This is a good example of a Corporate level strategy. Daimler deduced that the performance of the Mayback SBU was not at the expected level and decided to withdraw. The figures for this decision are very interesting, the sales were only 20% of the target set.
Another very interesting point is that Daimler is going to re-enter the luxury end of the market with a new strategy: 'the firm is expected to target the low-priced section of the luxury market' which could be linked to the price leadership generic strategy even at the luxury market.
Daimler to axe luxury cars subsidiary Maybach
German industrial group Daimler is preparing to disband its ultra-luxurious Maybach car marque.
The decision follows almost a decade of trying to make Maybach a profitable rival to Rolls Royce and Bentley.
Read the whole article at: http://www.bbc.co.uk/news/business-15917550
Showing posts with label Withdraw. Show all posts
Showing posts with label Withdraw. Show all posts
Monday, 28 November 2011
Friday, 19 August 2011
Hewlett Packard to exit computing and buy Autonomy
This is a good case study for a number of strategic management concepts:
i) planned and emergent strategies: a few months ago HP had announced that they will concentrate on WebOS which has not produced the expected results; HP is quick in changing strategy, even if it must be very financially painful for them.
ii) exit from its cash-cow business: selling pc BU which is considered the biggest in the world. Interpreting the justification from a strategic management perspective, it seems that the software segment has larger profit margins. Interesting to note that this refocusing is a combined with the acquisition of Autonomy.
iii) the refocusing of the business is based on the expertise of its new CEO who has joined from SAP.
The article draws the parallel between HP and IBM a decate ago, but there is a fundamental difference; IBM was not No. 1 when decided to diversify. Also, HP's history of mergers has shown that it is not the most adaptable and flexible company.
Hewlett Packard to exit computing and buy Autonomy
Hewlett Packard has confirmed plans to stop making PCs, tablets and phones, in order to refocus on software.
It has also emerged that the US company has agreed to buy UK software firm Autonomy for £7.1bn ($11.7bn).
Read the whole article at: http://www.bbc.co.uk/news/business-14584428
i) planned and emergent strategies: a few months ago HP had announced that they will concentrate on WebOS which has not produced the expected results; HP is quick in changing strategy, even if it must be very financially painful for them.
ii) exit from its cash-cow business: selling pc BU which is considered the biggest in the world. Interpreting the justification from a strategic management perspective, it seems that the software segment has larger profit margins. Interesting to note that this refocusing is a combined with the acquisition of Autonomy.
iii) the refocusing of the business is based on the expertise of its new CEO who has joined from SAP.
The article draws the parallel between HP and IBM a decate ago, but there is a fundamental difference; IBM was not No. 1 when decided to diversify. Also, HP's history of mergers has shown that it is not the most adaptable and flexible company.
Hewlett Packard to exit computing and buy Autonomy
Hewlett Packard has confirmed plans to stop making PCs, tablets and phones, in order to refocus on software.
It has also emerged that the US company has agreed to buy UK software firm Autonomy for £7.1bn ($11.7bn).
Read the whole article at: http://www.bbc.co.uk/news/business-14584428
Friday, 28 November 2008
Nokia to end phone sales in Japan
Here is a case of withdrawal of an SBU due to the inability to respond to 'Pressures for Local Responsiveness'.
Nokia to end phone sales in Japan
Finnish mobile phone giant Nokia has said it will stop selling its handsets in Japan after struggling to grow its market share in the country.
Nokia said it would continue selling its luxury Vertu brand in Japan, and would dedicate its Japanese business to research purposes.
Read the whole article at: http://news.bbc.co.uk/1/hi/business/7752279.stm
Nokia to end phone sales in Japan
Finnish mobile phone giant Nokia has said it will stop selling its handsets in Japan after struggling to grow its market share in the country.
Nokia said it would continue selling its luxury Vertu brand in Japan, and would dedicate its Japanese business to research purposes.
Read the whole article at: http://news.bbc.co.uk/1/hi/business/7752279.stm
Labels:
International strategy,
Strategic Options,
Withdraw
Monday, 24 November 2008
Lively no more
Here is a case of 'withdrawing' as a strategy. Google has abadoned a strategy at the early stages of implementation. The launching of 'lively' was a Resource Based View case, however it is interesting to note that now Google is trying to focus its resources on its main activities. It is also worth mentioning that the withdraw from 'lively' comes together with the launch of the 'SearchWiki'.
To read more on this issue: http://www.google.com/hostednews/ap/article/ALeqM5jhRCjkHwh_oq8QOuell_PEkgqTagD94IT2080
http://blogs.ft.com/techblog/2008/11/its-the-data-stupid/
To read more on this issue: http://www.google.com/hostednews/ap/article/ALeqM5jhRCjkHwh_oq8QOuell_PEkgqTagD94IT2080
http://blogs.ft.com/techblog/2008/11/its-the-data-stupid/
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