Case Preparation Questions
Cola Wars Continue: Coke and Pepsi
1. Why is the soft drink industry so profitable?
2. Compare the economics of the concentrate business to the bottling business: Why is the profitability so different? 3. How has the competition between Coke and Pepsi affected the industry’s profits? 4. Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks?
Zara: Fast Fashion
1. How specifically do the distinctive features of Zara’s business model affect its operating economics? Specifically, compare Zara with an average retailer with similar posted prices. In order to express all advantage/disadvantage on a common basis, you may find it convenient to assume that on average, retail selling prices are about twice as high as manufacturers’ selling prices. 2. Can you graph the linkages among Zara’s choices about how to compete, particularly ones connected to its quick-response capability, and the ways in which they create competitive advantage? What does the exercise suggest about such capabilities as bases for competitive advantage? 3. Why might Zara “fail”? How sustainable would you calibrate its competitive advantage as being relative to the kinds of advantages typically pursued by other apparel retailers? 4. What is the best way to grow the Zara chain? How, specifically, do you see prospects in the Italian market? And more broadly, what do you think about the strategy for focusing on Europe versus marking a major commitment to a second region?
Intel Corporation: 1968-1997
1. What was Intel’s strategy in DRAMS? What accounts for Intel’s dramatic decline in market share in the Dram market between 19974-1984? To what extent was Intel’s failure a result of its strategy? 2. What strategy did Intel use to gain a competitive advantage in microprocessors? What threats has Intel faced in sustaining its competitive advantage in microprocessors...
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