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Understanding the Strategies of Leading Companies in the Industry

Explore the rise of Tesco and its strategic strength, strategies to combat Tesco used by J. Sainsbury, Ottakar's response to competition, positioning of BMI and BMIbaby, Universal's entry into the UK market, strategic advantages of Huyghe and Interbrew, decision-making process and game theory, IBB's competition with well-resourced incumbents, resource protection strategies of Tayto's and Walkers Ireland, strategic position of Komatsu relative to Catapillar, and Cereality's sustainable competitive advantage.

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Understanding the Strategies of Leading Companies in the Industry

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  1. Any corporate policy and plan which is typical of the industry is doomed to mediocrity Bruce Henderson – former Managing Partner of Boston Consulting Group If a man write a better book, preach a better sermon, or make a better mouse-trap than his neighbor, tho’ he build his house in the woods, the world will make a beaten path to his door. Samuel Goldwyn

  2. 1. Account for the rise of Tesco’s. 2. Explain Tesco’s strategic strength today. 3. What strategies might J. Sainsbury have pursued to combat Tesco’s?

  3. 1. Could you define Ottakar’s position on the back of a business card? 2. Ottakar’s had generally taken an evolutionary approach to change in order to build on their existing resources and capabilities. However, the shock caused by players like Amazon entering their industry appears to have led to a more revolutionary response. Ottakar’s is now selling books online although at the moment its online image is “vaguely quirky; things appear a little confused. To quell this confusion would you: a. make the sites more like Amazon’s?; b. keep them as they are but discontinue the selling of book on-line?; c. pull the sites of the Internet altogether?; d. do something different?...

  4. 3. While Ottakars new websites may have only constituted a change to operational facilities how might its operations and performance ripple through the organization and its strategic positioning? 4. If you were James Heneage how would you have responded to The Sunday Times’ review?

  5. 1. Do you think that BMI’s ‘low-cost, full-frills’ position could have provided them with a competitive advantage? 2. Will the advent of BMIbaby help or hinder BMI’s attempts to position itself effectively? 3. How would you seek to position BMI and BMIbaby? Can you express each of these positions in eight words or less?

  6. 1. Draw up a list of the key questions that are critical to understanding whether Universal should enter the UK market. 2. What data would you need to aquire (and how would you get it) to be able to answer your questions?

  7. 1. Define Hugyhe’s strategic advantage. 2. Define Interbrew’s strategic advantage. 3. If you were a fund manager which firm would you choose to invest in? Give reasons for your answer. 4. What advice would you give Huyghe and Interbrew for the future?

  8. 1. Assuming you can get no further information, what would your overall intention for this decision making process be? 2. Assuming you can get no further information, what would your first decision on furniture be? 3. What then would your strategy be as the rest of the decision making process unfolds? 4. What does this case and the application of game theory teach us about strategy?

  9. 1. Has IBB identified imperfections in the market, or is this really a mirage? 2. How can IBB compete with large well-resourced incumbents? 3. Should IBB focus on increasing its product range (scope) or open new branches? 4. Would the creation of an online banking facility help? Why?

  10. 1. What resources and capabilities might Tayto’s have that will be difficult for Walkers to replicate? 2. If you were CEO of Tayto’s, what strategies would you employ to protect the company’s advantage? 3. If you were CEO of Walker’s Ireland, what strategies would you employ to build the company’s advantage?

  11. 1. Can you broadly draw Komatsu’s strategic position (or positions) relative to Catapillar on the generic strategy matrix? 2. What advantages might this simple drawing provide to Komatsu employees, suppliers and distributors? 3. How might Catapillar position itself in response to Komatsu’s encircling strategy, should Komatsu’s strategy prove to be successful?

  12. 1. Do you think Cereality have a sustainable competitive advantage? If not, why not? If so how would you articulate it?

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