Toyota’s most popular car in North America is the inexpensive Camry, the car targeted at the lower end of the market. Based on informal information from sales records and competitor sales, Toyota executives, especially CEO Toyoda, perceived a need to move into the luxury car market. The people who for years bought Camrys were moving up in life and wanting more expensive cars, such as the BMW, Mercedes, Porsche, and Cadillac. To fully define the decision requirements, Toyota dispatched 20 designers to the United States to study what customers wanted. They visited dealers, buttonholed car buyers, and organized focus groups. They learned that the need was for a luxury car that would suit younger buyers who wanted to buy European cars but could not yet afford them. Because the United States was the major market, a small team stayed in California designing clay models. In the meantime, the U.S. subsidiary, Continue reading
Business Analysis Case
Ansoff Matrix Analysis of Adidas
Adidas is one of the leading companies in the world that specialize in the production of wide variety and high quality sportswear and sports equipment. The head office of the company is located in Germany and has good brands through which it promotes its products. The company is carrying on its operations by using the three brands names of Adidas, TaylorMade-adidas Golf, and Reebok. The company is widely operating in Europe, North America and Asia. Adidas has a strong work force of around 39,000 employees working in different parts of the world. The company has its operations in Europe, US and Asia in more than 150 subsidiaries and are purely focused on manufacturing. Adidas focuses on sports and the brand specializes in footwear, apparel and accessories. Adidas is very popular with the sports division where the brand image of the company is promoted in sports like running, football, basketball, tennis Continue reading
Case Study of Procter and Gamble (P&G): Structure and Culture
Three billion times a day, P&G brands touch the lives of people around the world. This happens because P&G provides branded products of superior quality and value to improve the lives of the world’s consumers. This results in leadership sales, profit and value creation, allowing employees, shareholders and the communities in which we operate to prosper. The Procter & Gamble Company (P&G) is a brand behemoth. The world’s first maker of household products courts market share and billion-dollar brands. Its business is divided into three global units: beauty, health and well being, and household care. It also makes pet food and water filters and produces soap operas. Some 25 of P&G’s brands are billion-dollar sellers, including Gillette Fusion, Always/Whisper, Braun, Bounty, Charmin, Crest, Downy/Lenor, Folgers (which it reportedly plans to spin off), Gillette, Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella, among others. The P&G consists of over 138,000 employees Continue reading
Porter’s Five Forces Analysis of Microsoft
Microsoft Corporation is the largest software company founded by Paul Allen and Bill Gate in 1975, the company controlled an overwhelming share of the personal computer operating system, cloud storage, office software suite, video game console Xbox, servers etc. Microsoft Company has intense pressure in the software competition over Google and Apple since they introduce operating system in both mobile device and PC. But still Microsoft conquer the market of operating system and software which resulting in more than 90% market share of operating system. Their vison is to create innovative technology that can be accessible to everyone. Therefore, to archive that vision, they decide to reduce the cost of software and service and make sure everyone can afford to use it. By doing so, they manage to lock-in their customer and influence the world to use more their products and service than others. Besides that, Microsoft trying to differentiate Continue reading
Case Study of Godrej: Brand that Went for a Makeover to Succeed
In 2008, the Rs 9,000-crore Godrej Group did something it has never done before: changed its brand identity. Flanked by daughter and executive director and president, marketing, Tanya Dubash, chairman of the Godrej Group Adi B Godrej, unveiled the group’s colourful new logo before the media and said, “With our new initiatives, we are targeting a growth of 25-30% annually. The purpose of the whole exercise is to make the Godrej brand relevant and contemporary. Tanya is the chief architect of the project.” Shedding its “frumpy old lady” image (chairman Adi Godrej admitted in a 2002 press meet that a Godrej as a brand has the image of “a frumpy old lady” and is looked upon as “an industrial brand”), the 111-year-old Godrej Group now sports a logo in bright colours-green, blue and ruby-a far cry from the staid look it has donned since the Group was founded at Lalbaug, Continue reading
Case Study: Pfizer’s Strategy Analysis
Business-Level Strategy Pfizer, Inc. has chosen the value creation alternative of differentiation. Differentiation forces Pfizer to increase costs, resulting in an increase in product price, and most importantly an increase in customer perceived value. Pfizer’s differentiation can be achieved by producing high-quality, innovative drugs which require extensive research and development as well as patent protection. For example, Pfizer spent approximately eight billion dollars on 100 research and development projects in 2018. Furthermore, Pfizer, Inc.’s business-level strategy is known as broad differentiation. This strategy enables Pfizer to serve a large market while still creating value through its differentiation. A key tradeoff associated with a differentiation strategy, although creating a high perceived value of the brand, is the implementation of a high-cost structure. A high-cost structure demands that consumers pay premium prices for its products, which can be unattractive to some. It is near impossible to provide a low-cost yet differentiated product Continue reading