Enhancing competitiveness through MNC-local firms co-opetitive relationships

2014 ◽  
Vol 4 (8) ◽  
pp. 1-6
Author(s):  
Audrey Catherine Depeige ◽  
Stavros Sindakis

Subject area The case study reflects issues and challenges in the fields of strategy, management, competitive intelligence and new organizational designs. Study level/applicability The case study is recommended for MBA and postgraduate courses in strategy, management, competitive intelligence and new organizational designs. The case can also be used in executive development programs focusing on business strategy and innovation. Case overview It is 2009. LK Company has newly been established as lighting products manufacturer. Based in Thailand, the firm commences its business operations with an aggressive pricing strategy (low-cost products). At the time of the establishment and launch of operation activities, the market leader [an international multinational company (MNC)] has above 35 per cent market share, leaving LK with an initial 2 per cent market share. While the share of LK grew from 2 to 10 per cent in the past five years, competition in the industry nevertheless remains harsh. Companies are confronted with pressures to invest in the development of new energy-saving lamps, and in this context, LK's company executive board needs to make a strategic decision on which way to follow to sustain the business: shall this be with or without foreign MNCs. Expected learning outcomes Students will be able to better understand; analyze and assess the importance of resource management in highly competitive environments, as well as the importance of designing alternative growth strategies by identifying and assessing changes in the market/environment. They are introduced to characteristics of co-opetition strategies, advantages and disadvantages of co-opetitive business structures and impact of the choice of business partners over time. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Glyn Atwal ◽  
Douglas Bryson

Purpose The conceptualization of the Base of Pyramid (BOP) proposes that low-income markets can lead to profitable opportunities for businesses. The purpose of this study is to identify key success factors of a BOP business strategy based on a case study of the discount retailer, Dollar General, in the USA. Design/methodology/approach The research design used in this research is an in-depth case study of Dollar General in the USA. Qualitative methods are applied in both the primary and secondary data collection and during the follow-on data analysis of Dollar General. Findings Dollar General’s strategic profile is achieved through the combination of the following four actions which are tailored to compete effectively at the BOP in the USA: creating the neighborhood discounter, raising aspirational appeal, reducing service and eliminating internationalization. Research limitations/implications The case is specific to Dollar General in a US cultural context. Practical implications The case of Dollar General demonstrates how a discounter retailer should not only follow a low-cost strategy to compete at the BOP. Its ability to craft a distinctive strategy is coherent with meeting the logistical, rational and emotional needs of the low-income consumer in the USA. Social implications Many businesses have neglected rural areas of the USA as being unprofitable. The ability for businesses such as Dollar General to serve the BOP segment can foster the socio-economic well-being of communities. Originality/value The overwhelming body of the BOP literature is based on emerging markets. To the best of the authors’ knowledge, this is one of the few studies to investigate BOP business strategy in the USA.


Author(s):  
Angelo Cavallo ◽  
Silvia Sanasi ◽  
Antonio Ghezzi ◽  
Andrea Rangone

Purpose This paper aims to examine how competitive intelligence (CI) relates to the strategy formulation process of firms. Design/methodology/approach Due to the novelty of the phenomenon and to the depth of the investigation required to grasp the mechanisms and logics of CI, a multiple case study has been performed related to four companies located in Brazil that adopted CI practices within dedicated business units to inform and support strategic decision-making. Findings The authors provide detailed empirical evidence on the connection and use of CI practices throughout each stage of the strategy formulation process. Moreover, the study suggests that CI practices, despite their strategic relevance and diffusion, are still extensively adopted for tactical use. Originality/value This study sheds light on how CI practices may inform, support, and be integrated in the strategy formulation process, as few studies have done before.


2013 ◽  
Vol 3 (1) ◽  
pp. 1-11
Author(s):  
Victor Jun Zeng

Subject area Business strategy. Study level/applicability This case study is appropriate for MBA and EMBA courses, especially for courses oriented to emerging markets such as China. It can be used in Business Strategic Management or similar courses, combined with the methodology lectures of Managing Entry Modes and Competitive Strategy. This case study provides material for understanding/studying the development of a large Chinese software enterprise. Case overview As a result of Chinese ITO and BPO market in the face of re-structuring in 2012, Huawei invested in ChinaSoft in May and Vance info merged with HiSoft in August, both of which make ChinaSoft the third largest market-share owner. However, ChinaSoft has a dilemma in its strategic planning for the next three years. If it cannot break through the suppression from the first and the second placed companies, it may lag behind very soon. If it strives for the No. 2 position in market share, is organic growth or M&A strategy the right approach to adopt? Thus, ChinaSoft is now in need of strategic reform and restructuring. The case study analyzes the approaches that Chinese enterprises can adopt in order to sustain overall cost leadership strategies and avoid the related risks in the ITO and BPO industry. Expected learning outcomes This case study intends to encourage students to learn and use methodologies such as Porter's competitive strategy framework; Rugman and Collinson's theory, selecting and managing entry modes; four basic global strategies, by Hill and Jones. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.


2018 ◽  
Vol 8 (3) ◽  
pp. 1-14
Author(s):  
Syed Zamberi Ahmad ◽  
Abdul Rahim Abu Bakar

Subject area Strategic marketing, Business strategy, Product diversification strategy and/or Market entry strategy. Study level/applicability This case is useful for undergraduate and postgraduate students who are pursuing majors in marketing, business management and/or strategic management. Case overview The Emirates Dates Factory commenced operations in 1989 in Ras Al Khaimah, United Arab Emirates (UAE), as a 100 per cent equity held by Mr Abdullah Al Shamsi. Over time, it has become one of the best and renowned factory for date production and processing. Emirates Dates derives its strength from its own plantations in Ras Al Khaimah and Al Ain, as well as from a wide variety of date products that it develops, including date syrup, dates in different packing and stuffed dates. The company seeks to be the leader of dates production and processing in terms of sales. However, the management is facing issues pertaining to determining the area of growth that it should pursue. This case study illustrates the growth options that Emirates Dates could pursue along with its opportunities and challenges that the firm faces. Expected learning outcomes This case study expose student to Ansoff growth matrix in general and the application of the market penetration strategy in specific. Accordingly, the case illustrates how one could develop other growth strategies to improve its revenues through product diversification and/or market development. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.


2016 ◽  
Vol 37 (6) ◽  
pp. 18-27 ◽  
Author(s):  
Laurent Tournois

Purpose Reverse innovation has been claimed to be the new emerging paradigm on how to succeed in emerging markets before spreading to more mature ones. This study aims to investigate how the BB cream, a concept that gave birth to one of the recent most impressive worldwide breakthrough products in cosmetics, was successfully integrated into a growth-through reverse innovation strategy by a Western leading brand, Garnier, in its domestic market. Design/methodology/approach Using a single case study design that combines brand and product levels of analysis, this paper examines how reverse innovation/BB cream contributed to (re)build perceptions of brand superiority. Data were extracted from the IRI Census Database (retail panel data) and from various other market sources. Additional insights were collected through semi-structured interviews with top executives. Some data, as they remain confidential, are not included in the paper. Findings Reverse innovation, although counter-intuitive regarding one of its fundamental assumptions (i.e. a low-cost/low-price strategy targeting price-sensitive consumers), can be used within a niche strategy to help brands develop a radically new offer that justifies a price premium. In this regard, it has to be managed step-by-step, from appropriation to exploitation and, finally, “extinction” in a given market segment. Research limitations/implications Evidence is scarce on how Western companies/brands can integrate reverse innovation into their growth strategies. Further investigation is required on this emerging paradigm. Practical implications The case of Garnier BB cream invites marketing managers to think differently about where to look for opportunities and how to grow in stagnant markets. Moreover, the inherent latent value of a reverse innovation can serve to trade up the brand with both volume and value benefits, despite the common claim that it is related to a volume strategy. Thus, it opens the range of possibilities to escape commoditization and price wars. Originality/value This paper demonstrated that reverse innovation is not limited to the bottom of the market. The story of the BB cream concept, which has been appropriated and valorized by the leading cosmetic brand Garnier through a niche strategy, supports this argument. In addition, instead of viewing the niche strategy as a methodological/theoretical stage within the segmentation–targeting–positioning process, this case study highlights it as a creative process linked to innovation, which helps a brand and/or company to define a new territory within its market.


2014 ◽  
Vol 4 (3) ◽  
pp. 1-12
Author(s):  
Monica Singhania

Subject area The case provides valuable insights on challenges faced by otherwise-protected organisations which are made to face the global onslaught. What happens to an organisation when its own collaborators become competitors overnight? What happens when market leaders refuse to share their technology or dictate their own terms? In addition, this case study looks at the strategy of diversification desired in the business portfolio and the cost of non-diversifications. The case evaluates the environment in which a capital-intensive industry has to operate. It evaluates the combination of all the variables required for undertaking a comprehensive analysis and aims at identifying the best possible level to which the business can be expanded to maximise profits under the known constraints in which the business has to operate. Study level/applicability Target audience is corporate executives, students of MBA/postgraduate programme in management in strategic management and/or workshops for understanding the concept of SWOT (strengths, weaknesses, opportunities and threats) analysis, competitor analysis, Porter's Five Forces Model, Boston Consulting Group (BCG) Matrix, business environment analysis and growth strategies for future. Case overview A combination of global competition and open access in the domestic market is putting pressure on the margins, as new players are likely to move towards gaining market share by bidding aggressively. This is threatening the competitive intensity for Bharat Heavy Electricals Limited (BHEL) in the long-term. Raw materials, such as steel products, that are critical to production process are subject to substantial pricing cyclicality and periodic shortages of supply in India. The margins are thus continuously being impacted by movement in raw material prices, especially steel and copper. How BHEL hopes to sustain its growth story? Whether Chinese competition will kill BHEL? These are some of the pertinent questions the authors will try to answer in this case study. Expected learning outcomes Use of SWOT analysis to identify the strengths, weaknesses, opportunities and threats to a company and use it as a tool to strategic decision-making. Highlighting the importance of strategic tools such as Porter Model and BCG Matrix within an emerging economy backdrop; to illustrate the alternatives and difficulties/complexities involved in a strategic planning process of growth and cost cutting; and to analyse the financial statements of BHEL. Social implications Analysing public sector undertakings (PSUs)/government companies involved in infrastructure build up/projects of strategic nature in the country, their performance, challenges and efficiency in pre-liberalisation era and post-liberalisation era, and identifying how many are visible today, including the reasons for their growth/decline in generating revenues and profits, has multiple social implications especially for an emerging economy like India. A look at the performance trends of such companies over the past years too would help them in their quest by assisting them to get an idea of business and the industry profile in which BHEL is operating. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email: [email protected] to request teaching notes.


2018 ◽  
Vol 34 (1) ◽  
pp. 32-44 ◽  
Author(s):  
Naomi Skulan

Purpose The purpose of this paper is to examine the advantages and disadvantages to primarily utilizing undergraduate student volunteers for a long-term digitization project and to discuss methods to mitigate the disadvantages of student volunteer work. Design/methodology/approach This paper presents a case study of the use of student volunteers for the Historical Campus Newspaper Digitization Project at the University of Minnesota, Morris. Findings This paper describes the process of recruiting, training and managing student volunteers for a digitization project. Both advantages and disadvantages to student volunteer work are discussed, including possible steps to mitigate the disadvantages of student volunteers. Research limitations/implications This paper is limited to one institution’s experience utilizing student volunteers on one digitization project. Practical implications Librarians and archivists interested in new staffing methods for digitization projects can utilize this paper to better understand the benefits and costs to student volunteer labor before putting volunteer projects into practice. Originality/value This paper presents a unique case study of a digitization project staffed primarily with undergraduate student volunteers in an American academic library and archive.


2008 ◽  
Vol 3 (1) ◽  
pp. 40-70 ◽  
Author(s):  
G. Anand ◽  
Rambabu Kodali

PurposeIn recent years, many manufacturing companies are attempting to implement lean manufacturing systems (LMS) as an effective manufacturing strategy to survive in a highly competitive market. Such a process of selecting a suitable manufacturing system is highly complex and strategic in nature. The paper aims to how companies make a strategic decision of selecting LMS as part of their manufacturing strategy, and on what basis such strategic decisions are made by the managers.Design/methodology/approachA case study of a small‐ and medium‐sized enterprise is presented, in which the managers are contemplating on implementing either computer integrated manufacturing systems (CIMS) or LMS. To supplement the decision‐making process, a multi‐criteria decision making (MCDM) model, namely, the preference ranking organisation method for enrichment evaluations (PROMETHEE) is used to analyse how it will impact the stakeholders of the organisation, and the benefits gained.FindingsAn extensive analysis of PROMETHEE model revealed that LMS was the best for the given circumstances of the case.Research limitations/implicationsThe same problem can be extended by incorporating the constraints (such as financial, technical, social) of the organisation by utilising an extended version of PROMETHEE called the PROMETHEE V. Since, a single case study approach has been utilised, the findings cannot be generalized for any other industry.Practical limitations/implicationsThe methodology of PROMETHEE and its algorithm has been demonstrated in a detailed way and it is believed that it will be useful for managers to apply such MCDM tools to supplement their decision‐making efforts.Originality/valueAccording to the authors’ knowledge there is no paper in the literature, which discusses the application of PROMETHEE in making a strategic decision of implementing LMS as a part of an organisation's manufacturing strategy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zul-Atfi Bin Ismail

PurposeThe contemporary practice of conventional maintenance for industrialised building system (IBS) constructions suffers from poor service delivery and defect repetition. A key problem impeding the widespread adoption of emerging technologies is the lack of competent contractors to support the effectiveness of the technology implemented in conventional methods and to ensure returns on investment. The shortcomings of conventional methods are assessed from the perspective of IBS buildings. This paper aims to identify the different system approach using Building Information Modelling (BIM) technology that is equipped with decision making processes.Design/methodology/approachThis paper describes the establishment of key problem areas, the elements involved in implementing good practice and the requirements for integrating maintenance management processes and information databases in the maintenance management system.FindingsConventional methods have little emphasis on defect diagnosis tools. They also enhance inadequate strategic decision-making in the analysis of information when attempting to improve the maintenance project outcomes for IBS construction. The characteristics identified in a case study of IBS buildings are presented and analysed.Originality/valueThe conclusions and recommendations drawn from the analysis of the IBS case study are discussed, synthesised and deliberated upon. The approach presented in this paper integrates various aspects of building information modelling technology to facilitate improved execution of IBS maintenance activities.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elizaveta Gavrikova ◽  
Irina Volkova ◽  
Yegor Burda

PurposeThe purpose of this paper is to design a framework for asset data management in power companies. The authors consider asset data management from a strategic perspective, linking operational-level data with corporate strategy and taking into account the organizational context and stakeholder expectations.Design/methodology/approachThe authors conducted a multiple case study based on a literature review and three series of in-depth interviews with experts from three Russian electric power companies.FindingsThe main challenge in asset data management for electric power companies is the increasing amount and complexity of asset data, which is frequently incomplete or inaccurately collected, hard to translate to managerial language, focused primarily on the operational level. Such fragmented approach negatively affects strategic decision-making. The proposed framework introduces a holistic approach, provides context and accountability for decision-making and attributes data flows, roles and responsibilities to different management levels.Research limitations/implicationsThe limitations of our study lie in the exploratory nature of case study research and limited generalization of the observed cases. However, the authors used multiple sources of evidence to ensure validity and generalization of the results. This article is a first step toward further understanding of the issues of transformation in power companies and other asset intensive businesses.Originality/valueThe novelty of the framework lies in the scope, focus and detailed treatment of asset data management in electric power companies.


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