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Research for the case study was conducted using a combination of semi-structured interviews and secondary data sources.

This case traces the international expansion of Sadowsky Guitars’ bass guitar product line. Roger Sadowsky is one of the most respected instrument makers in the world and gained early acclaim for his outstanding repair and restoration work on guitars and basses. Some of his early clients included Prince, Will Lee (The Tonight Show), Tom Hamilton of Aerosmith, Jason Newsted of Metallica, Eddie Van Halen and Marcus Miller. Roger’s reputation and the demand for his instruments led to some customers having to wait for more than a year to obtain the chance to purchase a Sadowsky instrument, while others were unable to do so due to financial constraints. In 2003, Roger made the decision to form Sadowsky Japan to begin the contract manufacturing of more affordable Sadowsky instruments in Tokyo, Japan. As the company grew in size, Roger realized he was becoming more focused on running a business than building instruments. Furthermore, his Japanese partners were only interested in serving the Japanese market. This required him to handle the sales and distribution in the remaining parts of the world. In December of 2019, he announced a new, exclusive licensing agreement and distribution partnership between Sadowsky Guitars and Warwick GmbH & Co Music Equipment KG. The new agreement allowed Roger to continue running the Sadowsky NYC Custom Shop while Warwick would take over building and distributing the Metro instruments and a less-expensive, Chinese-built version of the MetroExpress instruments.

This case is appropriate for undergraduate and graduate-level courses related to marketing and consumer behavior. The case walks students through a real-life scenario when the founder of a well-known musical brand sought to expand internationally as a way to meet growing market demand. Students are asked to consider the advantages and disadvantages of the five key international market entry strategies: exporting, licensing, contract manufacturing, joint ventures and investment (equity/acquisition).

The case works well in the classroom, even if people are unfamiliar with the musical instrument retail industry. Participants are most likely aware of some of the artists and musicians mentioned in the case. Some may also be or know musicians. The instructor should be able to quickly engage participants in a lively discussion about Roger Sadowsky’s vision for his instruments and the opportunities and challenges of expanding product offerings and increasing market share.

Teaching notes are available for educators only.

This case depicts the history of an unusual brand in the “super premium” segment of the vodka market. The top-of-line positioning is supported with creative advertising, narrow distribution, point-of-purchase advertising, and expensive advertising production. Absolut has used very expensive inserts as advertisements in print vehicles during the Christmas season. The last inserts described in the case cost approximately $1 each to manufacture and distribute via the media vehicle (The New Yorker). The case asks students to decide whether such expensive advertising should be continued and, if so, how. The societal effects of advertising alcoholic beverages and the implications of pursuing such exclusive positioning strategies may also be explored.

This case examines the April 2007 decision of British music company EMI to suspend its annual dividend as the company struggled to respond to the effect of digital audio distribution on its core business. The EMI case is intended to serve as an engaging introduction to corporate financial policy and themes in managing the right side of the balance sheet. The case contrasts EMI's storied success with artists such as the Beatles, the Beach Boys, Pink Floyd, and Norah Jones with its recent inability to succeed in financial markets. In light of takeover threats and restructuring costs, EMI's CFO Martin Stewart must recommend EMI's dividend policy.

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?

At three o'clock in the morning on September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (“PPR”) and LVMH Moët Hennessy Louis Vuitton SA (“LVMH”). After a contest for control of Gucci lasting over two years, PPR has emerged as the winner. PPR and LVMH have agreed for PPR to buy about half of LVMH's stock in Gucci for $94 per share, for Gucci to pay an extraordinary dividend of $7 per share, and for PPR to give a two and a half year put option with a strike price of $101.50 to the public shareholders in Gucci. The primary task for the student in this case is to recommend a course of action for Hautillac: should he sell his 2% holding of Gucci shares when the market opens, continue to hold his shares, or buy more shares? The student must estimate the risky arbitrage returns from each of these choices. As a basis for this decision, the student must value the terms of payment and consider what the Gucci stock price will do upon the market's open. The student must determine the intrinsic value of Gucci using a DCF model as well as information on peer firms and transactions. The student must consider potential synergies between Gucci and PPR and between Gucci and LVMH. The student must assess the likelihood of a higher bid, using analysis of price changes at earlier events in the contest for clues.

Entrepreneurship.

The case can be pitched to undergraduate and postgraduate students and is applicable especially in cases when lecturers want to teach an introduction to entrepreneurship.

This case study is about Xoliswa Tini and how she started Xoliswa Tini Properties, an emerging and growing player in the South African property industry. This case seeks to be used not only by commerce students but also by those outside this subject discipline. The motivation here being that entrepreneurship is not restricted to a specific subject discipline. The case profiles how an ordinary person from humble beginnings becomes an important player in an industry that she may have been excluded from based on her gender and race. This case can be used specifically to motivate and inspire students on the importance and processes that accompany the entrepreneur. The case can be used within an academic setting to teach undergraduate and postgraduate students. Outside the academy, individuals training in the area of entrepreneurship can use the case in their facilitation.

To facilitate the case study participant in: understanding the lived experience of an entrepreneur from how they started to key high and low highlights on the entrepreneurship journey; providing an analysis of the role of the micro- and macro-environment in influencing the entrepreneur’s journey and their decisions; appreciating the difficulties the entrepreneur faces in establishing their journey and the strategies used to deal with such difficulties.

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

CSS 3: Entrepreneurship.

By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee retailer's yearly growth had declined by half, quarterly earnings had dropped as much as 97 percent, same-store sales were negative, and its stock price was languishing. Factors such as a global economic downturn and increasing competition in the specialty coffee market from large players such as McDonald's and Dunkin' Donuts had driven this decline, resulting in the closings of hundreds of domestic stores already, with many more planned. Founder Howard Schultz, who had recently returned as CEO, and his executive team were convinced that Starbucks's growth opportunities lay overseas, where the firm already had a strong foothold in markets like Japan and the United Kingdom and was preparing to open hundreds of new stores in a variety of locations. But recent international challenges, including the closing of most Australian stores due to sluggish sales, made clear that Starbucks had more to learn about bringing its value proposition—a combination of premium coffee, superior service, and a “coffeehouse experience”—to foreign soil. The key question was not whether Starbucks could transport its value proposition overseas, but how the value proposition's three elements would play in recently entered and new markets. And the stakes of making the right international moves rose with each U.S. store closure. Schultz and his team also faced a broader question, one that applied to both their U.S. and foreign stores: Could they “grow big and stay small,” remaining a huge retailer that delivered both high-quality products and a consistently intimate and enjoyable experience to consumers worldwide? This case presents this challenge in the context of Starbucks's history, well-established value proposition, and domestic and international growth and vision.

The key objectives of the case focus on the successful growth of local city brand, to a country brand, to a global brand, leaving the questions: 1. How much more can it grow? 2. Can it? 3. What is the impact of new competitors in a given market and/or the impact of the global economy on discretionary spending by a loyal customer base? 4. How important is it to the sustain a brand's core value(s) proposition when innovating for new audiences and customer preferences?

After decades of successful expansion, The Reader's Digest Association's products were mature. With an average readership age for the flagship Reader's Digest magazine of 50.3 in 2004, efforts to develop new products had so far failed to entice a significant number of younger customers. Following a financial downturn in 1996, positive financial results remained illusive. Several major changes instituted by Thomas O. Ryder, CEO since 1998, including acquisitions, re-capitalization, restructuring and systematic re-engineering of the corporate culture, had proven mildly successful, but RDA, as well as the entire publishing industry, faced a persistent decline in profitability. Could RDA fulfill its stated mission to create “products that inform, enrich, entertain and inspire people of all ages and cultures around the world”, and could it do this by continuing to rely on the 80-year old Reader's Digest magazine?