Strategic merge: a gain or a gamble – the case of Telco China

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Wing Sun Li
Keyword(s):  
Undergraduate Students ◽  
Business Performance ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
High Tech ◽  
Competitive Strategies ◽  
Content Type ◽  
Differentiation Strategy ◽  
Academic Level

Learning outcomes By reviewing the case study, readers are expected to understand the constraints of competitive strategies in a shifting environmental landscape; the difficulties of foreign companies to sustain in an emerging market with government interventions; the subtlety of joint venture (JV) formation by partners with very divergent background, priority and agenda; evaluation of behavioural orientations of partnership and JV operational arrangements as determinants of a successful JV strategy. Case overview/synopsis High-tech companies can enjoy super profits from their products when only a few competitors can compete with them technologically. However, these companies also nurture a high-cost operational culture that sets a constraint for their further growth when superiority of the technology can no longer be maintained. High-tech companies may reposition their businesses with a strategic shift from differentiation strategy to cost focus strategy. The attendant shift as well as synchronization problem in an organization may require a larger effort to revamp. This case describes a global telecom infrastructure company with successful business performance in China in her early establishment with a pre-emptive technological edge. Mitigation of technological superiority and the rise of local competitors have forced the Company to opt for a cooperative strategy with a local player in the establishment of a low-cost joint venture. Does the new joint venture facilitate the strategic shift or just create an illusion of cooperation? Complexity academic level Undergraduate students and post graduate students taking strategic management course. 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.

Air Asia India: competing for air space in an emerging economy

2017 ◽  
Vol 27 (5) ◽  
pp. 516-532 ◽  
Author(s):  
Tulsi Jayakumar
Keyword(s):  
Multinational Enterprises ◽  
Business Models ◽  
Joint Venture ◽  
Low Cost ◽  
Emerging Market ◽  
Secondary Data ◽  
Emerging Economy ◽  
Competitive Strategies ◽  
Content Type ◽  
Country Specific

Purpose The purpose of this paper is to understand the competitive landscape of emerging market economies (EMEs) and the implications of business models and strategies used by multinational enterprises (MNEs) to enter and operate in such landscapes. It does so by considering the aviation sector in an emerging economy – India, and by studying the strategies pursued by AirAsia India – the Indian joint venture of AirAsia Investment Limited and Tata Sons.. Design/methodology/approach The paper follows a case study approach. Secondary data sources from the library, company website and newspaper articles have been used to build a case that would encourage students to discuss and analyze the competitive strategies followed by MNEs in EMEs. Findings Emerging markets offer attractive investment opportunities to MNEs across several industries. However, their markets for intermediate goods and services possess imperfections. Competitiveness in such markets will require going beyond country-specific and firm-specific advantages. MNEs will need to integrate location-specific advantages with internalization advantages of these market imperfections to operate successfully in the complex environments of EMEs. A one-size-fits-all approach of transposing successful strategies from home markets will fail to create value. Practical implications MNEs, such as AirAsia, will need to develop participatory skills to leverage the location-specific-advantages of EMEs and reduce their own curse of foreignness to be able to succeed in EMEs. Originality/value This paper contributes to extant literature by studying the competitive strategies pursued by a global leader in an EME. The case of the “World’s Best Low-Cost Airline” – AirAsia’s India operations seeks to go beyond the Eclectic Paradigm and the country-specific and firm-specific advantages framework, to provide a location-internalization paradigm for operating in EMEs.

Competitive strategies-performance nexus and the mediating role of enterprise risk management practices: a multi-group analysis for fully fledged Islamic banks and conventional banks with Islamic window in Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqas Ali ◽  
Imran Ibrahim Alasan ◽  
Mushtaq Hussain Khan ◽  
Shujahat Ali ◽  
Jun-Hwa Cheah ◽  
...  
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Low Cost ◽  
Enterprise Risk Management ◽  
Islamic Banks ◽  
Competitive Strategies ◽  
Content Type ◽  
Differentiation Strategy ◽  
Enterprise Risk ◽  
Conventional Banks

Purpose This paper aims to investigate whether the effect of competitive strategies on the performance is significantly different for fully fledged Islamic banks vis-a-vis conventional banks with Islamic window. Specifically, two competitive strategies namely the low-cost strategy and the differentiation strategy were considered. In addition, we examined further the competitive strategies–performance nexus by introducing enterprise risk management as a mediating factor. Design/methodology/approach This study used structured questionnaires to collect data from 506 respondents (251 from fully fledged Islamic banks and 255 from conventional banks with Islamic window). A disjoint two-stage approach was employed to analyze a hierarchical component model. Construct Level Correction and Measured Latent Marker Variable approaches were employed to assess the common method variance. As a robustness check, two-stage approach was used to explore the curvilinear relationship, and the Gaussian copula approach was adopted to address the endogeneity issue. Findings The findings show the evidence of complementary partial mediation in the relationships between low-cost strategy, differentiation strategy, and performance through enterprise risk management practices in both types of banks. Practical implications Competitive strategies are essential as they send signals to owners, managers, policymakers, and regulatory authorities. On the one hand, fully fledged Islamic banks face dual competition from pure conventional counterparts as well as conventional banks with Islamic window. On the other hand, Islamic window banks also face strong competition from the fully fledged Islamic banks due to their strong Shariah roots. Hence, this competitive pressure on both types of banks calls for more attention to focus on competitive strategies and enterprise risk management practices to accelerate their performance and overcome the bank risk. Moreover, these competitive strategies can be used as a tool to enter into a new market by reducing costs and risks. Besides, banks cannot achieve a competitive advantage without implementing enterprise risk management practices because competitive strategies are significant antecedents of enterprise risk management practices. Therefore, this study recommends both types of banks to focus on enterprise risk management practices to make these strategies successful. Originality/value To the best of our knowledge, this is the first study to examine the competitive strategies–performance nexus and the mediating role of enterprise risk management practices in an unexplored area of Islamic banking.

The chicken and egg story of a call centre in Malaysia

2021 ◽  
Vol 11 (3) ◽  
pp. 1-25
Author(s):  
Alan Fun-Foo Chan ◽  
Keng-Kok Tee ◽  
Thanuja Rathakrishnan ◽  
Jo Ann Ho ◽  
Siew-Imm Ng
Keyword(s):  
Undergraduate Students ◽  
Call Centre ◽  
Short Term ◽  
Content Type ◽  
Security Technologies ◽  
Academic Level ◽  
Key Account ◽  
Substandard Performance ◽  
Alternative Solutions

Learning outcomes After attempting the case, users are able to: analyse issues and problems faced by a call centre in Malaysia. Determine the root causes of the problems faced by call centre employees and generate alternative solutions to solve the problems faced by the company and to ensure the sustainability of the business. Case overview/synopsis This case was about the challenges faced by Daniel, the General Manager of an integrated security protection system company, Secure First (SF). Despite investing in the latest security technologies, conducting a major overhaul of the procedures, introducing an enhanced digital system at the call centre and providing training to the call agents, it was on the verge of losing its important long-term client due to its substandard performance. The client experienced major losses due to break-ins. After a thorough investigation, the problem surfaced in their call centre. Most of the staff were not familiar with the newly adopted system. The circumstances worsened when many of the call centre’s senior employees were tendering their resignations. The case discusses the aspect of employee satisfaction, staff performance that led to the turnover issue amongst employees in a call centre. The case explores what short-term and long-term strategies could Daniel suggest to change the call centre’s course to retain SF’s key account in times of desperation. Complexity academic level This case has a moderate level of difficulty and may be used in undergraduate students. Supplementary materials Teaching notes are available for educators only. Subject code CSS 6: Human resource management.

Scaling up Sirohi: can women empowerment and sustainability drive a luxury brand?

2021 ◽  
Vol 11 (4) ◽  
pp. 1-42
Author(s):  
Neena Sondhi ◽  
Rituparna Basu
Keyword(s):  
Brand Management ◽  
Emerging Market ◽  
Scale Up ◽  
Sustainable Growth ◽  
Social Entrepreneur ◽  
Difficulty Level ◽  
Content Type ◽  
Luxury Brand ◽  
Academic Level ◽  
Market Driven

Learning outcomes The case offers a unique opportunity to understand the market dynamics of a young luxury brand that aspires to empower women and pursue the broader goal of marketing sustainability in an emerging market. The discussion would enable learners to conduct environmental analysis and assess implications of crisis (current pandemic) on business, understand the marketing mix implications for a firm with societal orientation, learn to design effective brand positioning strategies and plan social and market driven brand strategies to ensure sustainable growth. Case overview/synopsis Gauri Malik, an investment banker-turned-social entrepreneur, forayed into the luxury home décor and furniture market with Sirohi, in 2019. In a market driven by exclusivity and design appeal, the brand had sustainability at its core. Malik worked with 200 women, from a conservative rural base in India to create traditional products that were hand-made with recycled natural fibres and upcycled plastic wastes. Driven by the goal of securing the livelihood for a larger group of women artisans, Malik wanted to scale up from 350 to 5000 products in the next five years. Hence, for materializing her ambitious plans she sought answers to- Could her home-trained women artisans deliver the promise of quality and finesse to support Sirohi scale up as a luxury brand? While it was extremely critical for Sirohi to have an articulated image-she wondered if the parallel focus on the up-market luxury brand image and sustainability-create competitive advantage or lead to diffused positioning? Complexity academic level Classified as MODERATE in terms of difficulty level, the case can be effectively used in post-graduate programmes for foundation courses on Marketing Management, elective courses on Brand Management or Sustainability Marketing. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing.

Role of brand equity and competitive strategies in the relation between horizontal alliances and its benefits

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changju Kim ◽  
Bin Hu
Keyword(s):  
Competitive Advantage ◽  
Brand Equity ◽  
Positive Impact ◽  
Low Cost ◽  
Sustainable Growth ◽  
Competitive Strategies ◽  
Content Type ◽  
Strategic Integration ◽  
Novel Approach ◽  
Relational Outcomes

Purpose Drawing on the resource-based view, this study aims to investigate the conditions under which small- and medium-sized retailers can improve competitive benefits through the lens of brand equity and strategies for competitive advantage in retail buying groups. Design/methodology/approach This study collected 241 samples from small- and medium-sized supermarket retailers who joined retail buying groups in Japan. Findings This study offers two key findings. First, the results indicate that a buying group’s brand equity partially mediates the relationship between member retailers’ strategic integration and their buying group benefits. Second, member retailers with a stronger differentiation orientation strengthen the positive impact of strategic integration on the buying group’s brand equity and buying group benefits. The moderating effects of low-cost orientation were not found to be significant. Practical implications To highlight the sustainable growth of small- and medium-sized retailers in retail buying groups, which are often ignored in the extant literature, this study offers practical guidance on the importance of a buying group’s brand equity. In addition, based on the findings, this paper postulates that member retailers pursuing differentiation orientation, rather than low-cost orientation, are more beneficial to retail buying groups in terms of relational outcomes and performance consequences. Originality/value By conceptualizing brand equity in retail buying groups, this study suggests a novel approach for retail management that investigates how a buying group’s brand equity is linked to strategic integration, strategies for competitive advantage and buying group benefits from the viewpoint of member retailers.

IKEA Inc.: the India way

2020 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Learning Outcomes ◽  
Emerging Market ◽  
Local Environment ◽  
Global Strategy ◽  
International Strategy ◽  
Content Type ◽  
Academic Level

Learning outcomes Learning outcomes are as follows: to learn about the application of Bartlett and Ghoshal’s model of international strategy; to compare and contrast the global strategy of IKEA in India and China; and to understand how adaptability can create a new competitive advantage in emerging markets. Case overview/synopsis The case study enables discussion about the global strategy of a well-established multi-national company, IKEA in an emerging market. IKEA is a well-established and well-known brand in the international market in furniture retailing. It has decided to make a debut in India in 2017 with its first store in Hyderabad. However, it was yet to open it in 2018. The case emphasizes upon understanding the global strategy of IKEA, positioning itself in the fragmented Indian furniture industry, managing differences in emerging markets and adapting to the local environment of the particular country. The case highlights how adaptability can create a new competitive advantage in managing global strategy in different countries of emerging markets. Complexity academic level This case study is developed for post-graduate management programs as an MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

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.

The influence of narrative disclosure readability, information ordering and graphical representations on non-professional investors' judgment: evidence from an emerging market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dalia Hussein El-Sayed ◽  
Eman Adel ◽  
Omar Elmougy ◽  
Nadeen Fawzy ◽  
Nada Hatem ◽  
...  
Keyword(s):  
Impression Management ◽  
Undergraduate Students ◽  
Emerging Market ◽  
Recency Effect ◽  
Graphical Representations ◽  
Sources Of Information ◽  
Multiple Sources ◽  
Content Type ◽  
Future Performance ◽  
Information Order

PurposeThis study examines whether manipulation in attributes of corporate narrative disclosures and the use of graphical representations can bias non-professional investors' judgment towards firms' future performance, in an emerging market context.Design/methodology/approachThe authors conduct three different experiments with a 2 × 2 between-subjects design, using accounting and finance senior undergraduate students to proxy for the non-professional investors.FindingsResults show that simple (more readable) disclosures improve non-professional investors' judgment towards firms' future performance. In addition, it is found that non-professional investors are prone to a recency effect from the intentional ordering of narrative information, when using complex (less readable) narratives. However, no primacy effect is found, when using simple (more readable) disclosures. The results further provide evidence that the inclusion of graphical representations, along with the manipulated narrative disclosures, can moderate the recency effect of information order, when using less readable and complex narrative disclosures.Research limitations/implicationsThe results reveal that although the content of corporate disclosures can be objective, neutral and relevant, manipulation in textual features and the use of graphical presentations, can interact to impact how non-professional investors perceive and process the disclosed information. This study provides an Egyptian evidence regarding this issue, as the majority of prior studies concentrate on developed capital markets. In addition, it contributes to prior studies evaluating the appropriateness of the Belief Adjustment Model predictions about the effect of textual presentation order on decision-making, by providing evidence from an emerging market.Practical implicationsResults attempt to increase the awareness of investors and encourage them to use multiple sources of information to avoid the probable bias that can result from management's manipulation of narratives. In addition, the study could be of interest to regulators and standard-setters, where the results reveal the need for guidelines and regulations to guide the disclosure of narrative information and the use of graphical information in corporate reports.Originality/valueTo the best of the authors' knowledge, this is the first study to examine the effect of two impression management strategies in narrative disclosures (readability and information order), along with the use of graphical representations, on non-professional investors' judgment in an emerging market, like Egypt.

Chang'an Automobile and the Chinese automotive industry

2011 ◽  
Vol 1 (4) ◽  
pp. 1-30 ◽  
Author(s):  
Michael Roberto ◽  
Grace Chun Guo ◽  
Crystal X. Jiang
Keyword(s):  
Automotive Industry ◽  
Economies Of Scale ◽  
Joint Venture ◽  
Central Government ◽  
Emerging Market ◽  
Auto Industry ◽  
High Growth ◽  
Foreign Firms ◽  
Content Type ◽  
The Usa

TitleChang'an Automobile and the Chinese automotive industry.Subject areaInternational businessStudy level/applicabilityUndergraduate/graduate/executive education.Case overviewChina has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.Like many Chinese automakers, Chang'an partnered with well‐known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self‐branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in‐depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.Expected learning outcomesEnables students to examine how and why an industry's structure can differ substantially across geographic markets. Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry. Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China. Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high‐growth emerging market.Supplementary materialsTeaching notes.

Amazon and Whole Foods: adventures in grocery shopping

2020 ◽  
Vol 16 (2) ◽  
pp. 115-153
Author(s):  
Susan White
Keyword(s):  
Undergraduate Students ◽  
Stock Price ◽  
Private Equity ◽  
Weighted Average ◽  
Grocery Shopping ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Business Press ◽  
Academic Level ◽  
Whole Foods

Theoretical basis This case focuses on valuation using various methods to price a firm. Students attempting this case should know the basics of how to value a company using discounted cash flow, comparable multiples and comparable transactions. Students will need to calculate the weighted average cost of capital using comparable companies and the capital asset pricing model and determine differences in value created by an acquisition vs a leveraged buyout (LBO). The case also discusses qualitative issues in mergers, such as fit between target and acquirer, integration issues, potential high debt from LBO. Research methodology This case was library-researched, using Amazon and Whole Foods public filings and business press papers. Case overview/synopsis Whole Foods Markets received a buyout offer from Amazon. Whole Foods could solicit offers from other firms, including firms more directly in the grocery business. Whole Foods also considered a management buyout or purchase by a private equity firm. Whole Foods had underperformed, with a falling stock price and reduced profitability. Amazon’s bid was attractive, a premium of about 40 per cent over Whole Foods’ pre-merger stock price. Whole Foods also wanted to consider issues such as culture. Whole Foods’ strategy was to sell organic foods at premium prices, while Amazon was a retail discounter with a largely online business. Complexity academic level This case is appropriate for graduate students at the end of their introductory course or for graduate or undergraduate students in a corporate finance elective, particularly a merger/restructuring elective. The case has been used in an advanced undergraduate finance elective, with a team presenting the case to the class, with remaining students in the class required to write case summaries and questions for the presenting group.

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