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A family business founded by Chinese immigrants grew into a $133 million toy and costume maker by exploiting seasonal niche segments in the highly competitive, global toy industry. Sales of traditional toys stagnated when replaced by game consoles and electronic toys. Unable to compete in high tech toys, MegaToys moved instead toward seasonal products. In 2007, brothers Peter and Charlie Woo were about to pitch what they hoped would be $63 million in Easter basket sales to Wal-Mart. If Wal-Mart took the full order, it would come to represent over half of MegaToys' revenue.

The company was faced with the dilemma of how to grow, and at what pace. Charlie Woo knew that MegaToys could continue to grow as long as it was able to satisfy Wal-Mart's demands. Peter Woo wondered if this was the smartest way to grow the business. “Growth is a good thing as long as you don't sell your shirt to get it,” he noted. Should MegaToys continue to increase its sales to Wal-Mart, or would dependence on Wal-Mart eventually threaten the firm's success? Were there other, untapped opportunities for MegaToys that were well aligned with its strengths, resources, and capabilities?

The case describes the popular Russian children's animated TV series named the Smeshariki, its parent company (Marmelad), the domestic animation industry, and the principal international rivals and their respective animated products and/or services. The series' success led to the organic growth of vertically and horizontally related business units. Marmelad's business units' scope included producing more than 200, six and one-half minute episodes of the Smeshariki, branded children's products (e.g. educational games), granting licenses to manufacturers, establishing a network of kindergartens, and licensing the Smeshariki animated series to exhibitors in international markets. Key issues the company faces include: brand management for the Smeshariki and Marmelad, domestic and international competition in the Russian animation industry, and the need for professional management. The case provides instructors with a range of options including a holistic marketing case, or one that concentrates on focused marketing issues (i.e. all or parts of the marketing mix, brand architecture, brand equity and brand management).

This is the fourth in a series of articles about case research, writing, teaching, and reviewing. In this article, the protagonist, Prof. Moore, consults experienced case teachers and learns many different approaches to use in the classroom. The article is written as if it were a case; it is fictitious.

SONY Online Entertainment (SOE) was planning to release a new version, EverQuest II®, of its popular online game, EverQuest®. The first EverQuest® game was very successful financially, generating approximately $5 million/month in 2002 for SOE. However, some issues surrounding addictions and corporate responsibility were interfering with the new product launch. These problems revolved around several deaths in which the EverQuest® game had been implicated. The case focuses on the dilemma faced by the Vice President of Marketing prior to the new product release: How far must a company go to protect possible misuse of a product by consumers?

The theoretical basis for this case is a focus on strategic positioning as related to Porter’s generic strategies. The case describes GameStop’s previous differentiation approach, executed through physical stores and knowledgeable staff. With technological shifts and the introduction of digital downloads, this strategy is less effective. The case requires students to consider how GameStop might revise its generic strategy based on the new competitive landscape in which it operates.

In writing this case, the research team conducted thorough analysis through primary data collection in stores as well as secondary data collection through the use of market research tools, such as IBIS World, MergentOnline, S&P Net Advantage, and academic journals, trade magazines, and websites.

With high uncertainty shown by stakeholders about the future of GameStop coupled with falling share prices, the company must find a way to stay in play given the rapidly growing digital gaming market. As it planned to close at least 150 of its 7,500 stores, the company was starting to take measures to reduce operational costs and restructure to sectors that best fit consumer interests. GameStop’s core competencies were no longer aligned with market conditions, and its executives were now questioning where it could expand the organization’s operations as they focused on finding untapped areas of the market that have an opportunity for a new competitive advantage. Given its unique market share in gaming memorabilia and trade-in values, students are tasked with finding GameStop’s existing competitive advantages or identifying potential new ones that can be leveraged in a technology-driven industry.

This case could be taught at either the graduate or undergraduate level strategy course. At the undergraduate level, it would be best taught when discussing industry life cycle or competitive dynamics. At the graduate level, MBAs could discuss competitive dynamics facing GameStop and how it might find areas for future strategic growth.

Atari, a maker of video games, went through several owners over the years winding up controlled by Infogrames, a French publisher of video games. Infogrames later sold Atari shares in a secondary public offering, eventually reducing the parent’s share to 51.6 percent by September 2005 creating a complicated two-tier ownership structure. Two levels of management made it difficult to get things done. The financial structure was a problem for Infogrames because the French company had to consolidate 100 percent of Atari’s results even though it only owned 51 percent of the company. Atari was generating substantial losses, had defaulted on its debt, and was faced with the possibility of filing for bankruptcy without more working capital. The independent directors of Atari, when confronted with an unsolicited Infogrames buyout offer, had several options: (1) agree to the $1.68 offer (take the money and run); (2) pursue a white knight (a buyout from another investor of company that would be willing to pay a higher price and invest working capital); (3) file a lawsuit to stop the takeover to buy time or perhaps force Infogrames to increase its offer.

Communications in a turnaround How planning and executing a communications strategy is as important as other functional actions Dealing with an international ownership base with a U.S. turnaround of a legacy brand with no hard assets Fiduciary duty and governance issues arising from a takeover offer.

Business ethics, entrepreneurship, ICT.

Undergraduate, MBA, MSIT.

The dilemma could be described something like: “I want to do an honest business in order to alleviate somewhat the financial difficulty of my family […] yet my pursuit impacts negatively on my immediate customers”. This is a case of the morality of actions with indirect effects (non-intentional effects).

Understand actions with double effects, formulate business policy to regulate access to services, appreciate the challenges of starting a business enterprise, understand the social impact of ICT.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

“Starting up a new company” and “development of technology-based venture”.

The target audiences for this study are advanced business or non-business undergraduate students and MBA students taking courses of entrepreneurship, management of innovation and organization theory and design.

Yeayyy.com was a private limited company based in Bandar Baru Bangi, Selangor, a township located about 30 km south of Kuala Lumpur. It was founded by Mr Hazmin in early 2010 with a seed funding of RM150,000 (about US$50,000). By the end of 2014, its core businesses include developing mobile application (app), software and website, as well as conducting information technology (IT) training. The company had developed its own animation cartoon, Oolat Oolit, and had commercialized several mobile app inventions. These mobile apps include a Jawi (traditional Malay writing system) app, mobile games and Facebook apps which were compatible with most mobile operating systems. Since its inception, Yeayyy.com had aspired to follow the footsteps of the internationally acclaimed Malaysian home-grown animation production house, Les’ Copaque, which had produced the popular Upin Ipin series. Similar to Les’ Copaque, Yeayyy.com also planned to commercialize its in-house characters into TV series and to market related merchandises, along with its collaborative partner, CikuTree Studio. However, by the end of 2014, the company’s seed funding had depleted, thus forcing Mr Hazmin to strategize for the company’s future.

Understanding the process of entrepreneurship and technology-based venture development enables case analysts to apply the concepts in many situations involving business opportunities and company development.

CSS:3 Entrepreneurship.

The manager of the Sony VAIO personal computer in China has been given two segmentation studies. One study is country-specific and product-specific. The other is a global segmentation study, which covers all regions and all of Sony's many consumer electronics. Which segmentation study should the manager rely on---or is there a way to rely on both? After deciding which study is best, which consumer should the manager target, and with what position?

To provide a basis for students (with the help of their lecturer or professor) to answer the following questions: What are the general purposes of a market segmentation study, and what are some of the associated challenges? Is it better for a segmentation study to provide information about the likelihood of category purchase or the likelihood of brand purchase? What are the plusses and minuses of a global versus local segmentation study, and what are the marketing implications of each?

In December 2011 the Lego Group (TLG) announced the launch of Lego Friends, the company’s sixth attempt to market a product to girls. Lego Friends, which was supported by a $40 million global marketing campaign, was designed to introduce the fun of building with Lego bricks to girls, who represented less than 10 percent of Lego’s audience.

The company’s poorly executed brand extensions and move from free-form building sets to story-driven kits had nearly cost it its independence in 2004, so the launch of Lego Friends was strategically important. However, within hours of the product’s appearance it was heavily criticized for reinforcing gender stereotypes and damaging the valuable Lego brand.

Jørgen Vig Knudstorp, CEO since 2004, had saved TLG and ushered in an era of sales growth with a series of successful strategic initiatives. Would Lego Friends be another addition to TLG’s graveyard of failed products for girls, or would it prove popular and finally enable the company to double its sales and profits by reaching this segment?

After analyzing the case, students should be able to:

• Understand the connection between a firm’s assets and its activities

• Identify new resources and capabilities required for a change in strategic focus

• Recognize the consequences of poorly matched assets and market opportunities

Understand the connection between a firm’s assets and its activities

Identify new resources and capabilities required for a change in strategic focus

Recognize the consequences of poorly matched assets and market opportunities