...Professor Edward Desmarais BUS 470 Business Policy and Strategy Spring 2004 SOUTHWEST AIRLINES CASE ANALYSIS Presented by: The Stategizers Lawrence Bluemmel, Irene Johnson, Dennis Mackey, Dorothea Morgan, Elaine Pereira, Jeff Piecuch, Heather Pontifex, Nicole Soucy TABLE OF CONTENTS I. Executive Summary 3 A. Mission 3 B. Vision 3 C. Objectives 3 D. SWOT Summary 6 E. Recommendations 7 II. Current Situation 8 A. Current Performance 8 B. Strategic Posture 9 III. Corporate Governance 25 A. Board of Directors 25 B. Top Management 25 IV. External Factors 27 V. Internal Factors 118 VI. Action Plan 178 Appendix A. Stakeholders Worksheet 206 Appendix B. Answers to Panel’s Questions 212 I. EXECUTIVE SUMMARY A. Mission To provide a low-cost/low-price/no-frills, reliable, friendly service with “more value for less money” mode of transportation for consumers traveling short distances for business and/or leisure. B. Vision ...
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...beyond 103 million Americans and an estimated 2 billion people worldwide who surfs the internet from smart phones. And almost all companies and people use computers and the internet. With these, advertisers are more willing to invest on the search industry. Most of the time, companies in the search industry competes globally but there are also search companies that caters to the local company like Baidu in China. With the numerous internet users, it creates opportunity for the search industry to broaden the scope of their products Usually in this type of industry, the market is not segmented, broadening its reach to the people and favoring the advertisers. The industry is in the rapid growth and takeoff position in the life cycle. With the increasing technological capabilities, it seems that potentials in the next years are limitless and the industry would continue to grow. The second question is what kinds of competitive forces are industry members facing, and how strong is each force? For the bargaining power of buyers, it is moderate. The primary source of revenue of the industry is the advertisers. The advertising segment is also profitable and there are many other ways on how it can advertise online.However, they could...
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...MARKETING MANAGEMENT (MKT 750) GROUP ASSIGNMENT: CASE STUDY ON JANMAR COTING INC PREPARED BY: SHAHRADZI BIN RAMLI 2013424636 GROUP: BM700 1CF SUBMITTED TO: SUBMITTED DATE: 7TH OCTOBER 2013 1.0 Case Summary This case is about an organization doing business on paint coatings market served by company in the southwestern United States. The organization has some challenges on how to deploy marketing efforts among the various architectural paint coatings markets served in the southwestern United States. 1. Janmar Coating, Inc. Janmar Coating, Inc. is a privately held organization produces and markets architectural paint under Janmar brand name. In addition to producing a full line of architectural coatings, the company sells paint sundries (brushes, rollers, thinner, etc.) under the Janmar name, even though these item are not manufactured by the company. 2. Architectural painting Industry sources estimated U.S sales of architectural paint coatings and sundries (brushes, rollers, paint removers and thinners, etc) to be 12 billion plus in 2004. Architectural coating are considered to be mature market with long term sales growth projected in the range of 1 to 2 percent per year. Demand for architectural coatings and sundries and sundries reflects the level of house redecorating, maintenance, and repair, as well as sales existing homes, and to a lesser extent new home, commercial, and industrial construction. 2.0 Identify Problem 1. Competitor ...
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...Leaders need to use strategies to compete successfully in the market. To continue to stay on top and enjoy the status and income or profit potential, they must be always on the alert. Thomson and Strickland suggest that these companies need to pursue the following strategic moves: a) Stay on the offensive strategy. This attitude means that the business organization must continuously pursue offensive strategies. The following should be done: i) Be a first mover, leading industry change; ii) Best defense is a good defense; iii) Relentlessly pursue continuous improvement and innovation iv) Force rivals to scramble to keep up; v) Launch initiatives to keep rivals off balance; and vi) Grow faster than industry, taking market share from rivals. b) Fortify and defend the strategy. Relates to sealing off areas or cracks that may invite other competitors to attack or challenge the company. i) Increase advertising and research and development ii) Provide higher levels of customer service iii) Introduce more brands to match attributes of rivals iv) Add personalized services to boost buyer loyalty v) Keep prices reasonable and quality attractive vi) Build new capacity ahead of market demand vii) invest enough to remain cost competitive viii) Potent feasible alternative technologies ix) Sign exclusive contracts with best suppliers c) Do muscle Flexing. Muscle flexing is the strategy by way of doing any of the following:...
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...1. What are the dominant business and economic characteristics of the global beer industry? * Market Size and Growth Rate * The size of the global beer industry approximated $385.5 in 2005 and $376.7 in 2004. This is a growth rate of 2.3% during the year 2005. * This is a mature industry with slowing growth, but it will continue to grow at a small rate. * Number of Rivals * During its early development and rapid growth stage, there were many rivals and the industry was very fragmented. * The lack of a transportation network made exportation impossible for centuries and brewing was a local, then a national domain. * Mergers and acquisitions are beginning to increase in frequency and the industry is experiencing a period of consolidation. * A determining factor of beer is that it has different national tastes based on different countries. Specialty beer-makers can find niche markets to sustain themselves without economies of scale. * Scope of Competitive Rivalry * The largest producers compete on global levels with strategic alliances set up to distribute the beer in other countries. * Most companies started out on a local or regional level, and then changed the company’s focus to incorporate a multinational or global perspective. * While many companies have exported products, most companies still use the production capabilities in their native country. * Having a presence in foreign country...
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...outcome of globalisation is that the business can become more cost efficient. With increased competition the business can react to the change in market conditions by becoming more competitive themselves through being more efficient. Increased efficiency can be a result of the business reducing sales and increasing output in order to achieve economies of scale. This will allow the business to produce more products allowing sales to increase if there is demand available for the products whilst reducing the average costs per products. Another way in which the business may become more efficient is that there is an increased level of innovation within the business. Large business can be differentiated from their competitors through the innovation displayed by their products and product range demonstrating the ideas of the business, also with innovation increasing the quality of the workforce will increase as they employees will try to perform to their best standards in order to become more competitive this will allow waste to decrease reducing the costs of the business which in turn will help improve profits. Another reason why globalisation is more of an opportunity than a threat is that there is ease of movement and advancement of technology. Due to this businesses having taking the initiative to more operations abroad so that they can exploit the benefits such as improved infrastructure and communication, cheaper labour and supplies costs and movement of employees. This will give the...
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...It's the reality of the smartphone business and a key dilemma for a company like HTC, which lacks the marketing firepower that larger rivals Apple and Samsung enjoy. This year will be a critical one for HTC, which needs to prove that it can still compete in the increasingly duopolistic market. History has already shown that a sexy, new product just enough anymore. "HTC is going up against two of the biggest spenders in the world with intensely loyal followings," said Avi Greengart, an analyst at Current Analysis. So HTC needs to do a few things it hasn't been comfortable doing in the past. For one, it'll need to get more proactive with its own marketing. It's something the company has always half-heartedly done in the past, but it will need to work harder to develop both the One brand and the HTC name. Apple and Samsung are household names, and while HTC was seemingly on its way to becoming one just a few years ago, it lost its way. "I think they need to invest a tremendous amount in marketing," Greengart said. The company will also need to break from its traditional reliance on the carriers for support, and stop kowtowing to all of their needs. That's a particularly difficult one because that had been HTC's tentpole strategy for so long. But as Apple and Samsung have moved beyond carrier exclusives and customizing phones, HTC must do the same. HTC appears to be on the right track. The company plans to roughly double its global marketing budget from a year ago, as it embarks...
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...being the first to enter a new market, the business gains an advantage over the actual and potential rivals” (First Mover Advantage, 2012). The chart below gives advantages and disadvantages for being the first mover to being the late mover. Advantages of 1st Mover: By being first to enter the market, the business gains an advantage over its actual and potential rivals* Can capture market shares easily without worrying about rivals capturing the same customers The first mover will have established familiar products, brand loyalty, and the best retail outlets By beating rivals into the market, the first-mover can consolidate its position and compete more effectively continuing to expand Advantages of Late Mover: Have strong resources and capabilities could overtake the first mover. Free ride on a pioneering firms investments in a number of areas. By the time the late mover enters the market, the technological and market uncertainty has been resolved giving them an advantage. Late movers have the advantage of seeing what methods work after reviewing the 1st movers methods Disadvantages of 1st Mover: Can be less profitable than late movers because of high costs that overwhelm the sales gains Higher premiums accrues to pioneers, which is directly attributable to the timing of entry (entry costs) High advertising cost and entrenched in their original ways of doing things Followers learning from 1st movers mistakes giving them advantages over more efficient...
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...the largest industries in the world with Google Inc. bringing in $15.7 million in advertising revenue alone. Google was the leading Internet search firm in 2010 with over 60 percent market shares in both searches performed on computers and mobile devices. The search industry is impacted by numerous forces that have strong, moderate and weak impacts on the industry. Rival firms, new entrants, buyer power, supplier power and substitutes are the five largest forces that impact the search industry. A rival firm is a strong force in the search industry. Google Inc, Microsoft Corporation and Yahoo! Are all competing for market share in the search industry in the United States and across the world? The fact that these three companies search engines are relatively the same to most users, it is hard to consumers to see the difference between them and it forces the companies to find various ways to distinguish themselves from each other. Microsoft’s Bing has tried to distinguish itself from Google by using an algorithm that looks at the context of the words in a search instead of just the words themselves. Microsoft Corporation has also launched a very strong advertising campaign to demonstrate the difference between Bing and Google search. Yahoo! Has recently adapted Bing as its default search engine but is competing with Microsoft’s MSN and Google for number of viewers and advertising income. The competitive force of new entrants is moderate to weak in the search industry...
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...1.1 Introduction-Company "The best ice cream in the world" started out as the vision of Mr. Reuben Mattus and continued throughout his life. He began in 1921, selling ice cream in the streets of New York. Soon, he dreamed of creating nothing but the finest ice cream using only the finest and purest ingredients. In 1961, Mr. Mattus decided to form a new company dedicated to producing his new super-premium ice cream. He called this new brand “Häagen-Dazs” – a name that conveys an aura of old world tradition and premium quality. The original product line included just three flavors: vanilla, chocolate and coffee. Mr. Mattus then passionately spent six years searching for strawberries sweet and full-flavored enough to meet the brand’s impeccable standard of quality for his premium strawberry ice cream. The Häagen-Dazs brand quickly developed a loyal following. Its early success and praise was created by word of mouth. As passionate enthusiasm grew for this rich and creamy treat, the brand also grew. When the first Häagen-Dazs shop opened in 1976, it was an immediate success, and the brand’s popularity continued. By the mid-1980s, the taste of Häagen-Dazs ice cream was introduced internationally. In 1983 Mr. Mattus agreed to sell the Häagen-Dazs brand to The Pillsbury Company, which remained committed to the tradition of superior quality and innovation on which Häagen-Dazs ice cream was founded. Since then, it has become a global phenomenon, available in 50 countries. The same...
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...“how will we get there?” is its strategy 1-4 What Do We Mean By “Strategy”? Consists of competitive moves and business approaches used by managers to run the company Management’s “action plan” to Grow the business Attract and please customers Compete successfully Conduct operations Achieve target levels of organizational performance 1-5 The Hows That Define a Firm's Strategy How How How How to grow the business to please customers to outcompete rivals Strategy is HOW to . . . to manage each functional piece of the business (R&D, production, marketing, HR, finance, and so on) to respond to changing market conditions to achieve targeted levels of performance 1-6 How How Choosing the “Hows” of Strategy Strategic choices about “how” are based on Trial-and-error organizational learning about what has worked and what has not worked Management’s appetite for taking risks Managerial analysis and strategic thinking about how best to proceed, given market conditions and the company’s circumstances In choosing a strategy, management is in effect saying, “Among all the many different business approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its market...
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...EXECUTIVE SUMMARY Founded in 1993 and headquartered in New York City, Take-Two Interactive Software, Inc. are a global publisher, developer and distributor of interactive entertainment. Take-Two also distributes software, hardware and accessories in North America through its Jack of All Games subsidiary. The company has approximately 2,100 employees working in 15 countries, and Take-Two’s common stock is publicly traded on NASDAQ under the symbol TTWO. The company markets its interactive entertainment for customers here in the United States and internationally. They offer their products under the labels, including Rock star Games; and 2K, which publishes its titles under 2K Games, 2K Sports, and 2K Play. It also develops and publishes action and adventure products under the Grand Theft Auto brand, as well as other franchises. Take Two’s products are designed for console gaming systems, such as PlayStation 3 and PlayStation 2, Xbox 360, and Wii which is a handheld gaming systems that consist of DS, 3DS, and PlayStation Portable and personal computers including smart phones and tablets. The delivery of its products is done through physical retail, digital download, online platforms, and cloud streaming services. The company sells its software titles to retail outlets in North America, Europe, and Asia through direct relationships with retail customers and third-party distributors. ...
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...Undoubtedly, there are some features of oligopolies. It exists when there are only a few dominating sellers, each of them occupies a significant share of the market. For example, major airlines like British Airways and Air France operate their routes with only a few close competitors, but there are also many small airlines catering for the holidaymaker or offering specialist services. Besides, it is difficult for new forms to enter to the market. As the existing firms are well-established and have already benefited from economies of scale, so the new firms have to pay high cost to compete with them. Also, the market information is imperfect so that no one can know all the market information such as price, quality and quantity, etc. Furthermore, Carol et al, (2007) writes that oligopolists often use non- price competition, they differentiated services and marketing campaigns are used to boost sales, such as advertising and offering free gifts to distinguish their products from other sellers. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. The decisions of one firm influence, and are influenced by the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants. This causes oligopolistic markets and...
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...Abstract Gatorade is an international sports energy drink brand owned by PepsiCo that was founded in Florida. The company has researched new innovative ways to promote hydration and nutrition among athletes across the globe. Gatorade was founded by Dr. Robert Cade and Dr. Dana Shires in 1965 and has been a leader in the sports energy drink industry with a significant amount of market share. Currently, Gatorade is the official sports drink of the NFL, NBA, PGA, and many other athletic organizations. As the first mover in the sports energy drink market, Gatorade has set itself apart from rivals like PowerAde and Vitamin Water by creating value for customers by establishing business relationships, conducting scientific research, and product innovation. The Gatorade Company is part of QTG (Quaker, Tropicana, Gatorade) and has been a subdivision of PepsiCo since 1998. When Quaker Oats acquired the company in 1983, it was the largest energy drink company in the world with market share of 97% (Rovell, 2006). The company’s product line focuses on rehydration, recovery, energy, and sports performance. Gatorade is considered an innovative product as it was the first mover in the sports energy drink market. Prior to Gatorade entering this market, water was the only other source for hydration among athletes. This paper will analyze how Gatorade aims to achieve the five elements of strategy by focusing on product, place, and promotion. Gatorade was founded by Dr. Robert Cade and Dr...
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...Will Lululemon Athletica Become the Next Top Brand? Christopher Boyken MGT 4013 April 24, 2012 Executive Summary Lululemon was founded by Chip Wilson in 1998. The company started out in Canada with several stores where the company eventually grew to 165 stores in Canada, United States, Australia and China. The industry in which Lululemon competes in is fitness apparel, with competitors such as Nike, Adidas, Under Armour, and Champion. The fitness apparel industry is very attractive with an ever growing increase in the amount of individuals choosing to lead a healthier life. Lululemon holds a good position in this industry and have room to grow in the future to gain an advantage over its competitors. The way Lululemon has been executing its strategy is a key factor to how well the company has been performing the past years. Although the company’s performance has been outstanding recently, there is a strategic issue in which Lululemon should try to deal with, and this is advertising. There is a couple of action plans that can be implemented and help fix the strategic issue Lululemon faces. Lululemon is a growing company that has a promising future and will continue to attract numerous investors. Table of Contents Introduction (Needs and Purposes) 4 Strategic Posture 5 Brief History 5 Core Values 5 Mission Statement 9 Vision Statement 9 Business Definition 10 Broad Goals 12 Smart Objectives 14 Key Functional...
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