Term
PRINTOUT
"Starbucks Chairman says Trouble may be Brewing"
Overview |
|
Definition
-Chairman, Howard Schultz, sent a memo warning company members that their drive for growth and efficiency has diluted the Starbucks experience.
-Believed that their decisions may be watering down the prized experience and commoditizing the brand.
-Concern for the competitors of Mcdonalds & Dunkin Doughnuts- added food but didnt want to be a "fast" food place
-Expansion from < 1000 stores to present 13000 stores to future of 40,000 stores and has grown through music and movie collaborations and believed that the trick was by adding the romance of italian coffee bars and espresso.
-trade of of speed and efficiency for romance and theatre and lost the aroma through packaging
-Need to get back to the "core" experience |
|
|
Term
PRINTOUT
"Kodak's Strategy for the First Printer-- Cheaper Cartridges"
Overview
Eastman Kodak Co. |
|
Definition
-Switched from razor and blade pricing model (hardware sold for little or no profit) to a new low price strategy for ink- 10$-15$ per cartridge. However, the new printer model was about 50$ more.
- Target (Niche) Market- Families & Home who print a lot (*esp photos) but not really for business.
-Mr. Faraci- head of digital imaging consumer group- said it would change the industry and appeal to top 20% of people who printed from home
-GOAL- 1% in first year to switch and 10% by 2010.
-Will launch product in Best Buy
-Benefit of difficulty to re-fill so customers will come back to Kodak
-Competitors are H.P, Lexmark and Epson Corp. |
|
|
Term
PRINTOUT
"Home Depot Joins Push Into China"
Overview |
|
Definition
-Finally jumping into China by capping foreign retailers and hoping to "shore up" slipping sales in their home markets
-The approach has RISKS- purchase potentiality, overpriced assets, to unrealistically high expectations of Chinese market (margins are lower and costs are significantly higher)
-Purchase of 12 retailer stores: strategy focusing on immediate presence in the country and locality (says prez of HD Asia)
-Average consumer spending is significantly lower than Americans ($5,000-$46,000)
-TM 100-200 mill ppl with average income over $3,000 within in large area- result - will drive up distribution costs
-Must try to appeal to the traditional 'do-it-yourself' business (different from western home improvement method) + China has cheap labor costs and will contract help
-Expects $50 mill in annual sales, but industry expects $12
-Biggest competitor is B & Q Chain
= |
|
|
Term
GAME PLAYING
"Puppet Manufacturing Game"
Overview |
|
Definition
-Focuses on Capacity Management:
Can be defined as the ability to hold, receive, store,or allocate (@ a storage level)
-Timers- Task 1 -> Task 1 -> Task 2 -> Task 3... Spot the Bottleneck!
- How can we increase our profit?
- Reorganize task process
- New/Better equipment or materials
- Implement new strategies (e.g. doubling paper to go faster |
|
|
Term
|
Definition
|
|
