Survival strategy of OEM companies: a case study of the Chinese toy industry

2016 ◽  
Vol 36 (9) ◽  
pp. 1065-1088 ◽  
Author(s):  
Dezhi Chen ◽  
William Wei ◽  
Daiping Hu ◽  
Etayankara Muralidharan
Keyword(s):  
Business Models ◽  
Low Cost ◽  
Transition Process ◽  
Labor Costs ◽  
Original Design ◽  
Content Type ◽  
Industry Chain ◽  
The Status ◽  
Toy Industry

Purpose Although there have been many discussions on the status and development of original equipment manufacturers (OEMs), theory on how they survive is minimal. Little is known about how OEMs survive and upgrade to other business models, such as original design manufacturers (ODMs) and original brand manufacturers (OBMs), in emerging economies. The purpose of this paper is to extend the theory on the survival path of OEMs from the perspective of emerging countries by examining how OEMs survive cost pressures and upgrade to ODMs or OBMs. Design/methodology/approach Using a multi-case study method, this study analyzes the survival path employed by OEMs by examining eight firms in the Chinese toy industry. Findings This study shows that OEMs remain weak in the global toy industry chain due to labor costs. While some OEMs move to low-cost regions, others turn to OBM management, after transitioning through an ODM model, by investing in research and development and marketing. Originality/value This study explores the survival paths of OEM enterprises, showing that OEMs can first upgrade to ODMs and then to OBMs, or they can directly upgrade to OBMs. Shifting from OEM to ODM is an important step in the transition process, although the contract that OEMs have with their foreign partners does not change significantly.

Servitization in contract manufacturing – evidence from Polar business cases

2016 ◽  
Vol 9 (3) ◽  
pp. 246-270 ◽  
Author(s):  
Esa Viitamo ◽  
Seppo Luoto ◽  
Timo Seppälä
Keyword(s):  
Business Models ◽  
Primary Data ◽  
Comparative Case Study ◽  
Business Practices ◽  
Structured Interviews ◽  
Original Design ◽  
Contract Manufacturing ◽  
Manufacturing Firm ◽  
Content Type

Purpose This paper aims to contribute to the scholarly debate on the origins and nature of industrial servitization. By resorting to contract manufacturing (CM) as an empirical case, it is posited that any product-service solution that a manufacturing firm is capable of delivering on a competitive basis mirrors its goals in value creation and capture, positioning within its value networks and the pool of assets and competences it holds. Design/methodology/approach To support this argument, a comparative case study of two CM firms that represent polar cases in the industry was conducted. The primary data were collected through participatory methodology, observations and semi-structured interviews of company representatives. The business experiences of an industry practitioner provided a distinct contribution to the content analysis and modelling. Findings It was concluded that servitization becomes endogenous as contract manufacturers aim for higher profitability through the insource of customer activities and hence extend their offering downstream in the supply chain. The findings suggest that the way out of the servitization trap is a shift toward original design and manufacturing business, where high value-adding modules are insourced and integrated into replicable solutions for various types of customers and market segments. Research limitations/implications The generalization of the conclusion is constrained by the limited focus on two cases only. More industry and company data are therefore required to further validate this argument. Particularly valuable will be the data on the intermediate business models between the two polar cases. Originality/value Building on contested business practices, this paper outlines the logic of competitive strategy in CM on the basis of specific characteristics and implications of the various business concepts. In this case, the principal drivers of servitization are the acquisition of supporting capabilities and insourcing of customer activities. The case study method integrates theory with academic observation and managerial experiences.

Saregama Carvaan: a phoenix that rose from the ashes

2021 ◽  
Vol 11 (3) ◽  
pp. 1-20
Author(s):  
Tausif Amir Mulla
Keyword(s):  
Consumer Behavior ◽  
Learning Outcomes ◽  
Business Models ◽  
Graduate Program ◽  
Smart Device ◽  
Strategic Decisions ◽  
Content Type ◽  
Profit Center ◽  
Academic Level

Learning outcomes The learning outcomes of this case are product innovation, the importance of consumer insights and data in marketing and the role of consumer insights in brand revival. Case overview/synopsis This case study is a fascinating look into how the shift from music compact disc (CDs) to streaming has completely changed consumer behavior. This change in attitude led many music labels down one of two paths as follows: shutting down the business or embracing new business models. The case study aims to bring out essential learning from a company, Saregama, that was on the verge of shutting down because of the losses incurred with the shift in consumer behavior from buying music CDs to streaming music for free on every smart device. This shift led most record companies to become shuttered. However, not all were as fortunate as Saregama, who threaded its way toward profitability. This case analyzes how Saregama turned from a loss-making business unit into a profit center by launching a breakthrough product backed by innovative thinking and strong consumer research. The researcher opted for secondary research based on reports from Deloitte and McKinsey & Company and other credible sources to understand the music streaming market in India. The study also includes excerpts from the interview of Vikram Mehra (MD of Saregama India Ltd.) to various media houses and customer reviews on e-commerce sites. Complexity academic level The case is relevant for learners studying for an undergraduate or graduate program and for discussions for modules such as marketing management and international marketing with a focus on product development and strategy. Applicability the case will provide the following exposure to the learners: the difference between corporate and marketing objectives; Using frameworks such as valuable, rare, inimitable, and organization and SAP-LAP to understand the rationale behind strategic decisions; An understanding of the importance of listening to consumers; Using the right marketing elements such as segmentation, targeting and positioning and marketing mix for a competitive marketing strategy. Supplementary materials Teaching notes are available for educators only. Subject code CSS: 8 Marketing.

Ryanair: success before love

2015 ◽  
Vol 31 (8) ◽  
pp. 1-3 ◽  
Author(s):  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Public Image ◽  
Necessary Condition ◽  
Sustainable Competitive Advantage ◽  
Value Proposition ◽  
Content Type ◽  
The Public ◽  
True Value

Purpose – This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry. Design/methodology/approach – The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models. Findings – The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

Digital platforms in Russia: competition between national and foreign multi-sided platforms stimulates growth and innovation

2019 ◽  
Vol 21 (2) ◽  
pp. 129-145 ◽  
Author(s):  
Yaroslav Eferin ◽  
Yuri Hohlov ◽  
Carlo Rossotto
Keyword(s):  
Emerging Markets ◽  
Business Models ◽  
Emerging Market ◽  
Policy Framework ◽  
Policy Objective ◽  
Content Type ◽  
Digital Platforms ◽  
Digital Platform ◽  
Winner Takes All

Purpose This paper aims to test the “winner-takes-all” vs the “winner-takes-some” scenarios in digital platform competition dynamics in emerging markets. Design/methodology/approach This paper uses an analytical reference framework to assess the emergence of digital platforms in Russia, including four elements: definition of multi-sided platforms (MSPs), platform enablers, business models and competitive dynamics. Findings This paper concludes that Russia shows that a healthy competition between national and foreign MSPs led to the emergence of a shared equilibrium, where local platforms were able to retain a significant, often majority, share vis-à-vis foreign and global platforms. Research limitations/implications This paper stands as a counterpoint to the widespread conviction that digital platform dynamics will result into a “winner-takes-all” scenario and dominance of global platforms. Practical implications This case study offers practical data and analysis that can be used to create a baseline and evaluate the dynamics of digital platforms in emerging markets. It offers data, trends and evidence on Russia’s digital economy. Social implications This research provides a logical framework to help policymakers take decisions on a policy framework to regulate platforms in emerging markets. The good outcome of competition between local and foreign platforms should emerge as a policy objective to achieve in most emerging markets. Originality/value This case study is the first baseline to assess the dynamics of competition between national and foreign digital platforms in the Russian market. It is one of the first papers to tackle the market of digital platforms in an emerging and developing economy. It tries to address the debate between “winner-takes-all” and “winner-takes some” competition equilibrium through a concrete case study in an important G20 emerging market economy.

scholarly journals Partnering for change

2019 ◽  
Vol 34 (3) ◽  
pp. 255-272 ◽  
Author(s):  
Martha L.P. MacLeod ◽  
Neil Hanlon ◽  
Trish Reay ◽  
David Snadden ◽  
Cathy Ulrich
Keyword(s):  
Primary Healthcare ◽  
Health Authority ◽  
Service Provision ◽  
Service Providers ◽  
Processes Of Change ◽  
Content Type ◽  
The Status ◽  
Managing Risk ◽  
Healthcare Transformation

Purpose Despite many calls to strengthen connections between health systems and communities as a way to improve primary healthcare, little is known about how new collaborations can effectively alter service provision. The purpose of this paper is to explore how a health authority, municipal leaders and physicians worked together in the process of transforming primary healthcare. Design/methodology/approach A longitudinal qualitative case study was conducted to explore the processes of change at the regional level and within seven communities across Northern British Columbia (BC), Canada. Over three years, 239 interviews were conducted with physicians, municipal leaders, health authority clinicians and leaders and other health and social service providers. Interviews and contextual documents were analyzed and interpreted to articulate how ongoing transformation has occurred. Findings Four overall strategies with nine approaches were apparent. The strategies were partnering for innovation, keeping the focus on people in communities, taking advantage of opportunities for change and encouraging experimentation while managing risk. The strategies have bumped the existing system out of the status quo and are achieving transformation. Key components have been a commitment to a clear end-in-view, a focus on patients, families, and communities, and acting together over time. Originality/value This study illuminates how partnering for primary healthcare transformation is messy and complicated but can create a foundation for whole system change.

scholarly journals Monitoring and sensing COVID-19 symptoms as a precaution using electronic wearable devices

2020 ◽  
Vol 16 (4) ◽  
pp. 341-350 ◽  
Author(s):  
Josephine M.S. ◽  
Lakshmanan L. ◽  
Resmi R. Nair ◽  
Visu P. ◽  
Ganesan R. ◽  
...  
Keyword(s):  
Heart Rate ◽  
Real Time ◽  
Mobile Apps ◽  
Low Cost ◽  
Wearable Devices ◽  
Point Of View ◽  
Diverse Range ◽  
Content Type ◽  
The Status ◽  
Medium Risk

Purpose The purpose fo this paper is to Monitor and sense the sysmptoms of COVID-19 as a preliminary measure using electronic wearable devices. This variability is sensed by electrocardiograms observed from a multi-parameter monitor and electronic wearable. This field of interest has evolved into a wide area of investigation with today’s advancement in technology of internet of things for immediate sensing and processing information about profound pain. A window span is estimated and reports of profound pain data are used for monitoring heart rate variability (HRV). A median heart rate is considered for comparisons with a diverse range of variable information obtained from sensors and monitors. Observations from healthy patients are introduced to identify how root mean square of difference between inter beat intervals, standard deviation of inter-beat intervals and mean heart rate value are normalized in HRV analysis. Design/methodology/approach The function of a human heart relates back to the autonomic nervous system, which organizes and maintains a healthy maneuver of inter connected organs. HRV has to be determined for analyzing and reporting the status of health, fitness, readiness and possibilities for recovery, and thus, a metric for deeming the presence of COVID-19. Identifying the variations in heart rate, monitoring and assessing profound pain levels are potential lives saving measures in medical industries. Findings Experiments are proposed to be done in electrical and thermal point of view and this composition will deliver profound pain levels ranging from 0 to 10. Real time detection of pain levels will assist the care takers to facilitate people in an aging population for a painless lifestyle. Originality/value The presented research has documented the stages of COVID-19, symptoms and a mechanism to monitor the progress of the disease through better parameters. Risk factors of the disease are carefully analyzed, compared with test results, and thus, concluded that considering the HRV can study better in the presence of ignorance and negligence. The same mechanism can be implemented along with a global positioning system (GPS) system to track the movement of patients during isolation periods. Despite the stringent control measurements for locking down all industries, the rate of affected people is still on the rise. To counter this, people have to be educated about the deadly effects of COVID-19 and foolproof systems should be in place to control the transmission from affected people to new people. Medications to suppress temperatures, will not be sufficient to alter the heart rate variations, and thus, the proposed mechanism implemented the same. The proposed study can be extended to be associated with Government mobile apps for regular and a consortium of single tracking. Measures can be taken to distribute the low-cost proposal to people for real time tracking and regular updates about high and medium risk patients.

Women leading change: re-shaping gender in Ghanaian mines

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rufai Haruna Kilu ◽  
Adesuwa Omorede ◽  
Maria Uden ◽  
Mohammed-Aminu Sanda
Keyword(s):  
Empirical Evidence ◽  
Gender Equity ◽  
Recent Change ◽  
Women's Movements ◽  
Leading Change ◽  
Content Type ◽  
Women's Participation ◽  
The Status ◽  
Multiple Case

Purpose There is growing attention towards inclusive mining to make an economic case for gender equality and diversity in the industry. Available literature lacks sufficient empirical evidence on the subject matter in Ghana. Therefore, this paper aims to understudy women miners in Ghana and document their role in recent change regimes in mine works gender profiles. An observed change that is stimulating a shift in background dispositions leads to increasing number of women taking up mine jobs. Design/methodology/approach In working towards achieving the aim of the study, both qualitative design and a multiple case study approaches are deployed. Four multinational Ghanaian mines and a mining and technology university were used to understudy the women miners and their role towards a change in mine work gender perspectives. Findings The results showed a regime of “ore-solidarity movement” (women in mining – Ghana). A kind of solidarity identified conventionally as a social movement in active resource and self-mobilization, engaged in a symbolic contestation for change of the status quo (dominant masculinity cultures) in furtherance of gender equity and inclusion in milieu of mine works reforms in Ghana. Originality/value The study is of high scientific, political and public interest to better understand women’s movements in the mining industries in Ghana and to frame them theoretically. It offers solid empirical evidence on roles women miners play to ensure gender shape-shifting and liberalizing the mining space for women’s participation. This move towards inclusive mining implies poverty eradication among women, work towards achieving sustainable mining, competitiveness and assurance for gender-driven social innovative mining.

Improved moth flame optimization algorithm to optimize cost-oriented two-sided assembly line balancing

2019 ◽  
Vol 37 (2) ◽  
pp. 638-663
Author(s):  
Mohd Fadzil Faisae Ab. Rashid ◽  
Ahmad Nasser Mohd Rose ◽  
Nik Mohd Zuki Nik Mohamed ◽  
Fadhlur Rahman Mohd Romlay
Keyword(s):  
Assembly Line ◽  
Assembly Line Balancing ◽  
Line Balancing ◽  
Benchmark Problems ◽  
Labor Costs ◽  
Power Cost ◽  
Content Type ◽  
Set Up ◽  
Line Design

Purpose This paper aims to propose an improved Moth Flame Optimization (I-MFO) algorithm to optimize the cost-oriented two-sided assembly line balancing (2S-ALB). Prior to the decision to assemble a new product, the manufacturer will carefully study and optimize the related cost to set up and run the assembly line. For the first time in ALB, the power cost is modeled together with the equipment, set up and labor costs. Design/methodology/approach I-MFO was proposed by introducing a global reference flame mechanism to guide the global search direction. A set of benchmark problems was used to test the I-MFO performance. Apart from the benchmark problems, a case study from a body shop assembly was also presented. Findings The computational experiment indicated that the I-MFO obtained promising results compared to comparison algorithms, which included the particle swarm optimization, Cuckoo Search and ant colony optimization. Meanwhile, the results from the case study showed that the proposed cost-oriented 2S-ALB model was able to assist the manufacturer in making better decisions for different planning periods. Originality/value The main contribution of this work is the global reference flame mechanism for MFO algorithm. Furthermore, this research introduced a new cost-oriented model that considered power consumption in the assembly line design.

Successful approaches for implementing additive manufacturing

2020 ◽  
Vol 16 (2) ◽  
pp. 131-148
Author(s):  
Robert Martens ◽  
Susan K. Fan ◽  
Rocky J. Dwyer
Keyword(s):  
Additive Manufacturing ◽  
The Netherlands ◽  
Business Models ◽  
Multiple Case Study ◽  
High Tech ◽  
Manufacturing Companies ◽  
Content Type ◽  
Multiple Case ◽  
Qualitative Multiple Case Study

PurposeThe purpose of this qualitative, multiple-case study was to explore the successful strategies that managers of light and high-tech small and medium-sized manufacturing companies in the Netherlands, use to adopt additive manufacturing (AM) technology into their business models.Design/methodology/approachA qualitative, multiple-case study approach was used. The participants for this study consisted of executive-level managers of light and high-tech manufacturing companies in the Netherlands. Company documents were studied, and individual interviews were undertaken with participants to gain an understanding of the strategies they used to adopt AM technology into their business models.FindingsThree significant themes emerged from the data analysis: identify business opportunities for AM technology, experiment with AM technology and embed AM technology.Research limitations/implicationsThe findings of this study could be of advantage to industry leaders and manufacturing managers who are contemplating to adopt AM in their business models.Originality/valueThis study may contribute to the further proliferation of AM technology. Industry leaders may also gain a clearer understanding of the effects of 3DP on local employment. The results of the study may also work as a catalyst for increased awareness for manufacturing firm leaders who have not yet considered the opportunities and threats AM technology presents to their organizations.

scholarly journals Driving internationalization through business model innovation

2019 ◽  
Vol 28 (2) ◽  
pp. 201-220 ◽  
Author(s):  
Angelo Cavallo ◽  
Antonio Ghezzi ◽  
Bertha Viviana Ruales Guzmán
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
International Entrepreneurship ◽  
Single Case ◽  
Business Model Innovation ◽  
Content Type ◽  
A Company ◽  
North Western

Purpose This paper aims to investigate how a firm may innovate its business model to internationalize. Design/methodology/approach Owing to its novelty and to the depth of the investigation required to grasp the mechanisms and logics of business model innovation aiming at internationalization, a single case study has been performed related to a company located in North-Western Colombia. Findings The study provides detailed empirical evidences over the mutual connection and complementarities among value mechanisms of business models. Moreover, this study suggests that BMI fosters internationalization to scale, which, in turn, will require additional changes to match new customer needs as they emerge. Also, the study shows an extension of the action–space of lean startup approaches, intended as scientific approaches to international entrepreneurship. Originality/value This study connects business model innovation and internationalization as few studies have done before.

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