INSTRUCTOR RESOURCES

CASE DESCRIPTIONS

	Select a Chapter Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12
Chapter 2
TiVo in 2005 Publication Date: Jan 4, 2005 Revision Date: Jan 27, 2005 Author(s): David B. Yoffi, Barbara J. Mack Product Number: 9-705-467 Length: 6p Description: TiVo is a leading maker of DVRs, digital video recorders. Consumers have taken to the machine quickly and TiVo has won many industry awards. However, pricing and service offerings vary and a number of competitors have emerged. Will TiVo continue to hold a leadership role in home media? Teaching Purpose: To illustrate the importance of strategy and pricing in consumer electronics. Apple Computer--2002 Publication Date: Mar 22, 2002 Revision Date: Jan 31, 2003 Author(s): Yusi Wang; David B. Yoffie Product Number: 9-705-469 Length: 22p Description: In 1980, Apple was the leader of the PC industry, but by 2002 it had suffered heavy losses at the hands of the Wintel camp. This case examines Apple's strategic moves as the PC industry evolves in the 21st century and poses the question: Can Steve Jobs make Apple "insanely great" again? Teaching Purpose: To teach industry analysis and problems in sustaining competitive advantage. Biopure Corp. Publication Date: May 29, 1998 Revision Date: May 27, 1999 Author(s): John Gourville Product Number: 9-598-150 Length: 18p Description: It is early 1998 and Biopure Corp., a small biopharmaceutical firm with no sales revenues in its ten-year history, has just received government approval to release Oxyglobin, a revolutionary new "blood substitute" designed to replace the need for donated animal blood in the veterinary market. A virtually identical product for the human market, Hemopure, is in the final stages of testing by Biopure and is expected to gain approval within one to two years. In response to the timing of approval for these two products, there has been a long-running debate within Biopure as how to proceed with Oxyglobin. At odds are those in charge of Oxyglobin, who want to see the animal product released immediately, and those in charge of the Hemopure, who worry that an immediate release of Oxyglobin would create an unrealistically low price expectation for what they feel should be a very high-margin human product. Exacerbating the problem is the nature of the biopharmaceutical industry, where product approval is never a certainty until achieved. Teaching Purpose: To introduce the concepts of market segmentation, product line policy, and multi-product pricing. Also introduces students to the unique business dynamics of the biotechnology industry. Compaq Computer Corporation: The Dell Challenge Publication Date: 1999 Author(s): A.B. Ryans; M. Vandenbosch Product Number: 9B00A009 Length: 25p Description: The new CEO of Compaq Computer, the world's second largest computer company, is facing some difficult decisions about how to combat the increasing threat posed by Dell Computer Corporation. The case describes the strategic moves made by Compaq in the late 1990s under the leadership of a previous CEO who was dismissed by Compaq's board earlier in the year. It also describes in some detail the history of Dell Computer and the evolution of the Dell Direct model. Compaq's new CEO faces some major issues, one of which is the resolution of the channel issues, particularly in the commercial personal computing segment. It is clear he faces some very tough strategic and marketing choices. The power of information technology and standards that have allowed Dell to build a powerful ecosystem with its customers, suppliers and complementers are illustrated in this powerful teaching case. With the support of these other players, Dell has been able to topple one of the great companies of the late 20th century from its leadership position. It also illustrates how difficult it is for a market leader to effectively respond to such a challenge. CompuSound Calling Publication Date: 1996 Author(s): J.L. Bowey Product Number: 9B00A006 Length: 20p Description: The proprietor of CompuSound Inc. has recently introduced a hardware product for voice communication over networks. Sales to date have fallen short of expectations in the company's originally targeted sound board market and positioning the company in the dynamic PC audio and Internet telephony market appears to be an even greater challenge. With limited resources, the proprietor must decide how to quickly bring his products and technology to market. There are plenty of opportunities for this innovative company, but the difficulties in prioritizing such an entrepreneurial firm are central to the case's illustrative purposes. CompuSound gives students an understanding of the complexity of marketing high technology products, especially for new start-ups. The role of strategic alliances, particularly for research and development purposes, is also portrayed. Finally, the case shows how entrepreneurs become reluctant to relinquish opportunities that were part of the owner's original vision. Dell Computer Corp. Publication Date: Jan 07, 1994 Revision Date: Sept 25, 1996 Author(s): Das Narayandas; V. Kasturi R Rangan Product Number: 9-596-058 Length: 24p Description: Traces the evolution of the personal computer industry over the last 20 years and uses this as a backdrop to look at how Dell Computer Corp. grew from a small start-up to a multi-billion-dollar company in a decade. Dell is now faced with a set of decisions on the product markets it needs to serve in order to sustain its growth profitably into the future. Teaching Purpose: To give students an appreciation of developing strategy in a dynamic and rapidly evolving market. Making SMaL Big: SMaL Camera Technologies Publication Date: Mar 24, 2003 Author(s): Clayton M. Christensen; Scott D. Anthony Product Number: 9-603-116 Length: 21p Description: SMaL Camera Technologies CEO Maurizio Arienzo was trying to decide what market opportunities SMaL should target. The company had developed a revolutionary imaging technology that powered small digital still and video cameras. Its first-generation product--a kit to power a credit card-size consumer camera--was a success. Now, Arienzo had to decide whether to focus on beating back emerging competitors in the consumer space, stepping up efforts to crack the security and surveillance market, trying to reach the automotive market, developing a cellular phone camera offering, or making a "left turn." The decision would determine whether SMaL ever hit it big. Teaching Purpose: To show how companies can create new growth by making it easier for people to do things they historically prioritized, even with a seemingly limited product. To illustrate the issues start-up companies face when they have to develop second-generation products. Mercury Rising: Knight Ridder’s Digital Venture Publication Date: Jan 7, 2003 Revision Date: Oct 16, 2003 Author(s): Clark Gilbert Product Number: 9-803-107 Length: 28p Description: Captures the efforts of newspaper publisher Knight Ridder to create a digital venture. Knight Ridder proves to be a pioneer in digital publishing, launching the first online newspaper site, builds a network of newspaper sites called Real Cities, and invests in Careerbuilder, the second largest career site after Monster.com. However, the company has cumulatively lost over $100 million in its core Internet operations, is missing important categories of advertising revenue, and is operating in an ad recession at the time of the case. Tracks the evolution of the venture that spans nearly a decade and can be summarized in three distinct periods: 1) initial launch and experimentation, 2) rapid expansion within the newspaper organization vs. operation as a separate venture, and 3) managing the venture after the Internet bubble has burst. Palm Computing: The Pilot Organizer Publication Date: Sept 24, 1998 Revision Date: Dec 15, 1998 Author(s): Thomas J. Kosnik; Rajesh Atluru; Kevin Wasserstein Product Number: 9-599-040 Length: 20p Description: Palm Computing appears to be the first to have gotten it "right" in the PDA (personal digital assistant) market. Palm Computing has designed a radically new product which will appeal to certain market segments. However, it is unclear how Palm Computing will fare against industry giant, Microsoft. Reinventing the Automobile: General Motor's AUTOnomy Project MacCormack, Alan;Herman, Kerry; Harvard Business School Publishing Publication Date: November 2003 23 pages Reference Number: 9-604-064 Description: Describes the history of GM's attempts to develop a hydrogen fuel-cell-powered car. As of 2003, GM has developed several prototypes of such a vehicle to demonstrate the viability of the overall concept. Many uncertainties remained, however, with respect to the issues of cost, safe storage of hydrogen on a vehicle, and the lack of a hydrogen refueling infrastructure. Aids students in developing a strategy for pushing this initiative forward, including tackling the question of how radical the new design should be and what to do about competitors who have aggressively pushed an interim technology-hybrid vehicles--which GM has chosen not to emphasize in its product portfolio. Teaching Purpose: To illustrate the major challenges involved in managing a technological transition that is likely to overturn a firm's existing competencies. To highlight why firms differ in their approach to potentially disruptive technologies. Includes color exhibits. Strategic Direction at Quack.com (A) Publication Date: 2000 Author(s): KG Hardy; AJ Hillman; B Shomair Product Number: 9B02A003 Length: 16p Description: Quack.com was in dire straits. An early entrant in the voice portal market, Quack was quickly running out of money. The company's management team had just returned from a road show for a second round of venture financing, but they had been unsuccessful. Apple Computer, 2004 Publication Date: Dec 15, 2003 Revision Date: May 7, 2004 Author(s): David B. Yoffie , Debbie Freier Product Number: 9-704-460 Length: 9p Description: In 1980, Apple was the leader of the PC industry. By the late 1990s, it had suffered heavy losses at the hands of the Wintel camp. Examines Apple's efforts to create sustainable competitive advantage as the PC industry evolves in the 21st century. Discusses Apple's history and past strategic moves and poses the question: Can Steve Jobs make Apple great again? Teaching Purpose: To teach industry analysis and problems in sustaining competitive advantage. Nokia and MIT's Project Oxygen Publication Date: Apr 21, 2003 Revision Date: Nov 3, 2003 Author(s): Rebecca Henderson , Nancy Confrey Product Number: 9-703-450 Length: 26p Description: Pending developments in wireless networking and in embedded computing present a long-range strategic challenge to Nokia, Inc. This case outlines the ways in which technology is likely to develop in the next 20 years, briefly describes Nokia's history and strategic positioning, and challenges the reader to develop a coherent strategy for Nokia going forward. Teaching Purpose: To give students practice in developing strategy for a high-technology company in an exceedingly complex industry. Strategic Inflection: TiVo in 2003 (A) and (B) Publication Date: Oct 15, 2003 Revision Date: Feb 12, 2004 Author(s): David B. Yoffie , Pai-Ling Yin , Christina Darwall Product Number: 9-704-425 and 9-704-429 Length: 24p and 6p Description: Mike Ramsey, TiVo's CEO, must decide on which direction to build the company. Facing an onslaught of new competitors, a huge opportunity in the cable industry, and the possibility of becoming the new "user interface" for TV entertainment, Ramsey has to balance the demands for profitability with the hope of driving TiVo to mass adoption. Teaching Purpose: To look at commercializing new technology, setting standards, and broad vs. narrow strategic positioning. Blockbuster Inc. & Technological Substitution (A):Achieving Dominance in the Video Rental Industry; Coughlan, Peter J.; Illes, Jennifer L.; Harvard Business School Publishing; 12/18/2003; (20 pages) Reference Number: 9-704-404 Description: Provides a comprehensive background of the video rental industry and home entertainment giant, Blockbuster Inc. Follows the life of Blockbuster Inc. from its first days under founder Wayne Huizenga to its most recent developments under 2003 CEO John Antioco. By looking at various strategic decisions its leaders have made throughout the past few decades, students come to understand better how Blockbuster Inc. has become the industry's dominant player. Also explores the fascinating economics of the home video industry, paying particular attention to the unique revenue-sharing model that has developed in recent years. Understanding Blockbuster Inc. and the video industry's background also allows students to analyze better the various technological substitution threats (such as DVD, DIVX, sell-through, home delivery services, Internet subscription services, personal video recorders, pay-per-view, and video-on-demand). Teaching Purpose: To investigate the economics of the video rental industry and examine what contributed to Blockbuster Inc.'s success as the industry leader. May be used with: (9-704-407) Blockbuster Inc. & Technological Substitution (B): Confronting New Digital Formats; (9-704-462) Blockbuster Inc. & Technological Substitution (C): The Internet Changes the Game; (9-704-463) Blockbuster Inc. & Technological Substitution (D): The Threat of Direct Digital Distribution. Blockbuster Inc. & Technological Substitution (B): Confronting New Digital Formats; Coughlan, Peter J.; Illes, Jennifer L.; Harvard Business School Publishing; 12/18/2003; 12 pages Reference Number: 9-704-407 Description: Investigates how the rise of digital video formats threatens to make videocassette technology obsolete; how this technological substitution might alter the economics and structure of the video rental and retail industries; and how Blockbuster Inc., the industry leader, should respond to the new technologies. Explores Blockbuster's response to the new DVD and DIVX digital disk formats and the impact of these technologies on Blockbuster's traditional business model. Also highlights the industry changes that DVD has created, including an increase in direct video sales at the expense of video rental. In times of technological change, firms continuously face decisions regarding the extent to which they should embrace a technologically advanced substitute at the possible expense of their existing products and services. Guides the reader through Blockbuster's decisions and its resulting responses. Teaching Purpose: To examine economic and strategic concepts underlying competition in markets experiencing technological change and product substitution. To allow students to gain insight into Blockbuster's past substitution decisions and analyze its current decisions. May be used with: (9-704-404) Blockbuster Inc. & Technological Substitution (A): Achieving Dominance in the Video Rental Industry; (9-704-462) Blockbuster Inc. & Technological Substitution (C): The Internet Changes the Game; (9-704-463) Blockbuster Inc. & Technological Substitution (D): The Threat of Direct Digital Distribution. Blockbuster Inc. & Technological Substitution (C): The Internet Changes the Game; Coughlan, Peter J.; Illes, Jennifer L.; Harvard Business School Publishing; 12/19/2003; (15 pages) Reference Number: 9-704-462 Description: Investigates how the rise of the Internet as a vehicle for renting and buying movies has disrupted the video rental industry and how market leader Blockbuster Inc. can and should respond to these developments. Explores how the emergence of e-commerce affects the degree to which consumers buy vs. rent low-priced DVDs and how Blockbuster might adjust its online initiatives in response. Details the rise of Internet-enabled substitution threats, such as home delivery services (e.g., Kozmo.com) and Internet subscription services (e.g., Netflix.com), and investigates the potential options and chosen actions of Blockbuster Inc. as it seeks to maintain its competitive position. In times of technological change, firms continuously face decisions regarding the extent to which they should embrace a technologically advanced substitute at the possible expense of their existing products and services. Guides the reader through Blockbuster's decisions and its resulting responses. Teaching Purpose: To examine the economic and strategic concepts underlying competition in markets experiencing technological change. To allow students to gain insight into Blockbuster's past substitution decisions and analyze its current decisions. May be used with: (9-704-404) Blockbuster Inc. & Technological Substitution (A): Achieving Dominance in the Video Rental Industry; (9-704-407) Blockbuster Inc. & Technological Substitution (B): Confronting New Digital Formats; (9-704-463) Blockbuster Inc. & Technological Substitution (D): The Threat of Direct Digital Distribution. Blockbuster Inc. & Technological Substitution (D): The Threat of Direct Digital Distribution; Coughlan, Peter J.; Illes, Jennifer L.; Harvard Business School Publishing; 15 pages Reference Number: 9-704-463 Revision Date: 04/16/2004 Description: Examines the emergence of technologies for delivering video content to consumer homes via direct digital distribution and investigates the strategic options facing video rental giant Blockbuster Inc. as it tries to respond to the new technological substitutes. Examines the impact of personal video recorders (or digital video recorders) on the market for Blockbuster's main complementary products, the VCR and DVD player, and explores how this technology might ultimately impact Blockbuster. Addresses the current and future impact of video-on-demand, the latest incarnation of the long enduring pay-per-view technology, and analyzes Blockbuster's potential and actual response to the threat. In times of technological change, firms continuously face decisions regarding the extent to which they should embrace a technologically advanced substitute at the possible expense of their existing products and services. Teaching Purpose: To examine the economic and strategic concepts underlying competition in markets experiencing technological change. To allow students to gain insight into Blockbuster's past substitution decisions and analyze its current decisions. May be used with: (9-704-404) Blockbuster Inc. & Technological Substitution (A): Achieving Dominance in the Video Rental Industry; (9-704-407) Blockbuster Inc. & Technological Substitution (B): Confronting New Digital Formats; (9-704-462) Blockbuster Inc. & Technological Substitution (C): The Internet Changes the Game. Return to Instructor Resources