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**EXAMPLES** **UNIT 1:** "Strategies don´t always go as planned" **Nike**, although its strategy might have been well thought out, its implementation was not well carried out its value has dropped so much in the last year. **TMSC** (Taiwan)**:** the largest chip manufacturer in the world. They ha...

**EXAMPLES** **UNIT 1:** "Strategies don´t always go as planned" **Nike**, although its strategy might have been well thought out, its implementation was not well carried out its value has dropped so much in the last year. **TMSC** (Taiwan)**:** the largest chip manufacturer in the world. They have a larger capacity to develop microprocessors. \*Copying lines of code is relatively simple, meanwhile hardware takes much longer to copy (it´s more complicated because you need to understand all its pieces). By the time the hardware has been replicated, the other guys are a thousand steps ahead. \*[Moore law] how microprocessors double the capacity every 2 years and cut the prices a half. **Netflix:** with the current environment, their value proposition is [streaming] (anytime, anywhere, as many times as you want). Before that, they used to take CD´s from point A to B and return them back. Now they give you access to all the content anywhere anytime adapting to the changing environment of the more modern world. **Airbnb:** the main problem the company has is with stakeholders because people complain about their neighbors being random people coming in and out. The people renting them out are making much more money than if they had rented them out traditionally. \*They don´t have problems with investments, only with stakeholders. - The economic part of the strategy works. Airbnb isn´t missing something, it just doesn´t work the same in all locations. - Value proposition: at first it was giving someone the opportunity to stay with you. Now it´s letting someone stay there on their own. "Long-term direction" **Real Madrid:** it changed their strategy from 20 years ago, because many teams are now owned by countries like Abu Dhabi and Qatar instead of being sponsored by brands like Adidas or Nike. "Long-term direction" **Apple:** it sets the price based off the market it wants to target, when they tried to keep the prices low. Strategy big screens, high price, nice design "Managing resources and capabilities" **Amazon:** they are changing their strategy because they´re forcing workers to come into the office 5 days a week (rather than remote). "Business unit strategy" **Mobile to AI first:** Google bought an AI company in 2016, getting on the trend early on and predicting how the society would be in the future. **Ferrari:** They make only 11,000 cars a year (even though they can do more) because they want to be exclusive. Exclusivity is a part of every single part of the company.  Based on this strategy, you have different tactics you have to follow: if you only sell this few cars a year your margin needs to be high, therefore the prices are high. It's a matter of aligning all the different strategies (corporate, business unit, and functional)  **Rolex:** it sold its watches initially to the middle class. They have built a brand exclusively by the little supply of gold (it can´t be created artificially) it storages value to watches. "Strategic formulation" **Zoom** dilemma during the pandemic develop a B to C product (business to consumer: making business with the final consumer) It was mainly a B to B (as it was used by companies to have meetings with other people from different places). But in the formulation part, the firm never implemented the B to C product. "Strategic fit" **Elon Musk** wants to put chips in people´s brains, but these objectives don´t necessarily align with an external analysis of the world we live in. Not everyone is willing to undergo a surgical procedure and put these devices in their brains. **UNIT 2:** **Microsoft:** Bill Gates and his co-founder started it at 17 to fix problems in their local library, and that´s why his vision was focused on the [local opportunity.] Its rules were managed at first by Bill Gates, and then by the following bosses that became managers. **Google:** As a customer, we used to use Google when we had a doubt (something that we didn't know), then we searched for it. We ended up with a bunch of results. Google\'s objective was to stay as little as possible on the Google Search and only remain with the relevant information.   -  **Uber:** didn´t make profit for 10 years. **Glovo** had an initial strategy of having as many customers as possible. Once they entered in the market and they built the brand, they started to focus on non-financial aspects. And as it became more mature, the higher the priority for financial strategies are to have a sustainable business. **UNIT 3:** GLOBAL COMPETITION: regardless the brand, they operate globally (**Amazon**) GEOGRAPHIC COMPETITION: companies that operate in a regional basis (**Cabify**) **UNIT 4:** **Amazon** has SAAS and E-commerce as its main functions. In E-commerce, its main point is logistics, while SAAS\'s main point is scalability. In the same company, you have different profiles of people: in logistics you need people moving products from point A to point B, while in digital services you need product developers and engineers. From a strategic perspective, you\'ve got a big difference in both sides of the business. Therefore, your corporate strategy (customer experience) is interpreted in different ways depending on the area. In E-commerce, you value your experience if your package gets to your house in 2-3 days, while in SAAS you wouldn\'t want to wait 2-3 days to use the software (the subscription has to be practically instant). Therefore, your Business Unit strategy is DIFFERENT.   \*In Amazon´s e-commerce, you can measure sales, days to deliver, engagement. **Telefonica:** it\'s an old company. It takes more effort to change things and move its will. There are more politics and employees involved, and things have been done a certain way for a long time. Once a company establishes itself, its more rigid (because of internal AND market forces) "Firm´s identity" **Danone:** mature, large, alimentation (baby feeding), public (French market), multinational company focused on Europe. **IBM- **they used to make computers, and then began doing consulting when they realized they were not as competitive making computers. They ultimately sold their computers to the Chinese and focused on what they were good at (consulting) "It´s not always about what you´re able to do, but how you fit into a business model" **Seat** can´t just enter the luxury car brand and compete with Ferrari and Lamborghini, even if it has the resources and capabilities. "Value chain" **Apple:** (iphone): design (USA -- 650\$) manufacture (China -- 120\$) assemble (Taiwan -- 270\$) **Google:** Money and subsidies (inputs)\--\> Produce Hey Googles\-\--\> Recorded Data (which is used to maximize future prfoit, even if it means losing money right now)   - -   **Airbnb:** Used to rent just sofas, then rooms, then flats. But now it\'s also focused on \"Airbnb experience\", ensuring that its customers enjoy their stay.     **Nike:** No one is buying Nike anymore. Now, the brand is more about perception and its culture rather than the quality of its products.   - **UNIT 5:** **Apple:** it\'s a 2-sided company. Meaning, it's a product company and a service company (extra storage, Apple Music\...) They create wealth by doing nothing, when they sell those services. The only reason they\'re able to keep margins is because they sell services. \*It made 2 changes when they developed the iPod: - Making the devices compatible with Microsoft and Windows - Connecting devices with a digital platform (hardware + software) **Amazon** is similar. They have billions of sales every year (around 80% are ecommerce) but 65% of their revenue comes from their web services. They have a strategy of high sales, low margin.   **Electric scooters** had a lot of perceived value by the customer, but the truth is they were not making money and had to close the market.   **Cabify:** they began with a really high services (asking how the temperature was in the car, if you wanted water) and low prices, but now they\'re strategy has changed. They are no longer that worried about the customer experience and the prices have gone up. They value added is not there anymore. So, how are they going to prevent that you migrate to another app? (like Bolt and Uber).   **Booking.com:** one of their competitive advantages is their marketing performance (PPC; paper click), they drown you in marketing adds based off your search engine. Their ability to filter (based off price, rooms, kind of place) brings people in. "You can make the best presentation ever of your product and competitive advantage, but if you don\'t sell well then it doesn\'t matter"  If you want to be in Real Estate but you only want to sell to Russians in Malaga, you have a really small market. You have to make sure your strategy aligns with the specific map of your industry.  **Mercadona:** part of its strategy will be highly dependent on its cost  - Firm\'s favorable location In **Amazon**, it was favorable for the company to establish itself near the main US publisher companies in Seattle back when it was founded because it was a book selling business.  If **Ferrari** were to drop its prices, it would lose its exclusiveness and people might not want to purchase it anymore. They would move to other luxury car brands that still had the exclusiveness the customer it seeking. \*LOW PRICES: **BIC pens** \*HYBRID STRATEGIES: **Decathlon** \*DIFFERENTIATION: **Apple Inc.** \*FAILURE: **Kodak** **UNITS 6 and 7:** **Coca Cola:** It builds the brand (it does marketing) "To grow, you can start offering other products or services additionally" **Amazon** started selling books and now it sells anything. "A firm may combine broad scopes and/or narrow ones in each one of the 3 variables used" **Peloton** is almost in bankruptcy because they invested heavily in manufacturing capacity and hardware capacity because demand was extremely high during COVID and their manufacturing couldn\'t meet the customers\' demands. Today the reality is they are not selling even a small piece of that. They overestimated the situation after the pandemic, they did not foresee the decrease in demand after lockdown.   "Break up" **Chrystler** and **Dimler:** they though that they would work well together but, because of salary differences, there was a lot of tension and jealousy and they eventually broke up (Germans and Americans didn't work well together) "Spin-off" **Dia** and **Mercadona** "See which companies can lead you to the different markets and acquire them easier than developing them from scratch" **Facebook** acquired Instagram, Waze, WhatsApp, Youtube; **Coca Cola**