Dalian Sanyo Cold Chain: The Service Industrialization as a New Development Engine

Miao Cui, Jingqin Su and Jingxiang Cao

Mr. Ji, the general manager of China’s largest cold chain manufacturer, Dalian Sanyo Cold Chain Co., Ltd. (DSC), was pondering whether to expand the service industrialization into other business areas or to just focus on the current display case business. DSC initiated the service industrialization in 2005 when facing severe competition in the Chinese market and realizing western customer in urgent need of high value-added service. After the incubation period, the service industrialization began to make profit and was welcomed by western customers. However, it was not successful among their Chinese customers. Meanwhile, there were several competitors planned to imitate DSC’s service practices. Mr. Ji had to decide the future of service industrialization.



Hyundai Motor Company in the Indian Market

Young-Eun Park and Dong-Kee Rhee

This case study described the strategies of Hyundai Motor Company for entering and working in India, as part of its global management strategies. With its huge potential in market development, India attracted world-wide attention and was a place of fierce competition among global corporations. In the automobile industry, Hyundai Motor India (HMI) went into the production of national vehicles for India’s citizens through localization of products and marketing as well as standardization of manpower and organization. This study will examine the strategies and role of HMI as the future leader for domestic markets and outpost for global exportation.



P1: Competing in the Broadband Service Industry

Mohd Fuaad Said and Khairul Akmaliah Adham

In 2008, Packet One Networks (Malaysia) Sdn. Bhd., or P1, launched its Worldwide Interoperability for Microwave Access (WiMAX) service, P1W1MAX, in Kuala Lumpur. This event kicked off the company’s pioneering effort to provide Malaysians with WiMAX wireless broadband access, which it promised to be a better alternative to the current wired and 3G broadband offerings. Within a year, it had built a customer base of about 80,000 subscribers, and achieved an average revenue per user of about RM89 (approximately US$30). One year later, the company rolled out its Sudah Potong (Cut Already) marketing campaign and by the end of 2010, it had gathered about 280,000 customers and its ARPU of RM72 was among the highest in the industry.

P1’s five-year, three-phase plan (2007-2012) involving an investment of RM1 billion (about US$330 million) for the development of its WiMAX services, aimed to reach 65% area coverage throughout Malaysia by 2012. In December 2010, it announced its goal to increase its customer base to 450,000 by the end of 2011 to achieve its planned break-even. These efforts, however, attracted increased attention from the public, and even more so from its industry rivals, which reacted aggressively to P1’s expansion. P1’s top management knew that the company needed to act quickly, especially since the company’s breakeven target date had reportedly been deferred several times. This case provides a scenario that can stimulate discussion on business strategies to be pursued by the top management of a growing firm operating in a very competitive industry.

 



mKrishi

Ashish Hajela and M. Akbar

The case is about mKrishi, a mobile based agro advisory system launched by TCS as a pilot project in India. The purpose of the innovative venture is to provide personalized, integrated, interactive advice and information regarding agricultural activities to the farmers, based on their local conditions through mobile handset in their native language. The pilot project has shown social and business benefits as well as challenges. TCS has been contemplating on launching mKrishi as a full scale commercial venture.



Korean Air Cargo: Strategic Challenges in an Evolving Environment

Namgyoo K. Park, Jeonghwan Lee and Uisung D. Park

This case study conducted qualitative research of the air cargo transportation industry, focusing on the case of Korean Air Cargo. The air cargo business was now in its maturity stage and had revenues of $66 billion in 2010. Since the deregulation of the air industry during the expansion stage, the industry had witnessed fierce competition. Radical changes in the business environment and international politics also affected the industry and cargo airlines need to adjust to industry lifecycles and industry circumstances.

In 2004, Korean Air Cargo was ranked the world’s largest air cargo carrier. This was the result of adaptation to the business environment and meeting the needs of the market. The firm offered a new service, focusing on delivery of IT products and targeted niche markets. However, the double-digit growth rate of the Chinese economy offered huge opportunity for Chinese and Hong Kong airlines, and by 2010, Cathay Pacific surpassed Korean Air Cargo to become the market leader.

With the double-dip global recession and the slowdown in the Chinese economy as well as lowered barriers to entry due to international deregulation, the air cargo industry has entered a hyper-competition phase. What should Korean Air Cargo do to proactively address world economic trends and the industry environment in order to capture market leadership again?



Evolution of Fortune Brand Communications of Adani Wilmar

Preeta H. Vyas and Falgun Bhatt

In early 2011, CEO of Adani Wilmar Ltd. (AWL) arranged a meeting with COO (Chief Operating Officer) and his team to review Fortune brand communication strategy. The multimedia campaign, designed and proposed by its advertising agency, was a major shift from past communications. With a tagline “Joy of Eating”, the company wanted to craft a unique value proposition for the brand. Earlier the “Thoda aur chalega” (little more will do) campaign was continued since its introduction for the variants under the brand “Fortune”.

The case describes the taglines and product portfolio of the “Fortune” brand as well as the characteristics of the edible oil industry and competition within the industry. It featured the proposed brand portfolio and communication strategy for the “Fortune” brand. The brand had maintained its market leadership for last 7 years in organized (packaged edible refined oil) market and hoped to further strengthen its market share with this repositioning. The team was to analyze the market and chart out the future road map for communications of the brand in a competitive edible oil market in India.



Geely Automotive’s Acquisition of Volvo

Amy Chen Yuanyi, Joyce Wang Xinran and Michael N. Young

The case describes Geely Automotive’s strategy to grow from an unknown Chinese refrigerator manufacturer into a global international player. A big step toward Geely’s internationalization was its acquisition of Volvo Car Corporation in 2010. The acquisition prompted the largest profits and most intense technology transfer in Geely’s history. But it also created conflicts between the two merging organizations including differences over leadership style, resource sharing, and branding strategy. The case discusses the synergies and challenges encountered by Geely and Volvo and illustrates the details of the acquisition. The case also provides lessons for other enterprises from emerging economies that are increasingly wishing to expand to well-developed markets such as America and Europe.



Caffé Bene Disrupts the Stagnating Korean Coffee Shop Market

Kiwan Park, Sunghee Jun, Jerry Jisang Han, Jiuoung Lee, Hwain Kim and Joonkyung Kim

Caffé Bene was founded in 2007, during which the coffee shop market in Korea had been experiencing rapid growth. Caffé Bene had to compete with existing brands, including Starbucks, The Coffee Bean and Tea Leaf, and other coffee shop chains native to Korea. Sun-Kwon Kim, the founder and current CEO of Caffé Bene, tried to differentiate his brand on the basis of a new concept of European ambience mixed with Korean culture, new and localized menus, and celebrity endorsements; all of which were unheard of in the retail coffee industry at that time.

This novel approach allowed Caffé Bene to gain great popularity in a short period of time. Despite its extraordinary success, however, Caffé Bene faced numerous challenges, including managerial issues caused by excessive expansion and rapid growth, dilution of differentiation as a result of new entrants that mimicked Caffé Bene’s unique strategies, and an overall sluggish growth rate in the coffee shop market. In this case, the challenges that Caffé Bene faced and the strategies it employed to successfully deal with them are discussed.
 



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