Coach Inc. : Is Its Advantage in Luxury Handbags Sustainable? 1. What are the defining characteristics of the luxury goods industry? What is the industry like? 2. What is competition like in the luxury goods industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not? 3. How is the market for luxury handbags and leather accessories changing?
What are the underlying drivers of change and how might those driving forces change the industry? 4.
What key factors determine the success of makers of fine ladies handbags and leather accessories? 5. What is Coach’s strategy to compete in the ladies handbag and leather accessories industry? Has the company’s competitive strategy yielded a sustainable competitive advantage? If so, has that advantage translated into superior financial and market performance? 6. What are the resource strengths and weaknesses of Coach Inc.
? What competencies and capabilities does it have that its chief rivals don’t have?
What new market opportunities does Coach have? What threats do you see to the company’s future well being? 7. What recommendations would you make to Lew Frankfort to improve the company’s competitive position in the industry and its financial and market performance? Red Bull 1. What created Red Bull’s success? Where is the core franchise and benefit? Has the product’s positioning changed over time? What is the role of alcohol mixing to Red Bull’s success? 2.
What is Red Bull’s success formula? For which kind of product/beverage categories will this formula work?
How does Red Bull know when to turn on the advertising? What metrics would you use to make this judgment? 3. Why did the first U. K. launch go awry? 4. What changes were made for the U. S. market? Should other changes be considered? 5. Assume tough competition is coming. How can Red Bull protect its franchise? What actions would you recommend? 6. What should Red Bull’s competitors do? Coke? Pepsi? Anheuser-Busch? 7. If you were an investor in Red Bull, would you take your money and run or stay for the long haul? IKEA’s Global Strategy: Furnishing the World 1.
What are IKEA’s firm-specific advantages? Country-specific advantages? 2. What are the cultural factors which make expansion abroad in retailing difficult? What has made it possible in IKEA’s case? 3. Describe how IKEA’S expansion has re-energized mature markets around the world and changed the competitive situation. 4. How does the TV advertising campaign initiated by IKEA overcome the entry barrier of high advertising expenditures? 5. Should IKEA expand further in the United States or focus on other countries? Wal-Mart Stores, Inc. —A New Set of Challenges 1.
What impresses you about this company? What aspects of Wal-Mart do you find unimpressive? What accounts for Wal-Mart’s success? Is it a great strategy, superb strategy implementation and execution, or great leadership? 2. How would characterize Wal-Mart’s strategy? What are the chief components of its strategy? 3. What has Wal-Mart management done to implement and execute the strategy? What policies, practices, support systems, and management approaches underlie Wal-Mart’s strategy execution efforts? 4. What is your assessment of Wal-Mart’s culture? What are its chief elements and characteristics?
Why does the culture seem to be so much stronger in Bentonville than out in the stores? 5. What does the financial information in case Exhibit 1 reveal about the company’s success and performance during the 2000-2004 period? 6. Can the company continue to be successful? What issues does management need to address? 7. What recommendations would you make to Wal-Mart management? CASE: easyCar. com 1. What are the characteristics of the car rental industry? How do these characteristics influence the design of service delivery processes in this industry in general? 2.
EasyCar obviously competes on the basis of low price. What does it do in operations to support this strategy? 3. How would you characterize the level of quality that easyCar provides? 4. Is easyCar a viable competitor to taxis, buses and trains as Stelios claims? How does the design of its operations currently support this form of competition? How not? 5. What are the operational implications of the changes made by EasyCar. com in the last year? 6. How significant are the legal challenges that easyCar is facing? 7. What is your assessment of the likelihood that easyCar will be able to realize its goals for 2004?
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