Case Map for Barney Gaining and Sustaining Competitive Advantage (Prentice Hall)

This map was prepared by an editor at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases and articles. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or to get more information on the cases listed below, visit our web site at hbsp.harvard.edu and use the searching functions. PART I: THE LOGIC OF STRATEGIC ANALYSIS Chapter 1: Introduction: What is Strategy? Abstract What Is Strategy? : Michael E. Today's dynamic markets and technologies have called into question the sustainability of competitive advantage. Under pressure to improve Porter productivity, quality, and speed, managers have embraced tools such Product #: 96608 as TQM, benchmarking, and reengineering. Dramatic operational Length: 18p improvements have resulted, but rarely have these gains translated into sustainable profitability. And gradually, the tools have taken the place of strategy. As managers push to improve on all fronts, they move further away from viable competitive positions. Michael Porter argues that operational effectiveness, although necessary to superior performance, is not sufficient, because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match. Learning Objective: To learn how strategic positioning enables companies to achieve sustainable competitive advantage by carrying out unique activities in unique ways. Chapter 2: Firm Performance and Competitive Advantage Abstract Matching Dell : Jan W. Rivkin, After years of success with its vaunted "Direct Model" for computer Michael E. Porter manufacturing, marketing, and distribution, Dell Computer Corp. faces Product #: 799158 efforts by competitors to match its strategy. This case describes the Length: 31p evolution of the personal computer industry, Dell's strategy, and efforts Teaching Note: 9704476 by Compaq, IBM, Hewlett-Packard, and Gateway 2000 to capture the benefits of Dell's approach. Students are called on to formulate strategic plans of action for Dell and its various rivals. Learning Objective: Permits an especially detailed examination of imitation; illustrates how fit among activities and incompatibilities between competitive positions can pose particularly high barriers to imitation. To illustrate competitor analysis, the evolution of industry structure, and relative cost analysis.

Chapter 3: Evaluating Environmental Threats The Walt Disney Co.: The Entertainment King : Michael G. Rukstad, David J. Collis, Tyrrell Levine Product #: 701035 Length: 27p Teaching Note: 5705495

Abstract The first ten pages of this case are comprised of the company's history, from 1923 to 2001. The Walt years are described, as is the company's decline after his death and its resurgence under Eisner. The last five pages are devoted to Eisner's strategic challenges in 2001: managing synergy, managing the brand, and managing creativity. Students are asked to think about the keys to Disney's mid1980s turnaround, about the proper boundaries of the firm, and about what Disney's strategy should be beyond 2001. Subjects Covered: Competitive advantage; Corporate strategy; Diversification; Implementing strategy; Strategy formulation In 2007, Wal-Mart faced challenges to its historically high growth rate. Lagging same-store sales and setbacks overseas led the company to consider strategic shifts. Wal-Mart was the world's largest retailer, but competition had become particularly acute as the company expanded from rural markets, which it had long dominated, into urban and suburban areas. Covers developments in Wal-Mart's merchandising strategy and its approach to store formats; its sometimes controversial human resources practices; its efforts to improve its image through a public relations campaign; its aggressive, though occasionally problematic, move into international markets; and its leading competitors, especially Target. Exhibits provide data (current as of February 2007) on Wal-Mart's financial performance, its stock-price performance, its international operations, and its store formats, as well as on Target's financial performance. Subjects Covered: Competition; Human resource management; International business; Labor relations; Merchandising; Strategy

Wal-Mart, 2007: David B. Yoffie, Michael Slind Product #: 707517 Length: 12p Teaching Note: 707570

Chapter 4: Evaluating Environmental Opportunities

Abstract

Wal-Mart's Sustainability Strategy : Erica Plambeck, Lyn Denend Product #: OIT71 Length: 50p Teaching Note: OIT71T

In October 2005, in an auditorium filled to capacity in Bentonville, Arkansas, Lee Scott, Wal-Mart's president and CEO, made the first speech in the history of Wal-Mart to be broadcast to the company's 1.6 million associates (employees) in all of its 6,000+ stores worldwide and shared with its 60,000+ suppliers. Scott announced that Wal-Mart was launching a sweeping business sustainability strategy to dramatically reduce the company's impact on the global environment and thus become "the most competitive and innovative company in the world." He argued that, "Being a good steward of the environment and being profitable are not mutually exclusive. They are one and the same." He also committed Wal-Mart to three aspirational goals: "To be supplied 100% by renewable energy; to create zero waste; and to sell products that sustain our resources and the environment." Against this backdrop, introduces Andrew Ruben, vice president of corporate strategy and business sustainability, and Tyler Elm, senior director of the same group. Ruben and Elm, who were chosen by Scott to lead the sustainability strategy, recognized that they needed to keep environmental improvement tightly coupled with business value and profitability for the strategy to succeed. Describes Wal-Mart's efforts to accomplish this, focusing on three of the company's primary focus areas (seafood, electronics, and textiles) and their effect on the company's operations, supplier relationships, and results. Also explores how Wal-Mart is measuring and communicating its ideas about sustainability to its suppliers, associates, customers, and the public. Learning Objective: To familiarize students with how Wal-Mart is opening up to external stakeholders (e.g., environmental nonprofits), measuring its environmental impacts, and giving its employees responsibility (as part of their daily work) for reducing those impacts in such a way that the company derives profit. To compare and contrast three of Wal-Mart's focus areas (called sustainable value networks) and understand the conditions required for this strategy to be effective (where, why, and how it is working best). To highlight the fact that 90% of the potential for environmental improvement exists within Wal-Mart's supply chain and understand how the company is working with suppliers to address these opportunities. To assess how the company is measuring environmental performance and using the results to communicate with and motivate associates, suppliers, customers, policy makers and the public.

Chapter 5: Evaluating Firm Strengths and Weaknesses: The Resource-based View

Abstract

Philips vs. Matsushita: The Competitive Battle Continues: Christopher A. Bartlett Product #: 910410 Length: 20p Teaching Note: 910411

Describes the development of the global strategies and organizations of two major competitors in the consumer electronics industry. Over four decades, both companies adapt their strategic intent and organizational capability to match and counter the competitive advantage of the other. The case shows how each is faced to restructure as its competitive advantage erodes. Learning Objective: To illustrate how competitive strategy depends on a company's organizational capability, which is often deeply embedded in a company's administrative heritage. Shows the limits of both the "global" and the "multinational" models. Polycom is a rapidly growing maker of video conferencing and teleconferencing equipment. Management is attempting to use "natural work groups" as an organizing mechanism, and to build into the culture implicit rules that will cause desired behaviors to be self-policing. Learning Objective: To explore organizational forms that might robustly handle continued growth. In June 2000, Novartis reorganized its pharmaceutical business to form global business units in oncology, transplantation, ophthalmology, and mature products. The remaining primary care products continued to be managed within global functions (e.g., R&D and marketing). The new organization created a matrix structure and new roles and responsibilities for heads of business functions, CEOs of new business units, and country managers operating in over 100 countries. Learning Objective: To explore the reasons for Novartis's reorganizing into a new matrix structure, the tensions and challenges the new structure creates, and the culture and accountability needed to make the new structure work. Traces the birth and development of 3M Corp., focusing in particular on the origins of its entrepreneurially-based ability to innovate. In particular, it highlights the role of CEO William L. McKnight in creating a unique set of values, policies, and structures to nurture and develop continuous renewal. With the changing environment of the 1980s, however, a new generation of CEOs begin to adopt new policies and change the cultural norms that helped 3M grow. The trigger issue focuses on what other changes are required. Learning Objective: To show how culturally embedded organizational behavior can become a sustainable source of competitive advantage and to show how such strong cultures can and should be adjusted to new internal and external realities. Abstract Examines the structural determinants of industry attractiveness (the Five Forces framework) and the implications of industry structure for strategy. Learning Objective: To introduce Porter's Five Forces framework for analyzing industry structure.

Polycom, Inc.: Visualizing Culture: Clayton M. Christensen Product #: 601073 Length: 16p

Novartis Pharma: The Business Unit Model: Srikant M. Datar, Carin-Isabel Knoop, Cate Reavis Product #: 101030 Length: 20p

3M: Profile of an Innovating Company : Christopher A. Bartlett, Afroze Mohammed Product #: 395016 Length: 20p

PART II: BUSINESS STRATEGIES Chapter 6: Cost Leadership Understanding Industry Structure: Michael E. Porter Product #: 707493 Length: 16p

iPod vs. Cell Phone: A Mobile Music Revolution?: David B. Yoffie, Travis D. Merrill, Michael Slind Product #: 707419 Length: 29p Teaching Note: 707548

Levi's "Personal Pair" Jeans (A) :William Lawler, John K. Shank, Lawrence Carr Product #: BAB020 Length: 6p Teaching Note: BAB520 The Chinese Fireworks Industry : Paul W. Beamish, Ruihua Jiang Product #: 99M031 Length: 23p Teaching Note: 899M31

The Global Oil Industry Joel Podolny, John Roberts Product #: IB15 Length: 10p

In 2006, a nascent market for music-enabled mobile phones was emerging to challenge Apple Computer's dominant position in the digital music industry. Through its iPod line of portable digital music devices and its iTunes Music Store, Apple controlled more than half of the market for both music player hardware and online music sales. But the evolving ability to merge those devices with mobile phones, and to deliver music to mobile handsets (via streaming, side-loading content from a PC or downloading it wirelessly over the air), created a potentially market-changing opportunity for players in several industries. Examines the key players, including Apple; the major wireless service carriers, such as Cingular, Sprint-Nextel, and Verizon Wireless; technology and service vendors, such as RealNetworks and Microsoft; and mobile virtual network operators, such as Virgin Mobile. Covers the origins of the mobile music business, projections on its potential size, its technological building blocks (such as file formats, digital rights management systems, wireless network infrastructure, and handset capacity), and the key dynamics--music delivery method, pricing, mobile-PC integration--that characterize mobile music business models. Learning Objective: To examine digital convergence, especially the integration of wireless communications and entertainment. As Levi-Strauss implemented its custom-fitted jeans offering, the traditional value chain for clothing manufacturing and retailing was transformed. This case allows students to explore the subtleties of this transformation and the management implications. Learning Objective: To introduce students to value-chain analysis within the context of management accounting. Illustrates an industry that is experiencing intensifying competition and regulation. The Chinese fireworks industry thrived after China adopted the "open door policy" in the late 1970s and grew to make up 90% of the world's fireworks export sales. However, starting from the mid1990s, safety concerns led governments both in China and abroad to set up stricter regulations. At the same time, there was rapid growth in the number of small family-run fireworks workshops, whose relentless price cutting drove down profit margins. Learning Objective: To analyze the fireworks an industry, estimate the industry's attractiveness, and propose possible ways to improve the industry attractiveness from an individual investor's point of view. The oil industry, one of the first international businesses, exerted a tremendous influence on almost all aspects of business, economics, and geopolitics throughout the 20th century. Their products revolutionized daily life. And the struggles to control and assure access to oil supplies and markets were a major element of international conflict throughout the century. Subjects Covered: International business Abstract

Chapter 7: Product Differentiation

Edmunds.com (A): Stephen P. Bradley, Christina Akers Product #: 701025 Length: 23p

Edmund's began in 1966 as a publisher of new and used vehicle guides and grew into one of the leading third-party automotive web sites of today. This case explores how Edmunds.com gained a competitive edge using strategic partnerships and alliances, as well as careful product positioning and strategy implementation. Subjects Covered: Competitive advantage; Implementing strategy; Product positioning; Strategic alliances Describes the perceptual mapping technique in a non-technical fashion. The procedure is useful for the depiction of the structure of the market. Discusses alternative methods, presents examples of each, and shows how the maps can be used in marketing decision making. Subjects Covered: Decision making; Market research Describes the history and current situation in the retail pharmacy industry, including competition from new merchants and Internet drugstores. Eckerd, one of the top four drug chains, must decide how to position itself for the future. Learning Objective: To support a discussion on the evolution of competition and competitive dynamics among rivals Examines the industry structure and competitive strategy of Coca-cola and Pepsi over 100 years of rivalry. New challenges of the 21st century included boosting flagging domestic cola sales and finding new revenue streams. Both firms also began to modify their bottling, pricing, and brand strategies. They looked to emerging international markets to fuel growth and broaden their brand portfolios to include noncarbonated beverages like tea, juice, sports drinks, and bottled water. For over a century, Coca-Cola and Pepsi-Cola had vied for the "throat share" of the world's beverage market. The most intense battles of the cola wars were fought over the $60 billion industry in the United States, where the average American consumes 53 gallons of carbonated soft drinks (CSD) per year. In a "carefully waged competitive struggle," from 1975 to 1995 both Coke and Pepsi had achieved average annual growth of around 10% as both U.S. and worldwide CSD consumption consistently rose. This cozy situation was threatened in the late 1990s, however, when U.S. CSD consumption dropped for two consecutive years and worldwide shipments slowed for both Coke and Pepsi. The case considers whether Coke's and Pepsi's era of sustained growth and profitability was coming to a close or whether this apparent slowdown was just another blip in the course of a century of enviable performance. Learning Objective: To analyze an industry and its competitor specifically, Coca-cola and Pepsi during the past 100 years.

Perceptual Mapping: A Manager's Guide: Robert J. Dolan Product #: 590121 Length: 11p Eckerd Corp. : Michael E. Porter, John C. Kelleher Product #: 799141 Length: 23p

Cola Wars Continue: Coke vs. Pepsi in the Twenty-First Century: David B. Yoffie, Yusi Wang Product #: 391179 Length: 24p Teaching Note: 703403

Chapter 8: Flexibility: Real Options Analysis Under Risk and Uncertainty Merck & Co., Inc.: Corporate Strategy, Organization and Culture (A) : Michael Beer, Perry L. Fagan Product #: 499054 Length: 20p

Ford Motor Co.: Dealer Sales and Service : Leonard A. Schlesinger, Mark Pelofsky Product #: 690030 Length: 21p Teaching Note: 690062

Southwest Airlines 1993 (A): James L. Heskett, Roger Hallowell Product #: 694023 Length: 29p Intel Corp.--1997-2000 : Ramon Casadesus-Masanell, Michael G. Rukstad Product #: 702420 Length: 11p

Abstract In the early 1990s, Merck faced a series of challenges because of significant changes in its competitive and regulatory environment (e.g., growth in power of pharmaceutical buyers like managed care organizations led to price pressures and President Clinton's review of the entire U.S. health-care industry). The case describes the company under its previous CEO, and primarily under Ray Gilmartin, the new CEO. Discusses the strategic, organizational, cultural, and management challenges that Merck faced, as well as Gilmartin's change program from 1994 to 1998, which was aimed at helping Merck address these issues. Learning Objective: Students will analyze the environment and Merck's organization and management and evaluate the company's efforts to realign the organization and its management practices with the new competitive realities. Since Henry Ford founded Ford Motor Co., Ford vehicles have been sold and serviced the same way. By the late 1980s Ford began to consider making changes in its sales and service process. Two developments forced Ford to reconsider these processes. First, Ford found through various surveys that customers had very clear complaints about the way they were treated by car dealers. Second, with more rapid technology transfer among the automakers, product differentiation was declining. Therefore, the channels of distribution provided one of the final potential points of differentiation between automakers. This case gives the students all of the conclusions from the studies Ford had done and asks them to redesign the sales and service process to address customers' complaints and become a point of differentiation for Ford. Subjects covered: Customer relationship management; Customer service; Franchises Southwest Airlines, the only major U.S. airline to be profitable in 1992, makes a decision as to which of two new cities to open, or to add a new long-haul route. Provides windows into Southwest's strategy, operations, marketing, and culture. Learning Objective: Illustrates how an airline can simultaneously be low-cost leader, service leader, and profit leader. Describes Intel's diversification strategy initiated in 1998 by CEO Craig Barrett. Initially, Barrett's strategy worked well, as market value reached $510 billion in September 2000. Just three months later, however, investor pessimism over a slowing economy and recent problems at Intel resulted in market valuation plummeting by more than 55%. Learning Objective: To analyze the reasons for the drop in market value.

Hambrecht & Quist : Thomas J. DeLong, Nicole Tempest Product #: 898161 Length: 19p Teaching Note: 801140

Hambrecht & Quist (H&Q), an investment bank headquartered in San Francisco, has a very unique culture relative to its Wall Street counterparts. Firm members and even competitors describe the culture as entrepreneurial, team-driven, non-bureaucratic, and changeoriented. H&Q's unique culture has given it a number of competitive advantages, including the ability to attract high-quality staff, the ability to win business among its target group of emerging growth companies, and the ability to maintain below-average SG&A costs. However, competition in the investment banking industry is intensifying in 199798 due to an unprecedented wave of mega-mergers between investment banks and commercial banks. The new combined banking entities are able to offer customers a broader array of products and services than H&Q is able to offer, creating a significant amount of pressure for H&Q to sell to, or merge with, another financial institution itself. Industry analysts believe it is not a question of whether, but rather of when H&Q will lose its independence. However, H&Q management believes that "selling out" would destroy the very culture that made the firm successful. What action should Dan Case, the CEO and chairman of H&Q, take to balance the seemingly competing demands of maintaining the firm's culture and positioning the firm for future growth? Subjects Covered: Acquisitions; Entrepreneurship; Organizational culture; Recruitment

Chapter 9: Tacit Collusion: Cooperation to Reduce Competition Eli Lilly and Co.: Innovation in Diabetes Care : Clayton M. Christensen Product #: 696077 Length: 16p Teaching Note: 697101 Dogfight over Europe: Ryanair (A) : Jan W. Rivkin Product #: 700115 Length: 8p Teaching Note: 701090

Abstract Summarizes Eli Lilly's history of innovation in its business, describing how the dimensions along which innovations have been made in the industry have changed. Lilly's innovation strategy has been to pursue ever higher performance products, while others in the industry have pursued more convenient products. At the time of the case, Lilly is contemplating offering services, not just products, to diabetic patients. Learning Objective: May be used in courses on managing innovation and managing new product development. In April 1986, the Ryan brothers announce that their fledging Irish airline Ryanair will soon commence service between Dublin and London. For the first time, Ryanair will face formidable competitors such as Aer Lingus and British Airways on a major route. Students are asked to assess Ryanair's entry and anticipate the response of incumbent carriers. Learning Objective: To analyze the dynamics of competition. Provides cost and revenue figures to allow students to examine the economics of retaliatory pricing in a business with high fixed costs and low marginal costs.

Judo in Action: Kenneth S. Corts, Debbie Freier Product #: 703454 Length: 7p Teaching Note: 703455

Contains four short stories about small firms challenging large firms. Illustrates some of the ideas that have been termed "judo strategy." In each case, one can argue that the small firm attempts to use the large firm's size and incumbency to constrain the large firm and provide an opportunity for the small firm. The four vignettes are: (1) Softsoap pioneers the liquid soap market with little competition, at least initially, from the incumbent bar soap manufacturers; (2) Red Bull creates and dominates the energy drink market with little early competition from incumbent beverage companies; (3) U.K. supermarket chains attempt to enter the retail gasoline market but trigger an aggressive price response from the integrated majors; and (4) Freeserve makes large inroads in the U.K. ISP market against dominant incumbent AOL. Each occurrence demonstrates ideas considered "judo strategy"--situations in which small competitors exploit the size and incumbency of a larger firm to find opportunities to make inroads against the large firm without effective retaliation or defense (just as, some authors argue, a small person can throw a large person with judo techniques by using the larger person's weight and inertia against him). Learning Objective: Provides a platform for a more abstract conceptual discussion of the principles of judo strategy. PART III: CORPORATE STRATEGIES Abstract Internet QuickBooks, a successful product with a strong brand and an 85% share of retail sales, was faced with the challenge of meeting market growth expectations in a mature, slowing market segment. Generating recurring revenues by providing value-added online services that complement the desktop software was viewed as an attractive solution by QuickBook's management. Intuit now had to decide the best way to provide these services--i.e. build them in house or acquire them through partnerships. In doing so, the company had to evaluate ways to capture value in the Intuit QuickBooks brand without damaging it. Teaching purpose: Taught in the first-year marketing course to bring out the issues related to capturing value. Subjects Covered: Applications; Brands; Marketing implementation; Marketing organization; Partnerships; Product development; Resource management Book-In-Time, developed at Xerox, can dramatically reduce the cost of printing "one" book. Combined with the possibilities of digital content storage and transmittal, the new technology has vast opportunities. Xerox needs a commercial plan. The case describes the state of the book publishing industry and the potential for a new technology. Learning Objective: To discuss the impact of technology on a distribution value chain in the book publishing industry.

Chapter 10: Vertical Integration Strategies Intuit QuickBooks Rajiv Lal, Purnima Kochikar Product #: 501054 Length: 16p

Xerox: Book-In-Time : V. Kasturi Rangan Product #: 599119 Length: 18p Teaching Note: 500016

Starbucks : Mary M. Crossan, Ariff Kachra Product #: 98M006 Length: 28p Teaching Note: 898M06

Quicken Insurance: The Race to Click and Close : Lynda M. Applegate Product #: 800295 Length: 28p Teaching Note: 802138

Starbucks is faced with the issue of how it should leverage its core competencies against various opportunities for growth, including introducing its coffee in McDonalds, pursuing further expansion of its retail operations, and leveraging the brand into other product areas. The case is written so that students need to first identify where Starbucks' competencies lie along the value chain, and then assess how well those competencies can be leveraged across the various alternatives. Also provides an opportunity for students to assess what is driving growth in this company. Starbucks has a tremendous appetite for cash since all its stores are corporate, and investors are betting that it will be able to continue its phenomenal growth so it needs to walk a fine line between leveraging its brand to achieve growth and not eroding it in the process. Subjects Covered: Brands; Core competencies; Industry analysis; Marketing strategy ES Technologies started in 1976 as a storefront in Tempe, Arizona selling personal computer kits to hobbyists. Twenty years later, revenues exceeded $3.5 billion, and the business had evolved from a computer store to a master reseller and full-line integrator of information technology products. At the time of the case, the founder (who remains as CEO) must decide whether to reinvent the company yet again to become an online "orchestrator" for the information technology (IT) industry. Learning Objective: Provides an excellent look at the value chain, industry dynamics, and evolution of the IT industry. Abstract Examines Beer's actions on assuming leadership of Ogilvy & Mather Worldwide, the world's sixth largest advertising agency, during a period of rapid industry change and organizational crisis. Focuses on how Beers, the first outsider CEO, engages and leads a senior team through a vision formulation process. Chronicles closely the debates among senior executives struggling to reconcile creative, strategic, and global vs. local priorities. Sixteen months later, with a vision statement agreed upon, Beers faces a series of implementation problems. Turnaround has begun, but organizational structures and systems are not yet aligned with the firm's new direction. Concludes as Beers must decide how to work best with her senior team to achieve alignment in 1994. Subjects Covered: Advertising; Leadership; Multinational corporations; Organizational change Edward Jones is a leading, highly profitable retail brokerage firm with a unique strategy very different from those of its rivals. The case describes Jones's activities and allows a rich discussion of its positioning choices, supporting activities, and tradeoffs. Jones must cope with a rapidly evolving industry, which, at least on the surface, is a threat to its strategy. Learning Objective: To discuss strategic positioning and strategy in changing industries.

Chapter 11: Diversification Strategies

Charlotte Beers at Ogilvy & Mather Worldwide (A): Herminia Ibarra, Nicole Sackley Product #: 495031 Length: 18p Teaching Note: 495033

Edward Jones : Michael E. Porter, Gregory C. Bond Product #: 700009 Length: 23p

GE's Two-Decade Transformation: Jack Welch's Leadership: Christopher A. Bartlett Product #: 399150 Length: 24p Teaching Note: 300019

Cultivating Capabilities to Innovate: Booz.Allen & Hamilton : Clayton M. Christensen, Bret Baird Product #: 698027 Length: 11p Teaching Note: 698078 Chapter 12: Implementing Corporate Diversification Microsoft in 2005: David B. Yoffie, Dharmesh M. Mehta, Rudina I. Seseri Product #: 705505 Length: 29p Teaching Note: 706467 eBay, Inc. : Stephen P. Bradley, Kelley Porter Product #: 700007 Length: 32p

GE is faced with Jack Welch's impending retirement and whether anyone can sustain the blistering pace of change and growth characteristic of the Welch era. After briefly describing GE's heritage and Welch's transformation of the company's business portfolio of the 1980s, the case chronicles Welch's revitalization initiatives through the late 1980s and 1990s. It focuses on six of Welch's major change programs: The "Software" Initiatives, Globalization, Redefining Leadership, Stretch Objectives, Service Business Development, and Six Sigma Quality. Learning Objective: To expose students to GE's revitalization efforts, including corporate strategy development, transformational change, management and leadership, and corporate renewal. Describes the efforts of the president of Booz.Allen, a major consulting firm, to understand and improve the way that products, services, and processes are developed and deployed throughout the firm. Proactive management of these processes proves very difficult because of the firm's decentralized decision structure and the firm's cultural predisposition to listen to its existing customers. Learning Objective: To consider managing innovation and change, and service management. Abstract Focuses on Microsoft's strategy for sustaining competitive advantage in the global software industry. Also, explores Microsoft's history and its current position, as it tries to diversify its product and service revenue streams. Learning Objective: To learn the strategic aspects of technology, bundling, and sustainability. eBay was the world's largest and most popular person-to-person trading community on the Internet. In early 1999, the company was doing very well and seemed to have solved many of its early problems. However, on March 30, 1999, Amazon.com announced that it was entering the online auction arena. This powerful firm could prove to be eBay's strongest competitor to date. Learning Objective: To consider how eBay should handle this new competition.

Novell: World's Largest Network Software Company Richard L. Nolan Product #: 300038 Length: 15p Teaching Note: 301068

After phenomenal growth and market leadership in networking, founder and CEO Ray Noorda made a frontal assault on Microsoft's core strengths. In 1994, Noorda spend over $1.5 billion acquiring companies such as WordPerfect to combat Microsoft Word, products such as Borland's Quattro Pro to combat Microsoft Excel, and a PC operating system to combat Microsoft MS-DOS. Novell's stock reached a high of $35 1/4 in March 1993 before beginning to slide downward as head-to-head competition with Microsoft was seen as a questionable strategy. Robert Frankenberg, an executive at Hewlett-Packard brought in to replace Ray Noorda, reversed course and sold many of the acquired companies. But time was running out for Novell. Microsoft had not only already won the head-to-head competition, but had mounted a counterattack with its NT server product that was fast eroding Novell's stronghold in Network Operating Systems (NOSs). Coming from an only 2 percent market share in 1993, by 1997 Microsoft's NT Server operating license unit sales were 997 million growing at 36 percent, compared to Novell's NetWare server operating license unit sales of 744 million growing at 13 percent. In early 1997, Novell's stock price had dropped to $7. Subjects Covered: Competition; Computer networks; Information technology; Internet; Strategic planning; Strategy formulation Abstract Describes the development of the international strategies and organizations of two major competitors in the global consumer electronics industry. The history of both companies is traced and their changing strategic postures and organizational capabilities are documented. Particular attention is given to the major restructuring each company is forced to undertake as its competitive position is eroded. A rewritten version of an earlier case. Learning Objective: Illustrates how global competitiveness depends on organizational capability, the difficulty of overcoming deeply embedded administrative heritage, and the limitations of both classic "multinational" and "global" models. Describes the competitive situation facing Robert Mondavi, the leading premium California winery. Mondavi has been an industry innovator and has recently taken steps to become more international. Mondavi has to cope with growing domestic competition as well as market share growth by wineries from Chile and Australia. Learning Objective: Designed to explore competitive strategy in an evolving industry with a special focus on international strategy. The Walt Disney Co. theme parks historically have thrived on the basis of a formula stressing excellent customer service and a magnificent physical environment. The formula has proven successful in Japan, as well as the United States. With the controversial opening of Euro Disney in France, however, there has become reason to doubt the international appeal of the formula. The case documents issues involved with Euro Disney. Examines the transferability of a successful service concept across international boundaries. Subjects Covered: International business; Service management

Chapter 13: Strategic Alliances Philips vs. Matsushita: A New Century, a New Round Christopher A. Bartlett Product #: 910410 Length: 19p Teaching Note: 302063

Robert Mondavi: Competitive Strategy : Michael E. Porter, Gregory C. Bond Product #: 799125 Length: 23p

Euro Disney: The First 100 Days: Gary Loveman, Leonard A. Schlesinger, Robert T. Anthony Product #: 693013 Length: 23p Teaching Note: 5693082

The De-Globalization of Marks & Spencer in 2001, An Update : Robert A. Burgelman, Philip Meza Product #: SM87 Length: 11p

Acer, Inc.: Taiwan's Rampaging Dragon : Christopher A. Bartlett, Anthony St. George Product #: 399010 Length: 20p Teaching Note: 399147

The venerable British retailer Marks & Spencer suffered a series of setbacks in the late 1990s. The company's performance, which had been solid for decades, quickly deteriorated, forcing the rapid turnover of chief executives and many restructurings. Perhaps the largest change the retailer made was the abandonment of its global expansion plans, withdrawing from continental Europe and trying to sell off assets in the United States, including the well-known clothiers Brooks Brothers. This case examines the changes Marks & Spencer made between 1998 and 2001, as the company tries to shore up its ailing core business, U.K. retail, while deciding on an appropriate global strategy. Subjects Covered: Globalization; Reorganization; Restructuring Describes the strategic, organizational, and management changes that led Acer from its 1976 startup to become the world's second-largest computer manufacturer. Outlines the birth of the company, the painful "professionalization" of its management, the plunge into losses, and the transformation under founder Stan Shih's radical "fast food" business concept and his "client server" organization model, which are put to the test when a young product manager in Acer America develops a radically new multimedia home PC with global potential. Shih must decide whether to give an inexperienced manager in a lossgenerating subsidiary the green light. Learning Objective: To explore the links between global strategy and structure, to evaluate leadership of transformational change, and to examine development of global competitive advantage.

Chapter 14: Merger and Acquisition Strategies Hermes Systems : Michael L. Tushman, Daniel B. Radov Product #: 400056 Length: 16p

Abstract Covers the history of Hermes, a large telecommunications and network equipment company, as it grows from a single business firm to a diversified firm from 1980-95. Examines the use of entrepreneurial subsidiaries for product development and fast growth. Other issues include the challenges of managing ambidextrous organizations and the problems a CEO faces in keeping control of fast growing divisions. A rewritten version of an earlier case. Subjects Covered: Business growth; Diversification; Innovation; Leadership; Organizational culture; Organizational structure; Subsidiaries Describes Intel's diversification strategy initiated in 1998 by CEO Craig Barrett. Initially, Barrett's strategy worked well, as market value reached $510 billion in September 2000. Just three months later, however, investor pessimism over a slowing economy and recent problems at Intel resulted in market valuation plummeting by more than 55%. Learning Objective: To analyze the reasons for the drop in market value

Intel Corp.--1997-2000 Ramon Casadesus-Masanell, Michael G. Rukstad Product #: 702420 Length: 11p

Apple Computer, 2006 David B. Yoffie, Michael Slind Product #: 706496 Length: 32p Teaching Note: 706513

Apple has reaped the benefits of its innovative music player, the iPod. However, its PC and server business continue to hold small market share relative to the worldwide computer over the past few years. Will the iPod lure new users to the Mac? Will Apple be able to produce another cutting-edge device quickly? Learning Objective: To contrast Apple's success in creating and marketing the iPod with its results in its other hardware categories. To evaluate past performance and consider what the future may hold for a company that relies heavily on periodic bursts of innovation. Abstract In March 2005, CEO Michael Eskew has asked the Corporate Strategy Group to recommend changes to the strategic process to ensure it allows United Parcel Service (UPS) to continue to transform itself over the next several years. Describes the evolution of UPS's strategic process, with special attention on the company's use of scenario planning techniques, as well as other critical elements of the process: the development of the company charter, strategic planning, strategic decision making, and strategy implementation. Also discusses the roles of the various players in the process, focusing especially on the CEO and corporate strategy staff. Learning Objective: To explore the process of strategic planning in a large, global organization; to discuss the range of activities involved in planning for the future, from long-term scenario planning to short-term strategy implementation, their interplay, and the roles and responsibilities of line and staff; and to look at the use of scenario planning techniques to stimulate creative thinking Management of a satellite-delivered broadband data communications company sets strategy in an uncertain environment, using Michael Porter's scenario planning tools to assess likely outcomes and determine which actions to take. This case draws a distinction between broadband access and backbone providers, examines ISP economics, and raises questions about how to execute vastly ambitious, risky strategies. Learning Objective: Teaches students broadband access and backbone infrastructure terminology and business details, economics of infrastructure providers on the Internet, and scenario planning tools. In the late 1990s, Sun Microsystems' Solaris has emerged as the dominant UNIX-based alternative to Microsoft for server operating systems. At the same time, the open source operating system Linux has appeared unexpectedly, and it is generating significant excitement among programmers and users. Anil Gadre, vice president and general manager of Sun's Solaris Operating Environment Group, must assess the threats and opportunities posed by Linux and by Microsoft as he and his executive team formulate a strategic plan for Solaris. Learning Objective: To look at competitive strategy issues that arise from network externalities and standards battles. Also, to examine various licensing arrangements such as open source versus more conventional licensing terms and to consider the implications of these arrangements for a firm's ability to capture value from its innovation.

Chapter 15: International Strategies Strategic Planning at United Parcel Service: David A. Garvin, Lynne C. Levesque Product #: 306002 Length: 25p Teaching Note: 307003

Teledesic : Thomas Eisenmann, Doug Rogers, Dan J. Green Product #: 802154 Length: 51p

Sun Microsystems, Inc: Solaris Strategy : Brian S. Silverman, Mark Rosenberg Product #: 701058 Length: 17p

Strategic Planning at Sun Life: Michael A. Roberto Product #: 301084 Length: 21p

Describes the firm's strategic planning activities and focuses on the challenge of developing processes that enable the firm to improve the core business as well as processes that foster the creation of promising new business opportunities. Learning Objective: To teach students how to design different types of strategy processes to accomplish different objectives.