mba intelligence

Inside this issue: Entrepreneurship meets strategy | Social media and luxury goods | Technology in education

December 2012 NO1

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MBA INTELLIGENCE December 2012 NO1

MBA Intelligence is published monthly by Redwood Apps Limited. MBA Intelligence reserves the right to prohibit the reproduction of the magazine in any manner, whole or part. MBA Intelligence considers its sources reliable and verifies as much data as possible, although inaccuracies can occur; consequently readers using this information do so at their own risk. Although persons and companies mentioned herein are believed to be reputable, MBA Intelligence does not accept any responsibility for their activities.

Welcome to the first taster edition of MBA Intelligence. MBA Intelligence is a brand new unique monthly magazine aimed at showcasing great business talent from the leading business schools around the world.It provides prospective, current and past students of the MBA and other business degrees with business and organisational insights gleaned from applying MBA knowledge and skills. In addition, this issue includes reviews of recently published books as picked by MBA students themselves. We hope you enjoy the first edition of MBA Intelligence and to ensure you stay current, informed and connected, you can subscribe to future editions below:

For any questions or further information contact us at [email protected]

A note from the Publisher

Welcome to the first issue of MBA Intelligence

ContentsMBA IntellIgence October 2012

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Today, firms operate in increasingly dynamic and turbulent environments characterised by intense competition, uncertain market conditions, faster technological changes and shorter product life cycles (Pinto et al, 2008). Given the challenges these conditions bring to organisations, it is no surprise that business strategy continues to be a widely discussed concept, with varied perspectives and schools of thought. Faced with such market turbulence and with divergent views on strategy, those responsible for crafting company strategy face a significant and complex challenge.

Strategic decisions during market entry and early growth

5

October 2012MBA IntellIgence5 Strategic decisions during market entry and early growth

MBA IntellIgence October 2012

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Classroom 100 years ago Classroom today

In Malaysia however, the traditional approach to Primary School1 learning is being seriously examined, Malaysia is one of the few countries that spends more on education than defence and one of the world’s first to introduce a national 4G wireless network potentially

giving students high speed internet on the move. Malaysia is creating conditions for a significant change in educating its children and future citizens - what role can mobile devices play?

Teaching Digital Natives - Mobile Device Dilemmas An analysis of Malaysia’s radical Primary Education agenda

Even in developed economies effective teaching can be elusive - perhaps because educational systems were designed during the industrial era - when “education” only happened at school and jobs were “for life”. In today’s fast paced world jobs change frequently and we are routinely expected to handle large quantities of data, disciplined, robust and

17 Teaching Digital Natives - Mobile Device Dilemmas

October 2012

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MBA IntellIgence December 2012 no1

What are MBA’s

reading now?

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23 What are MBAs reading now?

An analysisof how Jimmy Choo has responded to the

challenges in marketing management for the

21st century.

December 2012 NO1MBA INTELLIGENCE

Submitted By: Alysia Watson

The luxury brand market relies on the ability to build and maintain an identifiable cachet that resonates with a desired target market. The challenges

faced by many luxury brands’ marketing strategy for the twenty first century have been magnified by the financial downturn and the increased threat of

competition posed by the increase in globalization and from lower value reproductions from mass-marketed brands such as Zara and LK Bennett. This paper will look at how Jimmy Choo has met these challenges through a more integrated marketing approach, the use of social media, collaborations, and

product segmentation.

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10 Jimmy Choo – best foot forward

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Editorial

Simon Feeney:Having spent 6 years working for the Reed Group in various manage-ment positions, Simon recently

completed a full-time MBA at Cass Business School, London, with stra-tegic management as his primary area of interest.

Tariq Isa:Tariq is a serial entrepreneur hav-ing started his first business at age 23. Before completing his MBA at Cass

Business School this year, he co-founded one of the leading digital learning system providers for the UK.

Alysia Watson:Alysia recently completed a full-time MBA at Cass Business School, and prior to this she spent over

10 years working in the banking industry with a focus on leveraged buyouts.

Welcome to MBA Intelligence, a new magazine for the global MBA community. In business schools across the world the MBA curriculum challenges students to apply their analytical skills to contemporary organisational issues - and it is about time the best of those insights were shared.

MBA Intelligence is the means to that end – for readers it is a way to learn how the theories, tools and techniques of the classroom get applied and for contributors it is an opportunity to showcase your talent to an international audience. For all of us, MBA Intelligence creates the town square of our global community.

In this edition we are delighted to feature the work of MBAs and authors from Cass Business School. An integral part of City University London, Sir John Cass Business School is among the global elite of business schools holding the gold standard of ‘triple-crown’ accreditation from the Association to Advance Collegiate Schools of Business (AACSB), the Association of MBAs (AMBA) and the European Quality Improvement System (EQUIS). Many thanks to Cass Business School for the contributions already received – and we know that Cass MBAs are also looking forward to reading the work of their peers across the MBA world.

The Editor

[email protected]

Contributors

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Today, firms operate in increasingly dynamic and turbulent environments characterised by intense competition, uncertain market conditions, faster technological changes and shorter product life cycles (Pinto et al, 2008). Given the challenges these conditions bring to organisations, it is no surprise that business strategy continues to be a widely discussed concept, with varied perspectives and schools of thought. Faced with such market turbulence and with divergent views on strategy, those responsible for crafting company strategy face a significant and complex challenge.

Strategic decisions during market entry and early growth

4

October 2012December 2012 NO1MBA INTELLIGENCE

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‘It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who would profit by the preservation of the old institu-tions, and merely lukewarm defenders in those who would gain by the new ones. The hesitation...arises...in part from the general scepticism of mankind, which does not really be-lieve in an innovation until experience proves its val-ue.” (Machiavelli, c1513).

Machiavelli was writing in the 16th Century, but his concept remains contem-porary. Although change is normalised within busi-ness, entrepreneurs bring-ing new products or ser-vices to market still face tremendous challenges in scaling their businesses to bring significant success. How to do this - the busi-ness strategy – is hotly debated among academics and practitioners alike.

Today, firms operate in increasingly dynamic and turbulent environments characterised by intense competition, uncertain market conditions, faster technological changes and shorter product life cycles (Pinto et al, 2008). Given these conditions, it is no surprise business strategy continues to be a

widely discussed concept, with varied perspectives and schools of thought. Faced with market turbu-lence and with divergent views on strategy, those responsible for crafting company strategy face a sig-nificant and complex challenge and entrepreneurs could arguably face the greatest challenge of all.

In most circumstances entrepreneurs face a sig-nificant burden of risk, with lim-ited chance of success. Hall and Woodward (2010) demonstrate the reward to entrepreneurs who provide the ideas and long hours in start-ups is zero in al-most three-quarters of occa-sions. Their work is based on the study of 22,000 US companies that received venture funding over a 20-year period, and does not even factor in the thou-sands of small businesses that fail without reaching this stage.

However, they also note the average cash reward to an entrepreneur in a company that succeeds in land-ing venture funding is $5.8m, which, given the large proportion that fail, indicates an attractive outcome for those entrepreneurs who do succeed. When it comes success comes quickly, with more than a quarter of the total value arising from companies with venture lifetimes between one and two years.

Many entrepreneurs start their companies with a planned early exit in mind, but shaping and struc-

Whilst strategic challenges are of interest to all managers, entrepreneurs could arguably face the greatest challenge of all. In most circumstances these individuals face a significant burden of risk, with limited chance of success. Hall and Woodward (2010) demonstrate that the reward to en-trepreneurs who provide the ideas and long hours in venture funded start-ups is zero in almost three-quarters of occasions, and small in general once idiosyncratic risk is taken into considera-tion. However, they also note that the average cash reward to an entrepreneur in a company that succeeds in landing venture funding is $5.8m.

Many entrepreneurs start their companies with a planned early exit in mind, but shaping and structuring start-up and early stage companies for fast growth is a complex and difficult challenge. This article provides assistance for budding entrepreneurs hoping to optimise their business’ market entry and early growth strategies.

“It must be remembered that there is nothing

more difficult to plan, more doubtful of success,

nor more dangerous to manage than the

creation of a new system.” Machiavelli, c1513

6


turing start-up and early stage companies for fast growth is complex and difficult. These individuals typically require substantial help (Turner, 2006) and so in the summer of 2012, I conducted a study into strategy in early stage businesses for my MBA the-sis. Firstly, I researched and con-solidated a vast array of existing academic theories. Secondly, I interviewed relevant practition-ers, including successful entrepre-neurs, founders of current start-ups, financiers and consultants. Thirdly, I applied my findings to a detailed company case study. Whilst there are limitations to the methodology, primarily relating to sample size and selection bias, eight generic key lessons emerged.

1 Writing a business plan is typically an impor-tant factor of success, but it should act as a “compass” for the business as opposed to a

“map”.In fast-moving environments is there time for the type of detached, formal analysis many traditional strategy models require, or should companies just start act-ing, learning and developing in an iterative manner? Should companies bother writing a formal, detailed business plan, given its contents may quickly become obsolete? Should a business plan be linked directly to the strategy?

Whilst individual responses to these questions will be both subjective and contextual, firm trends ran through my research results. Typically it is suggested entrepreneurs should use a range of formal strategic models when initially scoping the market opportu-nity and potential, but should not get immersed in too much analytical detail – to the point where the turbulence of the environment means the opportu-nity shifts or is missed altogether. More important for start-ups is to begin “strategising” (Whittington et al, 2006) – to begin speaking to customers, developing and testing products, gaining feedback and building networks.

Writing a business plan is a key factor of success, but the depth and detail required is less than may be ex-pected. The purpose is to formalise an ultimate goal combined with initial ideas for how that goal may be achieved. A danger for small businesses is they can

become too reactionary to environmen-tal changes, and a formalised business plan is a key reference tool that can pre-vent this. A plan is also usually required to secure funding but VCs do not require large, complex plans. They are mainly looking for a scalable business idea with market appeal, typically pitched within the context of a competitive environ-ment to help create a framed point of ref-erence. However, analysis should be kept

as broad as possible regarding the focal industry and not be so deep that it delays action for too long. A ten-page business plan is suggested as sufficient.

Once a plan is in place, it is typical that divergences occur almost immediately, with one serial entrepre-neur suggesting he rarely implements more than 50% of an original plan. Divergences often occur because what customers say in research is not then reflective of their purchasing behaviour and because environ-mental changes block paths and create new oppor-tunities. However, entrepreneurs should always work towards the core essence of the plan. Like mountain climbers who find their route has become impossible to navigate, entrepreneurs may have to try a different path; however, their goal of reaching the top never changes. They should remain open and flex-ible to adaptive development, whilst also ensuring that their business does not become too reactionary to outside pressures, or does not lose its core focus. Under this context, strategy can be viewed as a “compass” rather than a “map”.

2 Entering with a disruptive prod-uct can bring sig-

nificant success but the

Writing a business plan should act as

a ‘compass’ as opposed to a

‘map’

7


market education period is likely to be long and painful, thus companies adopting this approach will need significant funding. This funding can be hard to obtain as the product will not have a proven market base.This finding stems from research carried out by Kim and Mauborgne (1997) in which they note that suc-cessful high-growth companies paid little attention to matching or beating their rivals. Instead, they sought to make their competitors irrelevant by offer-ing a significant leap in value. However, the key chal-lenge is to persuade others of the benefits of this leap. My research identified that the most successful companies do tend to offer a leap in value, but in most cases they have to go through a long and ar-duous period of market education. A lack of finances to survive this period is cited as the downfall of many businesses. A “safer” path can be to provide an enhancement to existing offerings. Many companies succeed in this manner, and it is also the approach that is easiest for VCs to fund, as it-erations on existing models (there-fore with an established base de-mand) are less risky than disruptive products with no proven market.

3 Whilst first-moving does not always provide a sus-tainable advantage, sig-

nificant success can result from a “first moving-rapid scaling-early exit” approach.As noted within the work of Suarez and Lanzolla (2005), first-movers have more time than later en-trants to accumulate and master technical knowl-edge, and this can lead to a technical edge over competitors. They also have first access to scarce as-sets, and are able to build an early base of customers who would hopefully be retained in the face of com-petition, whether through loyalty or high switching costs. However, on the other hand, the market may not be ready for the product; development and pro-motion costs are likely to be high; and the risk of fail-

ure is considerable, as demand uncertainty exists.In today’s competitive environment, a durable ad-

vantage is often not feasible, but a strategy aiming for a “first mover/short term advantage/early exit” approach can be extremely successful. By following this planned strategy, companies tend not to focus on erecting too many barriers to entry, or on build-ing sustainable business foundations, but instead focus on developing and marketing an attractive product or service proposition. Quickly capturing a significant amount of market attention and posi-tioning for a trade sale can lead to large exit values, with the acquirer then left to worry about maintain-ing the advantage.

4As companies move from the initial com-mercialisation of prod-

ucts to scaling, their custom-ers may change, and this may require a fundamental business model adaption. Identifying the need for this change and executing it can be a defining moment in a start-up’s evolution.

As the work of Baden-Fuller and MacMillan (2011) high-lights, business models have evolved in recent times, with innovative approaches mean-ing the user and the customer

are not always the same stakeholder. Google sits as an obvious example here with the customers being the advertisers, and the users the general public. A less obvious example is Ryanair, in whose early days the customer was the local Governments or devel-opment boards of the areas surrounding the provin-cial airports it flew to; its passengers the users.

Understanding who the customer and user are is an important success factor, but entrepreneurs must also understand that these may change over time, especially through the three key stages of prototyp-ing, commercialisation and scaling. As Baden-Fuller

My research identified that the most

successful companies do tend to offer a leap

in value, but in most cases they have to go

through a long and arduous period of

market education.

8


and MacMillan (2011) point out: many companies are successful at the first two stages, but “few make it to the last stage, when identifying the right scaling customer is essential. Scaling customers provide the necessary funds for this last rapid growth stage.” It is important to note that the scaling customer may require a significant shift in business model, some-times even adapting the business from a b2c to a b2b model or vice-versa.

5Focus is the key to early success and most successful

start-ups begin by dom-inating a small, defined niche segment.The work of Geoffrey Moore in the 1990s on “Crossing the Chasm” remains relevant and impor-tant in today’s business world. In such a turbulent environment, “focus” is one of the most important at-tributes for a start-up. Entrepreneurs should identify a specific customer and focus on solving the prob-lems fully for that customer.

6Bringing in a non-exec Board can be an ad-vantage through the provision of mentor-ing, expert knowledge and business con-

tacts, but the decision of who to choose is highly important. Providing mentoring support is sug-gested as the most important service to purchase

through this process.Having advisors is an essential suc-

cess factor for entrepreneurs, but the choice of whom to

bring on board is critical. Sometimes non-execs who have senior management

experience in large com-panies, but with no di-rect experience in en-trepreneurship, can

have a point of reference so removed from the reality of early stage business that their recommendations can actually be a strategic distraction.

Bringing in non-execs as a means of gaining cli-ent access can also have varying levels of success, as the purchasing mindset can be weak if meetings

are only agreed to as a favour to the referring Director. In addition, having those networks to access can be more important in b2b environments than when the customers are direct consum-ers. The role of the Board member as a coach and mentor to the entrepreneur is identified as the most important func-tion, as growing a business is tough, and a founder has a limited number of peo-ple who they can turn to for advice.

7Obtaining the right amount of investment from well chosen fi-nanciers is a vital success factor

– too much money can be as damaging as too lit-tle, and some financiers are better positioned to assist certain exits through their networks.Securing funding is often a pivotal moment for a start-up, with the funds becoming available to sup-port product development and early stage scaling. Securing funding can also help focus strategy: as there is only so much that can be achieved with each tranche, companies focus on a staged development approach instead of trying to “conquer the world in one giant leap”.

However, it is important for entrepreneurs to fully understand that as soon as investment is secured, their company effectively becomes up for sale, whether that is through acquisition, IPO or fire-sale. There is also a real danger of companies having “too much” money up front, which can cover up ineffi-cient practices and poor strategic decision making. It is important for companies to be revenue focussed from the outset, and an early need to sell often means that the product is put in front of customers early, and these customers then provide feedback that helps enhance further developments.

Understanding who the customer and user

are is an important success factor, but

entrepreneurs must also understand that

these may change over time

9


It is my belief that to optimise market entry, firms should ask honest questions about how much fund-ing they need and seek the optimal amount from a provider that can also add value to the business. Some funders have closer links to certain companies than others, and will therefore be able to offer great-er support when seeking a trade sale. This is often termed “accepting smart money”.

8Getting the right people on board early is imperative - ensuring complementary

skills are procured to ensure the company has the full mix of technical, sales and operational capabilities.Whilst often overlooked as a strategic consideration, possibly as it’s deemed obvious, effective recruit-ment is the most cited critical success factor for early stage businesses. The best people are needed, but

they can only be offered a sub-market salary, share options of a currently worthless business, and the promise of long hours with limited comforts. It is es-sential therefore, for entrepreneurs to have a com-pelling vision for the company that garners confi-dence in future success (and thus financial reward), and strong values that engage staff. This will often be driven by an obsessed and passionate founder, who is prepared to take a decisive decision making role. This decisiveness should be applied to any non-performers, who should be changed out quickly.

Whilst it is not possible to provide a blueprint, en-trepreneurs that consider these eight concepts are likely to increase their chances of success. Unfortu-nately, even then, starting a business remains a risky proposition, and it will be the contextual decisions made relating to specific opportunities that will ulti-mately determine success.

Simon FeeneySimon recently completed a full-time MBA at Cass Business School, London, where he was accepted as an academic scholar. Whilst the Cass MBA is generalist in nature, Simon used his elective choices to focus on strategic management, with this being his primary area of interest.

Prior to joining Cass, Simon spent 6 years working for the Reed Group, where he progressed rapidly through a range of management positions in both commercial recruitment and government outsourced welfare contracting. Using the MBA as a platform for transition into a new industry, Simon has since joined Virgin Atlantic Airways in a strategic procurement management capacity

Scroll down for references

An analysisof how Jimmy Choo has responded to the

challenges in marketing management for the

21st century.

December 2012 NO1MBA INTELLIGENCE

Submitted By: Alysia Watson

The luxury brand market relies on the ability to build and maintain an identifiable cachet that resonates with a desired target market. The challenges

faced by many luxury brands’ marketing strategy for the twenty first century have been magnified by the financial downturn and the increased threat of

competition posed by the increase in globalization and from lower value reproductions from mass-marketed brands such as Zara and LK Bennett. This paper will look at how Jimmy Choo has met these challenges through a more integrated marketing approach, the use of social media, collaborations and

product segmentation.

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Jimmy Choo was born from the collaboration between Tamara Mellon and Jimmy Choo in 1996. The company started as a result of an ‘outside in’ approach following the recognition of a gap in the market for sexy, stylish and in-

novative shoes that would meet the needs of today’s women. Originally positioned as a luxury shoe manu-facturer, famed for designing shoes for the late Prin-cess Diana as well as being a regular feature on ‘Sex and the City’, the company has expanded its product portfolio to include a range of shoe collections for men and women, bags, sunglasses, perfumes as well as other accessories.

Designing and managing integrated marketing communicationsDespite a lack of history and lineage, Jimmy Choo has been able to create and establish a strong brand po-sition by employing a consistent targeted marketing message and utilizing a mix of media including on-line, in store, celebrity endorsement, direct mail and magazine editorial coverage. To maximize brand rec-ognition, marketing messages are often kept consist-ent in style from season to season. This consistency allows consumers to quickly identify with the Jimmy Choo brand and why it is well known today for its ad-vertisements featuring stylish women in evocative

backgrounds, wearing bright coloured shoes. An effective part of Jimmy Choo’s marketing strate-

gy has been the use of celebrity endorsements, which generates significant press coverage and has been a fundamental driver of its position in the current mar-ket relative to its competitors. The importance of inte-grating celebrity endorsements as part of the overall brand communication is so that the brand’s message stands out among the clutter of advertising from competitors and convinces consumers of the credibil-ity of the brand’s offering1. Successful and well-known product placements have included ‘Sex and the City’, ‘Legally Blonde’ and ‘Desperate Housewives’.

The increase in technology has resulted in consum-ers being more information and communication sav-vy, impacting the way a company markets their prod-ucts. Jimmy Choo responded to this trend by gearing its marketing mix towards social media and received the ‘Innovation in Social Media’ award in 2010 from Econsultancy2.

Jimmy Choo has embraced social media platforms such as Facebook and Twitter as an innovative way of interacting with its consumer base. A study com-pleted by the Digital Luxury Group (2011), looked at the impact of social media on customer behaviour of top brands in the luxury shoe industry. The research showed that Jimmy Choo has a strong brand engage-

Chart 1: Brand Engagement and Popularity on Facebook

Source: Digital Luxury Group3

Enga

gem

ent R

ate

Fans

Rene Caovilla

Louboutin

Jimmy Choo

Brian Atwood

GianMarco LorenziStuart WeitzmanCharlotte OlympiaGina Shoes

FerragamoGiuseppe Zanotti

Sergio RossiWalter Steiger

Roger Vivier

0.9%

0.7%

0.5%

0.3%

0.1%

-0.1% 0 200,000 400,000 600,000 800,000

Click on chart to enlarge

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ment rate and popularity on Facebook on par with Louboutin and well ahead of other luxury brands in the sector, excluding heritage brands such as Chanel, Dior and Gucci.

The study also showed that Jimmy Choo’s popular-ity on Twitter, while second to Louboutin, showed lower levels of engagement. This highlights a poten-tial growth area for Jimmy Choo to improve brand en-gagement going forward.

Jimmy Choo has also been successful in using so-cial media to create interest, customer hype, and as a unique way for its clientele to interact directly with the brand prior to the launch of new product lines. In April 2010, Jimmy Choo launched the ‘CatchA-

Choo’ campaign, an offline event whereby a real time treasure hunt was organized where people physical-ly chased a pair of trainers in London using location based clues on Twitter5.

The competition lasted three weeks and was suc-cessful in creating the desired level of media associa-tion and sales. The competition resulted in 250 dif-ferent blogs covering the campaign, it was the most accessed story on PR Week’s news, and daily trainer sales in-store went up 33% after the Evening Standard also covered the story6.

The campaign was an innovative and effective way to communicate so fans of the brand would relay the information over the Internet, allowing Jimmy Choo

H&M Hunter UGG

Enga

gem

ent R

ate

Followers

Jimmy Choo

Stuart Weitzman

Charlotte Olympia

Giuseppe Zanotti

Walter Steiger

Pierre Hardy

0.4%

0.3%

0.2%

0.1%

0%10,000 10,000 30,000 50,000 70,000 90,000 110,000 130,000 150,000


Louboutin

Chart 2: Brand Engagement and Popularity on Twitter


Click on chart to enlarge

13


to launch a new line with sig-nificantly more coverage than it would have received with ads in regular magazines. Addition-ally, luxury brands are all about ‘the experience’. The use of a cleverly designed social media campaign allowed Jimmy Choo to engage with fans both on-line and offline raising brand awareness, and allowed its fans to learn how to lead and experi-ence the Jimmy Choo lifestyle7.

Overall, the successful inter-play of its marketing strategy, both offline and on-line, and using these creatively, has lead to increased recognition and growth for the company and has set Jimmy Choo apart from its competitors in the cur-rent economic environment.

Collaborations In addition to its successful use of social media and marketing to build its brand awareness, Jimmy Choo has also engaged in the use of top end mass-market collaborations with high street brands. This more recent marketing phenome-non resides on the mass-mar-ket model. High street brands are able to stand out from the crowd and designers benefit from opening up their labels

and create new revenue streams from aspirational buyers who may not have previously been able to access the brand. It also saves designers from having to create costly sub brands that serve to undermine the integrity of luxury status brands, an example are the many sub-brands of Ralph Lauren8.

Over the last few years Jimmy Choo

has undertaken collaborations with three iconic brands

including H&M (2009), Hunter Boots (2009),

and UGG (2010)

14


In the past few years Jimmy Choo has undertaken collaborations with three iconic brands including H&M (2009), Hunter Boots (2009), and UGG (2010).

It could be argued that the collaboration with mass-market brands is inconsistent with a luxury brand’s image, potentially resulting in brand dilution. How-ever, the success of the Jimmy Choo collaborations has shown that the creation of limited editions and unlikely strategic partnerships is a way of leverag-ing their image, disrupting established sectors and opening themselves up to new audiences.9 Most im-portantly, it increases word of mouth advertising by getting consumers talking about the brand over others. This mar-keting strategy also allowed Jim-my Choo to build depth in the market and access the aspira-tional buyers whom it previously had not tapped.

Product SegmentationJimmy Choo appears to have a clear understanding of the forces that lead a market to commodity status putting pressure on high premium brands, particularly in the context of the current eco-nomic environment and increased globalization, introducing more brands for consumers to choose from. To address the financial downturn, reduce the threat of competition and cheaper reproductions, Jimmy Choo introduced a new collection in 2009 called Choo 24:7.

The Choo 24:7 is a collection of basic modern shoes and bags that were designed not to go out of fash-ion. The collection signaled to its clientele that the pieces are an investment and not a fast fashion item, hence confirming the price point of £335-£56010.

The collection also served as a new pricing strategy that would reduce the incidence of discounting as the shoes would move from season to season with-out the need to be marked down. Previously, many luxury brands fell victim to high fashion items and excess stock was sent to the many global discount-

ing fashion outlets or on internet sites such as Net-a-Porter. By creating this collection, the company was protecting its financial position whilst still maintain-ing its luxury status. Additionally, the lower price point aids in reducing competition from reproduc-tions that have plagued other luxury brands such as Louis Vuitton. Pricing quality, branded shoes that are in high demand at a reasonable price has helped steer consumers back into Jimmy Choo stores by making cheaper reproductions a less attractive alter-native.

The Choo24:7 collection is also a product differen-tiation strategy, aimed at slow-ing and reducing value migra-tion from its more top end range of shoes, by creating a horizontal product range that includes various heel heights, fabrics and colours for each style, whilst being manufac-tured with the same quality, care and detail as the main collection11. This segmenta-tion strategy addresses con-cerns that Jimmy Choo could be viewed as moving out of or away from the luxury brand

status. Similar brand houses have achieved this, for example Donna Karen and DKNY.

Reinforcing its Luxury Brand PositionThe Digital Luxury Group (2011) research showed that Jimmy Choo is the second most searched for shoe brand in the heritage category, ahead of Sal-vatore Ferragamo, Tod’s, and Manolo Blahnik12, con-firming the brand’s salience amongst consumers. In addition to classic brand imagery of its marketing campaigns, strong celebrity endorsements have helped to build the Jimmy Choo brand.

To cement and reinforce the position of Jimmy Choo in the luxury market, the company launched the ICONS range in 2011, a capsule collection of shoes inspired by the most significant creations from the company’s archives13. The launch was unveiled

Jimmy Choo appears to have a clear

understanding of the forces that lead a

market to commodity status putting pressure

on high premium brands

15


by a series of images by fine art photographer Nan Goldin to be featured in a global advertising cam-paign14. As Louboutin has its signature red sole to identify the brand, Jimmy Choo has its iconic styles that it is reinforcing to the market via this re-launch.

Issues for Jimmy Choo going forwardIt has been shown that Jimmy Choo is well ahead of many other luxury brands in terms of social media coverage and its ability to engage with its consumer base. To overcome many of the challenges faced in the twenty first century, Jimmy Choo has embraced and utilized social mediums in a unique and innova-tive way to launch new products, collaborated with mass market producers to open up new channels, and responded to the market downturn and compe-tition with the launch of Choo 24:7. However, going forward, the brand faces a number of challenges. Of particular note is the departure of CEO Tamara Mel-

lon. As the face of Jimmy Choo and self-promoter of the brand, it will very much depend on whether its new owners, Labelux, will opt to bring in a new face, raising questions over whether consumers will ac-cept a new front or if they will rely solely on celebrity endorsements.

A second key issue is its ability to maintain its luxury brand status and continue to build its brand equity. The launch of the ICONS collection, continued focus on designing innovative and stylish shoes and celeb-rity endorsements, will go some way in cementing its position but this will depend on competition and potential dilution if the company focuses too heavily on mass market products.

Lastly, in order for the company to grow, it will need to conquer the Asian market, which it hasn’t yet achieved in full. Asia is the luxury brand capital and its place alongside Louboutin will ride on its suc-cess in this region.

Alysia WatsonAlysia recently completed a full-time MBA at Cass Business School. Prior to completing her MBA, Alysia spent over 10 years working in the banking industry with a focus on lever-aged buyouts. Alysia is now a Partner and Director of Finance of a start-up business. Alysia also has a Master of Applied Fi-nance and a Bachelor of Commerce (Economics and Finance) from the University of Western Sydney, Australia


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Teaching Digital Natives - Mobile Device Dilemmas An analysis of Malaysia’s radical Primary Education agenda

In today’s fast paced world in which we are routinely expected to handle large quantities of data, and where jobs are no longer “for life”, educational systems founded in an industrial age are becoming out of

date. In an era where disciplined, robust and independent learning have become essential tools for survival, this paper explores the role of mobile

technology in Malaysia’s progressive plans for primary education.

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Submitted By: Tariq Isa

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In Malaysia, however, the traditional approach to Pri-mary School1 learning is being seriously examined. Malaysia is one of the few countries that spends more on education than defence and was one of the world’s first to introduce a national 4G wireless net-work, potentially giving students high-speed inter-net on the move. Malaysia is creating conditions for a significant change in educating its children and fu-ture citizens, so what role can mobile devices play?

In many parts of the world teachers are now facing ‘Digital Natives’, the term used to describe the gen-eration that have embraced technology in ways that they, as ‘Digital Immigrants’ cannot fathom. This ter-minology usefully differentiates the perspectives of two communities interacting in a learning environ-ment.

As a result, educational institutions are facing dis-continuous innovation - Bessant’s (2005) definition of a state in which a dramatic shift in the market takes place. This could be a technological shift or the emergence of a totally new market, and educational institutions are now servicing a new set of custom-ers who are habitually using technologies the insti-tutions are unfamiliar with. This creates uncertainty about how to provide services and about what ser-vices customers want. Without this thinking, there is a real risk learners will not acquire the skills they will need for life beyond formal education.

There is a long list of benefits of the benefits of mobile learning;

the traditional form of classroom in-struction does not activate all learning styles (e.g. a student cannot review the

class after school using audio or video). Mobile learning uses multimedia formats and can be accessed any time during or after class (e.g. an auditory learner may listen to a podcast on the way home).

mobile devices open up the possibility of bringing geographically dispersed located learners, such as rural students,

into a single learning community. This is par-ticularly true in developing economies such as South Asia, where barriers to learning such as clean, safe buildings, regular electricity supply and lack of landline connectivity are overcome through the use of mobile learning.

mobile learning has also brought into the mainstream learners who have had difficulty or have lacked confidence in

engaging in formal learning, travelling com-munities and marginal groups.

‘flipping the classroom’, where more ad-vanced students have used mobile de-vices to do their work and the teacher

is able to focus in class on students who needs the most help.

helping children become more organ-ised, facilitating collaborative learning, helping save money on textbooks and

improving literacy.

removing the stigma of being a lower performer; helping children with special needs. Thai Government purchased 2m tablets for its primary school

children

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Dyson (2010) argues the teacher should provide students with a greater sense of individual free-dom, self-paced working and autonomy, suggest-ing teachers need to act more as mentors, guiding students to learn the art of self-discipline. Negas et al (2010) postulate that mobile learning will sup-port this outcome and facilitate the creation of a richer pedagogic offer more in line with students’ experiences outside the classroom, providing a quicker, simpler and more flexible means of access-ing information.

Thai Government purchased 2m tablets for its primary school childrenResearch on initiatives around the world indicates that governments, school districts and individual schools are willing to invest considerable resources to support the use of mobile devices in the class-room. There have already been several initiatives in Malaysia as well as across Asia and America and schools are already beginning to see the benefits. But achieving widescale adoption faces significant challenges such as convincing stakeholders, many of whom are yet to be convinced of the benefits of using mobile devices in the classroom. Other issues include lack of content, which needs to be

adapted to be used ef-fectively through mo-bile devices which have a smaller screen; device diversity (especially if students’ own devices are being used), which means content needs to be able to run on multi-ple operating platforms, browsers and screen siz-es; ensuring all students have access to mobile technology; and, finally, online and personal safe-ty such as bullying and accessing inappropriate content.

Many teachers are still to be convinced of the benefits of mobile learningPart of the process of understanding how mobile technology could realistically have an impact on learning involves looking more deeply into mobile media. Analysis of the development of mobile op-erating systems and “app stores”, the growth of ed-ucation related apps specifically and the utility of education apps beyond a formal education context is needed to assess viability of the strategic and op-erational approach and the commercial opportuni-ties it will bring. There is no escaping use of mobile technology in education through the growth of ed-ucation related apps, particularly at primary level.

The changing needs of Digital Native students is now well documented and it is inevitable that schools need to adapt if they are to keep pace with this change. Yet even with the political support to implement large-scale projects there still remain significant challenges and a number of areas still need further development. These include a closer look at local factors where a one-size-fits-all ap-proach many not be appropriate for different coun-tries and economic regions; obtaining more hard evidence, as much of the evidence to date is still anecdotal; developing an environment where in-novation can be sustained in the long term; man-aging device diversity either by eliminating it or developing solutions that cater for it; and, finally, getting the support of all stakeholders including parents.

Transferable approachI conducted a wide-ranging and in-depth literature review from academic journals, research papers, lecture notes and textbooks from two core MBA dis-ciplines, Organisational Behaviour and Innovation, to help frame and underpin my core arguments. This helped me understand education learning theories and how educational organisations could learn to drive pedagogical innovation to help teach-ing make a deeper impact with a greater number of students. I used an inductive research approach to collect data, which was conducive to the devel-

There is no escaping use

of mobile technology

in education through the

growth of education

related apps, particularly at

primary level

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opment of new ideas and approaches. One of the major difficul-ties I faced was that there is not enough hard evidence as to the impact of mobile learning particularly in Malaysia, as it is a relatively new field. Much of the evidence therefore was drawn from pilot projects around the world.

Key Literature Howard Gardener (2009) argued our perception was tra-ditionally that in-telligence could be measured by a nar-row set of criteria - reading, writing and arithme-tic skills, and a person’s ability to succeed judged accordingly. According to Gardener, there are nine intelligences (linguistic, logical-mathematical, mu-sical, spatial, bodily-kinesthetic, interpersonal, in-trapersonal, naturalist and existential) and nobody is good at them all (for example, a child may not speak a language properly but may play music magnificently). Gardener (2008) further postulated that due to an increasingly globalised, intercon-nected and uncertain world, where knowledge accumulates quickly, that much of a person’s edu-cation is self-education after formal education. Gardener’s “Five Minds” (The Disciplined Mind, The Synthesising Mind, The Creative Mind, The Respect-ful Mind, The Ethical Mind) are skills or

competencies young people need in order to be able to learn the art of self-discipline and become effective self-learners.

Gardener (1996) argues multimedia technology can be used to help students gain a deeper understanding in the major ways of think-ing that have developed in the disciplines. For example, a textbook’s account of his-tory about a particular battle will intimate there is a single, authoritative account rather than encouraging students to weigh evidence and come to their own conclusion. Stu-dents will understand the book’s account in different ways, because they have dif-

ferent intelligences and are likely to view the ac-count with different stereotypical habits of thought and conceptions formed early on in their lives:

Multiple Intelligences theory has implications in the way technology is used to develop new ideas and approaches in teaching. Gardener argues any serious implementation of Multiple Intelligences theory in education needs to consider:

• making education as individual as possible, es-pecially through the use of computers.

• a commitment to convey critical concepts and ideas via a num-

ber of different formats, thus activating multiple

intelligences, reaching more students and

enabling them to understand a topic deeply.• the develop-ment of com-puter software or

“New technologies make materials vivid, easy to access, and fun to play with - and they

readily address the multiple ways of knowing that humans

possess. Moreover, for the first time ever, it is possible for

teachers and other experts to examine the work efficiently, at

long distances, and to provide quick and relevant feedback

in forms that are useful to students.”

Howard Gardener (2000)

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Tariq IsaTariq is a serial Entrepreneur. He started life working as an Area Sales Executive for Shell Pakistan before starting his first venture at age 23 producing garments for export from Lahore, Pakistan. He then co- founded UK based

FrogTrade Ltd in 1999 presently one of the leading digital learning system providers for UK government schools. Tariq worked there for over a decade before commencing a full time MBA at CASS Business School 2011-12. He presently lives in Malaysia with his wife where he is working on his next venture.

virtual environments that are able to teach the same topic through the “activation of several in-telligences”.

Gardener argues there are inherent risks of using new technology to advance learning. For example, technology must be used with edu-cational goals in mind not for the sake of using technology itself; students might become more attracted to the medium itself than the content; creating graphically rich content could be time consuming for the author; and technology such as slide projectors and television have been used to deliver the same ‘old style’learning and have had little impact on learning.

1 Primary schools provide a useful context for research because they represent the most homogeneous segment of the Malaysian education market.

For Malaysia, several recommendations emerged from this research:

Developing a localised strategy for Ma-laysia, as there are few international precedents (for example, introducing

a step-by-step approach, ensuring equitable ac-cess, putting in place adequate security measures, developing acceptable use policies, provide in-centives to local businesses and learning lessons from pilot projects).

Devising a professional development programme for Malaysian teachers (for example, what kinds of teachers there

are and their level of ICT confidence).

Devising a strategy for sharing knowl-edge, particularly with teachers outside Malaysia; building teachers’ confidence

with mobile technology by aligning the curricu-lum with the use of mobile technology and in-volving teachers in the development of content; fostering pedagogical innovation by developing a culture of innovation within the organisation particularly in areas (for example, more engaging learning content, new ways of assessment, ena-bling students to become more robust independ-ent learners using mobile technology without teachers feeling their jobs are at risk, encourag-ing students to learn more collaboratively); and standardising technology that helps overcome device diversity and ensures equity of access, which also promotes the development of a new market for content apps.


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What are MBAs

reading now?

In this section of the magazine, MBA Intelligence will be providing a monthly digest of recently published books that are making waves amongst MBA students. With a snapshot of the book content and concise reviews, MBA Intelligence strives to keep you up to date with new publications pertinent to the MBA.

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MBA INTELLIGENCE December 2012 NO1October 2012

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ERA OF GLOBAL TRANSITION: Crises and opportunities in the new world

The 21st century’s greatest challenge for business leadersOrganizations face a seismic shift in the world order, which will take us into uncharted territory. A world crafted primarily by the US is now fad-ing; an untested multipolar world, designed by new architects is taking its place. Steering organizations through this period of transition will be the greatest challenge for business leaders this century. Dr. Robert Davies critically explores research and thinking, and provides readers with new tools that address the four central questions that every business leader must answer:• Who are the new global architects?• What partnerships could they form to reshape our world?• How will these partnerships influence the global business environment?• Do we face a peaceful or fractious, conflict-ridden transition to a new world?

Uniquely, the Era of Global Transition provides a structure that allows readers and their teams to develop a totally new strategy that will help their organizations face an unexplored world.

“Robert Davies provokes the reader in a manner that no business thinker has succeeded in doing since Michael Porter revolutionised our understanding of competitive strategy.” Sam Kingston, Managing Director T-Systems

“A must-read for leaders looking to steer global organizations through the uncertainty of a world in transition.” Steven Spano, President, Generali UK

“This book challenges conventional wisdom and provides a basis to develop new thinking ... Read this book and you’ll think differently about the world afterwards.” Prof Scott Moeller, Director, M&A Research Centre, Cass Business School

Dr. Robert DaviesDr. Robert Davies is a visionary strategic advisor who supports business leaders and their organisations in the fields of foresight, strategy and change. He is a Senior Visiting Fellow at Cass Business School, London, with expertise in international relations, innovation and change management. Dr Davies teaches the MBA and MA programmes at Cass Business School and City University.www.drrobertdavies.com

Authors - please submit your book for review [email protected]

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The New Strategic Landscape: Innovative Perspectives on Strategy

The New Strategic Landscape: Innovative Perspectives on Strategy is an exciting, new collection of perspectives on strategy which are informed by different areas of research, theory and practice beyond economics. Encompassing a diverse range of opinions and insights on strategy, this book breaks down the boundaries between theory and practice, it opens up a rich new territory of strategic ideas to explore, and shows the way to solutions that are more relevant to the world we face today.

In the turbulent state of business today, entrepreneurs and technolo-gies are disrupting traditional industries; incumbent market leaders are under threat. Business leaders need innovative ways of thinking about strategies, products and organisation. Julie Verity had produced a collection of alternative strategic ideas whose time has come.Simon Downson Collins, MEMBA and Director of Legal Affairs, HarperCollins Publishers

I have used several of the tools contained in this book, across large teams charged with strategic execution. The results have been aston-ishing. Try it, you will be surprised.Graham Smith, Cass EMBA and now Senior director, Technology Strategy and Information Architecture.

Thinking about strategy as it is presented in this book resonates with my experience of the world I work in and the people, their behaviours and emotions, that I work with – neither are driven solely by econom-ics. It will be compulsory reading.James Rutland, Cass EMBA and Finance Director, Skanska Infrastructure Development

Julie VerityJULIE VERITY (PhD) is a consult-ant, lecturer, writ-er and researcher in the field of strat-egy. She has split

her working life between academia and the commercial world, bringing to each experience and knowledge from the other. Chosen to be the Shell International Fellow at Cran-field School of Management in 1990, her two year fellowship became a twenty year consulting relation-ship with the giant global oil group. Within Shell, she has worked with the Scenario team, with the Cor-porate Communications function, with Learning and with many of the Group’s national companies. Julie holds visiting faculty positions at Cranfield and Cass Business School and is an associate at Duke CE.

Authors - please submit your book for review [email protected]

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