Case studies

This case examines the formation of an alliance between Fiat and Chrysler during the height of the financial crisis as a mechanism to save Chrysler from liquidation. The case traces the events leading up to the alliance, discusses the early stage issues with which the partners have to deal, addresses some of the governance issues, and examines the past merger between Chrysler and Daimler that ended in a failure. The case presents a normative approach to alliance management and conjectures about the success of the Fiat-Chrysler alliance. We address whether Chrysler is a suitable partner and whether there is a strong enough rationale for the alliance and whether the two partners are compatible. Finally, the case explores the lessons learned and the cautions that might derail the alliance.

This case presents an application of conjoint analysis in a financial services setting. It is best used in a course on marketing research. The decision in the case centers on a fund manager's need to generate additional profit from a mutual fund. To do this, he needs to determine a new pricing structure for the fund. The case presents students with the results from a real-world conjoint analysis and requires them to work through the pricing and profit implications of that analysis.

Fingerhut, based in Minnetonka, Minnesota, is a direct-marketing company that sells a smorgasbord of consumer goods through an array of specially targeted catalogs. In November 1996, an article in the Star Tribune, a major Minneapolis newspaper, drew attention to a class-action lawsuit pending against Fingerhut that suggests the firm made its profits by exploiting the poor. Several civil rights groups rallied around the suit and submitted amicus curiae in favor of the litigation. The case illustrates issues in ethics and management communication. Discussions focus on the constituencies. Is Fingerhut exploiting its customers or providing them with an affordable method of obtaining valued consumer goods on credit? Do retailers have a duty to offer products at reasonable prices? Are the high interest rates reasonable given the risk? What are the options: pawn shops, rent-to-own? What is the profile of the typical Fingerhut customer? Discussions also focus on the issues communicating to the constituencies. How much damage will the lawsuit do to Fingerhut's image as an ethical, socially conscious company? What communication strategies can the firm employ? Should it react to the lawsuit? What should it tell its employees?

This case describes an innovative response-modeling project at INTUIT. The case can help students understand the basics of (and the issues surrounding) response modeling, an important tactic in data-base marketing.

Supply chain network design choices and the challenges in implementing and understanding how alternatives influence firm performance are key management skills that can be applied to the case of a global company, Kulicke and Soffa Industries, Inc. (K&S), and its expansion strategy. Suitable for the MBA, EMBA, GMBA, and executive education programs, the case explores the decision to expand the company's tool bonding capacity in order to manage its growth. The question becomes whether to grow current operations in Yokneam Israel or seek alternative sites. And if it was decided to seek a location outside of Israel, where exactly should the company go?

As marketers love to teach students, differentiation must be the focal point of marketing strategy. But what happens when a firm's competitive set is shared by similar customers, perceived differentiation is weak among rivals, and loyalty is a thing of the past? This was the dilemma the French luxury jeweler Mauboussin faced: how to leverage its iconic brand to access new customers, domestically and abroad, and through new channels, while preserving the image of luxury goods founded on the myth of rarity and exclusivity? The case was designed and used for the latter portion of an international MBA marketing course and would work well in most international business courses.

This case requires a decision on the possible consolidation of three Midwest business-travel centers. Significant cost savings in service representatives can be achieved by combining the front-end (booking) operations. The sensitivity of cost to service-productivity levels and customer waiting time is also explored. This case and related materials can be used as part of the Workforce Planning Module.

This case is used in Darden's first-year core operations class as part of a module on supply chain management. The Musictoday company provided online retailing services for such clients as the Dave Matthews Band and the Rolling Stones. But the lack of a formal inventory-management process had Musictoday concerned about future stockouts that would result in lost sales. This case covers the basics of safety stock within the context of a periodic review system. It introduces students to the periodic review system and provides them with an opportunity to link the optimal review period with the EOQ concept.

This case concerns the promotional activities of Nashua Photo, the nation's largest mail-order photofinishing firm. Discount-price mailers (inserted in local newspapers, for example) were used to generate new customers, but also allowed existing customers to pay a lower price. Students must evaluate not only the results of last quarter's 125 separate promotions in light of this “leakage,” but also the appropriateness of discount-price mailers within Nashua's marketing mix.

“This case is an updated version of ““Netflix Inc.: DVD Wars”” (UVA-M-0763), and was written as a replacement for it.

A financial analyst is asked to appraise the value of Netflix's stock at a time of unprecedented turmoil for the company. This case introduces customer lifetime value (CLV) as a useful metric for subscription-based businesses.”