack food industry. • To discuss the global growth strategies discount retailer in Europe, selling clothes
of the BHP Billiton Group for women, men, teenagers, and children,
Industry Candy & Confections
Reference No. GRS0067 • To discuss the company’s plans for besides accessories for men and women,
Year of Pub. 2005 sustaining its leadership in the worldwide and cosmetics. It also started concept stores
Teaching Note Not Available mining industry. to serve its customer segments better.
Struc.Assign. Not Available
Industry Metals and Mining
Pedagogical Objectives
Keywords Reference No. GRS0065
Year of Pub. 2004 • To discuss the strategies adopted by
Hershey Foods Corporation; Milton Teaching Note Not Available H&M to become Europe’s largest
Hershey; Hershey’s brands; US snack food Struc.Assign. Not Available discount fashion retailer
market; Hershey’s product lines; Hershey’s
acquisitions; Hershey’s Kisses; Hershey’s Keywords • To discuss the market entry strategies
sales growth; Hershey’s competitors. of the company for the US market.
BHP Billiton; Global mining market;
Aluminium refineries in South Africa; Coal
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Industry Apparel and Accessories Pedagogical Objective focusing on managing business travel for
S T R A T E G Y – II
Retail corporate clients worldwide. Its
Reference No. GRS0063
• To discuss the growth strategies of Pop competency lies in the optimisation of
Year of Pub. 2004
Idol, which is leveraging on its corporate travel budgets by designing and
Teaching Note Not Available
experience as a content provider to implementing customised travel
Struc.Assign. Not Available
international television media industry. management programmes. With annual
Industry Television Production and sales of $11.5 billion in 2003, Carlson
Keywords Wagonlit had become the second-largest
Distribution
New market entry strategy; Store location; Reference No. GRS0061 travel agency in the world after American
Customer segmentation; Discount fashion Year of Pub. 2004 Express.
retailer; US fashion retailing industry; Galne Teaching Note Not Available
Gunnar stores; European fashion retailing Struc.Assign. Not Available Pedagogical Objective
industry; Concept stores; Departmental
stores; Store size. Keywords • To discuss Carlson Wagonlit’s aggressive
global growth strategies based on
Pop Idol; American Idol; acquisitions and joint ventures, which
FreemantleMedia; RTL Group; Reality made it the second-largest travel agency
STAR TV in India: The Growth shows on the television; Idol series; The in the world.
Strategies format of idol series; Statistics of the idol
series; Acquisitions of Pearson Television; Industry Travel agencies and Services
From its nearly obscure status in India in The statistics of American Idol. Reference No. GRS0059
1991, STAR (Satellite Television Asia Year of Pub. 2004
Region) TV has reached a dominant Teaching Note Not Available
position, reaching 90% of the 40 million Constellation Energy: The Growth Struc.Assign. Not Available
Indian homes having cable and satellite
connections by 2004. With a sizeable
Strategies Keywords
portfolio of news, entertainment and Constellation Energy Group Inc. is a Global travel agency business; Customised
sports channels, both in English and Hindi, national supplier and service provider of travel management programmes; Accor
it secured a 62% share in viewership and a electricity and natural gas in the US. It group; Japan Travel Bureau; Top ten travel
50% share of the total advertising ranks 203 amongst the Fortune 500 agencies in the world; Prominent customers
revenues of the Indian television market. companies. By 2004, it had become the of Carlson Wagonlit Travel; Major
biggest power trader in the US. acquisitions and Joint Ventures (JV) of
Pedagogical Objective Carlson Wagonlit Travel; History of
• To discuss the growth strategies of STAR Pedagogical Objective Carlson Wagonlit Travel; Carlson Wagonlit
Travel’s growth in the Asia-Pacific; Maritz
TV that has made it the leader in the • To discuss the growth strategies of Corporate Travel; Groupe Protravel.
highly competitive television market in Constellation which is leveraging on its
India. experience as a competitive energy
marketer since its incorporation in
Industry Entertainment
1999. British Telecom: Driving Growth
Reference No. GRS0062 through Broadband
Year of Pub. 2004 Industry Energy Trading and Marketing
Teaching Note Available Reference No. GRS0060 Since 2001, British Telecom Plc. (BT),
Struc.Assign. Available Year of Pub. 2004 the UK’s leading telecommunications
Teaching Note Not Available carrier, has been struggling to reduce its
Keywords high debt levels. Unlike its competitors, it
Struc.Assign. Not Available
News Corporation; Cable television has no presence in the mobile telephony
business in India; STAR (Satellite Keywords market. CEO Ben Verwaayen discovered
Television Asia Region) TVs advertising Utility companies in the US; Power trading that broadband internet services could be
revenues in India; STAR TV’s viewership companies in the US; Constellation the company’s growth-driver. Apart from
share in India; STAR TV’s initial years in Nuclear LLC; Business segments of moving towards 100% broadband coverage
India; STAR channels in India; MTV (Music Constellation Energy Group; Expansion for every community in the UK by 2005,
Television) India; Channel [V]; STAR’s strategies of Constellation Energy Group; BT is betting on three ambitious broadband
growth plans in India; Media competition The Energy market in the US; Wisconsin initiatives to bring in greater revenues –
in India; Direct-to-home (DTH) satellite Energy Corporation; Constellation Group’s 21st Century Network, BT Communicator
television distribution system; STAR TV’s strategic alliances; The generating facilities and Project Bluephone.
market share in India. of Constellation Energy Group Inc.;
Financials of Constellation Energy Group Pedagogical Objectives
Inc; Business wise revenues of Constellation • To discuss BT’s turnaround between 2001
FreemantleMedia’s Pop Idol: Energy Group Inc.; The energy value chain and 2004 from a telecom service
The Growth Strategies for Constellation Energy Group Inc.; provider to a dominant player in
Companies of Constellation Enterprise; broadband Internet services
The Idol series, the international format Future contracts of Constellation Energy
of Pop Idol, a UK-based national talent Group Inc. • To discuss BT’s future plans to drive
search for the best solo singer, is jointly broadband penetration and create
handled by FreemantleMedia and 19 Group. products and services that would help
The Idol series has got the maximum enable its customers in utilising
Carlson Wagonlit Travel: The
number of nominations amongst all reality broadband
TV shows in the Emmy awards and has a
Growth Strategies
• To discuss the company’s shifting
total audience of 110 million across the Started in 1994, Carlson Wagonlit Travel revenue model and the regulatory issues
globe. specialises in travel management, primarily it currently faces.
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Industry Telecommunications make further investments in Russia by USA’s Banking Industry’s Growth
Reference No. GRS0058 setting up a beer brewery in the Urals. Strategies: CitiGroup’s
Growth Strategies
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Industry Consumer Electronics Canon: Fujio Mitarai’s “Excellent marketing in order to protect their
Global Corporation Plan”
S T R A T E G Y – II
Reference No. GRS0053 customer base.
Year of Pub. 2004
Teaching Note Not Available The world’s leading maker of copiers and Pedagogical Objectives
Struc.Assign. Not Available printers, Canon Inc., reinvented itself from
an unwieldy conglomerate burdened with • To discuss the strengths of BPCL as an
Keywords money-losing subsidiaries into a globally oil marketer over the years, and the
Samsung India Electronics Limited (SIEL); focused 21 st century company. Fujio initiatives taken by the company in the
Samsung Electronics Company Limited; Mitarai, who took over as the President in wake of changes in the business
Samsung India Software Operations (SISO); 1995 when the company was faced with a environment
Millennium digital campaign; Samsung difficult operating environment, was given
• To discuss the challenges faced by BPCL
Electronics India Information and the credit for bringing back the lost glory
Telecommunications Company (SEIIT); of the company. His first initiative was to • To discuss BPCL’s foray into the
Samsung’s timeline in India; Entry of promote the ‘excellent global corporation upstream sector of exploration and
Samsung into India; Common business plan’. The plan was divided into two phases: production consequent to the
strategies of Korean companies in India; Phase (I) (1996-2000) and Phase (II) deregulation, and the crude supply
Samsung sponsoring Indian sports; A (2001-2005). Phase (I) of the business plan scenario
competitive landscape for Samsung in emphasised on improving the company’s
financial situation by cutting costs, taking • To discuss the following points: (1) the
India. growth motives of companies in a
care of profitability of the entire Canon
Group, and creating more competitive regulated and a deregulated environment;
products. Phase (II) of the ‘excellent global (2) oil industry economics and the pros
Ranbaxy Laboratories: The corporation plan’ aimed at expanding the and cons of vertical integration in an
Winning Chemistry company globally and shifting to overseas industry such as oil and gas; (3) analyse
production. the changes in the oil industry structure
In February 2004, Indian pharmaceutical due to deregulation and how it affects
major Ranbaxy Laboratories had achieved new and established companies; (4)
the unique distinction of crossing the Pedagogical Objectives
SWOT (strengths, weaknesses,
billion-dollar mark in annual sales. The • To discuss the initiatives taken up by opportunities and threats) analysis of
company was now in the implementation Fujio Mitarai under the ‘excellent global BPCL; and (5) analyse the rationale
phase of its ‘vision garuda’ that aimed to corporation plan’ to bring back the lost behind BPCL’s foray into the
make the company achieve US$5 billion glory of Canon Inc. exploration and production sector.
in annual sales by 2012. Ranbaxy’s strategy
was to be prepared for the International • To discuss the future plans of Fujio Industry Oil, Gas and Energy
Patent Law (IPL) regime to be Mitarai for the further growth of the Reference No. GRS0050
implemented from January 2005, by a company. Year of Pub. 2004
combination of increased spending in basic Teaching Note Not Available
Industry Printing and Imaging Struc.Assign. Not Available
research, generic drugs and global
Equipment
expansion. Keywords
Reference No. GRS0051
Year of Pub. 2004
Pedagogical Objectives Teaching Note Not Available
Bharat Petroleum; Oil industry in India;
Upstream sector; Downstream sector;
• To discuss the competitive scenario of Struc.Assign. Not Available
Regulatory environment; Reorganisation;
the Indian pharmaceutical industry Keywords Petroleum industry value chain; Energy
sector; Competition.
• To discuss how Ranbaxy is positioning Canon; Fujio Mitarai; Excellent global
itself for the future. corporation plan; Canon under Fujio
Mitarai; Consolidated accounting system;
Industry Pharmaceuticals Manufacturers
Management reform committee; Profit- American Express: Charging into
Reference No. GRS0052
Year of Pub. 2004 first policy; Cell production system; Just- the Credit Card Industry
Teaching Note Not Available in-time system; Xerox; Phase (I) excellent
The 154-year-old American Express
Struc.Assign. Not Available global corporation plan; Phase (II)
Company (AmEx), is all poised to shake
excellent global corporation plan;
Keywords the US credit card market by taking on the
Research and development; Kyosei;
two card giants – Visa and MasterCard –
Management strategy committee.
Ranbaxy Laboratories Limited; Growth head-on. AmEx is planning to leverage on
strategy; The Indian pharmaceutical the antitrust ruling against the two giants
industry; International Patent Law; for barring other banks from issuing the
General Agreement on Trade and Tariffs Bharat Petroleum: Way Forward credit cards of other companies. It hopes
(GATT); Dr. Parvinder Singh; Trade related that the US apex court will uphold the ruling
In 2004, Bharat Petroleum Corporation
aspects of intellectual property rights and create competition for the first time
Ltd. (BPCL), was one of the leading state-
(TRIPS); Generic drugs; Product patents; in the US credit card market, which for a
controlled oil retailing companies in India.
process patents; Mergers and acquisitions; long time has been a duopoly.
The case talks about the evolution of the
Research and development; Blockbuster
oil industry, its structure, its changing
drugs; Reverse engineering; Global
regulatory environment, the resulting Pedagogical Objective
expansion strategy.
competitive scenario and its implication • To discuss the strategies of AmEx to
for BPCL. With the partial liberalisation launch its own credit card in direct
of the industry and the entry of private competition with Visa and MasterCard
players, state-owned downstream and the possible outcomes of this
marketers were forced to focus on initiative.
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Industry Banking and Financial national telephony to corporate voice providers; Global hosted CRM applications
Services services. By May 2004, SingTel, had a market; Business model of Salesforce; Marc
Growth Strategies
Reference No. GRS0049 market capitalisation of $24 billion with Benioff; Application Service Provider
Year of Pub. 2004 investments in over 20 countries. (ASP) model; Siebel; PeopleSoft; Sforce
Teaching Note Not Available 2.0; CRM applications from
Struc.Assign. Not Available Pedagogical Objective Salesforce.com; Prominent customers of
Salesforce.com.
Keywords • To discuss the growth and expansion
Credit card business in the US; Visa strategies adopted by SingTel since its
inception while remaining focused on
International; MasterCard Incorporated;
its domestic market. Emirates: The Ambitions and
Diner ’s Club; Charged cards’ Challenges
BankAmericard; Antitrust lawsuit against Industry Telecommunication Services
Visa and MasterCard; Kenneth I Chenault; Reference No. GRS0047 Emirates, established in 1985 in Dubai, is
Major credit card companies in the US. Year of Pub. 2004 one of the fastest growing airlines in the
Teaching Note Not Available world. Despite terrorism in the Middle East
Struc.Assign. Not Available countries, SARS (Severe Acute Respiratory
Telecom Italia Mobile: Making Syndrome) and the Iraq war, Emirates has
Keywords increased its passenger count and revenues
Profits in a Mature Market significantly. As of 2004, it was the fifth-
SingTel Group; Temasek Holdings Ltd;
Telecom Italia Mobile (TIM) was the Liberalisation of Singapore highest profitable company in the world.
largest mobile operator in Italy – a mature telecommunication industry; Cable & Apart from reinforcing Dubai’s position
market with mobile phone penetration Wireless Optus; Telecommunication in as an international aviation hub, Emirates
levels exceeding 90%. Despite intense South East Asia; SingTel’s growth strategies; is rapidly expanding in America and Europe
competition, the company was one of the SingTel’s domestic market; Regional to overtake its competitors like Singapore
most profitable mobile phone companies acquisitions of SingTel; Managed Hosting Airlines and Qatar Airways.
in Europe. It sustained its revenue growth Services (MHS); SingTel’s global presence;
in the saturated market through constant SingTel’s portfolio of services; Subsidiaries Pedagogical Objective
innovation and aggressive marketing and affiliates of SingTel Group; SingTel’s
strategies. • To discuss the growth plans of Emirates
service network; SingTel’s group structure; to become one of the leading airlines in
SingTel’s international network. the world and gain a sustainable
Pedagogical Objectives competitive edge over its rivals.
• To discuss the competitive scenario in
the telecom industry in Italy and TIM’s Growth Strategies of Industry Airlines
Reference No. GRS0045
leadership role in introducing new and Salesforce.com Year of Pub. 2004
innovative services to its customer Teaching Note Available
Salesforce.com was founded in 1999 by the
• To discuss TIM’s future growth former Oracle Vice President Marc. The Struc.Assign. Available
opportunities and the challenges it faces company provides its Customer Keywords
in Italy, brought about by the Relationship Management (CRM) service
introduction of 3G (third generation) to businesses of all sizes and industries Airlines industry of the world; Emirates in
services and the advent of a new player. globally, which is used for generating sales Dubai; ‘Open skies approach’ of Dubai;
leads, maintaining customer information Dubai as an aviation hub; Qatar Airways;
Industry Telecommunication Services
and tracking customer interactions. With Locational disadvantages of Emirates;
Reference No. GRS0048
its services, which can be accessed through Competition of Emirates; Growth
Year of Pub. 2004
PCs, cellular phones and personal digital strategies of Emirates; Dubai International
Teaching Note Not Available
assistants, Salesforce.com aims to replace Airport; ‘Dubai Airport cares’; The fleet
Struc.Assign. Not Available
enterprise software packages with of Emirates; Routes of Emirates; Foray of
Keywords outsourced services. The company, which Emirates in China.
has emerged as a market leader in hosted
Telecom Italia Mobile (TIM); Innovation CRM has seen its annual revenue increase
as growth strategy; Competitive growth from $5.4 million in 2001 to $96 million
strategy; Italian mobile market; Il Datang International Power
in 2003.
Telefonino; Global System for Mobile Generation: China’s Energy
Communication (GSM); Vodafone Giant’s Growth Strategies
Pedagogical Objective
Omnitel; Wind Telecommunicazioni Spa;
Datang International Power Generation
2G (second generation); 3G (third • To discuss the pioneering business model
Company (Datang), formerly Beijing
generation); Short Messaging Service and the aggressive growth strategies of
Datang Power Generation Corporation, is
(SMS); EDGE (enhanced data rates for Salesforce.com that enabled it to be a
one of China’s independent power
global evolution); Freemove alliance; company to reckon with.
producers, which is involved in the
Multimedia Messaging Service (MMS);
Industry Customer Relationship construction of power plants, repairing
Marco De Benedetti; Mature markets;
Management (CRM), power equipment and the sale of electricity.
Customer Relationship Management
Marketing and Sales Software Between 1997 and 2003, it raised its
Reference No. GRS0046 installation capacity from 3,150
Year of Pub. 2004 megawatts to 7,370 megawatts.
Singtel’s Growth Strategies Teaching Note Not Available
S T R A T E G Y – II
power demand in China. company has witnessed a higher-than-the- innovations; Lean manufacturing; Cost
industry average growth rate. Alcoa has cutting strategies.
Industry Independent Power
also forayed into the Latin American and
Production
the African markets while downsizing its
Reference No. GRS0044
operations in North America – its
Year of Pub. 2004 Costco Warehousing
traditional stronghold.
Teaching Note Not Available Corporation: Strategies for
Struc.Assign. Not Available Growth
Pedagogical Objective
Keywords In 2003, Costco was the largest wholesale
• To discuss the global growth strategies
club operator in the US, ahead of Sam’s
Independent Power Producers (IPP) of of Alcoa through acquisitions and
Club (Wal-Mart) and BJ’s. Costco had
China; Power demand in China; Power effective cost management.
earned a distinct identity for offering a
generation in China; Chinese energy
Industry Metals and Mining wide variety of products at deep discount
companies; State Electricity Regulatory
Reference No. GRS0042 prices. The company was able to undercut
Commission (SERC); Ownership structure
Year of Pub. 2004 its competition in terms of price, by setting
of Dangtang; Zhai Ruoyu; Business strategy
Teaching Note Not Available up warehouse style stores without any
of Dangtang; Dantang’s expansion plan
Struc.Assign. Not Available deluxe fixtures, sourcing products directly
between 1996 and 2002; Expansion
from the manufacturers, and selling in bulk.
strategy of Dantang; Cost control strategy Keywords
of Dangtang; Policies adopted by Chinese
government to boost power supply and Alcoa; Aluminium production; Mining; Pedagogical Objectives
demand; Reforms in Chinese power industry Vertical integration; Alumina; Bauxite; Paul
• To discuss the growth of Costco, and
O’Neil; Alain Belda; Alcoa business systems;
how various strategies were employed
Alcoa in China; Alcoa in Latin America;
by the company to create a competitive
Alcoa in Russia.
AT&T: Gambling on its Growth advantage in the market
Strategies • To discuss the nature of competition that
In July 2004, American Telephone and Toyota’s Expansion Strategies in Costco faces and what innovative ideas
Telegraph Company (AT&T) pulled out Europe it came up with to counter them
from its traditional business of providing • To discuss the factors that needs to be
local and long distance communication to Toyota Motor Corporation, the leading
considered when expanding into
its consumers. It decided to shift its focus Japanese auto manufacturer is expanding
international markets.
to corporate customers. The decision was its presence in the European market. It is
one of the many steps taken by the increasing its production facilities in the Industry Warehouse Clubs and
telecommunication giant to regain the continent and is manufacturing customised Superstores
status of being the number one in the US models like Yaris and Avensis. With its much Reference No. GRS0040
communication industry. renowned manufacturing and management Year of Pub. 2004
processes, the company was able to Teaching Note Not Available
Pedagogical Objectives strengthen its base in the European market. Struc.Assign. Not Available
With a successful presence in Europe,
• To discuss the various strategies adopted Toyota will be able to compensate for the Keywords
by AT&T from 1984 to 2004 losses incurred in its domestic market and Wholesale club operation in the US;
reduce its dependence on its US business. Supermarkets in the US; Discount stores
• To discuss AT&T’s future growth
challenges. in the US; Items sold in Costco; Warehouse
Pedagogical Objectives club industry in the US; Ancillary industries
Industry Telecommunications Services of warehouse clubs in the US; The growth
Reference No. GRS0043
• To discuss the growth strategies of
of Costco; Membership at Costco;
Year of Pub. 2004
Toyota in Europe in the wake of
Operating expenses at Costco;
Teaching Note Not Available
currency fluctuations and new market
Merchandising strategy at Costco; Growth
Struc.Assign. Not Available
needs
strategy of Costco; Competitors of Costco;
• To discuss the history of the company Sam’s Clubs; Wal-Mart.
Keywords
in Europe
American Telephone and Telegraph
• To discuss the localisation strategies of
Company (AT&T); Regional bell operating
Toyota, and its manufacturing and PKN Orlen: Polish Energy Giant’s
companies; Restructuring strategy;
product innovations, which are in tune Growth Strategies
National Cash Register Company; Mergers
and acquisitions; Alliances and joint with the needs of the market.
Poland’s largest oil refining and fuel
ventures; Growth strategy; Cingular; Voice Industry Automobile retailing company, PKN (Polski Koncern
over Internet protocol services; David V Reference No. GRS0041 Naftowy) ORLEN has grown rapidly since
Dorman; Wi-fi technology; Year of Pub. 2004 its establishment in 1999. With the aim of
Telecommunications industry; AT&T Teaching Note Not Available becoming a major oil company in Europe,
DigitalOne; Lucent Technologies. Struc.Assign. Not Available the company has forayed into foreign
markets through acquisitions of companies
Keywords like Unipetrol and the retail business of
Alcoa: The US Aluminum Giant’s Toyota’s European expansion; British Petroleum.
Growth Strategies Customisation; Quality control;
Localisation; Currency fluctuations; Pedagogical Objective
Alcoa, the largest aluminium producer in European auto market; Selection of
the world, accounts for 70% of the US and • To discuss the growth strategies of PKN
manufacturing locations; Just-in-time;
17% of the world’s total primary aluminium ORLEN in Western and Central Europe’s
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energy markets through a ‘value based a leader in the global helicopter market. SABMiller’s Inorganic Growth
management project’. Strategies
Growth Strategies
70
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Industry Fixed-line Voice Services companies. Subsequent to a merger with harbour; Privatisation; National Ports
S T R A T E G Y – II
Providers Norwest Corporation of Minnesota, Wells Authority; Portnet; Spoornet; Propnet;
Reference No. GRS0034 Fargo’s product portfolio was broadened Transtel; Transwerk; South African ports
Year of Pub. 2004 offering a scope for cross selling. operations; Petronet; Metrorail;
Teaching Note Not Available Freightdynamics; Business environment in
Struc.Assign. Not Available Pedagogical Objectives South Africa.
Keywords • To discuss the efficacy of Wells Fargo’s
cross selling strategies
e.Biscom SpA; FastWeb; Telecom Itailia; Essel Propack: From Indian to
Telecom infrastructure in Italy; Video on- • To discuss the benefits and pitfalls of Transnational
demand (video Internet); Asymmetric pursuing such a strategy.
digital subscriber line technology; With a 30% share of the 12.8 billion units
Broadband telecommunication; Subsidiaries Industry Banking and Financial global tubes market, India-based Essel
of e.Biscom; Top telecom companies in Services Propack is the world’s largest laminated
Italy; Group structure of e.Biscom; Reference No. GRS0032 tubes manufacturer. Its lamitubes are used
FastWeb television service; e.Biscom Year of Pub. 2004 to package toothpastes, cosmetics and
operations in Germany. Teaching Note Not Available pharmaceuticals made by FMCG (Fast
Struc.Assign. Not Available Moving Consumer Goods) majors like P&G
Keywords (Procter & Gamble) and Unilever. Essel’s
MphasiS BFL: The Indian IT international expansion was given a thrust
Wells Fargo’s cross selling strategies; by two factors – the handing over of the
Services Company Growing Gramm-Leach-Bliley Act; Mergers and management in 1995 to a professional
through BPO acquisitions; Norwest Corporation; Going management team led by Cyrus Bagwadia,
Two negatives make a positive. This for gr-eight; Distribution channels; and its acquisition of Switzerland’s Propack
indelible axiom in mathematics seems to Banking and financial services; Wholesale AG.
hold good even for businesses. MphasiS BFL banking group; Investment banking;
stands as a testimony to this fact. The Treasury management; Strategy; Pedagogical Objectives
companies MphasiS and BFL Software Community banking; Home buyer ’s
package; Wells Fargo packs; Business • To discuss some of the critical factors
Limited were facing troubled times with
service packages. that contributed to Essel’s rapid growth
the former lacking credentials as a reliable
in the past and the company’s plans for
software service provider and the latter,
the future
though with credentials, lacking the
marketing muscle. The combined company Transnet: South Africa’s Transport • To discuss the challenges and problems
launched itself on a differentiated service Monopoly faced by a small domestic player when it
platform – integrated solutions – goes international
combining its IT services and Business For a decade, South Africa’s Transnet
Process Outsourcing (BPO) expertise. enjoyed absolute monopoly over the • To discuss the issues involved in making
With its BPO wing, ‘MsourcE’ growing country’s transportation sector. international mergers work in the face
strong, MphasiS’ initiative for an Complacency on the part of Transnet’s of cultural and technological differences.
integrated model seems to have reaped the management led to an increase in Industry Packaging
full benefits of MsourcE’s operations. competition. Meanwhile, the company was Reference No. GRS0030
heading towards a deep financial crisis. The Year of Pub. 2004
Pedagogical Objective new CEO, Maria Ramos, who strongly Teaching Note Not Available
believed that one couldn’t have a better Struc.Assign. Not Available
• To discuss the growth achieved by tomorrow if one was thinking about
MphasiS BFL through an integrated yesterday all the time, considered various Keywords
solutions approach which brought options to revive the company.
together its IT and BPO expertise. Essel Propack; Subhash Chandra; Ashok
Goel; Lamitubes; Overseas acquisitions;
Industry Computer Software, Pedagogical Objectives Cyrus Bagwadia; Pechiney; Danville; P&G
Consulting and IT Services • To discuss the problems faced by large (Procter & Gamble) packaging; Co-
Reference No. GRS0033 monopolies like Transnet extruded tubes.
Year of Pub. 2004
Teaching Note Not Available • To analyse the causes of the near
Struc.Assign. Not Available financial crisis at Transnet and the
probable revival measures. IBM’s Growth Strategies in India
Keywords
Industry Transport When the homegrown IT vendors were
MphasiS BFL; Jaithirth (Jerry) Rao; Reference No. GRS0031 thinking global, IBM India chose to think
National Association of Software and Year of Pub. 2004 local for its growth in the country. It
Services Companies (NASSCOM); SEI Teaching Note Not Available offered its three successful business product
CMM level 4; MsourcE; Integrated Struc.Assign. Not Available lines, ‘strategic outsourcing’, ‘linux’, and
software solutions; Virtual tax room; Wipro ‘technology on-demand’ to the targeted
Spectramind; Infosys Progeon; Indian IT Keywords customers, such as the state governments
services companies. and the Small and Medium-sized Enterprises
Transnet Limited; South African transport
(SMEs). An outsourcing deal with Bharti
monopoly; African National Congress;
Televentures and acquisition of Daksh
Business strategy; Parastatals; public
eServices proved IBM India’s continued
Wells Fargo’s Cross Selling corporations; Maria Ramos; Competition
commitment towards the Indian market
Strategies landscape of South Africa’s transport
and its steady progress towards its targeted
industry; Turnaround strategy; South
Wells Fargo, established in 1852, is one of $1 billion in revenue.
African railways; airways; road transport;
the US’ largest financial services
71
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Pedagogical Objective the $1 billion mark in global sales – a target (SA Group); Civil Aviation Administration
that it had set for itself in 1993. Ranbaxy of China (CAAC); China Southern Air
• To discuss the focussed growth strategy
Growth Strategies
is among the top ten generics companies Holding Company (CSAHC); Commercial
of IBM in India through its e- in the world with a strong presence in bulk airlines in China; Restructuring of the
governance and SME initiatives. drugs and branded formulations. Chinese airline industry; Subsidiaries of
Industry Information Technology CSA; Civil Aviation in China; Global civil
Services Pedagogical Objectives aviation industry; Air Transport world
Reference No. GRS0029 magazine; Growth of the Chinese civil
Year of Pub. 2004
• To discuss the growth strategies of aviation industry; China’s entry into the
Teaching Note Not Available
Ranbaxy that catapulted it to a World Trade Organisation (WTO);
Struc.Assign. Not Available
prominent position on the global Aerospace Industry Awards.
pharmaceutical map
Keywords
• To discuss the company’s initiative to
IBM; India; IBM India; IBM India research sustain its leadership in the light of the Esquel’s Vertical Integration
laboratory; Strategic outsourcing; Linux; product patents being recognised from
Technology on-demand; Small and 2005 onwards according to the World The Esquel Group, based at Hong Kong,
Medium-sized Enterprises (SMEs); IBM Trade Organisation regulations. has been a cotton textile and apparel
Global Financing Division; e-governance; manufacturer since 1978. In an industry,
Industry Pharmaceuticals Manufacturers where its competitors increasingly rely on
‘SAN made simple’; IBM express; India
Reference No. GRS0027 outsourcing and specialisation, the
smart centre.
Year of Pub. 2004 company does everything in-house, like
Teaching Note Not Available cotton farming, spinning, weaving, dyeing,
Struc.Assign. Not Available knitting and distribution. Vertical
Chinadotcom’s Growth integration of its activities provided Esquel
Strategies Keywords
with more control over the quality of its
Ranbaxy Laboratories Limited; Global products, reduced lead times and enabled it
Chinadotcom, which was started in the late
generics market; Active pharmaceutical to attract high profile names in the fashion
1990s, had been the pioneer in China’s
ingredients; Ranbaxy Nigeria Limited; and garment industry.
Internet business. It was the first Chinese
Abbreviated New Drug Application
portal to be listed on Nasdaq. However, with
the global slowdown of the Internet industry
(ANDA); Novel Drug Delivery System Pedagogical Objectives
(NDDS); New Drug Discovery Research
in 2001, Chinadotcom’s revenues declined • To discuss the possible merits and
(NDDR); Controlled drug release
rapidly. This prompted the company to shift demerits that could be derived from
technology; Proprietary prescription
its focus from being an Internet portal to vertical integration
products; Product patents in India after
software development and outsourcing
2005; Indian Patents Act 1970; Branded • To discuss the opportunities and
businesses. In 2003, Chinadotcom clocked
generics market; National Institute of challenges that textile and clothing
a profit of $16 million against a loss of $18
Pharmaceutical Education and Research manufacturers in the developing
million in the previous year.
(India); Once-a-day cirpofloxacin; General countries might face if textile quotas are
Agreement on Tariffs and Trade (GATT) eliminated.
Pedagogical Objective
• To discuss how Chinadotcom successfully Industry Apparel
Reference No. GRS0025
transformed itself from a web portal to Growth Strategies of China Year of Pub. 2004
an enterprise software provider and Southern Airlines Teaching Note Not Available
mobile applications company.
In 2001, China Southern Airlines (CSA) Struc.Assign. Not Available
Industry Information Technology
Services
became the fifth-largest airline in Asia and Keywords
twenty-first in the world. CSA, which was
Reference No. GRS0028 Esquel’s vertical integration; Backward and
started under the direct supervision of the
Year of Pub. 2004 forward integration; Low-cost advantage;
Civil Aviation Administration of China,
Teaching Note Not Available Electronic data interchange; Long staple
along with its subsidiaries, became the
Struc.Assign. Not Available cotton; spinning mills; Supply chain
largest airline in China in 2003, carrying
Keywords 20 million passengers. management; China’s textile industry;
Distribution and logistics; Multifibre
Internet business in China; The dotcom Pedagogical Objective agreement; Merchandising; sweatshops;
bubble burst; Enterprise software providers General Agreement on Tariffs and Trade
in China; Mobile applications companies • To discuss how the corporate strategies (GATT); Istanbul declaration on
in China; Enterprise Resources Planning of CSA helped it to conquer new heights elimination of quotas; Textile quotas;
(ERP); Customer Relationship in the domestic and international Marjorie Yang; Nike; Tommy Hilfiger;
Management (CRM); Supply Chain aviation business despite numerous Marks and Spencer; Hugo Boss.
Management (SCM); Growth of Chinese challenges since the late 1990s.
software companies; Hi-tech
Industry Airlines
manufacturing sector in China; Major
Reference No. GRS0026 Bose Corporation: Riding the
portals in China before the dotcom burst;
Survival tactics of major Chinese portals Year of Pub. 2004 Sound Wave
Teaching Note Not Available
in late 1990s; Acquisitions of Chinadotcom. Founded in 1964 by Amar Gopal Bose, Bose
Struc.Assign. Not Available
Corporation was the market leader in high-
Keywords end audio equipment. Focusing on
Growth Strategies of Ranbaxy China southern Airlines group (CSA
innovation and excellence in quality, the
firm was able to come up with products
Ranbaxy Laboratories Limited, India’s Group); Baiyun International Airport; Pearl
that commanded a premium. For a long
largest pharmaceutical company, reached River Delta region; Southern Airlines Group
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time, Bose had enjoyed customer loyalty Keywords Pedagogical Objective
S T R A T E G Y – II
and trust in this niche segment in which
they operated. However, in recent years Haier; Total quality control; Merloni; • To discuss Bharat Forge’s operations and
the company has been facing a number of Sanyo; SAMPO; Samsung; Mitsubishi; the strategies adopted by the company
challenges to maintain its position in the Menghetti Spa; General Electric (GE); to emerge as a cost-effective, globally
market. Whirlpool; Wal-Mart; Sears; Zhang competitive player with an established
Ruimin; World Brand Laboratory; Haier quality process.
Europe.
Pedagogical Objectives Industry Automobile
Reference No. GRS0021
• To discuss the company’s philosophy Year of Pub. 2004
of single-minded focus on research and La-Z-Boy: Changing Style Teaching Note Not Available
better products Struc.Assign. Not Available
Since 2003, La-Z-Boy, the American icon
• To discuss how over the years, of comfort furniture, best known for its Keywords
technological excellence and patents recliners, is witnessing a stagnant growth.
obtained have been a driving force behind The growth of the upholstery segment has Indian automotive industry; Original
Bose corporation’s success become stagnant and the casegoods equipment manufacturers; Cost
segment is reporting declining sales. Besides competitive; Bharat Forge Limited; Auto
• To discuss whether Bose can retain its component industry; Debt restructuring
position in the market by still focusing the US recession, the company has been
facing tough competition from its global exercise; Mergers and acquisitions;
on technology or does it have to change Passenger car market; Steel forgings;
its approach to focus more on marketing competitors, and finding it difficult to keep
up with the consumer preferences of its Business strategy; Diversification; Kalyani
than research. Utilities Private Limited; Crankshafts;
younger generation customers. To stay
Industry Audio Equipment tuned with the changing times, the Auto ancillaries; Outsourcing hub.
Reference No. GRS0024 company decided to launch a new product
Year of Pub. 2004 range with competitive pricing and designs.
Teaching Note Not Available Irkut’s Expansion Strategy
Struc.Assign. Not Available Pedagogical Objective
With the collapse of the erstwhile Soviet
Keywords • To discuss the product modernisation Union in 1991, IRKUT Corporation
Amar Gopal Bose; High-end audio strategy adopted by La-Z-Boy to (IRKUT), which was established in the
equipment; Premium prices; New enhance its growth and gain sustainable 1930s to manufacture military aircrafts in
technologies through research; Bose vs competitive advantage over its Russia was witnessing formidable problems.
Harman; Research focus; Marketing focus. competitors. IRKUT was privatised in 1992 and with
the decline of defence expenditure of the
Industry Home Furniture
Russian government, the company decided
Reference No. GRS0022
to focus on manufacturing commercial
Haier: Developing a Global Year of Pub. 2004
aircrafts. To raise the necessary funds
Brand Teaching Note Not Available
required for its new venture, IRKUT
Struc.Assign. Not Available
decided to launch its Initial Public Offering
Haier started its operations in China in
1984 as a refrigerator manufacturer and Keywords (IPO) by the end of March 2004, the first
ever IPO in the defence industry of Russia.
by 1991, it was a popular brand in China La-Z-Boy; Todd Oldham; Recliners;
with various products in its kitty. It soon Casegoods; Upholstery segment; Floral City
forayed into the production of other Pedagogical Objective
Furniture; Edward M Knabush (Edward) and
domestic appliances like microwave ovens, Edwin J Shoemaker; Kurt L Darrow; La-Z- • To discuss the expansion strategies
washing machines and air conditioners. In Boy Furniture Galleries; La-Z-Boy adopted by IRKUT to transform itself
the early 1990s, the company started Residential; Oasis; Cocooning chairs; Arc; from a state controlled military aircraft
exporting its products to the American, Snap sofa; Hi-lo matic. manufacturer to a profitable commercial
European and Japanese markets. To create producer.
its own brand in the foreign markets, Haier
established overseas manufacturing units Industry Aircraft Manufacturing
and also started employing the local Bharat Forge: MNC in the Making Reference No. GRS0020
people. By 2002, Haier had become the Year of Pub. 2004
Bharat Forge is a leading Indian forgings
fifth-largest manufacturer of consumer Teaching Note Not Available
manufacturer that supplies axles, forgings,
appliances in the world and the largest in Struc.Assign. Not Available
and other auto components to global
the global refrigerator business. original equipment manufacturers. It Keywords
started in 1961 and became the second
Pedagogical Objective largest forgings manufacturer in the world IRKUT Corporation; Irkutsk Aviation
by 2003 with the acquisition of Carl Dan Plant; Alexey Fedorov; Su-30 and Su-27;
• To discuss Haier’s efforts to build a global Irkutsk Aviation Industrial Association;
Peddinghaus, a German forging major. In
brand and dispel the myth that Chinese Kaskol Group; Multipurpose unmanned
2003, the company was chosen by Ford
products are generally of low-quality and aerial system; Multirole transport airplane;
Motor Company and General Motors to
that Chinese companies earn market BE-200; United Aircraft Manufacturing
supply components for their ‘global
share only through cheap products. Holding; Yakovlev; Hawkins and Powers
passenger car programme’. Having
Industry Home Appliances undergone comprehensive financial Aviation; Yak-130; European Aeronautics
Reference No. GRS0023 restructuring over a five-year period, Defence and Space Company; Rolls Royce.
Year of Pub. 2004 between 1998 and 2002, the company has
Teaching Note Not Available been steadily expanding its business
Struc.Assign. Not Available interests in Europe, North America, and
China.
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Huawei Technologies: Growth Mamonde; Laneige; Lope; SulWhaSoo; Industry Not Applicable
Strategies Castelbajac; Fast and focus strategy; Kyung Reference No. GRS0016
Growth Strategies
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Shanghai Baosteel Group were in Hong Kong and the People’s Keywords
Corporation
S T R A T E G Y – II
Republic of China (PRC) was its major
customer. Despite hurdles like the Asian Chinadotcom; Restructuring strategy;
Shanghai Baosteel Group Corporation or financial crisis in 1997, a ban by the Dotcom bust; Mergers and acquisitions;
Baosteel was set up by the Chinese western countries on imports of food America On-line (AOL); Chinadotcom
government near the Shanghai port in products of animal origin from China and Corporation; Xinhua News Agency; Asia
1978, when Deng Xiaoping initiated the global economic slowdown, Pacific Andes Internet industry; Internet service
transformation of the Chinese economy surged forward successfully to end fiscal provider; Software development; Praxa
from a rigid centrally planned economy to 2003 at HK$2,141 million with a net profit Limited; Three-dimensional business
a market-oriented economy. Besides iron of HK$73.3 million. It also planned to model; Business outsoucing; e-business
and steel, the group also forayed into trade, expand in other developing countries to strategies and solutions; Taiwan; China and
finance, information, engineering increase its global market share and gain Hong Kong.
technology, transport, chemicals, real sustainable competitive advantage through
estate and services. Baosteel had 45 wholly synergy.
owned subsidiaries with its markets spread Merck in 2003
over Brazil, France, Germany, Hong Kong, Pedagogical Objective
Japan, Russia, Singapore, South Africa and In 1990s, Merck had a double-digit profit
the US. By 1999, Baosteel had become • To discuss the growth strategies of growth rate. Since 2001 its growth fell to
China’s largest steel manufacturer. With Pacific Andes despite several hurdles and single-digit as competitors merged and
China’s accession to the World Trade its plans to increase its global market forged ahead. Analysts have predicted an
Organisation (WTO) in 2001 and the share. earnings growth rate of just 2% for Merck
subsequent opening up of the Chinese steel against 8% to 10% for the industry between
Industry Frozen and Canned Food 2001 and 2006. In the face of a weak R&D
industry to foreign players, Baosteel had
Reference No. GRS0013 pipeline and the loss of patent protection
to face tough competition in the domestic
Year of Pub. 2004 of several key products, Merck’s pipeline
as well as foreign markets. Despite
Teaching Note Not Available for new drugs is poor when compared with
competition, by 2003, Baosteel increased
Struc.Assign. Not Available its other counterparts. In this scenario will
its production capacity to 20 million tons
with total employee strength of 100,000. Keywords the company consider merging with other
However, Baosteel was soon witnessing companies to improve its R&D pipeline,
several problems like increased shipping Pacific Andes International Holdings save costs and boost growth and thereby
rates and rises in the price of iron ore in Limited; Growth strategies of Pacific win the trust of its investors?
China, due to excess demand and growing Andes; National Fish and Seafood Inc.;
domestic competition. Matlaw’s frozen seafood; Processed fish Pedagogical Objectives
and vegetable products; Market analysis
of Pacific Andes; Pelican food; Just in time; • To highlight Merck’s future R&D
Pedagogical Objectives prospects
Alaskan Pollock; Central Science
• To analyse the challenges faced by a Laboratory; Hazard Analysis and Critical
• To discuss the strategic options for the
typical government-owned organisation Control Point (HACCP); Logistics Hong
company to regain its lost momentum.
like Baosteel, when a closed economy Kong initiative; Seafood in China; China
like China is opened to foreign players International Fisheries Hong Kong Industry Pharmaceuticals Manufacturers
Limited; X.400 mail system. Reference No. GRS0011
• To discuss the competitive strategies of Year of Pub. 2004
Baosteel in the light of changes in the Teaching Note Not Available
business environment.
Chinadotcom after the Dotcom Struc.Assign. Not Available
Industry Steel Bust Keywords
Reference No. GRS0014
Year of Pub. 2004 Chinadotcom is a Chinese/Pan Asian Merck & Co. Inc.; Research and
Teaching Note Not Available Internet company. After the dotcom bust development; Blockbusters; United States
Struc.Assign. Not Available in 2000, it made progress in its strategic pharmaceutical industry; GlaxoSmithKline
re-positioning and continued to push its Novartis Pfizer Inc; Vioxx Cozaar Hyzaar;
Keywords evolution towards a broader base of higher Big pharma companies; Mergers and
Shanghai; Baosteel; Nippon; Arcelor; margin products and services. acquisitions; New molecular entities; United
Global steel industry; China; Nucor; Chinadotcom viewed China as a promising States Food and Drug Administration; New
Companhia Vale do Rio Doce (CVRD); Rio base for lower-cost development of drug application; Generic competition;
Tinto; Posco; Shougang Group; Gerdau; software products for distribution, Schering-Plough; Zocor Zetia.
Iron; Dofasco; Mitsui OSK Lines Ltd. implementation and integration by its own
(MOL). operations across its markets
internationally.
Novartis: From Barriers to
Blockbusters
Pedagogical Objective
Pacific Andes International
The 1996 merger of Sandoz Ltd. and Ciba-
(Holdings) Limited: Growth • To understand the survival strategy of
Geigy Ltd. to form Novartis AG, kicked
Strategies Chinadotcom during the dotcom crash
off a new era in the history of the global
and the repositioning strategies that the
Pacific Andes International Holdings pharmaceutical industry. The merger made
company adopted following the crash.
Limited (Pacific Andes), which started in Novartis Europe’s largest and the world’s
1986 with an aim to become a fully Industry Computer Software second largest pharmaceutical company.
integrated company in the global seafood Reference No. GRS0012 However, Novartis’ initial plans to focus
and vegetable business, achieved Year of Pub. 2004 on genetic engineering and agribusiness
considerable growth within a short span of Teaching Note Not Available backfired in 1998 owing to negative results
its inception. The company’s headquarters Struc.Assign. Not Available from its R&D testing. As a result, the
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company then shifted its focus to health Keywords vitamins, in 1997. Although the company
care – a more lucrative market. But Novartis achieved increased sales and profit, in 2002
Johnson&Johnson; Johnson’s baby powder;
Growth Strategies
could not gain a foothold in the US – the it witnessed losses in its nutritional
largest drug market – due to weak marketing Centocor; Monoclonal Anitbody supplements business. Jan Bennink, the new
and sales force. After Daniel Vasella, CEO Technology (Mab); Cypher Sirolimus-eluting chief executive officer, has embarked upon
of Novartis, revamped the company to give stents; Endgames curve; Natrecor; Stents; a massive restructuring plan to improve the
it a new organisational structure and Procrit; Tylenol; McNeil Laboratories; Alza company’s performance.
direction, the company came to be seen as Corporation; Scios Incorporated; Cordis
Corporation; Pentrax.
one among the big five pharmaceutical Pedagogical Objectives
companies.
• To discuss the reasons behind the losses
Pedagogical Objectives Growth Strategies of Best Buy in the nutritional supplements business
of Royal Numico
• To understand Novartis’ growth strategies Best Buy was founded by Richard M. Schulze
over the years and how the company as an audio retail store in 1966 and later on • To discuss Jan Bennink’s strategies to
overcame hurdles in its way moved into consumer electronics. Best Buy’s improve Royal Numico’s performance.
vision was to ‘make life fun and easy’ for its Industry Canned and Frozen Foods
• To understand the organisational changes customers by providing comprehensive Reference No. GRS0007
that Daniel Vasella brought in to place solutions to their entertainment and Year of Pub. 2004
the company in the pharmaceutical technology needs. In its 37-years of Teaching Note Not Available
industry’s big league. existence, the company faced numerous Struc.Assign. Not Available
Industry Pharmaceuticals Manufacturers challenges but managed to bounce back from
Reference No. GRS0010 every difficult situation. Throughout, the Keywords
Year of Pub. 2004 corner stone of the company’s strategy had
Royal Numico; Jan Bennink; Nutricia NV;
Teaching Note Not Available been its various ‘Concept Stores’,
Hans van der Wielen; Baby food business of
Struc.Assign. Not Available merchandising mix and technology
Numico; Clinical nutrition of Numico;
initiatives that improved the shopping
Keywords Vitamins; General Nutrition Company
experience for its customers and
(GNC); Ephedra; Acquisitions of Numico;
differentiated the company from its main
Novartis; Daniel Vasella; Gleevec or Glivec; Divestment strategy of Numico; Vitamex;
competitor, Circuit City. In 2003, Best Buy
Sandoz; Ciba-Geigy; Genetic engineering; Rexall Sundown; Unicity; Enrich
was the No.1 retailer of consumer
Focus on health care; Reorganisation at International.
electronics in the US and was ranked 91st on
Novartis; Life sciences strategy; Direct to
the Fortune 500 list with revenues of $20.9
customer marketing; US drug market;
billion.
Troubled agribusiness.
AngloGold’s Growth Strategies
Pedagogical Objectives AngloGold Limited (AngloGold), with its
J&J: Growth Strategies in the 21st • To highlight the growth of Best Buy since headquarters at Johannesburg, South Africa,
was formed in 1998 through the
Century its inception in 1966
consolidation of the African gold mines of
In the late 1990s, Johnson & Johnson (J&J), • To discuss how Best Buy had successfully Anglo American Plc. In 2000, AngloGold
well-known mainly for its consumer products leveraged on its differentiating strategies forayed into marketing of its gold products
like Johnson’s baby products, started to become the No.1 consumer electronics like jewellery, by starting its on-line portal,
focusing more on its pharmaceutical and retailer in the US. GoldAvenue. Throughout its short history,
medical devices segments. J&J grew rapidly Industry Consumer Electronics Retail
AngloGold’s rapid growth has been
in these two segments, enhancing its product Reference No. GRS0008
characterised by mergers and acquisitions.
portfolio through mergers and acquisitions. Year of Pub. 2004
With its announcement to merge with the
By the turn of the 21 st century, J&J had Teaching Note Not Available
Ghana-based Ashanti Goldfields Company
over 200 operating subsidiaries spread over Struc.Assign. Not Available
Ltd in 2003, AngloGold is poised to become
54 countries. Though the sales figures for number one in the global gold mining
2003 looked impressive at $41,862 million, Keywords industry.
investors sensed a tough future for the
Best Buy; Electronics retailing in the US;
company as the company did not have a
Consumer electronics and appliances; Circuit Pedagogical Objective
new product to offer till 2006.
City; Sears; Digital electronics; Andersen • To discuss the growth strategies of
Consulting; Entertainment software; Data AngloGold and how it plans to become
Pedagogical Objectives mining; Data warehousing; Concept stores the largest gold mining company in the
• To discuss J&J’s inorganic growth in the of Best Buy; Rhapsody; Brad Anderson; world.
21st century Richard Schulze; Superstores.
Industry Metals and Mining
• To analyse J&J’s initiatives to tide over Reference No. GRS0006
the impending difficulties and understand Year of Pub. 2004
Royal Numico and Jan Bennink Teaching Note Not Available
how J&J geared up to streamline its drug
development activities and generated By 2003, Royal Numico had its presence in Struc.Assign. Not Available
funds through cost-cutting measures. more than 100 countries after successfully Keywords
managing its baby food and clinical nutrition
Industry Pharmaceuticals Manufacturers
business for over a century. Throughout its AngloGold; Anglo American Corporation;
Reference No. GRS0009
history, its strategy included acquisitions of Sir Ernest Oppenheimer; Minorco; Bobby
Year of Pub. 2004
related companies to achieve a profitable Godsell; Mining value chain; GoldAvenue;
Teaching Note Not Available
international growth. To further leverage OroAfrica; Acacia Resources; Normandy;
Struc.Assign. Not Available
its nutritional supplements business, the Newmont; Ashanti goldfields; De Beers;
company forayed into a new segment, Obuasi; Vaal Reefs.
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Amazon.Com: From Books to Coles Myer; MetCash; Ezy banking; Project the three most promising insurance markets
Outsourcing Services
S T R A T E G Y – II
refresh; Electronic data interchange at in Asia-China, Japan and India.
Woolworths; Woolworths’ supply chain
From the era of the Internet boom, when it management; Homeshop.com; Greengrocer. Pedagogical Objective
was hailed as the ambassador of the New com; Worldwide retail exchange; Roger
Economy, to the final shakeout, Amazon Corbett; Aldi in Australia; Petrol retailing • To discuss the strategies adopted by AIG
has come a long way. Many people had at Woolworths. to become a major player in the Asian
predicted its collapse, but today, several big insurance industry.
retailers are seeking its expertise in
Industry Banking and Financial Services
e-commerce.
Growth Strategies of Banyan Tree Reference No. GRS0002
Year of Pub. 2004
Pedagogical Objectives As most of his family were running businesses Teaching Note Not Available
that were getting hit by low cost competitors Struc.Assign. Not Available
• To discuss the growth strategies of from other Asian countries, Ho Kwon Ping
Amazon from the days of book retailing (Ho) decided to venture into tropical luxury Keywords
to emerging as a service provider to resorts to create a brand for himself. He
retailers AIG; AIG in Asia; History of AIG; AIG’s
started Banyan Tree, with a solitary hotel
links with Asia; Insurance market in China;
• To discuss whether Amazon should shed resort in 1995 in Thailand. It was the first
Insurance market in Japan; Insurance
its core business of retailing and emerge to introduce the concepts of pool villas and
market in India; Current regulations for
as a pure service provider. tropical spas to the world. Banyan Tree
insurance industry in China; Current
soon expanded into a luxury-resort chain
Industry On-line Retailing regulations for insurance industry in Japan;
with its hotels, resorts, spas and retailing
Reference No. GRS0005 Major players in Indian insurance market;
galleries spread over Singapore, Bangkok,
Year of Pub. 2004 Financial statements of AIG; Insurance
Shanghai, Bangalore, Sydney and Seychelles.
Teaching Note Available premium as percentage of GDP (Gross
With its diversified operations, Banyan Tree
Struc.Assign. Available Domestic Product) in China; Critical success
became the only Asian company to feature
factors for insurance in China; Critical
Keywords in the book ‘Uncommon Practices’
success factors for insurance in Japan;
published by ‘Financial Times Prentice Hall’
Critical success factors for insurance in India.
On-line book retailing; Amazon.com; Jeff along with other world famous corporates
Bezos; Amazon outsourcing services; like Virgin, Harley-Davidson, Manchester
Diversification of Amazon; Amazon’s United and others. It was also named the
associate programmes; Web services; Barnes ‘Best Asia-Pacific Resort Hotel’ for the Sam Adams’ Repositioning
& Noble; Borders.com; ZShops; Amazon second time in the ‘Business Traveller Asia- Strategies
distribution centres; Toys ‘R’ Us; Amazon’s Pacific Awards’.
profits; One-click system. Sam Adams was the popular craft beer
brewed by the Boston Beer Company. The
Pedagogical Objectives
company commanded leadership in the
• To highlight the growth of Banyan Tree segment and was seen as the native drink by
Woolworths’ Growth Strategies the beer-loving Americans. The success of
• To discuss how Banyan Tree was able to Sam Adams not only changed the
Woolworths supermarket, started in Sydney differentiate its hotels and resorts from
in 1924, emerged as Australia’s number 1 perceptions of Americans, who considered
its competitors by leveraging on its native craft-beer as unsophisticated, but also
food retailer by early 1990s. The company theme of Asian resorts.
survived a scare when its unprofitable posed a threat to reigning imported beers.
ventures almost led to bankruptcy. Its Industry Hospitality However, after 1997 the brand could not
innovative initiatives that emphasised better Reference No. GRS0003 consolidate its presence, as explained by its
shopping experience and low prices helped Year of Pub. 2004 oscillating sales, which were hovering around
the company to tide over the crisis and Teaching Note Available the $200 million mark. Analysts opined
become a Fortune 500 company. Struc.Assign. Not Available that Sam Adams had failed in its appeal to
the young Americans.
Keywords
Pedagogical Objectives
Banyan Tree; Pool villas; Spas; Ho Kwon Pedagogical Objective
• To understand Woolworths’ growth Ping; Uncommon practices; Wah Chang
strategies that helped it to transform from • To discuss the efforts of chairman C. Jim
Group; Conde Nast Traveller; Tropical Koch to reposition Sam Adams as a beer
being a ‘follower that was system driven garden spas; Retailing galleries; Angsana;
and not customer driven’ in the 1980s to brand relevant to the newer generation.
Colours of Angsana; Tropical luxury resorts;
a ‘company that others try to emulate’ Business Traveller Asia-Pacific Awards; Industry Brewers
• To discuss Woolworths’ supply chain Asian hospitality industry; Eastern Reference No. GRS0001
initiatives and the novel services, which therapies. Year of Pub. 2003
reduced operating costs, and made Teaching Note Not Available
shopping at Woolworths more Struc.Assign. Not Available
convenient and exciting to its customers. AIG: Strengthening its Asian Links Keywords
Industry Not Applicable AIG, the world’s leading insurance and Boston Beer Company; Sam Adams; C Jim
Reference No. GRS0004 financial services group, has always been Koch; Craft beer; Craft beer segment in the
Year of Pub. 2004 bullish about its Asian operations. Although US; Imported beer; Beers in the US;
Teaching Note Not Available it entered from Asia in the late 1920s, Repositioning; Light beer; Strong beer;
Struc.Assign. Not Available various adverse socio-political factors Promotion strategies; Advertisements;
Keywords interrupted its Asian operations from time Competitors; Heineken; Corona.
to time. Since the late 1960s, AIG, under its
Woolworths’ cost control strategies; Big W Chairman Maurice R Greenberg, has been
stores; ‘The fresh food people’ initiative; making efforts to become a major player in
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