IB 409: Strategic Management

Case 01: Airbnb 2020

The 2020 Airbnb case in the Crafting & Executing Strategy book discusses
the challenges faced by Airbnb due to the COVID-19 pandemic. Airbnb's
business model relies heavily on people traveling and staying in other
people's homes, which was severely impacted by global travel restrictions
and lockdowns.
As a result, Airbnb's revenues plummeted, and the company was forced to
take several measures to stay afloat. These measures included reducing
expenses, laying off employees, and raising capital through a combination
of debt and equity offerings.
To adapt to the new reality of the pandemic, Airbnb shifted its focus from
international travel to local travel and implemented new health and safety
protocols for its hosts and guests. The company also launched new
products and services, such as Online Experiences, to cater to customers
who were unable or unwilling to travel.
Despite the challenges faced in 2020, Airbnb was able to weather the
storm and go public in December 2020 with a successful IPO, signaling
investor confidence in the company's ability to recover from the pandemic
and continue its growth trajectory.
Case 02: Competition in the Craft Beer Industry in 2020
The "Competition in the Craft Beer Industry in 2020" case in the Crafting &
Executing Strategy book discusses the challenges faced by craft breweries
due to increased competition and the COVID-19 pandemic.
The craft beer industry has seen significant growth in recent years, with
many new breweries entering the market. This has led to increased
competition and pressure on existing breweries to differentiate themselves
and stand out in a crowded market.
In addition to competition, the COVID-19 pandemic has had a significant
impact on the craft beer industry. With many bars and restaurants closed or
operating at limited capacity, breweries have had to pivot to new sales
channels, such as online sales and direct-to-consumer deliveries, to stay
afloat.
To compete in this environment, craft breweries need to focus on quality,
innovation, and customer experience. They need to differentiate
themselves through unique flavors and styles, as well as engaging
marketing and branding efforts.
In response to the pandemic, breweries have also had to implement new
health and safety protocols, such as social distancing and contactless
payment options, to ensure the safety of their employees and customers.
Overall, the craft beer industry in 2020 was highly competitive and faced
significant challenges due to the pandemic. However, breweries that were
able to adapt and differentiate themselves were able to weather the storm
and continue to thrive in the market.
Case 03: Costco Wholesale in 2020: Mission, Business Model, and
Strategy.
The "Costco Wholesale in 2020: Mission, Business Model, and Strategy"
case in the Crafting & Executing Strategy book discusses Costco's mission,
business model, and strategies for success.
Costco's mission is to provide members with high-quality goods and
services at the lowest possible prices. The company's business model is
based on selling a limited selection of branded and private-label products at
low margins, while generating revenue through membership fees.
To execute this strategy, Costco focuses on several key operational
elements, such as bulk purchasing, low overhead costs, and efficient
supply chain management. The company also prioritizes employee
satisfaction, offering generous benefits and compensation packages to
ensure a high level of employee engagement and retention.
In 2020, Costco faced several challenges due to the COVID-19 pandemic,
including increased demand for certain products, supply chain disruptions,
and new health and safety protocols. However, the company was able to
adapt and continue to thrive by implementing new measures, such as
limiting the number of customers in stores and offering online ordering and
delivery options.
In addition, Costco has continued to focus on expanding its membership
base and offering new products and services to keep members engaged
and satisfied. These include services such as travel and insurance, as well
as new private-label product lines.
Overall, Costco's mission, business model, and strategy have allowed the
company to succeed and maintain its position as a leading retailer, even in
the face of significant challenges.
Case 04: Ford Motor Company: Will the company’s strategic moves
restore it’s competitiveness and financial performance?
The "Ford Motor Company: Will the company's strategic moves restore its
competitiveness and financial performance?" case in the Crafting &
Executing Strategy book discusses the challenges faced by Ford in recent
years and the strategies the company has implemented to restore its
competitiveness and financial performance.
Ford has struggled with declining profitability and market share in recent
years, due to several factors such as a shift in consumer demand towards
SUVs and trucks, increased competition from foreign automakers, and the
need to invest in new technologies such as electric and autonomous
vehicles.
To address these challenges, Ford has implemented several strategic
moves, including restructuring its operations, investing in electric and
autonomous vehicle technologies, and focusing on its core brands and
markets.
Ford has also made significant changes to its leadership team, including
appointing a new CEO and chief financial officer, to drive these strategic
changes and improve the company's performance.
While these strategic moves have shown some initial signs of success,
such as increased profitability and improved market share, it remains to be
seen whether they will be enough to fully restore Ford's competitiveness
and financial performance in the long term.
Ford still faces significant challenges, such as rising costs for raw materials
and regulatory compliance, and the need to continue to invest in new
technologies and innovation to stay competitive in the rapidly changing
automotive industry.
Overall, the success of Ford's strategic moves will depend on the
company's ability to continue to adapt to changing market conditions and
consumer demands, while also maintaining financial discipline and
investing in the technologies of the future.
Case 05: Macy's inc.: Will it's strategy allow it to survive in the
changing retail sector?
The "Macy's Inc.: Will Its Strategy Allow It to Survive in the Changing Retail
Sector?" case in the Crafting & Executing Strategy book discusses the
challenges faced by Macy's in the changing retail sector and the strategies
the company has implemented to adapt and survive.
Macy's has struggled in recent years due to the shift in consumer behavior
towards online shopping and the decline of department stores. To address
these challenges, Macy's has implemented several strategic moves,
including closing underperforming stores, investing in its digital capabilities,
and focusing on its private-label brands and exclusive merchandise.
Macy's has also implemented a number of initiatives to improve the
customer experience, such as improving the in-store experience,
expanding its loyalty program, and offering services such as buy online,
pickup in-store.
While these strategic moves have shown some initial signs of success,
such as increased sales and profitability, Macy's still faces significant
challenges in the highly competitive retail sector. The COVID-19 pandemic
has further accelerated the shift towards online shopping, and Macy's will
need to continue to adapt and innovate to stay competitive.
Macy's strategy will need to focus on meeting the changing needs and
expectations of consumers, such as offering a seamless and personalized
shopping experience across all channels, and continuing to invest in its
digital capabilities and exclusive merchandise.
Overall, the success of Macy's strategy will depend on the company's
ability to adapt to changing market conditions and consumer behavior,
while also maintaining financial discipline and investing in the technologies
and innovation of the future.
Case 06: Toms Shoes: Expanding its successful one for one business
model.
The "Toms Shoes: Expanding Its Successful One for One Business Model"
case in the Crafting & Executing Strategy book discusses the challenges
and opportunities faced by Toms Shoes as it seeks to expand its
successful one-for-one business model.
Toms Shoes' one-for-one model involves donating a pair of shoes to a child
in need for every pair of shoes purchased by a customer. This model has
been successful in generating positive social impact and brand recognition
for Toms, and has also been expanded to include other products such as
eyewear and coffee.
However, Toms faces challenges in expanding its business model while
maintaining its commitment to social impact and sustainability. Toms must
balance its desire to grow its business with the need to maintain its social
and environmental mission, and also to address criticisms of its business
model, such as concerns about the long-term effectiveness of its donations
and the impact on local economies.
To address these challenges, Toms has implemented several strategic
moves, such as expanding its product lines and distribution channels,
partnering with other organizations to address social issues beyond
footwear, and increasing transparency and accountability in its operations.
Toms has also focused on building a strong brand identity and community
through marketing and social media, and engaging with customers and
stakeholders to gather feedback and input on its business practices and
social impact.
Overall, Toms' success in expanding its one-for-one business model will
depend on its ability to balance growth and social impact, while also
addressing the challenges and criticisms of its business model. Toms must
continue to innovate and adapt to changing market conditions and
consumer demands, while maintaining its commitment to sustainability,
transparency, and social impact.
Case 07: Lululemon athletica's strategy in 2020: Is the recent growth
in retail stores, revenues and profitability sustainable?
The "Lululemon Athletica's Strategy in 2020: Is the Recent Growth in Retail
Stores, Revenues, and Profitability Sustainable?" case in the Crafting &
Executing Strategy book discusses Lululemon's recent growth in retail
stores, revenues, and profitability and whether this growth is sustainable in
the long term.
Lululemon has experienced significant growth in recent years, driven by
several strategic moves such as expanding its product lines beyond yoga
wear, increasing its online and international presence, and enhancing its
customer experience through community engagement and personalized
services.
To sustain its growth, Lululemon has implemented several strategic
initiatives, such as investing in innovation and product development,
expanding its retail footprint, and focusing on customer engagement and
loyalty.
Lululemon has also focused on enhancing its supply chain and operations,
such as improving inventory management and increasing efficiency in its
distribution centers, to support its growth and improve profitability.
While Lululemon's recent growth has been impressive, the company still
faces challenges such as increased competition and changing consumer
trends. Lululemon will need to continue to innovate and adapt to changing
market conditions and consumer demands, while maintaining its focus on
product quality, brand identity, and customer experience.
Overall, Lululemon's strategy in 2020 appears to be focused on sustainable
growth through a combination of product innovation, customer
engagement, and operational efficiency. However, the success of its
strategy will depend on the company's ability to continue to innovate and
adapt to changing market conditions, while also maintaining its core values
and brand identity.
Case 08: Under Armour's Strategy in 2020: Can it revive sales and
profitability in it’s core north American market?
The "Under Armour's Strategy in 2020: Can it Revive Sales and Profitability
in Its Core North American Market?" case in the Crafting & Executing
Strategy book discusses Under Armour's challenges in revitalizing its sales
and profitability in its core North American market.
Under Armour had experienced rapid growth in the early 2010s but faced
challenges in recent years due to increased competition and changing
consumer preferences. The company had relied heavily on its performance
apparel and footwear products, but had struggled to expand into other
product lines and distribution channels.
To revive sales and profitability in its core North American market, Under
Armour has implemented several strategic moves, such as focusing on
product innovation and design, streamlining its supply chain and
operations, and improving its marketing and customer engagement.
Under Armour has also made efforts to expand into new product lines such
as athleisure and lifestyle products, as well as new distribution channels
such as direct-to-consumer and international markets.
Despite these efforts, Under Armour still faces challenges in regaining
market share and profitability in its core North American market. The
company will need to continue to innovate and adapt to changing consumer
preferences, while also addressing issues such as excess inventory and
declining brand appeal.
Overall, Under Armour's strategy in 2020 appears to be focused on
revitalizing its core North American market through a combination of
product innovation, operational efficiency, and marketing and customer
engagement. However, the success of its strategy will depend on the
company's ability to execute these initiatives effectively and adapt to
changing market conditions.
Case 09: Spotify in 2020: Can the company remain competitive?
The "Spotify in 2020: Can the Company Remain Competitive?" case in the
Crafting & Executing Strategy book discusses Spotify's challenges in
remaining competitive in the increasingly crowded music streaming
industry.
Spotify had experienced rapid growth in recent years but faced challenges
such as increased competition from other music streaming services,
declining advertising revenue, and the high costs of music licensing and
royalties.
To remain competitive, Spotify has implemented several strategic moves,
such as expanding its product offerings beyond music streaming to include
podcasts, enhancing its user experience through personalization and
curation, and increasing its international presence.
Spotify has also focused on improving its advertising revenue through
targeted and non-intrusive ads, as well as developing new revenue streams
such as sponsorships and exclusive content.
Despite these efforts, Spotify still faces challenges in remaining competitive
and profitable in the long term. The company will need to continue to
innovate and adapt to changing market conditions, while also addressing
issues such as increasing competition, rising costs, and shifting consumer
preferences.
Overall, Spotify's strategy in 2020 appears to be focused on remaining
competitive through a combination of product innovation, user experience,
and revenue diversification. However, the success of its strategy will
depend on the company's ability to execute these initiatives effectively and
adapt to the evolving music streaming landscape.
Case 10: Beyond Meat Inc.
The "Beyond Meat Inc." case in the Crafting & Executing Strategy book
discusses Beyond Meat's strategy as a leader in the plant-based meat
alternative industry.
Beyond Meat's strategy is centered around its commitment to creating
plant-based meat alternatives that taste and feel like real meat, using
innovative technology and sustainable sourcing. The company's products
are made from a combination of plant-based proteins and other ingredients
such as beet juice, which gives them a meat-like texture and appearance.
Beyond Meat has also focused on expanding its distribution channels and
partnerships, with deals in place with major fast-food chains and grocery
stores. The company has also made efforts to improve its production and
supply chain capabilities to meet increasing demand for its products.
In addition, Beyond Meat has invested heavily in research and
development to continue to improve its products and create new offerings.
The company's commitment to sustainability and ethical sourcing is also a
key part of its strategy and brand identity.
Despite facing challenges such as increasing competition and supply chain
disruptions, Beyond Meat's strategy appears to be focused on continued
growth and innovation in the plant-based meat alternative industry. The
success of its strategy will depend on the company's ability to continue to
develop high-quality products, expand its distribution channels, and
maintain its commitment to sustainability and ethical sourcing.