IMC Flashcards
What was the problem with EuroDisney?
- Disney had opened amusement parts in Anaheim, Orlando and Japan. These parks were successes
- EuroDisney opened in April 1992- lots of problems
Problems:
1. No breakfast
2. Merchandise
3. Cultural Imperialism (no wine at meals, no breakfast)
4. Not enough bathrooms
5. Hotels- money
Too big to fail mentality
Why is the Euro Disney case significant?
- We live in a global economy
- Company based in Norway may manufacture its products in Vietnam, and be financed by a firm on Wall Street (globalization)
Lesson to be learned? Must do a feasibility study ahead of time, focus groups etc
What happened in the Southwest Airlines case?
Led the way for the “discount” segment of the airline industry- changed the way we priced tickets
Founder drew triangle of Dallas San Antonio and Houston
Why did Southwest Airlines succeed?
- Price
- Employee commitment
- Efficiency- turnaround time was quick
- Cost containment- food; airport fees (midway)
- One plane: 737
- Strategic expansion
- Conservative growth
- City-to-city, not a “hub strategy” of other airlines
What is a SWOT Analysis?
S: strengths, W: weaknesses, O: opportunities, T: threats
How to analyze a company
Southwest Airlines SWOT?
Strength: low price, cost, positive employee interaction
Weaknesses: some p
Opportunities: moving into cities they haven’t before
Threats: Jet Blue is a main competitor, updating the Southwest formula
Significance of SW airlines
initiated changes that became a permanent part of the picture
caused other companies to lower their prices
Significance of uber?
Founded by Travis Kalanick and Garrett Camp, first envisioned in 2008
Made possible because of digital revolution and idea of ride-sharing
Garrett: develop integrated credit card payment, GPS system to find customer and eventual location
Problems that Uber faces?
Challenges? Setbacks? Is this a company likely to succeed?
Challenges: opposition from taxi drivers
setback: lobbying
yes, they are likely to succeed
Cadillac? Features of the case?
Spent 12 billion dollars to rebrand Cadillac in 2020
Brought in Johan de Nysschen (became CEO in 2014)
Technological trends:
Hybridization- low-emission gases
e cars
non-luxury cars like Nissan leaf and Volt
Software for internet connections
Turnaround efforts: