Skip to main content

Strategy

Sort by:

Strategy

Buying companies for new competencies: Is it worth it?

INSEAD Knowledge

In fast-moving industries, large companies are increasingly using acquisitions as a strategy to obtain new competencies from smaller firms. The key aspect of the acquisition is to gain access to the knowledge assets of the target firm. This knowledge- which often resides in the employees- is critical for the acquisition to create value for the acquiring firm. However, the difficulty of evaluating and monitoring employees in a large firm and the reduction in employees’ incentives, due to less control over their efforts and lower profit-sharing, can lead to a persistent decline in their productivity after the acquisition.

Strategy

In search of blue oceans: AOL (Europe)

Internet business America Online (AOL) has had a chequered history since its marriage to the US media giant Time Warner in 2002. In fact, Time Warner’s $106 billion deal to buy the internet business is regarded today as one of the worst in corporate history.

Strategy

Globalising the brand: Looking beyond lower costs

While many multinational firms are choosing to outsource services and production to Asia, one company says it’s looking beyond lowering costs and is aiming to ‘globalise its corporate brand,’ by developing a major R&D base in India.

Strategy

CEO view: Judy Leissner of Grace Vineyard

A mainland Chinese winery is establishing its name internationally for its wines, even though it’s currently targetting the domestic market. A recent article in the Financial Times by wine critic Jancis Robinson, called ‘Bordeaux, Burgundy and ...Yongning?’, spoke of Grace Vineyard’s Chairman’s Reserve Merlot/Cabernet 2004 as ‘the finest wine so far made in the country that is already the world’s sixth most important grower of grapevines.’

Strategy

Building global brands in Asia

Look closely at the top 100 Global Brands, according to Interbrand and BusinessWeek, and you’ll see many European and North American favorites that have given great products or services over many years. What you won’t see on that list are many Asian firms, apart from some notable companies in Japan and South Korea.

Leadership & Organisations

The global business leader

INSEAD, INSEAD Knowledge, J. Frank Brown, The Global Business Leader: Practical Advice for Success in a Transcultural Marketplace

Strategy

In search of blue oceans: The Starwood experience

Are companies using Blue Ocean Strategy to search for ‘uncontested market space’ and, if so, how? One group which has been exploring blue ocean thinking for the past three years is Starwood Hotels and Resorts.

Strategy

CEO View: John Mullen of DHL

INSEAD Knowledge

The credit crunch is a cause for concern, says DHL CEO John Mullen, due to the current uncertainty in the US economy and the possibility it could go into recession. “We see it in our trading results,” he says. “We’re up one month, we feel positive and then we have a bad month and everyone’s full of doom and gloom, and then the next month’s good again.”

Strategy

In search of blue oceans

First came the book and now there is an institute. The international bestseller, ‘Blue Ocean Strategy’ written by INSEAD professors W. Chan Kim and Renée Mauborgne, sold more than a million copies in its first year of publication and is being published in a record-breaking 41 languages. Although there are no plans for a follow-up book at this stage, INSEAD has set up the INSEAD Blue Ocean Strategy Institute.

Strategy

Blue Ocean Strategy: The primer

The book ‘Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant’ has had a huge impact worldwide. Written by two INSEAD professors, W. Chan Kim and Renée Mauborgne, it sold more than a million copies within its first year of publication and has been translated into 39 languages, breaking Harvard Publishing records as the fastest selling book in print.

Strategy

The new deal at the top

Most companies have managers reporting directly to the CEO on a one-to-one basis, with responsibility for their units or regions,” says Yves Doz, who holds the Timken chair in Global Technology and Innovation at INSEAD. The Professor of Business Policy says the result is that “the businesses or regions tend to behave in an autonomous fashion similar to the way a baron would manage his fiefdom.”

Strategy

Interview transcript: Tony Fernandes of AirAsia

Knowledge: AirAsia has done phenomenally well over the past 5-6 years. You’ve had your IPO (on Bursa Malaysia) and you’re still looking to grow substantially in Asia.

Strategy

CEO view: Tony Fernandes of AirAsia

INSEAD Knowledge

Within the space of five years, Asian budget carrier AirAsia has grown quickly, helping to shake up the airline business in the region. With its fleet of 30 Boeing 737-300 aircraft and 15 Airbus A320s, the no-frills airline currently flies to more than 45 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar.

Entrepreneurship

The innovation value chain

Innovation isn’t all about great ideas. INSEAD Professor of Entrepreneurship Morten Hansen and visiting professor Julian Birkinshaw argue that companies often fail because they don’t recognise that innovation is a chain that requires strength at every link to succeed.

Strategy

Cost innovation and the dragons

‘Cost innovation’ sounds like an oxymoron. Most of us associate innovation with greater functionality and sophistication. Mainland Chinese companies, however, are turning conventional business models on their heads and these ‘dragons’ are making inroads into markets in ways that would have been unimaginable just a few years ago.