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Case Analysis 1
Case Analysis 1
Case Analysis 1
1. INTRODUCTION OF HARLEQUIN
ENTERPRISES THE MIRA DECISION
CASE SOLUTION
The Harvard business review has published the HARLEQUIN ENTERPRISES THE
MIRA DECISION Case Study. Like all HBR case studies, the HARLEQUIN
ENTERPRISES THE MIRA DECISION Case is designed and drafted in a manner to
allow the reader to experience a real-world problem and solve it accordingly. The
case study, like other HBR case studies, will help the reader and students develop a
broader, and a clearer understanding of the business world and dynamics.
The HARLEQUIN ENTERPRISES THE MIRA DECISION Case is based on a current
managerial and strategic problem being faced by the organization, which must be
solved tactfully to allow progression, as well as maintain a competitive position. This
paper is written to facilitate the case solution for the HARLEQUIN ENTERPRISES
THE MIRA DECISION Case Study.
The case solution for the HARLEQUIN ENTERPRISES THE MIRA DECISION Case
Study first identifies the central issue that is elaborated on throughout the case. The
case solution then analyses the case through relevant strategic models and tools
including the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO
analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the
Marketing Mix analysis. This analysis is to help in the identification of a feasible
strategy and solution for the HARLEQUIN ENTERPRISES THE MIRA DECISION
Case Study. Alternative solutions are also proposed in the case solution, primarily
because alternative solutions often act as contingency plans.
2. PROBLEM IDENTIFICATION
2.1. Harvard business school case studies
All case studies published by the Harvard business review comprise of a central
problem that is faced by the protagonist. This problem mostly holds implications for
managerial and strategic directions of the company. For readers and students of
HBR case studies, it is critical to identify the problem that the HARLEQUIN
ENTERPRISES THE MIRA DECISION faces. This problem is usually hinted towards
in the introduction of the case and develops along the way.
2.2. Solving HBS case studies
As a result, for solving the HARLEQUIN ENTERPRISES THE MIRA DECISION
case, it is essential to read the case study thoroughly. The identification of the
problem correctly is vital for undergoing the analysis rightly, and for developing
relevant solutions for the HARLEQUIN ENTERPRISES THE MIRA DECISION Case
Study. It is also essential to identify all the appropriate parties that are being
impacted by the problem as well as the decision. The correct problem identification
will ensure that all the solutions developed during the case analysis of the
HARLEQUIN ENTERPRISES THE MIRA DECISION Case Study are applicable and
pragmatic.
3.1.1. Political
Political factors and elements can have a direct and indirect impact on the business.
This is seen through the HARLEQUIN ENTERPRISES THE MIRA DECISION Case
Study.
3.1.1.1. Policy Makings
3.1.1.2. Taxation
Tax policy will influence the cost of doing business for HARLEQUIN
ENTERPRISES THE MIRA DECISION.
An increase in organization taxation (on business profits) has a similar impact
as an expansion in expenses.
Organizations can pass a portion of this increase on to shoppers in more
expensive rates, yet it will likewise influence the bottom line of the business.
The government helps organizations in two primary ways: monetary help and
regulatory.
HARLEQUIN ENTERPRISES THE MIRA DECISION can use government
assistance and grants for purposes of growing the business, advancement,
exporting, and innovative work.
HARLEQUIN ENTERPRISES THE MIRA DECISION can also be impacted by
when Governments modify regulations and laws.
3.1.2. Economic
The economic factors are one of the most important of PESTEL factors and can
influence HARLEQUIN ENTERPRISES THE MIRA DECISION in several ways.
3.1.2.1. GDP
Economic components have the most evident effect on the profitability and
overall appeal of HARLEQUIN ENTERPRISES THE MIRA DECISION.
Even though GDP per capita is a useful economic factor, GDP per capita
gives just a fractional perspective on the economic factors that may influence
HARLEQUIN ENTERPRISES THE MIRA DECISION.
Higher GDP leads to higher disposable income and hence higher sales for
HARLEQUIN ENTERPRISES THE MIRA DECISION.
3.1.2.2. Inflation
Higher inflation will disintegrate the purchasing power of the consumer and
the shopper
Higher inflation will also harm the costs of raw materials and other inputs that
are utilised by HARLEQUIN ENTERPRISES THE MIRA DECISION.
Fluctuations in interest rates may translate into higher or lower costs for the
purchase or sale of items and administrations provided by HARLEQUIN
ENTERPRISES THE MIRA DECISION.
Higher interest rates hurt the disposable cash of consumers.
3.1.3. Social
Social influences will stem from social components of the macro environment. Under
the PESTEL Analysis, they can influence HARLEQUIN ENTERPRISES THE MIRA
DECISION in several ways:
3.1.3.1. Social patterns and consumer behaviour
Social patterns affect work trends and patterns and are directly related to the
behaviours of consumers.
Social patterns also have a direct influence on buyer tastes and inclinations,
and the specific kind, structure, and volume of interest for an item or service.
3.1.4. Technological
The technological factors can influence HARLEQUIN ENTERPRISES THE MIRA
DECISION in several ways:
3.1.4.1. Innovation
The expansion of the Internet and online business has discarded many
intermediaries. HARLEQUIN ENTERPRISES THE MIRA DECISION can
communicate and retail directly to the consumers now, or through modern
intermediaries such as eBay as well, for example.
HARLEQUIN ENTERPRISES THE MIRA DECISION may also use current
social networks to retail and use e-commerce to boost sales.
3.1.5. Environmental
For HARLEQUIN ENTERPRISES THE MIRA DECISION, the environmental aspects
of the PESTEL analysis may include:
3.1.5.1. Environmental stability and business standards
3.1.6. Legal
Legal components can influence HARLEQUIN ENTERPRISES THE MIRA
DECISION directly, and can likewise influence the instruments through which an
organization buys its stock or connects with the client. The HARLEQUIN
ENTERPRISES THE MIRA DECISION should be mindful, for example, of the
following legal aspects:
3.1.6.1. Labour law
Labour law refers to the guidelines in regulations that set up minimum and
benchmark conditions.
These include identifying with the work of people.
Labour laws include aspects of minimum working age, least time-based
compensation, etc.
HARLEQUIN ENTERPRISES THE MIRA DECISION must be mindful of
these laws in routine business tasks such as hiring, for example.
New entrants to an industry bring new potential and a choice to increase the
market share and overall share of the pie that puts pressure on price, costs,
and the investment price essential to compete.
For HARLEQUIN ENTERPRISES THE MIRA DECISION, particularly while
new entrants are diversifying from different markets into the chief industry,
they will be able to leverage existing talents and cash flows to shake up the
opposition.
The threat of entry in the industry, consequently, puts a cap at the earning
capacity and profit capability for HARLEQUIN ENTERPRISES THE MIRA
DECISION.
While the threat of new entreaty is high, HARLEQUIN ENTERPRISES THE
MIRA DECISION should maintain their prices or increase funding and
investment to discourage new competition.
The risk of entry in an industry depends upon on the peak of entry barriers
and limitations that are a blessing for players such as HARLEQUIN
ENTERPRISES THE MIRA DECISION and on the response that new
entrants can count on from existing players.
If entry barriers are low and novices count on little retaliation from the
entrenched competition, the chance of entry is high, and profitability for
HARLEQUIN ENTERPRISES THE MIRA DECISION will be moderated.
It is the danger of entry, not whether the entry of new players takes place that
holds down profitability.
There are always different alternatives or substitutes for various products that
lead an industry.
These substitutes may be direct or indirect– the direct substitutes are the
same category products. produced by different players; indirect substitutes
are the ones from different product categories that can replace the product for
HARLEQUIN ENTERPRISES THE MIRA DECISION.
Switching costs for direct substitutes is not very high for consumers.
The per-unit-volume prices may be higher or lower.
This makes the threat of substitute high.
Alternatives to the product or substitutes may not be able to provide the same
benefits
May often lead to additional costs incurred.
Switching costs towards alternatives becomes higher, and consumers may
not switch to substitutes.
This, in turn, will make the threat of substitutes low.
From the point of view of the consumer, there are some differences between
the ways different products of the same or similar category are used, but
many consumption decisions are a matter of personal taste - this makes
products vulnerable to the threat of other substitutes.
Overall, the threat of substitutes is assessed to be moderately high.
Supplier power refers to the power that is held by the suppliers in terms of
pricing of the raw materials and inputs used for the business.
Suppliers can integrate forward into the decision making and business
dynamics themselves as well.
Also, to the buyers, the quality of the supplies and the raw materials is of
utmost importance.
However, in an industry with a high number of suppliers, HARLEQUIN
ENTERPRISES THE MIRA DECISION can switch to different suppliers at
any time without experiencing any costs of the business.
Overall bargaining power of suppliers is assessed to be moderate.
Get contracts with multiple suppliers and get resources and raw materials
from them accordingly.
Invest in manufacturer controlled production facility to maintain consistency in
quality.
3.2.5.3. Diversification
Purchasers and buyers have a wide range of products to choose from, with
relatively low switching costs. These factors tend to intensify rivalry.
Though players in the industry may off niche or premium products, they also
continue to operate in the mass markets at large, which again leads to high
competition.
The high fixed cost and the high bargaining power of the buyers, which can
lead to the lowering of the prices from manufacturers add to the highly
competitive nature of the industry.
The overall rivalry is assessed to be high.
The high number of direct and indirect alternatives available also make
HARLEQUIN ENTERPRISES THE MIRA DECISION vulnerable to the high
threat of substitutes.
Low to negligible switching costs experienced on the part of the consumers
and buyers.
3.3.1.3. Profitability
3.3.5.2. Differentiation
Products offered during this stage re doubtful as success and life of the
product is unproven and not known.
HARLEQUIN ENTERPRISES THE MIRA DECISION will use a focused
strategy during this phase to emphasise the uniqueness of the product.
The product or the brand will have a small market of consumers – known
largely as early adopters
Marketing strategies adopted by the company will focus on generating
awareness of the product and therefore, will largely use a functional appeal.
Products in this stage have high growth and high market share.
There is also increasing competition and rivalry in the market – new entrants
will enter and compete looking at the success of products during this stage.
Firm size is generally larger and is more dominant over players if successful-
compared to growth stage.
Innovations continue but are stable and not radical.
Specialization
Brand identification
Push versus pull strategies
Channel determination
Product quality
Technological position
Vertical joining
cost position
Service
Price strategy
Financial or working influence
Parent organization relationship
Government relationship
Despite the various aspects available for comparison of competing players, it is often
important to differentiate strategic groupings of players of aspects of how they
compete with each other, and on aspects of where they compete as well
The following section presents a brief analysis of the VRIN strategic tool as it is
applied to HARLEQUIN ENTERPRISES THE MIRA DECISION and its impact on the
strategic direction.
Access to the capital expected to put resources into innovation that will cut
expenses down.
Very proficient coordination’s.
A minimal effort base (work, materials, offices), and a method for
economically cutting expenses beneath those of different competing players.
In the SWOT analysis model, the global distribution network through directly
owned subsidiaries, or contracts with third-party agents further strengths
HARLEQUIN ENTERPRISES THE MIRA DECISION by supporting activities.
For instance, the organization has a worldwide system of providers that are
deliberately chosen dependent on criteria relating to quality, for example, of
raw materials as has been discussed in the value chain - primary and
supporting activities.
The focus on innovation not only keeps the company apart but also facilitates
its industry leadership.
The internal core strengths and competent variables recognized in this
section of the SWOT analysis of HARLEQUIN ENTERPRISES THE MIRA
DECISION demonstrates that the business has qualities that advance
strength through expansion and a worldwide production network.
Likewise, this SWOT analysis highlights that generalized standards for all
portfolio products may be a weakness because it restrains the adaptability of
these products and items in the business.
5.2.3.2.2. Imitability
The company can also formulate new B2B relations and contracts with other
companies and corporate entities.
The external key factors in this section of the SWOT analysis demonstrate
that HARLEQUIN ENTERPRISES THE MIRA DECISION can improve its
industry position by building up its activities to make use of the opportunities
in the international business markets.
How will HARLEQUIN ENTERPRISES THE MIRA DECISION make the most
of its strengths and core competencies?
How will HARLEQUIN ENTERPRISES THE MIRA DECISION Circumvent its
weaknesses and shortcomings?
How will HARLEQUIN ENTERPRISES THE MIRA DECISION capitalize on
the various opportunities present in the business environment?
How will HARLEQUIN ENTERPRISES THE MIRA DECISION ward off, and
manage the threats that are present in the external business environment?
The analysis of the SWOT and the subsequent assessment and development of the
TOWS matrix will allow the HARLEQUIN ENTERPRISES THE MIRA DECISION to
be able to identify the following answers:
The following section highlights the various strategies that may be used through the
Ansoff matrix. These strategies have been highlighted and identified through
vigorous research methodologies, as well as through expert analyst data and
opinion.
5.4.1. Market development strategies
5.4.1.1. Advertising and promotion of products
The company can expand into other markets through its previous experience,
as well as through partnerships and contracts with other agents and parties.
The company can also develop subsidiaries, as well as offer its products
through franchising as well as licensing.
The geographical expansion is suggested into emerging economies because
of the favourable income levels of the consumers, as well as the growing
infrastructure.
The company should have dedicate incubation labs for the development of
new products.
This means that this development should be a focused and separate entity
that should focus on the company’s innovation.
The company should also hire the right talent for business development and
innovation to be able to achieve targets and goals accordingly.
The company should also have a focused and strategic budget for marketing
and communications allocated for new product development.
This is because the company will need to increase the appeal, as well as
develop functional and emotional appeals and characteristics of the new
product.
Communicate with the consumers to enhance sales as well as increase
likeability and rate of consumption and trial.
The strategy is acceptable because it is in line with the company’s goals and
mission.
Also, it is also in line with the internal marketing and culture of the
organization.
As such, the strategy does not pose any risk – financially and otherwise and
is also palatable for stakeholder reactions.
Lastly, the strategy promises to give high returns. Overall, the strategy
appears to be highly acceptable.
5.5.2.3. Feasibility
5.5.2.3.1. Market research and financial cushioning
5.5.3.1.2. Innovation
Therefore, the risk of new product development and consumer reaction would
be there.
Also, the acceptability is also low because of stakeholder reaction – who
might not all agree with the expansion of the portfolio horizontally – i.e. The
broadening of the portfolio away from the core offerings.
Lastly, if the strategy works, it promises high returns, which make sit low to
moderately acceptable.
5.5.3.3. Feasibility
5.5.3.3.1. Market research and financial cushioning
This strategy is suitable because the company has high and focused
budgeting for marketing and communications.
This would also allow HARLEQUIN ENTERPRISES THE MIRA DECISION to
withdraw from failing markets or markets that have a weak share, and gain
access to rising markets.
The company will be able to exploit its research and development for
strategic marketing
HARLEQUIN ENTERPRISES THE MIRA DECISION will also make use of
existing systems and products to reach new consumer groups through
marketing.
5.5.4.2. Acceptability
5.5.4.2.1. Return on investment
5.5.4.3. Feasibility
5.5.4.3.1. Market research and financial cushioning
The strategy is highly feasible because the company has a strong financial
standing.
This means that the company can afford to increases budget for marketing
purposes.
However, for the stagey to be successful, it is important that the company
aces sure that all promotional campaigns developed are in sync with
consumer needs, demands and behaviour.
This is again possible for the company because of its investment in research
and development.
6. FINAL RECOMMENDATIONS
Based on the overall internal and external analysis done for HARLEQUIN
ENTERPRISES THE MIRA DECISION, this section will offer recommendations
which will help the company take on strategic directions that will enhance its core
competencies and capabilities, as well as reduce its chances for risks and threats?
The following recommendations are thus made for HARLEQUIN ENTERPRISES
THE MIRA DECISION :