Case Studies Flashcards
1
Q
Tesla
A
Competition
- GM & Ford both spend 4 Billion on advertising
- BMW value estimated at 40 Billion
- Toyota has 1600 dealers in supply network
- Plants cost between 1-2 Billion
- Car design costs 1-6 Billion
Creating a competitive advantage
- Entered with high end model with high margins (Roadster)
- Used this to fund an affordable car for the masses (model 3)
- Cost efficient as high start up costs and less needed to produce fewer luxury cars
- Owned outright, no thrid party dealerships
- All technology made inhouse, non outsourced
- All power and fuel ownder by tesla
Financial
- Toyota: 2015 11.2 Million units produced, 245 Billion revenue, 24 Billion profit (2015)
- Tesla: 50,000 units produced, 3 Billion Revenue, -187 Million profit (2015)
- Tesla: 380000 Units 2018, 21 Billion Revenue, -1 Billion loss 2018
700 Million loss expected in first quarter 2019
- Electric vehicles account for just 0.007% of US market (2015)
Current Share price at 360 PS
-
2
Q
Kodak
A
Competition
- Adobe software and HP in printers
- Poor profit optential in digital imaging products
- 86% MS in cameras 1976
- 90% MS in firm production 1976
- Now market leaders in Sensors, Image Processing, Ink and Colour Science (SIIC) after 2012 bankruptcy
Creating Competitive Advantage
- Relied on old camera and firm production revenue
- Failed to identify and seize digital camera oppertunity, despite having invented the first digital camera themselves in 1975
- ‘Kodak moment’ - slogan invented to correlate pictures with customer emotions, one of their most successful campaigns
- EasyShare Network (2001), Mobile, home and professional printing with PC based and online services
Financials
- 23 Major aquisitions in areas of commercial printing, film and even dental phtography (Grant,2016)
- Advantex 1996 - 500 Million digital Camera - flopped beacuse people no longer needed the film Kodak were supplying - failure to use sturctural ambidexerity (duncan, 1976), where they couldnt merge current competitive advantage with new oppertunities
Important learning curves
- Adaptability internally and to external environment
- Changing/adapting business design and focus
- Structural ambidexterity
- Poor application of available resources
- Failure to act dynamically
3
Q
Air Asia
A
Competition
- Main competitors Firefly, Tiger Airways, Jetstar Asia
- Malaysia Airlines 13 Million Passengers, 15 Billion Revenue, +250 Million ATP
- Air Asia 11 Million Passengers, 3 Billion revenue, -500 Million ATP
Competitive Advantage
- Hubs in Malaysia, Indonesia, Thialand with 72 aircrafts
- 55 Million Guests flown since opening in 2001
- 60 Countries, 400 Flights daily
- No Frills 9no extras) design
- Warm, simple marketing, low cost, high impact
- Worlds lowest cost/seat KM at 0.023/km (CASK)
- More automation, lower market spending, route rationalism and no regional offices.
- Cost efficiency, low input costs, operational design and economies of scale
Financials
- Malaysia Airlines 13 Million Passengers, 15 Billion Revenue, +250 Million ATP
- Air Asia 11 Million Passengers, 3 Billion revenue, -500 Million ATP
ROI -9%
Share price = 0.63
4
Q
Starbucks
A
Competitors
- Starbucks - 23 BIllion Revenue (2018), 29000 locations
- Costa - 1.3 Billion Revenue (2018), 3400 locations
- Paradigm shift to more utilitarian coffee uses
Competitive Advantage
- Doubles market value in last 5 years
- “we are not a coffee company serving people, we are a people company serving coffee” (Howard Schultz, 2002)
- Schultz rehired in 2008, fired 6700 people, 400 stores closed
- Focus on selling the starbucks experience, not just coffee
- Mcdonalds fast coffee is a growing concern
- Claims to operate in interest of the stakeholders
- Focus on China and Asian markets, 14% Growth in 2016
- Collaboration with Alibaba and customer facing mobile apps
- Starbucks deliver with Alibaba, too
- Huge quiality coffee potential worldwide, develops physical, huma, reputational and managerial resources
- Pumpkin Market, 500 Million per season, 100 Million per season sales revenue.
started selling in 2002, 21% increase since 2012
- Healthcare insurance and stock options biggest achivement for Schultz
- Expats most expensive problem, looking to create ‘disruptive digital innovation’ in the market
Financials
- Starbucks - 23 BIllion Revenue (2018), 28000 locations
- Costa - 1.3 Billion Revenue (2018), 3400 locations
ROI 21%
Share price 77 USD
5
Q
Video Games
A
1978: 1985: Atari
1985: 1995: Nintendo
1995: 2005: Sony
2006: 2012: Nintendo Wii
6
Q
ROI
A
Tesla
ROI -2.095%, 15 Billion in debt and investments 2019, Share price at 360 ps
Air Asia
- ROI -9%
0. 6 USD shareprice
Starbucks
ROI 21%
Share price 77 USD
Kodak
ROI = 4.92
2.42 Shareprice
