Assignment: Strategy

For this assignment you work in a 1 to 3 people group. Print and submit your answer as a hard copy (bring the printed version with you). email submission is accepted with 5% deduction. You may search Internet to collect further information about the companies and to justify your answers.

I. Read the CIO article "Supply Chain Partnerships: How Levi's Got Its Jeans into Wal-Mart" By Kim Girard.

Assume that you are going to analyze Levi's environment with the 5 force framework. Answer the following questions based on the article and information based on your search.

1. Why did Levi's consider selling their jeans at Wal-Mart? (In other words, what are benefits from the viewpoint of Levi's?)

2. Why did Wal-Mart consider selling Levi's jeans at Wal-Mart? (In other words, what are benefits from the viewpoint of Wal-Mart?)

3. Wal-Mart is one of Levi's buyers. Whose bargaining power is bigger? (Wal-Mart or Levi's?) Assess bargaining power of Wal-Mart from the viewpoint of Levi's, as high, medium, or low with your own justifications.)

4. What generic strategy (among the following four: (1) broad target / cost leadership, (2) broad target differentiation, (3) focused target / cost leadership, and (4) focused target / differentiation) is Wal-Mart following? Justify your answer.

5. Define entry barrier. Discuss how Wal-Mart uses information technology to increase entry barriers of its industry. Justify your answer. (10%)

6. List 9 activities in the value chain model. For each process, provide an example of an activity in case of Wal-Mart (ex: services: to accept product returns at Wal-Mart).

7. What activity (or activities) in the value chain model do you think is most important in case of Wal-Mart? Justify your answer.

8. Describe activities that Levi's did or need to do in the area of Information Technology in order to do business with Wal-Mart. Include names of three specific information technologies in your answer.

II. Search Internet to learn about the first-mover and fast-followers.

9. What competitive advantages can a company reap if it is the first-mover in introducing an innovative IT system?

10. What are the pros and cons of being a fast-follower?

III. Read the following article (read the first 6 pages before the section of forecasting demand in page 166) and answer the following questions.

Metters et al. (2008) The "Killer Application" of Revenue Management: Harrah's Cherokee Casino & Hotel 166 Interfaces 38(3), pp. 161-175.

This article is accessible from our library online databases at Business Source Primer.

(Article Database- Business Source Primer: Type keywords (Harrah and RM))

11. The Cherokee denied Mr. Smith's room reservation request, although it has 183 unreserved rooms for that night, and gave Mr. Smith a free room at another hotel because the Cherokee's management believes that the hotel's RM (Revenue Management) system, which makes such decisions, contributes to the hotel's profitability. Explain how such decision can result in higher profits.

12. Discuss at least two weaknesses of segmenting customers by restrictions.

13. What does RFB1 mean in the Table 1?