Unit 4 Case Studies Flashcards
Whitbread
Economic Environment
Prospered during recession
Premier Inn a counter-cyclical good, where cheap was advertised, tailored advertising increased awareness and sales.
Thorntons
Economic Environment
Luxury retailer, recession sales decline. Cut costs lower choco price meeting. Cost leadership provided supermarkets with own labelled.
Jaguar Land Rover
Economic Environment
Globalisation
Retrenchment
Market Development, new products increase demand. Moved to growth markets. 1.51bn profit. Recession moved to growth area. Cut 9000 jobs moved to china withdrew manufacturing from Britain to China.
Apple
Globalisation
22 Fake Apple stores same everything. Bought cheap sold high high demand.
Starbucks
Globalisation/Joint Venture
TATA INDIA, 50:50 venture, 50 locations offering Indian style products, TATA know consumer preferences = good synergy.
Rank Leisure
Political/Legal
Ban on smoking impacted Bingo sales, go outside instead of casino games.
Dyson
Political/Legal
Minimum wage little impact, low cost Malaysian work.
Patent/trademark/copyright develop and patent new idea crucial.
GSK
Political/Legal
Minimum wage little effect as high skilled workers. More capital intensive industry.
Patent/trademark/copyright develop and patent new idea crucial.
Domino’s
CSR
30 min guarantee free pizza.
People hit by speeding vehicles and compensation needed to be paid. No significant impact on customer loyalty.
Unilever
CSR
Tackle deforestation and climate change. Don’t publish frequent accounts, encourage long term investment. Improve sustainability good for long run business.
Starbucks
CSR
Fair Trade agreements with suppliers. Ethically diverse workforce. USP higher prices may increase morally conscious demand.
Tax avoidance, no tax 2009-2012, use retained profit, became unpopular some moved to Costa.
HMV + Waterstones
Tech Environment
Online retail, Amazon and Itunes reduced demand for CD’s/Books.
Made redundancies and focused on store experience/online for Waterstones
Celebrity appearances/gigs in store HMV.
Ebay
Tech Environment
Millions of merchants in 190 markets 24 currencies.
Easy process encouraging more buyers/sellers.
First mover advantage chance to establish economies of scale.
Uber
Tech Environment
Disruption where small business can challenge established businesses.
Quick and simpler online service in comparison.
Competition have lost trade significantly.
Competitive Environment
Increasing substitutes increasing competitive rivalry, low barrier to entry allowing entrants cheap to create a website. Competitors innovate and grow increasing rivalry.
Ebay and Paypal
Competitive Environment
Difficult to get brand recognition and trust, reducing threat of competitors. High barrier to entry due to trust, established firms more few dominant firms like Amazon, Alibaba and Ebay.
Automotive Industry
Competitive Environment
Competitive rivalry high foreign competitors price, quality / innovation. Threat of new entrants low – brand recognition and price to get market share. High capital investment, manufacturing facilities distribution network.
Threat of substitutes low, high sunk costs.
Lego
Organic growth
Aim to be best not biggest. Shareholder family only looking to long term future. Heavily invest in innovation to secure future and grow.
BSkyB
Organic Growth
Long-term objective of growing its household subscriber base to 10 million households/customers. Grow organically by focusing on investment in content / innovation.