Archive for January, 2011

The following post on global strategy is by Thunderbird students Manish Chhokar, Andres Camacho, Maria Teresa Morazan, Archit Kansal, Aaron Sanchez and Michael A. Sherry

The human brain can effectively process and decide upon a limited number of choices. Too many options can cause people to enter what experts refer to as “paralysis of analysis,” a syndrome that is linked to having an overabundance of choices. Unfortunately, this state ultimately leads to further indecision and “overwhelm.” In his 2004 acclaimed book, “The Paradox of Choice,” author Barry Schwartz argues that by eliminating the number of consumer choices, a company can reduce levels of anxiety and confusion during the shopping process. We believe that a similar challenge has presented itself in the crowded laptop market, and that HP has ultimately suffered from a strategic “identity crisis,” failing to realize the negative consequences of providing an overabundance of choices for its customers. Read the full article in Thunderbird Student Projects, a blog on the Thunderbird Knowledge Network.

“The whole problem that we all have, and Louis Vuitton is the leader of the industry – is to manage what I call the ‘paradox of luxury.’ How can you grow year after year, and give the satisfaction to many more customers, in many more countries, and at the same time keep this sort of exclusivity of luxury?” — Yves Carcelle, February 2008

The following post on global strategy is by Thunderbird students Swecha Bhavana, Rodrigo Castillo, Sampad Das, Noah Emery, Estella He and Ho Young Kim

In an interview with Yves Carcelle, the president and CEO of Louis Vuitton, he touched on a unique strategic issue faced by LV and other luxury brands equally. The interview was given during LV’s expansion into Turkey in February 2008. He used a phrase, “the paradox of luxury,” to describe the expansion and growth of the luxury market. The paradox, according to Mr. Carcelle is aiming to increase the opportunities for growth while attempting to maintain the exclusivity of the brand. LV’s current strategy is focused on geographic expansion into emerging markets where the levels of disposable income have risen, creating new customers for the luxury goods market. At such a juncture, it becomes paramount for LV to avoid risk of diluted brand image. The fact that LV’s products are sold at only the 390 stores all over the world is one of the strategies around the paradox. Read the full article in Thunderbird Student Projects, a blog on the Thunderbird Knowledge Network.

The following post on global strategy is by Thunderbird students Shamus Angkrom, Raghu Gopal, Joseph Hake, Jacquelyn Hunter and Matt Williamson

All people with any interest in flight, from the casual passenger to the industry analyst, will no doubt have been exposed to the recent buzz regarding the Airbus A380 and the Boeing 787 Dreamliner. In the United States all eyes have been set firmly on the production of the 787, as both regional and long-haul service providers plan to utilize the 787 in a manner that will create a great deal of competition for the A380. You would be hard-pressed to reference commercial air travel or U.S.-based defense without the inclusion of Boeing or its various subsidiaries. Several years ago, one could scarcely mention Boeing without alluding to its former claim-to-fame, the 747 “jumbo jet.”  Those of us fortunate enough to have traveled overseas for business or pleasure have undoubtedly experienced the enjoyment of being a passenger on one of these airborne behemoths.  Nowadays, when discussing the premiere platform for wide-body, long-haul commercial air travel, most would reference the Airbus A380 instead of the “dated” 747. Read the full article in Thunderbird Student Projects, a blog on the Thunderbird Knowledge Network.

The following post on global strategy is by Thunderbird students Han-Li Chang, Juan Carlos Hussong, Karan Singh, Milena Flament, Rohan Ghotage and Torry Schoenfeld

The automobile industry is, and has been, highly competitive. The big three American automakers, General Motors, Ford and Chrysler, have for many years adopted similar strategies. They focused on delivering the American dream car: Roomy, comfortable, big engines, and lots of horsepower. Few resources were allocated to innovation. Fuel efficiency and hybrid technology were largely ignored. At the same time, the domestic automakers’ biggest foreign competitors, with Toyota leading the way, pursued a strategy that focused on products of high quality, reliability and technology. In comparison to the foreign brands, the Blue Logo was associated with poor quality and cheap production around the world. Without a decent strategy to salvage Ford’s deteriorated reputation, the company could not sustain its market share. It is this volatility in reputation that the new Ford strategy aims to overturn. Read the full article in Thunderbird Student Projects, a blog on the Thunderbird Knowledge Network.