TEESSIDE BUSINESS SCHOOL

MEDITERRANEAN UNIVERSITY
COLLEGE

Strategic and Change Management

Case study 2: Cartier

Dr. A. R. Morden

George H. Papadakis, PhD

What makes Cartier a success story?

Resource-based view of strategy (analysis step 1):
Find Cartiers core competences with Porters value chain analysis:
capabilities in in-bound logistics
capabilities in production
capabilities in out-bound logistics (distribution)
capabilities in marketing
capabilities in service
capabilities in procurement
capabilities in human resource management
capabilities in technology development
capabilities in firm infrastructure

What makes Cartier a success story (cont.)?

Resource-based view of strategy (analysis step 2):
See how these capabilities are turned into competitive advantages:
brand image
creativity and innovation
quality
design
customer orientation
environmental fit
operational efficiency
vision and identity

What makes Cartier a success story (cont.)?

Resource-based view of strategy (analysis step 3):
Find evidence of sustainability:
systemic thinking and linkages (Kays strategic architecture)
emphasis on value
constant innovation and upgrade
commitment to customers
strict quality control
empowerment
investments on image and reputation
complementary objectives (people, customers, financial goals)
strong leadership

What puts Cartiers success in danger?

Dangers from external environment:
competition (many strong luxury-brands in the same market)
market volatility (luxury market is trend-driven, preferences change
abruptly)
economic slowdown (target-market is shrinking)
Dangers from internal environment:
emphasis on tradition leads to missed opportunities
emphasis on quality leads to sacrifices in speed
over-reliance on one man leads to succession problems
But most importantly: huge success entails a danger in itself! Why?