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Case Study #14 â€“ Safaricom
Read the Safari.com case study located in the section titled Case Studies in your textbook concerning the following situation:
The Safaricom case provides an excellent opportunity to apply strategic management concepts to a constantly growing and extremely competitive organization. Safaricom is the largest mobile service provider in Kenya. It offers not only means of mobile communication, but also is involved within the community. In addition, Safaricom sponsors athletic events such as Safaricom Sevens and a music festival, Niko na Safaricom Live.
The purpose of this case study is to examine the factors that are crucial to Safaricomâ€™s continued success and to propose strategic actions to sustain its competitive advantage. While Safaricomâ€™s community involvement enhances its brand image, the mobile service sector of Safaricom is the largest and main focus. Safaricom was formed in 1997 and has grown to be the largest mobile service provider in Kenya by implementing different strategies, including acquisitions.
The analysis should start with a scan of the general, industry, and competitive environments. How does the external environment in Kenya differ from anywhere else? The case also describes Safaricomâ€™s competitive advantage, and the effectiveness of its strategies against industry rivals should be examined. Safaricom offers different services such as prepaid mobile, voice and data services, and its voice packages are bundled with other services such as rewards programs, music, and games. Finally, the pressing strategic concerns, the effectiveness of Safaricomâ€™s leadership should also be considered to devise convincing recommendations.
Your report and overview should address the following key strategic issues:
Week 2 Assignment
Case Study #8â€”Keurig
Read the Keurig case study located in the section titled Case Studies in your textbook concerning the following situation:
This case describes a new product success story, set in a competitive business climate. Keurig was one of the companies to commercialize an innovative technology that allowed people to brew one cup of coffee at a time. Keurig was established in 1992. The word, â€œKeurig,â€ means excellence, and it has been the guiding principle behind its products and services. Keurig patented its single serve brewing system and first entered the office coffee service, or Away From Home (AFH), marketplace in 1998. In 2003, Keurig became one of the first to enter the At Home (AH) marketplace with a single serve brewing system designed for use in the home.
By 2010, 25 percent of all coffee makers sold in the United States were Keurig branded machines. Keurig is regarded as a market leader. However, Keurig faces two major challenges. First, some patents of Keurigâ€™s key technologies are approaching the expiration date. Without the protection of the patents, Keurig can lose revenue from the K-Cup portion packs, thus reducing GMCRâ€™s coffee sales. Keurig can also lose royalties from other roaster coffee sales using Keurigâ€™s technology. The second challenge is the perceived environmental impact of the K-Cup portion packs. It will need to be addressed to prevent erosion of Keurigâ€™s position in the marketplace.
An evaluation of Keurigâ€™s business-level strategy, competitive rivalry, and SWOT analysis will aid in the discussion and weighing of strategic options available to Keurig. The results of the analysis can then be used to establish and support a strong set of recommendations seeking to ensure a continuation of Keurigâ€™s strong performance and top market position.
Week 3 Assignment
Case Study #6â€”IKEA
Read the IKEA case study located in the section titled Case Studies in your textbook concerning the following situation:
The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 countries around the world, including the US, the UK, Russia, the EU region, Japan, China, and Australia. It is the largest furniture retailer in the world but did not enter India until 2013, despite the fact that it has been sourcing from India since the 1980s.
The purpose of this case study is to examine the factors that are crucial to IKEAâ€™s continued success and to propose strategic actions to sustain its competitive advantage. The case opens with a review of the companyâ€™s humble beginning. IKEA was founded by 17-year-old Ingvar Kamprad in Sweden in 1943. By the 2000s, IKEA has become the worldâ€™s largest furniture retailer. The corporate structure was constructed to prevent any takeover and to protect the family from taxes. Thus, the structure is a complicated arrangement of not-for-profit and for-profit organizations. The IKEA stores provide customers with a unique shopping experience with low prices, solid quality, modern designs, and most importantly, the concept of do-it-yourself (DIY) products.
The extensive discussion is followed by a description of the furniture industry in India and what IKEA had to overcome in order to enter the Indian market. IKEA first met with regulatory and political roadblocks, and then had to work with suppliers in order to meet the Indian governmentâ€™s requirement for sourcing. Finally, there are several challenges that IKEA faces.
This case is ideal for demonstrating the importance of the general environment, international corporate-level strategy, and type of entry. The following points are to guide a review and discussion of these important concepts.
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