The growing pressures on Groupon's once-successful daily deal business

2015 ◽  
Vol 5 (6) ◽  
pp. 1-16
Author(s):  
Cathy Leung Miu Yee
Keyword(s):  
Business Model ◽  
Business Strategy ◽  
Listed Company ◽  
Subject Area ◽  
Growth Strategy ◽  
Daily News ◽  
Content Type ◽  
Future Performance ◽  
The Usa ◽  
Daily Deals

Subject area Marketing Management, Business Strategy and Promotion & Advertising. Study level/applicability Associated degree, undergraduate and graduate students as well as executives from profit-making organizations. Case overview Groupon is the world's largest daily-deal Web site and a pioneer in the group-buying industry. The major feature of the company's business model is that merchants use Groupon as a platform to offer coupons with a discounted price, and the coupon buyers can then redeem these coupons. Groupon has done business in over 50 countries and, by 2012, had over 39.5 million subscribers received its daily news. It had a 59.1 per cent share of the daily-deals market in 2013. Groupon is a publicly listed company on the NASDAQ in the USA, trading under the ticker symbol of “GPRN”. Expected learning outcomes The students' business knowledge and skills will be sharpened by working through this case, and students will be challenged to identify solutions to the marketing concerns: specifically, how the driving approach of its daily-deal business model enabled the company to adopt a growth strategy that will confront the difficulties of the emergent “golden age” of the daily-deal industry in the twenty-first century. In addition, it will also be of help to the students to take the active roles of thinker, analyst, evaluator, decision-maker and implementer to evaluate the continuing changes in a competitive environment and consider how Groupon can seize available opportunities to predict future performance by comparing data from 2008 and 2012. 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.

Emirates Dates: a case of growth strategy dilemma

2018 ◽  
Vol 8 (3) ◽  
pp. 1-14
Author(s):  
Syed Zamberi Ahmad ◽  
Abdul Rahim Abu Bakar
Keyword(s):  
United Arab Emirates ◽  
Business Strategy ◽  
Subject Area ◽  
Growth Strategy ◽  
Product Diversification ◽  
Growth Options ◽  
Growth Strategies ◽  
Content Type ◽  
Postgraduate Students

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.

A Mexican edutainment business model: KidZania

2013 ◽  
Vol 3 (5) ◽  
pp. 1-14 ◽  
Author(s):  
David Güemes Castorena ◽  
José Aldo Díaz Prado
Keyword(s):  
New Product Development ◽  
Business Model ◽  
United Arab Emirates ◽  
Technological Innovation ◽  
Disruptive Innovation ◽  
Subject Area ◽  
Content Type ◽  
Walt Disney ◽  
The Future ◽  
The Usa

Subject area Management of technology, technological innovation, business innovation and new product development, innovation, design and strategy, entrepreneurship innovation and leadership strategic planning of technological innovation. Study level/applicability MBA. Case overview KidZania® is a Mexican company of family entertainment centers, founded in 1996 by Luis Javier Laresgoiti Fernández and fully developed by Xavier López Ancona. An innovative concept inspired in a fusion of nursery and theme park, KidZania®, brings together strong brands as partners to support their own and offer a complete entertainment and educational experience to kids between two and 16 years old. A unique business model, involvement of experts and a committed board of directors has been the key to the innovation of KidZania®. Its managers, by 2011, operate eight centers – two in Mexico, two in Japan and the rest in Indonesia, Portugal, United Arab Emirates and South Korea – and have plans to expand to more countries in Asia, Latin America and Europe in 2011 and finally to the USA. The future of KidZania® seemed bright, and the manager of the company believed that the growth appeared unstoppable because the purpose was to grow on 100 percent. The strategy appeared clear: dominate in the emerging and consolidated markets (big cities) in order to strengthen its competitive position and then, enter the US market with all the muscle and take the lead in the biggest market. But what was the competition going to do about it? What will the moves be for big players like Walt Disney – which had revenues of US$38.06 billion (USSEC, 2010), for example? Will the competitors try to buy the new entrant in order to build it up or to disappear it? Or will they try to imitate KidZania®? What would be the future of this new edutainment business model? Expected learning outcomes This case has been used in executive and MBA courses in creating and sustaining innovation, recognizing disruptive technologies, and in identifying effective methods of marketing a new innovative business model. Instructors can use the case to achieve the following two learning objectives: the KidZania® case helps students to refine their understanding of the model of disruption. They are forced to look closely at the product/service and decide whether it is a disruptive innovation or a sustaining innovation. This close examination becomes a helpful tool as students think about what decisions they would make to secure the success of the KidZania® in the entertainment market. The KidZania® case allows students the opportunity to develop their knowledge and understanding of the model “skating to where the money is”. Based on their analysis of the company and product students, must decide whether the KidZania® is a business that will produce sustained revenue and is worth investing in. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.

From start-up to expansion: Vittrium Building Products

2018 ◽  
Vol 14 (6) ◽  
pp. 672-693
Author(s):  
Charles Krusekopf ◽  
Alice de Koning ◽  
Rebecca Frances Wilson-Mah
Keyword(s):  
Business Model ◽  
Business Strategy ◽  
Distribution Channels ◽  
Product Line ◽  
Growth Strategy ◽  
Customer Relationships ◽  
Product Lines ◽  
Content Type ◽  
Custom Made ◽  
Revenue Streams

Synopsis After three years in business together, Des Carpenter and Kees Schaddelee had a decision to make – should they double the size of their location, based on the opportunities and competitive threats they perceived? The startup phase took longer than expected and access to distribution channels was more difficult than expected. Nonetheless, the business gained traction with online sales that proved the concept of custom-made counters using EnvironiteTM technology was viable. As they prepared to expand the business, the owner-managers needed to decide on a growth strategy that would let them leverage their strengths. In analyzing their successes so far, they needed to evaluate their business model including their product line, target markets, marketing strategy (including the pricing strategy, product lines, and channels of distribution) and operations. Research methodology Data were collected through interviews with business owners and a review of company documents, production processes and the company website. Relevant courses and levels This case exercise will suit strategy and entrepreneurship students at both the senior undergraduate level and graduate level. The case discussion will ask students to consider operations, supply chain management, marketing and other issues, all through the lens of a holistic vision for the company. This case may be taught as an example of a growth strategy or a business model in a capstone business strategy course or higher level entrepreneurship course. It is appropriate for both undergraduate seniors and graduate students. Theoretical bases This case may be taught as an example of a growth strategy or a business model in a capstone business strategy course or higher-level entrepreneurship course. The case may be used to help students understand external and internal analysis, identifying the sources of value creation and competitive advantage, and creating an appropriate strategy for growth. It provides a rich context to discuss and apply the following conceptual tools: the application of a value chain analysis and the application of a business model canvas (key partners, key activities, key resources, value propositions, customer relationships, distribution channels, customer segments, cost structure and revenue streams). The case may also be used to reinforce the applications of growth phases in a young firm that are part of the entrepreneurial setting, for example, value proposition, ideal customer, revenue streams and key performance indicators.

Mastering the art of managing a conglomerate business empire in Myanmar

2015 ◽  
Vol 5 (1) ◽  
pp. 1-14
Author(s):  
Jenson Chong-Leng Goh ◽  
Manohar P. Sabnani ◽  
Gee Kwang Randolph Tan ◽  
Siew Peng Tan
Keyword(s):  
Learning Outcomes ◽  
Business Model ◽  
Corporate Strategy ◽  
Listed Company ◽  
Subject Area ◽  
Economies Of Scope ◽  
Content Type ◽  
Teaching Case ◽  
Corporate Strategies ◽  
A Company

Subject area Strategy. Study level/applicability Undergraduate final year or MBA. Case overview This teaching case describes the journey undertaken by Yoma Strategic Holdings (YSH) Ltd, a Singapore-listed company that operates predominately in Myanmar, to become a successful and highly profitable conglomerate business empire in Myanmar. The case provides a rich contextual description of how YSH leveraged upon its partnerships and capabilities, especially with its parent and sister companies, to pursue its conglomerate business model. To facilitate the discussion that this teaching case aims to generate among lecturers and students, we have provided a summary of the latest developments in Myanmar since the 2010 general election. This helps to give students an appreciation of the challenges involved in creating a successful business in Myanmar. Expected learning outcomes The learning outcomes that this teaching case hopes to achieve in students are as follows: Understand the concept of “economies of scope” in corporate strategy; identify and explain the various corporate strategies (i.e. diversification and vertical integration) that can be implemented to develop a conglomerate business model; recognize the organizational and managerial issues arising from implementing these corporate strategies and understand the circumstances that influence its success; and assess the relative advantages of managing a business in a conglomerate business model and advise a company on whether a particular activity should be undertaken internally or outsourced. 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.

Colchones Eldorado: dreaming of innovating

2012 ◽  
Vol 2 (8) ◽  
pp. 1-11
Author(s):  
Delio I. Castaneda ◽  
Luisa F. Manrique
Keyword(s):  
Latin American ◽  
Innovation Process ◽  
Subject Area ◽  
Organizational Dynamics ◽  
Case Discussion ◽  
Content Type ◽  
Organizational Conditions ◽  
Challenge Testing ◽  
The Usa ◽  
Creativity And Innovation

Subject area Innovation and creativity in small to medium-sized enterprises (SMEs) in Latin America. Study level/applicability The case is recommended for creativity and innovation subjects, in undergraduate and MBA levels. The case is also suggested for subjects associated with the organizational dynamics on SMEs. Case overview Colchones Eldorado is a Colombian company dedicated to the bedding industry. The company was founded in 1957 by Gumercindo Gómez Caro, a creative man who in 1959 invented a machine to make springs, which allowed the company to grow steadily for several decades. On November 18, 2004, the founder's daughter, Martha Luz Gomez, was appointed as General Manager. On April 2011 it obtained a license from Sealy, the biggest mattress making company in the USA. The license implied a challenge - testing the company's innovative capacities to adapt Sealy mattresses to satisfy consumers in the Colombian market. Expected learning outcomes Students are shown the characteristics of the creative and innovation process in a Latin American SME, and the innovation challenges which are faced. From the reading and the case discussion, the students should be able to: analyse the manifestations of the creative process in an SME; identify examples of the innovation types of an SME; and discuss the organizational conditions to answer the creativity and innovation challenges in an SME. 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.

The new retail model: global reach demands omni-channels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guillaume Do Vale ◽  
Isabelle Collin-Lachaud ◽  
Xavier Lecocq
Keyword(s):  
Business Model ◽  
Business Strategy ◽  
Academic Research ◽  
Transformation Process ◽  
Content Type ◽  
New Business ◽  
Business Cases ◽  
Established Firms ◽  
New Consumer ◽  
Global Reach

Purpose To cope with online competitors and new consumer behaviors, retailers need to hybrid digital and physical offerings to implement an omni-channel business model. This constitutes a digital transformation of the traditional business model. However, business cases on how traditional retailers are shifting from multi-channel to omni-channel retailing are lacking. This paper aims to explore the different issues and organizational paths during the transformation of a business model. Design/methodology/approach This study is based on a qualitative multiple case study of five retailers with a global reach currently implementing an omni-channel business model. Findings This research sheds light on three main issues encountered by retailers and the different underlying decisions when moving toward an omni-channel business model. The first relates to revenue attribution across channels, which involves rethinking traditional key performance indicators to give incentives to stores when promoting digital offers. The second issue concerns the supply chain decisions associated with cross-channel operations. The third issue relates to the delicate balance between global reach (digital channel) and local reach (specific store) for communication on social media and marketing decisions on pricing. This study provides empirical evidence about the variety of choices that retailers make to cope with the issues during the implementation of an omni-channel business model. Originality/value This work explores the issues faced by established firms when moving toward a new business model that is the hybridization of two existing business model managed separately. It provides comprehensive and clear illustration of how to manage such a business model transformation process that can be used by both business strategy practice and academic research.

Establishing a start-up in Saudi Arabia: the Innosoft story

2019 ◽  
Vol 9 (2) ◽  
pp. 1-18
Author(s):  
Riaz Ahmed Mohammed ◽  
Mamon Horoub ◽  
Husam Walwil
Keyword(s):  
Saudi Arabia ◽  
Learning Outcomes ◽  
Business Model ◽  
Engineering Students ◽  
Model Development ◽  
Subject Area ◽  
Business Success ◽  
It Services ◽  
Content Type ◽  
Academic Level

Subject Area Entrepreneurship. Learning outcomes The learning outcomes are to explain the importance of passion in entrepreneurship, develop an understanding of the business model canvas and its elements, identify typical challenges faced by a startup (during early days and while growing), explain the role of seed fund and customer feedback for small business success and identify the appropriate hiring strategy for startups. Case overview/synopsis The case traces the journey of two Saudi under-graduate software engineering students, namely, Loai Labani and Riyadh Al-Tayib, who had a vision to establish the best information technology (IT) services company in Saudi Arabia. With no previous experience of establishing a company or working for a startup, coupled with the fact that the culture of entrepreneurship in Saudi Arabia is still in its ascendancy, they knew it would be challenging. Nevertheless, at the same time, they were convinced it would be totally up to them to do the hard work needed to propel their vision into reality. The case, after introducing the founders, talks about their respective backgrounds and how it complemented their goal/vision of establishing an IT services company. The case, with references from the literature, also throws light on the entrepreneurship culture in Saudi Arabia but the focus is the various challenges faced by the team in setting up their business and the strategies they used in dealing with the challenges. Some of the challenges discussed are securing early customers, initial financing to support startup, business model development, managing daily operations and hiring and marketing strategy. The case ends with another challenge faced by the founders, for the readers to think about the possible ways of dealing with the challenge at hand. Complexity academic level The case will be used for under-graduate level students. 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 3: Entrepreneurship.

The trials and tribulations of JTH Inc.

2019 ◽  
Vol 15 (2) ◽  
pp. 88-108
Author(s):  
Mayank Jaiswal ◽  
Robert Maxwell
Keyword(s):  
New England ◽  
Business Model ◽  
Undergraduate Students ◽  
Theoretical Basis ◽  
International Competition ◽  
Dynamic Nature ◽  
Resource Based View ◽  
Content Type ◽  
Academic Level ◽  
The Usa

Theoretical basis The theoretical linkages are with dynamic nature of PESTEL analysis, Porter’s five forces, resource-based view of the firm and characteristics of an entrepreneur. Research methodology The names of the institutions and individuals involved have been disguised. However, the material facts of the case are authentic. Case overview/synopsis This case discusses strategy in the context of a crisis situation in a small business. JTH Inc. was a computer subcontract manufacturing (SCM) firm serving the New England region of the USA. The influx of international competition (mainly from China) due to recession led to significant challenges for JTH and the SCM industry. JTH was struggling and the situation was further complicated by the founder’s (Robert Maxwell) personal and emotional situation. Robert had to decide whether to keep the business running, close it down, merge with/be acquired by a competitor, innovate the business model or do something else. Complexity academic level This case is designed to target undergraduate students of Strategic Management; it may also include Entrepreneurship students. It should most probably be taught in the first half of the course after concepts such as PESTEL, Porter and resource-based view of the firm have been taught.

Business strategy and tax aggressiveness in Brazil

2019 ◽  
Vol 12 (4) ◽  
pp. 522-535
Author(s):  
Antonio Lopo Martinez ◽  
Bruno Afonso Ferreira
Keyword(s):  
Business Strategy ◽  
Stock Exchange ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Strategy Type ◽  
Clear Result ◽  
The Usa ◽  
Reactor Types ◽  
Using Data ◽  
The Relationship

Purpose The purpose of this paper is to analyse the relationships between company business strategy type and tax aggressiveness for companies listed on the Brazilian Bovespa stock exchange. Design/methodology/approach Following the concepts of Miles and Snow (1978, 2003), we classified company strategies into four types, analyser, defender, prospector and reactor, using data from 2012 to 2016. The authors excluded financial companies due to a differential tax regime. Next, prospector and defender companies were identified, and the relationship of these strategies with tax aggressiveness assessed using regression analysis; analyser and reactor types were not included as these are defined as a combination of the prospector and defender type, or non-strategic, respectively. To assess aggressiveness, the authors used effective tax rates on corporate profits, as well as a metric that captures tax burden in terms of all taxes paid by a company. Findings Most Brazilian companies were analysers (76.66 per cent), with prospector companies being a minority, and defenders representing a little over 21 per cent. Unlike the findings of Higgins et al. (2015), the authors found that defender companies also have a tendency to practice aggressive tax planning. Practical implications The authors found the Brazilian defender companies similar to prospectors, tended to be more tax aggressive or to take higher tax risks. Thus, findings in economies such as the USA may not be generalizable to other countries, such as Brazil, Russia, India or China (i.e. the BRICs), for example. The particularities of each country, such as ease of access to the capital market, tax deductibility of investment in research and development and legal issues must be considered before applying generalized prognostics. Originality/value This paper offers original empirical evidence from Brazil of the relationship between company strategy type and the tax aggressiveness, offering a clear result that differs in part from results from American companies. It therefore encourages further studies on this topic.

The Banyan Tree: branding the intangible

2011 ◽  
Vol 1 (1) ◽  
pp. 1-12
Author(s):  
Jochen Wirtz
Keyword(s):  
Services Marketing ◽  
Subject Area ◽  
Growth Strategy ◽  
Business Practices ◽  
Hotel Management ◽  
Content Type ◽  
Service Brand ◽  
Retail Outlets ◽  
Brand Portfolio ◽  
Business And Management

Subject area Services marketing, hotel management, branding, and promotion management. Study level/applicability Undergraduate business and management; MBA/MA management courses. Case overview Banyan Tree Hotels and Resorts had become a leading player in the luxury resorts and spa market in Asia. As part of its growth strategy, Banyan Tree had launched new brands and brand extensions that included resorts, spas, retail outlets, and even museum shops. Now, the company had to contemplate how to manage its brand portfolio and expand its business while preserving the distinctive identity and strong brand image of Banyan Tree, its flagship brand. Expected learning outcomes This case illustrates how a powerful service brand can be built even with little advertising. It also exemplifies how pro-environmental business practices can co-exist with a firm's profit objectives. Set in a service context, the case may be used in discussions on services marketing, hotel management, branding, and promotion management. Supplementary materials Teaching notes

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