When markets stagnate: finding new territory through reverse innovation

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.

2019 ◽  
Vol 26 (2) ◽  
pp. 285-306 ◽  
Author(s):  
Torbjörn Ljungkvist ◽  
Börje Boers ◽  
Joachim Samuelsson

Purpose The purpose of this paper is to understand the development of the five dimensions of entrepreneurial orientation (EO) over time by taking a founder’s perspective. Design/methodology/approach The paper draws on an in-depth single-case study. It combines semi-structured interviews in the company with archival data, such as annual reports, press clips and interviews in business magazines. Findings The results indicate that the EO dimensions change from being personalized and directly solution-oriented to being intangible value-creation-oriented. Originality/value By suggesting ownership-based EO configurations, this study contributes insights into how different ownership forms propel EO. These configurations – that is, personal, administrative based and intangible focused – show the impact of the EO dimensions and provide a systematic and theoretical understanding of EO change over time.


2020 ◽  
Vol 49 (8) ◽  
pp. 1677-1694 ◽  
Author(s):  
Georgiana-Alexandra Badoiu ◽  
Mercedes Segarra-Ciprés ◽  
Ana B. Escrig-Tena

Purpose The purpose of this paper is to provide a deeper insight into the organizational factors and personal motivations of intrapreneurs that may foster intrapreneurial behaviors of employees in a new technology-based firm (NTBF). Design/methodology/approach The paper takes a qualitative approach to explore organizational and individual antecedents of employees’ intrapreneurial behavior. A single case study was conducted on the basis of semi-structured interviews with the founders and top managers of the firm and with intrapreneurial employees. Findings Results show that intrapreneurial projects may arise in firms whose top managers support corporate entrepreneurship (CE) in a non-active manner. Intrapreneurial behaviors of employees can emerge despite the lack of time and limited resources available for undertaking projects. Moreover, work discretion and mutual confidence and the quality of the relationship between employees and top managers are the most valued factors for intrapreneurs. Practical implications Based on the intrapreneurial projects studied, this paper helps to contextualize intrapreneurs’ perception of organizational support and the personal motivations for leading projects within an NTBF. Originality/value Traditionally, the literature has mainly focused on the top-down implementation of entrepreneurial projects within large firms. This paper contributes to the understanding of the combination of firm- and individual-level factors that facilitate intrapreneurial behaviors of employees. It also illustrates the contextual conditions and the firms’ orientation on CE within an NTBF.


2020 ◽  
Vol 40 (9) ◽  
pp. 1475-1497
Author(s):  
Nathalie Fabbe-Costes ◽  
Lucie Lechaptois ◽  
Martin Spring

PurposeTo empirically examine the usefulness and value of supply chain mapping (SC mapping), which has been neglected despite its importance in research and practice.Design/methodology/approachBased on three combined theoretical perspectives, we conducted a case study on a car manufacturer's managers mapping their downstream supply chain (SC). We conducted semi-structured interviews and a mapping exercise with them, followed by a focus group.FindingsWe find differences between individual and corporate SC maps and between how managers define the outbound SC, the SC map they draw and what they say when mapping. The three theoretical perspectives allow us to enrich SC mapping thinking. We focus on boundary objects to formulate propositions. SC mapping and maps are discussed with respect to contemporary SCs and SCM.Research limitations/implicationsBased on a single case study on one firm's outbound SC. Research could be expanded to the company's external partners and follow the development and use of maps in real time.Practical implicationsHighlights the usefulness and difficulties of SC mapping, for individuals and organisations. For the company, it opens avenues for further development and use of SC mapping to improve inter-functional and inter-organisational collaboration.Social implicationsConfirms the need for SC mapping competences in SCM and consequently the usefulness of teaching SC mapping courses in logistics and SCM programs.Originality/valueHighlights the usefulness of SC mapping and rekindles interest in SC mapping and maps in SCM. Introduces boundary objects into SCM research.


2014 ◽  
Vol 9 (1) ◽  
pp. 60-74 ◽  
Author(s):  
Simon Adderley ◽  
Duane Mellor

Purpose – Recently David Jones in Who Cares Wins proposed sustainability as being essential for businesses success over the coming decades. The purpose of this paper is to present a case study of the development of a partnership between an environmental non-government organisation (NGO) (world wildlife fund-UK) and a major retailer (Marks and Spencer). The partnership developed three “types”, sponsorship, technical and communication partnerships. Design/methodology/approach – A grounded theory approach was taken; information was gathered using semi-structured interviews. Data from these interviews were then triangulated with corporate materials to allow generalisations to develop. Findings – Through the three “types” of partnership themes of conflict and project drift were identified, although the overarching “Plan A” commitment is seen as a potential exemplar in sustainability. Difficulties were identified with respect to the dissemination of the outputs from the partnership, some of which were too complex, where others appeared to change to be more appealing to the consumer. Social implications – Although a single case study, it highlights the challenges and benefits to both partners. As such, it provides insight into the practical issues of delivering sustainability commitments and projects in partnership. Such approaches are critical not only for the viability of business, but also for the long-term health of our planet. Originality/value – This represents a case study of the development of a sustainable partnership between a large corporate and an NGO, which could represent a template for sustainable business. This paper in responds to the growing demand for such case-study examples.


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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzurul Alam ◽  
Megan Paull ◽  
Anne Peachey ◽  
David Holloway ◽  
John Griffiths

Purpose The purpose of this paper is to explore how performance management systems in nonprofit organizations are influenced by their funding sources. It explains how resources motivate organizations to diversify their strategies with attended performance management systems. Design/methodology/approach It adopts a qualitative case study approach involving semi-structured interviews with key informants in a nonprofit organization to understand the evolving nature of performance management systems associated with different funding sources. Findings The findings suggest that the case study organization changed its revenue base along with its performance management systems to satisfy the reporting and accountability requirements of different funding sources. Despite external funding sources detailing different restrictions and requirements, the overall performance management system was able to manage these different expectations. Research limitations/implications This study is based on a single case study, and its findings need to be interpreted with care, as there are differences between nonprofit organizations because they differ in their environments, services and funding. Originality/value This paper contributes to extant knowledge on how organizational performance management is influenced by funding sources, providing insights at the operational and governance levels.


Author(s):  
Matheus Pantaroto Conejo ◽  
Gustavo Hermínio Salati Marcondes de Moraes

The study aimed to identify the consequences of a low-cost restructuring process of an e-government initiative in the state of São Paulo. The measures adopted strengthened interaction between government and citizens and the initiative received an award for the good results achieved. A single-case study was carried out on Channel 156 of the municipal government of Limeira. Data were collected through semi-structured interviews, participation in meetings with the program’s managers and technicians, and analysis of internal documents available to researchers. The findings contribute to studies on the use of information technology by public agencies, an area as yet poorly explored. The research may help in restructuring similar initiatives in other contexts through the use of appropriate management and information technology tools, resulting in better service to citizens.Palavras chave: E-government. Information technology. Single-case study. Public management.Link: http://www.ies.ufpb.br/ojs2/index.php/ies/article/view/30850/16875 


2016 ◽  
Vol 117 (1/2) ◽  
pp. 49-62 ◽  
Author(s):  
Matthew Cunningham ◽  
Graham Walton

Purpose – This paper aims to explore at Loughborough University (UK) how informal learning spaces (ILS) are used by students in the Library and elsewhere on campus. Focus includes learning activities undertaken by students, reasons why the ILS is chosen, suggestions on how they can be improved and how technologies are used. Comparison will be drawn between how students use Library ILS and other ILS. Design/methodology/approach – Case study based at Loughborough University and its Library. Semi-structured interviews were held with 265 students in various ILS spaces across campus. Findings – Similarities and differences are present in the way students use Library ILS compared with other ILS campus spaces. These include impact of campus geography and individual academic levels of students. Research limitations/implications – This is a single case study and the results can only relate to Loughborough University. There may be some lessons and themes that are relevant to other universities. The number of interviewees is relatively small. Practical implications – Highlights the need for cooperation between various university stakeholders to strategically and operationally manage different ILS on campus. Originality/value – This is one of the very few studies that investigate together the range of ILS including the Library in a comparative approach.


2018 ◽  
Vol 39 (6) ◽  
pp. 21-28 ◽  
Author(s):  
Pierre-Jean Barlatier ◽  
Emmanuel Josserand

Purpose This paper aims to explore how social media can be used strategically for delivering the promises of open innovation and examines the types of structure that can foster the integration of these new tools with more classic top-down innovation approaches. Design/methodology/approach A single case study of, ALPHA (pseudonym), a multinational company that combined an integrated strategy and the creation of a lean structure with the full potential of social media. Findings To take on the challenges of energy transition, ALPHA has implemented a low-cost approach allowing it to harness the promises of open innovation. This combined the introduction of a lean structure, two social media platforms and processes that ensured the integration of open innovation activities with existing departments. Research limitations/implications The research is based on a single case study. Further research should be conducted to establish the generalization of the results. Practical implications This paper highlights the key success factors in making such a light approach successful, namely, controlling cost and disruption of open innovation; integration matters; leveraging complementarities with existing social media initiatives; and bottom-up adoption. Originality/value The research provides a unique approach that can be practically implemented to leverage social media to deliver the promises of open innovation and offers an original way of integrating social media lead innovation and open innovation strategies with more classic R&D activities.


2017 ◽  
Vol 38 (3) ◽  
pp. 30-39 ◽  
Author(s):  
Dominik Dellermann

Purpose Past research demonstrated that reverse innovation initiatives generate tremendous returns for innovators. However, the focus is on multinational corporations (MNCs). This paper aims to provide a framework how Western small and medium-sized enterprises (SMEs) can drive reverse innovation success. Design/methodology/approach The author adopted an exploratory single case study research design. It draws on the findings from a German SME operating in the healthcare industry. Findings The research reveals that SME can use emerging markets growth opportunities by leveraging open business networks and a clear strategic focus on emerging economies as well as reverse commercialization. The findings provide a framework for managers of SMEs. Originality/value This paper analyses an important way for SMEs to enter emerging markets that has not been explored yet in the management literature and business practice. It offers deep insights of a unique case.


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