Elie Ofek

T.J. Dermot Dunphy Professor of Business Administration

Unit: Marketing

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(617) 495-6301

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Elie Ofek is a Professor in the Marketing unit at the Harvard Business School. Professor Ofek's research focuses on new product strategies in technology-driven business environments as well as in consumer-oriented companies in general. He explores interactions between R&D and marketing decisions, and is particularly interested in how companies integrate marketing input when formulating innovation strategy at the new product planning phase. He also examines the implications of information technology and digital media on firms' product/content offerings and on their marketing mix.

At HBS he has taught the first year MBA required course in marketing (also served as the course head), an MBA elective and Executive-Education course on the relationship between Marketing and Innovation, and participated in a number of executive programs on digital marketing strategy. 

He received his Ph.D. in Business from Stanford University, holds an M.A. in Economics from Stanford University and earned his B.Sc. degree in Electrical Engineering from the Technion. Prior to entering academics, he worked as a development engineer in the audio/video multimedia division at an IBM research center.

Publications

Journal Articles

  1. Right Up the Middle: How Israeli Firms Go Global

    Jonathan Friedrich, Amit Noam and Elie Ofek

    The article considers international business enterprises based in Israel and how they successfully expanded from their origins as small businesses. A common technique of those companies in which they focused on market entry in other countries whose markets were too small to have attracted competition from larger international business enterprises yet were not adequately served by domestic companies is considered. Examples offered include the drip irrigation equipment company Netafim, Teva Pharmaceuticals and computer software industry firm Amdocs.

    Keywords: Globalized Firms and Management; Israel;

    Citation:

    Friedrich, Jonathan, Amit Noam, and Elie Ofek. "Right Up the Middle: How Israeli Firms Go Global." Harvard Business Review 92, no. 5 (May 2014): 113–117. View Details
  2. Complementary Goods: Creating, Capturing, and Competing for Value

    Taylan Yalcin, Elie Ofek, Oded Koenigsberg and Eyal Biyalogorsky

    This paper studies the strategic interaction between firms producing strictly complementary products. With strict complements, a consumer derives positive utility only when both products are used together. We show that value-capture and value-creation problems arise when such products are developed and sold by separate firms. Although the firms tend to price higher for given quality levels, their provision of quality is so low that, in equilibrium, prices are set well below what an integrated monopolist would choose. When one firm can mandate a royalty fee from the complementor producer, we find that the value-capture problem is mitigated to some extent and consumer surplus rises. However, because royalty fees greatly reduce the incentives of the firm paying them to invest in quality, the arrangement exacerbates the value-creation problem and leads to even lower total quality. Surprisingly, this result can reverse with competition. Notably, introducing a competitor opens the door for the possibility of a Pareto-improving outcome in which all firms and consumers are better off.

    Keywords: Complementary Goods; product development; competition; royalty fees; Product Marketing; Competition;

    Citation:

    Yalcin, Taylan, Elie Ofek, Oded Koenigsberg, and Eyal Biyalogorsky. "Complementary Goods: Creating, Capturing, and Competing for Value." Marketing Science 32, no. 4 (July–August 2013): 554–569. View Details
  3. In Search of a Second Act: Riding the Popularity of a Great First Product Is Easy; Finding the Next One Is Hard

    Elie Ofek and Jill Avery

    The article presents a fictional case study on new product development and improvement after the successful launch of a first breakthrough product. Topics include business planning for brand name products, finance and investment for the development of educational toys, strategies for product differentiation, and technological improvements to the original product.

    Keywords: innovation; growth strategy; Consumer marketing; marketing; brand management; Market research; New Product Development; marketing management; marketing strategy; technology commercialization; technology; Brands and Branding; Marketing Strategy; Product Marketing; Consumer Products Industry; Electronics Industry; Technology Industry; North and Central America; United States;

    Citation:

    Ofek, Elie, and Jill Avery. "In Search of a Second Act: Riding the Popularity of a Great First Product Is Easy; Finding the Next One Is Hard." Harvard Business Review 91, no. 4 (April 2013): 133–137. View Details
  4. Achievement Motivation, Strategic Orientations and Business Performance in Entrepreneurial Firms: How Different Are Japanese and American Founders?

    Rohit Deshpandé, Amir Grinstein, Elie Ofek and Sang-Hoon Kim

    Purpose: There is lack of research on the link between the personal disposition of an entrepreneurial firm's founder, the firm's strategic orientation, and its performance outcomes. Also, there is lack of cross-national research on entrepreneurial firms' strategic orientations. This paper addresses these gaps by exploring the differences in strategic orientation choices and their performance outcomes for American and Japanese entrepreneurial firms, focusing on founders' achievement motivation as a key personal disposition. Design/methodology/approach: A survey was conducted among 397 Japanese founders and 189 American ones. Findings: Our key counterintuitive finding is that Japanese and American founders of entrepreneurial firms are more similar than is often suggested. We first find that in both Japan and the U.S. achievement motivation is positively related to customer orientation and cost orientation while not related to technological orientation. Second, we find that the adoption of customer orientation is positively related to the profitability of both Japanese and American entrepreneurial firms, although the effect is stronger in the U.S. We also find that the adoption of technology orientation is negatively related to the profitability of both Japanese and American firms, although the effect is less negative in Japan. We finally find that the adoption of cost orientation does not have an impact on the profitability of both Japanese and American firms.

    Keywords: motivation; entrepreneurs; Japan; Motivation and Incentives; Entrepreneurship; Japan; United States;

    Citation:

    Deshpandé, Rohit, Amir Grinstein, Elie Ofek, and Sang-Hoon Kim. "Achievement Motivation, Strategic Orientations and Business Performance in Entrepreneurial Firms: How Different Are Japanese and American Founders?" International Marketing Review 30, no. 3 (2013). View Details
  5. Vaporware, Suddenware and Trueware: New Product Preannouncements under Market Uncertainty

    Elie Ofek and Ozge Turut

    A firm may want to preannounce its plans to develop a new product in order to stimulate future demand. But given that such communications can affect rivals' incentives to develop the same new product, a firm may decide to preannounce untruthfully in order to deter competitors. We examine an incumbent's preannouncement strategy when there is uncertainty regarding the commercial viability of a new product opportunity and a threat of rival entry. Each firm has a private assessment of the market potential for the new product, and two competitive incentives arise for the incumbent: it can discourage entry through preemptive communication or by remaining silent and instilling a pessimistic market potential outlook. We find that an incumbent prefers to follow a vaporware strategy—i.e., declare plans to pursue the new product opportunity even when it may have no development intentions—when its market forecasting capabilities are weak and the demand-side benefits from preannouncing are small. By contrast, when the incumbent has strong market forecasting capabilities and the demand-side benefits are small, the incumbent adopts a suddenware strategy—i.e., remains silent about its new product plans even when it actually plans to develop the new product. Finally, when its market forecasting capabilities are strong and the demand-side benefits are large the incumbent prefers to engage in a trueware strategy—i.e., truthfully preannounce development plans. We show that an interplay between competitive-related and demand-related considerations is what allows trueware to emerge as an equilibrium in the absence of any ex-post cost to engaging in vaporware. In an extension, we let the incumbent's actual development plans leak out and allow the entrant to wait and learn these plans prior to setting an R&D level. We identify conditions for the entrant to postpone development despite the risk of being late to market, and conditions for the entrant to commence development immediately despite not knowing what the incumbent is up to based on the preannouncement observed.

    Keywords: Risk and Uncertainty; Announcements; Competition; Product Launch; Product Development;

    Citation:

    Ofek, Elie, and Ozge Turut. "Vaporware, Suddenware and Trueware: New Product Preannouncements under Market Uncertainty." Marketing Science 32, no. 2 (March–April 2013): 342–355. View Details
  6. Strategic Orientations in a Competitive Context: The Role of Strategic Orientation Differentiation

    Rohit Deshpandé, Amir Grinstein and Elie Ofek

    Strategic orientation studies often provide 'best practice prescriptions' for firms in a given context—matching orientations to environmental conditions. While this perspective has value, empirical results are equivocal, and an important reality has been overlooked: the fact that a firm's decision to emphasize a particular strategic orientation can depend on its competitors' orientation choices. Based on two studies of customer, technology, and production orientations, we show that the emphasis a firm places on a strategic orientation depends on how competitive its environment is. When competition becomes less intense, firms place emphasis on the strategic orientation that matches the dominant environmental condition (e.g., technology orientation when technology turbulence is high). However, as competition intensifies, firms tend to follow strategic orientation differentiation: de-emphasizing the strategic orientation their main rival is emphasizing. Finally, we show that the greater the competitive intensity, the greater the contribution strategic orientation differentiation has on business performance.

    Keywords: Competition; Change Management; Situation or Environment; Decision Choices and Conditions;

    Citation:

    Deshpandé, Rohit, Amir Grinstein, and Elie Ofek. "Strategic Orientations in a Competitive Context: The Role of Strategic Orientation Differentiation." Marketing Letters 23, no. 3 (September 2012): 629–643. View Details
  7. Innovation Strategy and Entry Deterrence

    Ozge Turut and Elie Ofek

    We model an incumbent's decision to pursue radical or incremental innovation when facing a rival entrant. The radical innovation may yield lucrative financial returns but entails significant technological and market-related uncertainties. It is also particularly attractive to the rival entrant: if the market for it pans out, such an innovation obsoletes the existing technology and any incremental improvements to it. Each firm has its own assessment of the market potential for the radical innovation, and the reliability of these market forecasts can differ. We show that when the entrant's market-assessment capability is weak, the incumbent will pursue incremental innovation and postpone its plans to develop radical innovation even when it thinks highly of the market potential for the radical innovation. The incumbent does so to avoid validating the high market potential to the entrant, who may otherwise be encouraged to invest aggressively. The incumbent thus prefers to look 'soft' with respect to its innovation strategy in order to discourage entry. Even if its innovation strategy is not observable, we show that an incumbent that assesses the commercial potential for a radical innovation favorably may pursue an incremental path and communicate its plans publicly; this strategy serves to reduce entry by affecting the entrant's beliefs about the market potential of the innovation. Finally, we extend the model to investigate the entrant's decision to communicate its innovation intentions. We find that the entrant communicates its plans to aggressively pursue radical innovation only if the incumbent's market-assessment capabilities are strong. In doing so, the entrant acts preemptively to discourage the incumbent from pursuing the radical innovation and is less concerned with validating market potential.

    Keywords: Competition; Innovation Strategy; Risk and Uncertainty; Markets; Mathematical Methods;

    Citation:

    Turut, Ozge, and Elie Ofek. "Innovation Strategy and Entry Deterrence." Journal of Economics & Management Strategy 12, no. 3 (Fall 2012). View Details
  8. Product Positioning in a Two-Dimensional Vertical Differentiation Model: The Role of Quality Costs

    Dominique Lauga and Elie Ofek

    We study a duopoly model where consumers are heterogeneous with respect to their willingness to pay for two product characteristics and marginal costs are increasing with the quality level chosen on each attribute. We show that while firms seek to manage competition through product positioning, their differentiation strategies critically depend on how costly it is to provide higher quality. When the cost of providing quality is not too high, firms use only one attribute to differentiate their products: they maximally differentiate on one dimension and minimally differentiate on the other dimension (a Max-Min equilibrium). Furthermore, they always differentiate along the dimension with the greater attribute range. As for the dimension with the smaller range and along which they agglomerate, both firms either choose the highest quality level or the lowest quality level possible, depending on whether the marginal costs of quality provision are low or intermediate, respectively. However, for larger quality provision costs, firms exploit both dimensions to differentiate their products. In particular, we characterize a maximal differentiation equilibrium in which one firm chooses the highest quality level on both attributes, while its rival offers the lowest quality level on both attributes (a Max-Max equilibrium). We discuss the managerial implications of our findings and explain how they enrich and qualify previous results reported in the literature on two-dimensional differentiation models.

    Keywords: Duopoly and Oligopoly; Customers; Quality; Product Positioning; Competition; Management; Cost; Product;

    Citation:

    Lauga, Dominique, and Elie Ofek. "Product Positioning in a Two-Dimensional Vertical Differentiation Model: The Role of Quality Costs." Marketing Science 30, no. 5 (September–October 2011). View Details
  9. The Best Way to Name Your Product 2.0

    Marco Bertini, John Gourville and E. Ofek

    Although there's ample research to guide marketers in naming new products, little of it has addressed follow-on offerings, even though these make up the bulk of new products in many industries. Companies have two basic strategies to choose from. They can stick with a name, often adding a sequential indicator (PlayStation 2, PlayStation 3), or they can come up with an entirely new name (Nintendo's Wii). Three questions managers should consider when deciding whether brand-name continuation or brand-name change is the best way to go for their next-generation product.

    Keywords: Research; Product Development; Managerial Roles; Brands and Branding;

    Citation:

    Bertini, Marco, John Gourville, and E. Ofek. "The Best Way to Name Your Product 2.0." Harvard Business Review 89, no. 5 (May 2011). View Details
  10. 'Bricks and Clicks': The Impact of Product Returns on the Strategies of Multichannel Retailers

    Elie Ofek, Zsolt Katona and Miklos Sarvary

    The Internet has increased the flexibility of retailers, allowing them to operate an online arm in addition to their physical stores. The online channel offers potential benefits in selling to customer segments that value the convenience of online shopping, but it also raises new challenges. These include the higher likelihood of costly product returns when customers' ability to "touch and feel" products is important in determining fit. We study competing retailers that can operate dual channels ("bricks and clicks") and examine how pricing strategies and physical store assistance levels change as a result of the additional Internet outlet. A central result we obtain is that when differentiation among competing retailers is not too high, having an online channel can actually increase investment in store assistance levels (e.g., greater shelf display, more-qualified sales staff, floor samples) and decrease profits. Consequently, when the decision to open an Internet channel is endogenized, there can exist an asymmetric equilibrium where only one retailer elects to operate an online arm but earns lower profits than its bricks-only rival. We also characterize equilibria where firms open an online channel, even though consumers only use it for research and learning purposes but buy in stores. A number of extensions are discussed, including retail settings where firms carry multiple product categories, shipping and handling costs, and the role of store assistance in impacting consumer perceived benefits.

    Keywords: Price; Profit; Marketing Channels; Consumer Behavior; Online Technology; Retail Industry;

    Citation:

    Ofek, Elie, Zsolt Katona, and Miklos Sarvary. "'Bricks and Clicks': The Impact of Product Returns on the Strategies of Multichannel Retailers." Marketing Science 30, no. 1 (January–February 2011). View Details
  11. When the Name Is the Game

    Marco Bertini, John Gourville and Elie Ofek

    In Romeo and Juliet, the fair maiden asks, "What's in a name?" When it comes to marketing next-generation products for the global marketplace, we have done extensive research and found that names can play an enormous role in a product's success.

    Keywords: Globalized Markets and Industries; Product; Success;

    Citation:

    Bertini, Marco, John Gourville, and Elie Ofek. "When the Name Is the Game." Business Strategy Review 22, no. 3 (2011). View Details
  12. Are You Ignoring Trends That Could Shake Up Your Business?

    Elie Ofek and Luc Wathieu

    Virtually all managers in consumer businesses recognize major social, economic, and technological trends. But many do not consider the profound ways in which trends--especially those that seem unrelated to their core markets--influence consumers' aspirations, attitudes, and behaviors. As a result, companies may be ceding to rivals an opportunity to transform the industry. For instance, the impact of the digital revolution on consumers' daily lives is hardly a revelation. But it may be less obvious that heavy digital users tend to focus on short-term goals, demand immediate gratification, and expect to multitask. That insight, the authors argue, is as important for a company that sells lipstick as it is for one that sells smartphones. The authors present a process for identifying the trends that could reshape a business and three strategies for leveraging trends to create new value propositions: Infuse aspects of the trend into the product category to augment traditional offerings, as Coach did with its lower-priced Poppy handbags. Combine aspects of the trend with attributes of the category to produce offerings that transcend it, as Nike did with its Nike+ sports kit and web service. Or counteract negative effects of the trend with new products and services that reaffirm the category's values, as iToys did with its ME2 video game, which encourages children to be physically active.

    Keywords: Trends; Innovation and Invention; Knowledge Use and Leverage; Marketing Strategy; Consumer Behavior; Product Development;

    Citation:

    Ofek, Elie, and Luc Wathieu. "Are You Ignoring Trends That Could Shake Up Your Business?" Harvard Business Review 88, nos. 7-8 (July–August 2010). View Details
  13. Market Research and Innovation Strategy in a Duopoly

    Dominique Lauga and Elie Ofek

    We model a duopoly in which ex-ante identical firms must decide where to direct their innovation efforts. The firms face market uncertainty about consumers' preferences for innovation on two product attributes and technology uncertainty about the success of their R&D investments. Firms can conduct costly market research before setting R&D strategy. We find that the value of market information to a firm depends on whether its rival is expected to obtain this information in equilibrium. Consequently, one firm may forgo market research even though its rival conducts such research and learns the true state of demand. We examine both vertical and horizontal demand structures. With vertical preferences, firms are a priori uncertain which attribute all consumers will value more. In this case, a firm that conducts market research always attempts innovation on the attribute it discovers that consumers prefer and expends more on R&D than a rival that has not conducted market research. With horizontal preferences, distinct segments exist—each caring about innovation on only one attribute—and firms are a priori uncertain how many consumers each segment contains. In this case, a firm that conducts market research may follow a "niche" strategy and attempt innovation to serve the smaller segment to avoid intense price competition for the larger segment. A firm that conducts market research may therefore invest less in R&D and earn lower post-launch profits than a rival that has forgone such research.

    Keywords: Profit; Innovation and Management; Demand and Consumers; Duopoly and Oligopoly; Research and Development; Competitive Strategy;

    Citation:

    Lauga, Dominique, and Elie Ofek. "Market Research and Innovation Strategy in a Duopoly." Marketing Science 28, no. 2 (March–April 2009): 373–396. View Details
  14. Content vs. Advertising: The Impact of Competition on Media Firm Strategy

    David Godes, Elie Ofek and Miklos Sarvary

    Media firms compete in two connected markets. They face rivalry for the sale of content to consumers, and at the same time, they compete for advertisers seeking access to the attention of these consumers. We explore the implications of such two-sided competition on the actions and source of profits of media firms. One main conclusion we reach is that media firms may charge higher content prices in a duopoly than in a monopoly. This happens because competition for advertisers can reduce the return per customer impression from the ad market, making each firm less willing to underprice content to increase demand. Greater competitive intensity may thus increase content profits and decrease ad profits. These findings are in sharp contrast to those in a regular one-sided product market, in which competition typically lowers product prices and profits. We extend the framework to examine competition across different media (e.g., between magazines and cable TV) and show that firms in a duopolistic medium may benefit from more intense competition from a monopolist in another medium. We characterize the conditions for each firm in the duopoly medium to bundle more ads and earn greater total profits than the rival firm in the monopoly medium.

    Keywords: Monopoly; Duopoly and Oligopoly; Business Model; Price; Media; Competitive Strategy; Competitive Advantage; Advertising; Profit; Media and Broadcasting Industry;

    Citation:

    Godes, David, Elie Ofek, and Miklos Sarvary. "Content vs. Advertising: The Impact of Competition on Media Firm Strategy." Marketing Science 28, no. 1 (January–February 2009): 20–35. View Details
  15. Adjusting Choice Models to Better Predict Market Behavior

    Greg Allenby, Geraldine Fennel, Joel Huber, Thomas Eagle, Tim Gilbride, Jaehwan Kim, Peter Lenk, Rich Johnson, Bryan Orme, Elie Ofek, Thomas Otter and Joan Walker

    Keywords: Decision Choices and Conditions; Markets; Behavior;

    Citation:

    Allenby, Greg, Geraldine Fennel, Joel Huber, Thomas Eagle, Tim Gilbride, Jaehwan Kim, Peter Lenk, et al. "Adjusting Choice Models to Better Predict Market Behavior." Marketing Letters 16, nos. 3/4 (December 2005). View Details

Book Chapters

  1. Supply-Chain Coordination: How Companies Leverage Information Flows to Generate Value

    Susan Kulp, Elie Ofek and Jonathan Whitaker

    Keywords: Supply Chain Management; Cooperation; Information Management; Knowledge Use and Leverage; Knowledge Management; Value Creation;

    Citation:

    Kulp, Susan, Elie Ofek, and Jonathan Whitaker. "Supply-Chain Coordination: How Companies Leverage Information Flows to Generate Value." In The Practice of Supply Chain Management: Where Theory and Application Converge. Vol. 62, edited by Terry P. Harrison, Hau L. Lee, and John J. Neale. International Series in Operations Research & Management Science. Kluwer Academic Publishers, 2003. View Details

Cases and Teaching Materials

  1. Customer Lifetime Value (CLV) vs. Customer Lifetime Return on Investment (CLROI)

    E. Ofek

    This note presents two related measures for assessing the financial value of a customer to the firm. The first is the well-known measure of Customer Lifetime Value, or CLV for short. The second, which has received much less attention, treats the acquisition of a customer as a financial investment that has a quantifiable return based on future profit streams. Accordingly, we term this latter measure Customer Lifetime Return on Investment, or CLROI for short, and explain how it is calculated. We further show how employing CLROI can yield wildly different marketing implications relative to CLV (despite the strong link between them), particularly for targeting decisions. The note provides multiple examples to illustrate the concepts and also introduces formal characterizations of the two measures. The relevance of segment sizes, customer dynamics, social network influences, and strategic considerations are discussed.

    Keywords: customer lifetime value; Return on investment; segmentation; marketing strategy; customer relationship management; social networks; Customer Relationship Management; Marketing Strategy; Investment Return; Social and Collaborative Networks;

    Citation:

    Ofek, E. "Customer Lifetime Value (CLV) vs. Customer Lifetime Return on Investment (CLROI)." Harvard Business School Technical Note 515-049, October 2014. View Details
  2. Conjoint Analysis: A Do it Yourself Guide

    Elie Ofek and Olivier Toubia

    Conjoint Analysis has become one of the most commonly used quantitative market research methods. It has been successfully employed across a wide variety of industries to quantify consumer preferences for products and services. This technical note is intended to provide practical guidelines for designing, conducting and analyzing a conjoint analysis survey. The note discusses the six steps needed to effectively run a conjoint analysis study, and includes advice on best practices to follow and what pitfalls to avoid. Several user-friendly Microsoft Excel spreadsheets accompany this note and can be used as aids when implementing and analyzing a conjoint study.

    Keywords: Market research; Conjoint Analysis; consumer preferences; segmentation; product development; demand measurement; Demand and Consumers; Analysis; Markets;

    Citation:

    Ofek, Elie, and Olivier Toubia. "Conjoint Analysis: A Do it Yourself Guide." Harvard Business School Technical Note 515-024, August 2014. View Details
  3. Conjoint Analysis: Online Tutorial

    Elie Ofek and Olivier Toubia

    This teaching note is intended to assist instructors who plan to use the Conjoint Analysis: Online Tutorial (514-712) as part of a course or program of study. Pedagogically, the teaching note provides an overview of the Conjoint Analysis: Online Tutorial, the key teaching objectives, offers ways to use the tutorial as part of a course and/or set of conjoint related tasks, ideas on how to introduce the tutorial to students and what questions to assign, ideas on how to run a debrief session after students have gone through it, as well as material to complement the content of the tutorial and enrich students' understanding of conjoint analysis. The teaching note also provides logistic details on how a faculty member can add the tutorial to a course curriculum, activate and distribute it to students. The teaching note also provides an overview and explanation of the various types of screen interfaces and interactive tasks (called "Try Its"). Lastly, an Appendix contains suggestions for slides that instructors may show in class before and after students have gone through the tutorial.

    Keywords: Analysis; Marketing;

    Citation:

    Ofek, Elie, and Olivier Toubia. "Conjoint Analysis: Online Tutorial." Harvard Business School Teaching Note 514-124, April 2014. View Details
  4. Conjoint Analysis: Online Tutorial

    Elie Ofek and Olivier Toubia

    The Conjoint Analysis: Online Tutorial is an interactive pedagogical vehicle intended to facilitate understanding of one of the most popular market research methods in academia and practice, namely conjoint analysis. The aim is to provide students or executives going through it to not only be able to appreciate the underlying characteristics of the method but also to obtain an interactive experience with the steps involved in constructing, running and, importantly, using conjoint analysis to aid in managerial decision making (such as, segmentation, product design and pricing). The online tutorial contains a number of interactive tasks that engage the students and allow them to practice the material covered. The Conjoint Analysis: Online Tutorial is part of a comprehensive toolkit on conjoint analysis that includes simulation exercises and a practical do-it-yourself guide.

    Keywords: Market research; marketing strategy; Conjoint Analysis; Market segmentation; pricing; Marketing Strategy;

    Citation:

    Ofek, Elie, and Olivier Toubia. Conjoint Analysis: Online Tutorial. Harvard Business School Tutorial 514-712, April 2014. View Details
  5. J.C. Penney's 'Fair and Square' Strategy (C): Back to the Future

    Elie Ofek, Jill Avery and Jose B. Alvarez

    Rehired in April 2013, Myron E. "Mike" Ullman III was brought back to stabilize the retailer's business. Under Ron Johnson's "Fair and Square" program, sales had declined rapidly and quarterly losses and expensive capital investments had put severe pressure on cash reserves. Ullman decided to combine "Fair and Square" everyday low pricing and high/low pricing to reverse the negative trend. For example, to welcome people back to its stores, J.C. Penney ran deep discount sales for Mother's Day and Veteran's Day. By November 2013 the retail stores posted positive sales comparisons year over year, the first time since December 2011. However, margins remained low and Wall Street was wondering if J.C. Penney was sacrificing margin to drive store traffic. Would 2013 holiday sales be strong enough for J.C. Penney to begin building stronger margins? Would another strategy have been more effective? Did the board dispose of Johnson too quickly? Was it wise to bring back Ullman? Can J.C. Penney get back on its feet?

    Keywords: Decisions; Marketing Strategy; Retail Industry;

    Citation:

    Ofek, Elie, Jill Avery, and Jose B. Alvarez. "J.C. Penney's 'Fair and Square' Strategy (C): Back to the Future." Harvard Business School Supplement 514-073, January 2014. View Details
  6. J.C. Penney's 'Fair and Square' Strategy (B): Out with the New, In with the Old

    Elie Ofek, Jill Avery and Jose B. Alvarez

    In his August 2012 earnings call, CEO Ron Johnson urged investors to be patient and stay the course with the revised JC Penney marketing strategy despite mounting negative financial indicators. The heart of the strategy was the "Fair and Square" approach to pricing. This was a switch from J.C. Penney's previous high-low pricing program to a new everyday low pricing policy that aimed to fit with a radical repositioning of the JC Penney business model and brand. However, with sales continuing to decline the Board fired Johnson in April 2013 and appointed Johnson's predecessor Myron E. "Mike" Ullman III as his successor. What would Ullman do to stop JC Penney's losses? Would he push forward with Johnson's "Fair and Square" vision; would he return to the former strategy; could he manage a hybrid strategy; or would he define a new path for the retailer to follow?

    Keywords: Decisions; Marketing Strategy; Retail Industry;

    Citation:

    Ofek, Elie, Jill Avery, and Jose B. Alvarez. "J.C. Penney's 'Fair and Square' Strategy (B): Out with the New, In with the Old." Harvard Business School Supplement 514-085, January 2014. View Details
  7. Cialis Lifecycle Management: Lilly's BPH Dilemma

    Elie Ofek and Natalie Kindred

    Keywords: pharmaceutical industry; Pharmaceuticals; marketing; brand management; Brand equity; brand positioning; marketing strategy; product management; Product Strategy; pricing; health care; Health Care and Treatment; Product Marketing; Product Positioning; Brands and Branding; Marketing Strategy; Marketing; Product Launch; Pharmaceutical Industry; Health Industry;

    Citation:

    Ofek, Elie, and Natalie Kindred. "Cialis Lifecycle Management: Lilly's BPH Dilemma." Harvard Business School Teaching Note 514-009, November 2013. View Details
  8. J.C. Penney's 'Fair and Square' Strategy (Abridged)

    Elie Ofek and Jill Avery

    As he gets ready to release 2nd quarter 2012 results, Ron Johnson, the new CEO of department store J.C. Penney, is reconsidering the dramatic changes he initiated for the business model and brand image of his company. A new pricing scheme he put in place in February, dubbed "Fair and Square," was a central component of the new strategy. The scheme initially had three pricing tiers and eliminated typical sales promotions in an attempt to simplify the shopping experience for consumers, thus moving J.C. Penney off its previous high-low pricing practice. Other components of the new strategy included a new store layout, the inclusion of several well-known brands, and having special lines designed by well-known designers. However, troubling first quarter results that continued into the summer months seemed to indicate that J.C. Penney shoppers, accustomed to receiving JCP Cash coupons and circulars advertising the week's specials, were slow to embrace the new pricing format and began leaving the retailer in droves. Under enormous pressure to turn things around as the all-important back-to-school and holiday shopping seasons were imminent, Johnson decided to make adjustments to the initial pricing scheme that were set to go into effect August 1st. Were these changes enough to turn things around? Should Johnson stay the course on the other elements of his repositioning efforts? Is Johnson's experience in setting up Apple stores helping or hurting him as he tries to achieve his goal of making J.C. Penney "America's favorite store"? (This is an abridged version of the original case, "J.C. Penney’s "Fair and Square" Pricing Strategy," 513-036.)

    Keywords: Business Model; Change Management; Marketing Strategy; Price; Consumer Behavior; Decision Making; Management Teams; Brands and Branding; Retail Industry; United States;

    Citation:

    Ofek, Elie, and Jill Avery. "J.C. Penney's 'Fair and Square' Strategy (Abridged)." Harvard Business School Case 514-063, October 2013. View Details
  9. An Exercise in Designing a Travel Coffee Mug

    Elie Ofek and Michael Norris

    In recent years design has emerged as a critical factor in the success of many new products. This case exercise provides a hands-on way to experience the design process and offers a structured approach for incorporating key considerations that can aid in effective design. Students are asked to generate ideas for the design of a new reusable travel coffee mug. Relevant information on the consumer coffee market and on existing coffee mugs is provided. To assist students in this task, they are presented with an approach employed by the design firm RKS and which has been called Psycho-Aesthetics (PA) by its pioneer Ravi Sawhney. The PA process involves in-depth market research and visualization, a lens to assess existing competitive offerings, the creation of potential customer personas, and imagining a "hero's journey." When combined, these analyses allow designers to conceive elements that will result in a new product or service that delivers a unique customer connection for a specific target market. The exercise gives students an example of a company that successfully used PA principles to design and launch a new reusable water bottle in the late-2000s. It then asks them to follow the PA process to design a reusable travel coffee mug. The exercise includes exhibits to help students visualize the market, and an appendix with a detailed explanation of the PA process.

    Keywords: New Product Development; innovation; design; Market research; competitive positioning; Design; Product Development; Consumer Products Industry;

    Citation:

    Ofek, Elie, and Michael Norris. "An Exercise in Designing a Travel Coffee Mug." Harvard Business School Exercise 514-042, September 2013. View Details
  10. TaKaDu

    Elie Ofek and Matthew Preble

    In December 2012, Amir Peleg, founder and CEO of TaKaDu, reflected on how to position his young firm for the next fiscal year and beyond. The small Israeli startup had developed an innovative software system that used patented algorithms and statistical analysis to detect problems such as leaks, bursts, and faulty equipment within a water utility's infrastructure. Such problems caused significant water and energy loss at many utilities, led to service interruptions for consumers, and were only getting worse as the existing infrastructure aged. Since its founding in 2009, TaKaDu had attracted nine customers from around the world. However, as Peleg and his executive team debated how to allocate funding for the upcoming year, he needed to decide whether to focus on R&D to improve and add to TaKaDu's existing software and become the clear technology leader, or move ahead with its current offering and focus on getting new customers to penetrate the market as quickly as possible before competition intensified. Some in the company called for devoting the bulk of TaKaDu's resources to making the system more easily deployable, as deploying the TaKaDu service with a new customer could take up to two months. Peleg also wondered if the company should continue to pursue sales leads from anywhere in the world, or focus on one geographic market (and if so, what region should he choose)? An Australian water utility had made a public announcement it was accepting bids to implement a smart water network monitoring system and Peleg wanted to discuss if and how aggressively TaKaDu should bid on the contract with his management team. TaKaDu already had one Australian customer, was this the region to focus on?

    Keywords: innovation; customer selection; entrepreneurship; business marketing; high-tech marketing; enterprise resource planning; Water Resources; water management; utilities; Product Positioning; Expansion; Resource Allocation; Software; Entrepreneurship; Business Startups; Business Strategy; Innovation and Invention; Growth and Development Strategy; Utilities Industry; Australia; Israel;

    Citation:

    Ofek, Elie, and Matthew Preble. "TaKaDu." Harvard Business School Case 514-011, July 2013. (Revised August 2014.) View Details
  11. Château Margaux: Launching the Third Wine

    Elie Ofek and Eric E. Vogt

    Château Margaux, one of only five prestigious estates in the Bordeaux Medoc wine region to have been classified as a "first-growth", is facing a host of strategic decisions in early 2013. Up until this point the estate had been selling two red wines, a first wine whose retail price often exceeded $1000 a bottle, and a second wine whose retail price often exceeded $200 a bottle. Owner Corinne Mentzelopoulos and her management team were now preparing to launch a new third wine made from the estate's production not used to make the first two. They have to decide whether the best go-to-market strategy is to sell the third wine to the local Bordeaux merchants and relinquish commercialization to them or to devise a complete marketing plan for the new wine that includes: target market selection, positioning, quantity to release, pricing, channel structure and brand name. Mentzelopoulos was considering the optimal marketing for the third wine in light of bold moves by other first-growths, such as the purchase of vineyards in the Bordeaux region, global expansion, and deviation from the centuries-old tradition of selling wine in the futures market.

    Keywords: marketing strategy; new product launch; marketing plan; brand management; go to market strategy; channels of distribution; wine industry; Marketing Strategy; Distribution Channels; Product Launch; Brands and Branding; Agriculture and Agribusiness Industry; Food and Beverage Industry; France;

    Citation:

    Ofek, Elie, and Eric E. Vogt. "Château Margaux: Launching the Third Wine." Harvard Business School Case 513-107, June 2013. (Revised July 2014.) View Details
  12. An Entrepreneur's New Product Development Journey

    Elie Ofek

    This case tracks the new product development process undertaken by Gauri Nanda, the founder and CEO of Nanda Home, as she ventures to innovate beyond her initial product launches. Having achieved commercial success with her first product Clocky, a roll away alarm clock that owners interacted with in a way they found functionally and emotionally appealing, and after two extensions of the line, Nanda thought it was time to design, develop and market another item that would solve an everyday problem with lifelike charm. She wanted to create a clock that would appeal to children and their parents by facilitating kids' going to sleep and waking up routines. However, there were several factors Nanda had to grapple with before she could commit to final manufacturing design and development. Did she conduct sufficient market research to verify the desire for the 'Clockiddie' concept and the features planned? Were her assumptions about parents and kids valid to suggest the product would be in high demand once launched? Could she keep a premium price point in a consumer market that was trending downward in willingness to pay? Should she cut back on differentiating features to reduce costs and price? Or could the product be engineered under current specifications to an acceptable cost of goods and retail price point? These decisions had to be made soon so that the product could be launched to meet the back to school buying period.

    Keywords: Entrepreneurship; Decision Making; Product Development; Manufacturing Industry; Consumer Products Industry;

    Citation:

    Ofek, Elie. "An Entrepreneur's New Product Development Journey." Harvard Business School Case 513-098, March 2013. View Details
  13. Domaines Barons de Rothschild (Lafite): Plus ça change…

    Ray A. Goldberg, Arthur I. Segel, Elie Ofek and Carin-Isabel Knoop

    For centuries Lafite has been the most admired wine Estate in the world. How does Baron Eric de Rothschild protect this crown jewel in a conservative manner while DBR develops other Chateaux blending wine programs, reaches out to new areas such as China and begins to take a more active interest in the world's number one market—the United States.

    Keywords: Plant-Based Agribusiness; Expansion; Market Entry and Exit; Global Strategy; Agriculture and Agribusiness Industry; Food and Beverage Industry; France; China;

    Citation:

    Goldberg, Ray A., Arthur I. Segel, Elie Ofek, and Carin-Isabel Knoop. "Domaines Barons de Rothschild (Lafite): Plus ça change… ." Harvard Business School Case 913-402, December 2012. (Revised May 2013.) View Details
  14. Cialis Lifecycle Management: Lilly's BPH Dilemma

    Elie Ofek and Natalie Kindred

    How should Eli Lilly further develop and market a new indication of its highly successful erectile-dysfunction (ED) drug, Cialis, without confusing Cialis's hard-won brand equity with physicians and patients? With the final stages of clinical trials for the new indication, benign prostatic hyperplasia (BPH), soon to be carried out, the team had to make a decision soon. On its face, the market opportunity for a BPH indication, and its synergies with an ED drug, seemed enormous: both ED and BPH were age-related conditions, and data showed that half of men with ED had BPH symptoms. Moreover, the BPH indication would be taken in the same frequency and dosing as the once-a-day version of Cialis. However, market research had revealed significant challenges in introducing the BPH indication under the Cialis name. For example, although ED and BPH often co-existed, men perceived them quite differently. Some physicians also reacted negatively to the BPH indication. Impending competition from low-price ED generics, given that Viagra would soon be going off patent, underscored the importance of the BPH opportunity.

    Keywords: Product Positioning; Attitudes; Brands and Branding; Pharmaceutical Industry; United States;

    Citation:

    Ofek, Elie, and Natalie Kindred. "Cialis Lifecycle Management: Lilly's BPH Dilemma." Harvard Business School Case 513-005, September 2012. (Revised November 2014.) View Details
  15. J.C. Penney's 'Fair and Square' Pricing Strategy

    Elie Ofek and Jill Avery

    As a he gets ready to release 2nd quarter 2012 results, Ron Johnson, the new CEO of department store J.C. Penney, is reconsidering the dramatic changes he initiated for the business model and brand image of his company. A new pricing scheme he put in place in February, dubbed "Fair and square" was a central component of the new strategy. The scheme initially had three pricing tiers and eliminated typical sales promotions in an attempt to simplify the shopping experience for consumers; thus moving J.C. Penney off its previous high-low pricing practice. Other components of the new strategy included a new store layout, the inclusion of several well-known brands, and having special lines designed by well-known designers. However, troubling first quarter results that continued into the summer months seemed to indicate that J.C. Penney shoppers, accustomed to receiving JCP Cash coupons and circulars advertising the week's specials, were slow to embrace the new pricing format and began leaving the retailer in droves. Under enormous pressure to turn things around as the all-important back-to-school and holiday shopping seasons were imminent, Johnson decided to make adjustments to the initial pricing scheme that were set to go into effect August 1st. Were these changes enough to turn things around? Should Johnson stay the course on the other elements of his repositioning efforts? Is Johnson's experience in setting up Apple stores helping or hurting him as he tries to achieve his goal of making J.C. Penney "America's favorite store?"

    Keywords: Change Management; Consumer Behavior; Management Teams; Business Model; Marketing Strategy; Price; Brands and Branding; Decision Making; Retail Industry; United States;

    Citation:

    Ofek, Elie, and Jill Avery. "J.C. Penney's 'Fair and Square' Pricing Strategy." Harvard Business School Case 513-036, September 2012. (Revised January 2013.) View Details
  16. The Clorox Company: Leveraging Green for Growth

    Elie Ofek and Lauren Barley

    The Clorox Company needs to decide on the marketing strategy going forward for its three sustainable brands, Brita, Burt's Bees and Green Works. These brands had fared differently over the past 3 years and each presents multiple courses of action heading into 2011. Management also needs to assess the role the sustainable brands play in Clorox's overall Corporate Responsibility strategy and the implications they have for the other brands (such as Clorox Bleach, 409, and Hidden Valley). The company has set aggressive financial targets in light of its upcoming centennial in 2013. Students need to evaluate whether sustainability is an enduring trend that Clorox should embrace for future growth or whether focusing on its core brands, which currently represent 90% of sales, is a better approach.

    Keywords: Decision Making; Managerial Roles; Brands and Branding; Marketing Strategy; Social Marketing; Corporate Social Responsibility and Impact; Sales; Opportunities; Corporate Strategy; Environmental Sustainability; Chemical Industry; Food and Beverage Industry;

    Citation:

    Ofek, Elie, and Lauren Barley. "The Clorox Company: Leveraging Green for Growth." Harvard Business School Case 512-009, July 2011. (Revised April 2012.) View Details
  17. Nanda Home: Preparing for Life after Clocky

    Elie Ofek and Jill Avery

    Gauri Nanda, the inventor of Clocky, the alarm clock that rolls off the bed stand and forces its owner to find it, has to make critical decisions regarding the future of her nascent company. As sales of Clocky show signs of declining, she must decide whether to continue her focus on the alarm clock category or to branch out into new categories. If the former, the question is which segments to pursue and what features to develop, and, if the latter, the question is whether the concept of "humanizing technology" is something consumers would value in other domains. In addition, Nanda must decide how to continue marketing Clocky and its successors, given the potential for cannibalization. Clocky's success was largely attributable to the media's intense interest and coverage, and it is not clear such attention would carry over to other new product endeavors. Students are presented with a number of new product concepts and the findings from both qualitative and quantitative market research. This allows for a rich discussion of how managers can think creatively about consumer experiences to inform their innovation strategies.

    Keywords: Brands and Branding; Management; Electronics Industry;

    Citation:

    Ofek, Elie, and Jill Avery. "Nanda Home: Preparing for Life after Clocky." Harvard Business School Case 511-134, May 2011. (Revised March 2012.) View Details
  18. Clocky: The Runaway Alarm Clock

    Elie Ofek and Eliot Sherman

    Gauri Nanda is the creator of an innovative new product: an alarm clock named Clocky that, in addition to ringing, rolls around the room in order to force its owner to get out of bed. Beset by media attention and consumer interest but still at least a year away from the ability to debut Clocky, Nanda must navigate a series of challenges and difficult decisions in order to effectively bring her product to market. These include positioning strategies, choosing the proper channel, potential partnerships, manufacturing issues, market analysis, and PR management.

    Keywords: Management; Product Positioning; Partners and Partnerships; Production; Marketing Strategy; Media; Entrepreneurship; Independent Innovation and Invention; Product Launch;

    Citation:

    Ofek, Elie, and Eliot Sherman. "Clocky: The Runaway Alarm Clock." Harvard Business School Case 507-016, November 2006. (Revised March 2012.) View Details
  19. Sealed Air Corporation: Deciding the Fate of VTID

    Elie Ofek

    In mid 2010 the Sealed Air Corporation has to decide on next steps for its novel video tracking technology (called VTID) after unsuccessful attempts to market it in three different industry settings. The company must determine whether its most recent target market, the quick-serve restaurant segment, is still worth pursuing or whether the company should look for a different application and market altogether. The company could also revisit the previous two applications, tracking and tracing processed meat and tracking employee safety practices. At the other extreme, after seven years of R&D and marketing efforts and millions of dollars in expenses, the company could cease attempts to commercialize VTID.

    Keywords: Budgets and Budgeting; Customer Focus and Relationships; Decision Choices and Conditions; Technological Innovation; Marketing Strategy; Problems and Challenges; Commercialization; Service Industry;

    Citation:

    Ofek, Elie. "Sealed Air Corporation: Deciding the Fate of VTID." Harvard Business School Case 512-029, August 2011. (Revised July 2012.) View Details
  20. Tengion: Bringing Regenerative Medicine to Life

    Elie Ofek and Polly Ross Ribatt

    Tengion is a young biotech company that is at the frontier of regenerative medicine—a nascent field that seeks to promote the creation of new cells and tissue to repair or replace tissue or organ function lost due to age, disease, damage, or congenital defects. In late 2008 Tengion management faces a difficult dilemma. In light of the financial crises, the company needs to manage cash burn by prioritizing its R&D efforts. CEO Nichtberger needs to recommend to the board which of two promising new medical treatments to keep developing while placing the other on hold. In comparing the two options, a host of factors need to be considered—these range from assessing the regulatory challenges, manufacturing challenges, marketing challenges (in particular pricing), and partnering challenges. Each of the treatments would target a unique patient population that differs in both size and composition. Tengion must also consider how quickly it might expect to bring each of the two treatments to market. The decision could have significant long-term implications for the company's ultimate survival and success.

    Keywords: Decision Choices and Conditions; Financial Crisis; Entrepreneurship; Health Care and Treatment; Technological Innovation; Product Launch; Product Development; Research and Development; Biotechnology Industry; United States;

    Citation:

    Ofek, Elie, and Polly Ross Ribatt. "Tengion: Bringing Regenerative Medicine to Life." Harvard Business School Case 510-031, October 2009. (Revised August 2014.) View Details
  21. Tengion: Bringing Regenerative Medicine to Life (TN)

    Elie Ofek and Natalie Kindred

    Teaching Note for 510031.

    Keywords: Partners and Partnerships; Production; Marketing; Cash; Health Care and Treatment; Medical Specialties; Research and Development; Biotechnology Industry;

    Citation:

    Ofek, Elie, and Natalie Kindred. "Tengion: Bringing Regenerative Medicine to Life (TN)." Harvard Business School Teaching Note 512-023, September 2011. View Details
  22. Reversing the AMD Fusion Launch

    Elie Ofek and Ryan Johnson

    AMD management needs to make a critical decision on the launch sequence of its next-generation technology called Fusion. The Fusion processor concept merges the central and graphics processing units (CPU and GPU) onto one chip-- yielding advantages in performance (particularly graphics related), power consumption, and suitability for new computer form factors (tablets, all-in-one machines, etc.). AMD planned to launch Fusion at the beginning of 2011 with a high-end processor, code-named Llano, to impress the industry and consumers with the best the technology could offer (suited for high-end desktops and notebooks), and subsequently to launch low-powered versions, code-named Brazos (suited for small notebooks and netbooks). However, the development of Llano suffered delays while that of Brazos was ahead of schedule. AMD's executive committee raised the possibility of reversing the launch sequence and going with a "Brazos First" strategy. The case describes the microprocessor industry, its main competitors (AMD and Intel), and the evolving world of PC selling and buying. The case further provides a host of market research that AMD conducted to better understand the market. Students need to address the advisability of a reverse launch vs. waiting to launch all versions together and whether AMD can advance its competitive position relative to Intel with Fusion. Students need to outline their marketing approach (sales effort, pricing, consumer marketing, etc.) in the event that a reverse launch strategy is pursued.

    Keywords: Brands and Branding; Marketing Strategy; Product Launch; Performance Effectiveness; Strategic Planning; Competition; Value Creation; Computer Industry; Technology Industry;

    Citation:

    Ofek, Elie, and Ryan Johnson. "Reversing the AMD Fusion Launch." Harvard Business School Case 511-036, June 2011. (Revised July 2012.) View Details
  23. Octone Records

    Anita Elberse and Elie Ofek

    In February 2007, Octone Records founders James Diener, Ben Berkman, and David Boxenbaum had been highly successful with the first two bands they had signed, Maroon 5 and Flyleaf. Known for its grassroots marketing campaigns, Octone operated through a unique joint-venture model with SonyBMG Music Entertainment's RCA Music Group, which enabled the nimble record label to orchestrate mass-marketing campaigns once an artist was ready for "prime time." Octone had been less fortunate, however, with its third act, Michael Tolcher. Despite significant investments, Tolcher's first full album had not sold enough copies to recover its costs and merit RCA's marketing support. Octone's executives faced a decision: whether to continue to support Tolcher's first album, increase the stakes by financing a second album, or cut their losses and instead focus on other artists. At the same time, Octone had to evaluate a proposal from Universal Music Group to buy out SonyBMG's interest in the joint venture. Allows for an in-depth examination of new product development and launch strategies in the context of the music industry. Provides rich insights into how grassroots and mass-marketing approaches can facilitate new product/artist development. Octone's "hybrid" marketing structure is described in considerable detail, and supporting economic data is provided. By enabling an analysis of how long and how aggressively an artist should be supported before commercial success is achieved, serves as a vehicle for contrasting different approaches to the new product development process.

    Keywords: Arts; Joint Ventures; Investment Return; Marketing Strategy; Product Launch; Product Development; Outcome or Result; Creativity; Music Industry;

    Citation:

    Elberse, Anita, and Elie Ofek. "Octone Records." Harvard Business School Case 507-082, June 2007. (Revised August 2011.) View Details
  24. Emotiv Systems Inc.: It's the Thoughts that Count

    Elie Ofek, Jason Riis and Paul Hamilton

    Emotiv is getting ready to launch its innovative brain-computer interfacing (BCI) technology. The company has developed a special headset, called EPOC, and highly sophisticated software that can translate a person's emotions, cognitive thoughts, and facial expressions into digital outcomes. Emotiv wants the technology to be adopted by mainstream consumers and is leaning towards the video game market as its primary initial target. However, it needs to decide whether to continue efforts to convince one of the big three console makers (PS3, Xbox 360, Wii) to enable the EPOC on their platform or to settle for the PC gaming market. Alternatively, the company could have chosen a number of different markets to focus on (such as medical, military, market research). A host of additional marketing decisions need to be made (pricing, channels, bundling a demo game). The case allows students to grapple with the issues of selecting a target application for the launch of an innovation, determining the importance of having a big name partner for the launch by an unknown start-up, considering the wisdom of taking a B2C rather than B2B approach with a novel technology, and using analogous products to forecast demand and sales for a new technology.

    Keywords: Technology Adoption; Sales; Technological Innovation; Demand and Consumers; Marketing Strategy; Partners and Partnerships; Entrepreneurship; Forecasting and Prediction; Product Launch; Business Startups; Technology Industry;

    Citation:

    Ofek, Elie, Jason Riis, and Paul Hamilton. "Emotiv Systems Inc.: It's the Thoughts that Count." Harvard Business School Case 510-050, October 2009. (Revised July 2012.) View Details
  25. Examining the Adoption of Drug-Eluting Stents

    Elie Ofek

    Marketers are often tasked with exploring the factors that impact the long-run adoption of a new product or technology. The new product under consideration here is the drug-eluting stent: a device which props open a clogged artery to the heart and then releases medication that reduces the risk of artery re-blockage. In light of recent medical and competitive trends in the market, the case prompts students to examine the future adoption of drug-eluting stents as well as to consider the potential marketing actions to be taken by Medtronic for ENDEAVOR-a newly approved stent that will hit the market in 2008.

    Keywords: Forecasting and Prediction; Marketing Strategy; Product Positioning; Consumer Behavior; Adoption; Medical Devices and Supplies Industry;

    Citation:

    Ofek, Elie. "Examining the Adoption of Drug-Eluting Stents." Harvard Business School Case 509-028, September 2008. (Revised June 2011.) View Details
  26. Nike Football: World Cup 2010 South Africa

    Elie Ofek and Ryan Johnson

    Nike's Football division needs to devise a strategy to excel at the 2010 World Cup games in South Africa. Nike has gone from a niche player in the market for football apparel and footwear in 1994 to a formidable competitor to Adidas in 2008 (with revenues of over $1 billion for the sport). The case traces how Nike has gone about making this transformation and its activities at each of the World Cups since 1994. For the upcoming World Cup in South Africa, Nike has decided to change its target market focus and to use digital and social media platforms to connect more extensively with consumers. In addition, Nike plans to launch innovative new boots and engage in corporate responsibility and sustainability initiatives. The company has to do so in light of competition from archrival Adidas and the pressure of succeeding on the biggest stage in football, with billions of people around the world watching. The case allows students to analyze how a company can best integrate several value propositions into a cohesive plan and how it can best communicate with its chosen target market. It also allows for a rich discussion of the brand image the company needs to portray to leverage success beyond the World Cup event.

    Keywords: Online Advertising; Business Divisions; Communication; Brands and Branding; Marketing Channels; Marketing Communications; Marketing Strategy; Product Launch; Planning; Competition; Apparel and Accessories Industry; South Africa;

    Citation:

    Ofek, Elie, and Ryan Johnson. "Nike Football: World Cup 2010 South Africa." Harvard Business School Case 511-060, May 2011. (Revised January 2013.) View Details
  27. Sephora Direct: Investing in Social Media, Video, and Mobile

    Elie Ofek and Alison Berkley Wagonfeld

    Julie Bornstein, senior vice president of Sephora Direct, is seeking to double her budget for social media and other digital marketing initiatives for 2011. A number of digital efforts implemented in the past two years seem to be bearing fruit and there is a desire to intensify Sephora's social media, online video and mobile presence. Bornstein must justify the need for the additional funding, determine how best to allocate the money across the various platforms, and establish effective ways to measure return on investment (ROI) for digital marketing spending. She must also take into account that the funding requested will likely come at the expense of Sephora's traditional marketing programs. Importantly, Bornstein needs to begin thinking about a cohesive long-term strategy that clearly identifies the role digital platforms play and how they help Sephora maintain its leadership position in the prestige beauty care space. The constant emergence of new players, such as Groupon and Shop Socially, the growing power of social media platforms such as Facebook, and the way consumer behavior and user generated content are rapidly evolving in a digital era, make her task all the more challenging.

    Keywords: History; Leadership; Marketing Strategy; Marketing; Emerging Markets; Investment Return; Investment Funds; Budgets and Budgeting;

    Citation:

    Ofek, Elie, and Alison Berkley Wagonfeld. "Sephora Direct: Investing in Social Media, Video, and Mobile." Harvard Business School Case 511-137, June 2011. (Revised June 2012.) View Details
  28. The Eleganzia Group

    Elie Ofek, Elena Corsi, Bharat Sajnani, Sorina Casian-Botez and Francesco Tronci

    Eleganzia Group management faces tough decisions heading into the summer of 2010. With tourism on the decline due to the global economic recession, General Manager Giannuzzi must decide how to set prices at the Forte Village Resort, the Group's most well-known property. His management team is further divided on whether the pricing model at the resort should change to being all-inclusive (as opposed to one where guests are charged for each additional activity or dining option on a pay-as-you-go basis), and whether to convert a large number of the 4-star rooms into 5-star suites. Recently acquired properties, such as the Castel Monastero in Tuscany and the Maddalena Hotel & Yacht Club in north Sardinia, pose a branding challenge. Can all the properties, including the Forte Village, be successfully brought under one umbrella brand, namely, Eleganzia? Moreover, what should the character of each these new properties be?

    Keywords: pricing; Pricing strategy; Customer Management; branding; Customer Relationship Management; Price; Luxury; Business Strategy; Brands and Branding; Accommodations Industry; Travel Industry; Italy;

    Citation:

    Ofek, Elie, Elena Corsi, Bharat Sajnani, Sorina Casian-Botez, and Francesco Tronci. "The Eleganzia Group." Harvard Business School Case 511-115, April 2011. (Revised June 2011.) View Details
  29. "Plugging In" the Consumer: The Adoption of Electrically Powered Vehicles in the U.S.

    Elie Ofek and Polly Ribatt

    How will U.S. consumers respond to the proliferation of alternative-fuel vehicles, such as cars powered partially or completely by electricity, in the coming decade? After a century in which fossil fuel-powered vehicles dominated the market, it appeared consumers would have an unprecedented level of choice as to the type of car they purchased and drove. Automakers were introducing various models that used electricity for power, and other power sources, such as fuel cells, were also seeing increased attention. Some observers believed the time was ripe for widespread adoption of these new vehicles: consumers and policymakers were increasingly concerned about the fallout of U.S. dependence on fossil fuel-powered cars--namely, adverse environmental impacts and reliance on foreign sources of oil, plus the fluctuating price of gasoline--and innovative infrastructure technology was being developed to support electric-powered cars. Despite these promising developments, it remained unclear whether consumers were ready to switch to alternative-fuel vehicles on a large scale. Would they be willing to make the lifestyle tradeoffs required for grid-dependent vehicles? How should policymakers intervene, if at all, to encourage adoption, and what marketing activities and incentives might firms employ to stimulate demand?

    Keywords: Energy Sources; Policy; Marketing; Demand and Consumers; Business and Government Relations; Natural Environment; Pollution and Pollutants; Adoption; Auto Industry; United States;

    Citation:

    Ofek, Elie, and Polly Ribatt. "Plugging In" the Consumer: The Adoption of Electrically Powered Vehicles in the U.S. Harvard Business School Case 510-076, February 2010. (Revised June 2012.) View Details
  30. NFL UK

    Elie Ofek, David B. Godes and Peter Wickersham

    The NFL faces a decision on how to continue efforts to grow its fanbase in the U.K. The decision needs to take into account lessons learned from previous NFL activities in Europe, market research on the U.K. sports fan, and the implications of any move on the U.S. fan. Moreover, the decision should be couched within the broader context of the NFL's goal to expand internationally. Alistair Kirkwood, head of NFL U.K., and Chris Parsons, VP of NFL International, must propose a course of action that the London-based team can both execute and that will receive the approval of the NFL's commissioner and owners.

    Keywords: Cross-Cultural and Cross-Border Issues; Innovation and Invention; Brands and Branding; Marketing Strategy; Sports; Expansion; Sports Industry; Europe; United Kingdom; United States;

    Citation:

    Ofek, Elie, David B. Godes, and Peter Wickersham. "NFL UK." Harvard Business School Case 510-105, March 2010. (Revised February 2013.) View Details
  31. American Well: The Doctor Will E-See You Now

    Elie Ofek and Ron Laufer

    What is next for healthcare IT provider American Well, whose innovative Online Care technology allows physicians to deliver care to patients online in real time? Using American Well's platform, patients with non-emergency health concerns can communicate with physicians online or by phone and receive advice or even a diagnosis without having to visit the physician's office. American Well's co-founders, Ido Schoenberg and Roy Schoenberg, believe this platform will reduce the cost of care delivery; create new revenue-earning opportunities for providers; and contribute to a more efficient, convenient healthcare delivery system. While the platform could benefit insurers, providers, employers, and patients alike, the company has only marketed to a few health insurance companies to date. In November 2009, 3 insurers have adopted the technology, and American Well expects several more to do so over the next 12 months. As the company plans to accelerate adoption by health insurers, it is also considering other growth options. Is it too early to commit resources to developing and marketing American Well's second-generation product, which facilitates real-time connectivity between primary care physicians and specialists? Should American Well pursue new markets in the U.S., such as hospitals, chains of clinics, and pharmacies, or even expand internationally? In a broader sense, American Well's technology solves the economic obstacle of time and place by connecting excess supply (of physician capacity) with excess demand (for patient care). Could this model be adapted to other industries, such as legal and accounting services? Alternatively, should American Well continue to focus solely on its primary product and on becoming the leader in the Online Care Industry?

    Keywords: Entrepreneurship; Health Care and Treatment; Technological Innovation; Growth and Development Strategy; Market Entry and Exit; Service Delivery; Online Technology; Health Industry;

    Citation:

    Ofek, Elie, and Ron Laufer. "American Well: The Doctor Will E-See You Now." Harvard Business School Case 510-061, March 2010. (Revised April 2014.) View Details
  32. A&M/Octone Records: All Rights or Nothing?

    Anita Elberse, Elie Ofek and Caren Kelleher

    In April 2008, after successfully transitioning Octone Records to Universal Music Group and relaunching the label as A&M/Octone Records, president and CEO James Diener is facing a new challenge. Diener and his executive team have trouble convincing a new, promising act, Paper Tongues, to join A&M/Octone on a so-called all-rights deal, which specified that the label would receive a percentage of all of the artist's revenue streams, including recorded music, concert/ticket sales, merchandising, commercial licensing, sponsorships, and endorsements. Negotiations have stalled. Should A&M/Octone hold on to its "all-rights or no deal" stance? Or was it time to switch to a recorded-music-only deal? Designed for use alongside "Octone Records," HBS No. 507-082, the case allows for an in-depth examination of new-product development and talent management strategies in the context of the music industry. The case provides rich insights into how contracts between labels and artists are structured and how advances in technology are impacting the music industry and its players.

    Keywords: Talent and Talent Management; Intellectual Property; Contracts; Rights; Product Marketing; Product Development; Technology; Music Industry;

    Citation:

    Elberse, Anita, Elie Ofek, and Caren Kelleher. "A&M/Octone Records: All Rights or Nothing?" Harvard Business School Case 511-031, July 2010. (Revised March 2011.) View Details
  33. Emotiv Systems Inc.: It's the Thoughts that Count (TN)

    Elie Ofek and Natalie Kindred

    Teaching Note for 510050.

    Keywords: Product Launch; Technological Innovation; Software; Decision Choices and Conditions; Games, Gaming, and Gambling; Marketing Channels; Price;

    Citation:

    Ofek, Elie, and Natalie Kindred. "Emotiv Systems Inc.: It's the Thoughts that Count (TN)." Harvard Business School Teaching Note 511-072, February 2011. (Revised August 2012.) View Details
  34. "Plugging In" the Consumer: The Adoption of Electrically Powered Vehicles in the U.S. (TN)

    Elie Ofek and Natalie Kindred

    Teaching Note for 510076.

    Keywords: Customers; Adoption; Non-Renewable Energy; Fluctuation; Price; Innovation and Invention; Marketing; Motivation and Incentives; United States;

    Citation:

    Ofek, Elie, and Natalie Kindred. "Plugging In" the Consumer: The Adoption of Electrically Powered Vehicles in the U.S. (TN). Harvard Business School Teaching Note 511-035, September 2010. View Details
  35. Product Team Cialis: Getting Ready to Market

    Elie Ofek

    Lilly and ICOS are preparing for the launch of a new drug, Cialis, to compete against Viagra. To position against the incumbent firm Pfizer, which developed and markets Viagra, and other newcomers into the erectile dysfunction market, they must determine how best to segment the market and which target market to focus on. The marketing plan should take advantage of Cialis's medical profile. In particular, they must pay special attention to the communication strategy to patients, physicians, and partners. The analysis, plan, and action should take into account extensive market research and recent competitive developments. Includes color exhibits.

    Keywords: Communication Strategy; Marketing Strategy; Product Launch; Product Positioning; Competition; Competitive Advantage; Segmentation; Pharmaceutical Industry;

    Citation:

    Ofek, Elie. "Product Team Cialis: Getting Ready to Market." Harvard Business School Case 505-038, October 2004. (Revised July 2010.) View Details
  36. American Well: The Doctor Will E-See You Now (TN)

    Elie Ofek

    Teaching Note for 510061.

    Keywords: Health Care and Treatment; Information Technology; Innovation and Invention; Online Technology; Revenue; System; Opportunities; Technology Adoption; Growth and Development; Brands and Branding; Business Model; Health Industry; United States;

    Citation:

    Ofek, Elie. "American Well: The Doctor Will E-See You Now (TN)." Harvard Business School Teaching Note 510-125, June 2010. View Details
  37. Millipore Background Note

    Elie Ofek and Natalie Kindred

    This note provides background on Millipore Corporation, a global provider of products and services used primarily in the discovery, development and production of therapeutic drugs. With a track record of quickly adapting to the evolving needs of its customers, Millipore is an example of an innovation-centered company that has been successful in maintaining both the core capabilities and flexibility to predict and respond to changing market demand.

    Keywords: Organizational Change and Adaptation; Customer Focus and Relationships; Biotechnology Industry; Pharmaceutical Industry;

    Citation:

    Ofek, Elie, and Natalie Kindred. "Millipore Background Note." Harvard Business School Background Note 510-059, February 2010. View Details
  38. Forecasting the Adoption of a New Product

    Elie Ofek

    Provides tools and methodologies that allow forecasting demand for innovative new products. Highlights the Bass model—the theory behind it and ways to determine its parameters. Provides a detailed example of how to use the Bass model to forecast demand for satellite radio. Also covers ways to incorporate marketing mix variables and competition and explores the impact of these factors on the adoption and diffusion of an innovation. Finally, illustrates how to construct forecasts when early sales data are available via data-driven forecasting models.

    Keywords: Forecasting and Prediction; Innovation and Invention; Marketing; Demand and Consumers; Mathematical Methods; Competition;

    Citation:

    Ofek, Elie. "Forecasting the Adoption of a New Product." Harvard Business School Background Note 505-062, February 2005. (Revised December 2013.) View Details
  39. Intel 2006: Rising to the Graphics Challenge

    Willy C. Shih and Elie Ofek

    Examines the evolution of the PC hardware industry over the span of two and a half decades. The open architecture design of the IBM Personal Computer followed by the rapid appearance of clones drove a high level of standardization and modularity in the industry, and value was distributed along the value chain depending on levels of competition and ability to substitute components at each level. On the hardware side two component segments, the microprocessor and the graphics processor unit (GPU), ultimately became the most valuable parts of the chain. The GPU business had settled into a duopoly with Nvidia, Inc. and ATI Technologies (ATI). Intel had dominated the microprocessor segment, but Advanced Micro Devices (AMD) was consistently a thorn in Intel's side. Addresses the prospects of the graphics function becoming integrated with the microprocessor on a single piece of silicon. AMD had just announced the acquisition of ATI and Paul Otellini, Intel's CEO, is faced with the question of what he should do. Should he buy Nvidia, should he continue with his own internal graphics efforts, or should he listen to some of his customers and leave things separate?

    Keywords: History; Customer Value and Value Chain; Decision Choices and Conditions; Hardware; Competitive Strategy; Mergers and Acquisitions; Technology Industry;

    Citation:

    Shih, Willy C., and Elie Ofek. "Intel 2006: Rising to the Graphics Challenge." Harvard Business School Case 607-136, June 2007. (Revised April 2009.) View Details
  40. Eli Lilly: Developing Cymbalta

    Elie Ofek and Ron Laufer

    Anticipating the expiration of its Prozac patent, Eli Lilly has to make tough decisions regarding the development of its next-generation antidepressant drug. In particular, the company needs to decide whether to first establish that once-a-day dosing for Cymbalta (Duloxetine) is effective in treating major depressive disorder and only after launch get FDA approval for treating painful physical symptoms, or to first establish efficacy in treating pain and later get FDA approval for once-a-day dosing. The decision needs to take into account how Cymbalta can be differentiated in the marketplace vis-à-vis other antidepressants and the marketing challenges to getting adoption that the new drug will face. Lilly's new antidepressant team making this decision has several market research inputs on physicians and patients at its disposal.

    Keywords: Decision Choices and Conditions; Marketing Strategy; Product Launch; Product Development; Research and Development; Pharmaceutical Industry;

    Citation:

    Ofek, Elie, and Ron Laufer. "Eli Lilly: Developing Cymbalta." Harvard Business School Case 507-044, November 2006. (Revised July 2008.) View Details
  41. AmorePacific

    Elie Ofek and Kerry Herman

    Describes the dominant firm in the Korean cosmetics market up to the mid-2000s. Gives background on AmorePacific's historical evolution, its current brands, and the competition it faces from local and international players. Also provides information on the market structure and prominent channels of distribution.

    Keywords: History; Competition; Distribution Channels; Brands and Branding; Beauty and Cosmetics Industry; South Korea;

    Citation:

    Ofek, Elie, and Kerry Herman. "AmorePacific." Harvard Business School Background Note 507-070, April 2007. (Revised June 2008.) View Details
  42. USG

    Elie Ofek and Kerry Herman

    Serves as a background note for purposes of class discussion around next-generation innovation at USG. Describes the company, its products, and competitors. Of relevance is the fact that it recently filed for Chapter 11 due to litigation over asbestos-related claims. Describes the main innovations until 2004.

    Keywords: Insolvency and Bankruptcy; Innovation and Invention; Lawsuits and Litigation; Competition;

    Citation:

    Ofek, Elie, and Kerry Herman. "USG." Harvard Business School Background Note 507-073, April 2007. (Revised June 2008.) View Details
  43. Sony PlayStation 3: Game Over?

    Elie Ofek

    Outlines the challenges faced by Sony with the launch of its PlayStation 3. Information on the 2006 and 2007 holiday seasons and the success of rival consoles is outlined. In addition, the case allows examining the costs and revenues associated with a business model based on the sale of the hardware and game titles. Can be used with "Home Video Games: Generation Seven" (505-072), which provides supplementary information on the industry.

    Keywords: Business Model; Games, Gaming, and Gambling; Cost; Revenue; Product Launch; Sales; Competition; Hardware; Entertainment and Recreation Industry;

    Citation:

    Ofek, Elie. "Sony PlayStation 3: Game Over?" Harvard Business School Case 508-076, March 2008. (Revised April 2008.) View Details
  44. Marketing Input and Innovation Strategy

    Elie Ofek

    This note develops a framework for considering the challenges of incorporating marketing input when setting innovation strategy. The framework lays out the possible innovation opportunities a firm can entertain and describes how the customer knowledge gained from conducting market research at the front end of NPD affects which of these opportunities the firm should pursue. Pitfalls in analyzing the customer data are described, along with guidelines on how to overcome them. The impact of competition in the context of setting innovation strategy under market uncertainty is also addressed.

    Keywords: Customer Focus and Relationships; Innovation Strategy; Knowledge Use and Leverage; Marketing; Research; Competition;

    Citation:

    Ofek, Elie. "Marketing Input and Innovation Strategy." Harvard Business School Background Note 508-090, March 2008. View Details
  45. Brocade: Launching the Multiprotocol Router

    Elie Ofek and Mamoon Hamid

    Brocade management is preparing for the launch of a new technology for data storage. The multiprotocol router improves on existing technology and has the potential to change the way firms design their data storage networks. Students must determine the target market for the router, how to leverage the OEM partners in convincing end customers to adopt it, and how to price the router. Forces students to understand the traditional segmentation of the data storage market and whether firms should concentrate on specific segments, as in the past. Also forces students to grapple with the willingness of end customers to adopt new solutions in the high-tech realm.

    Keywords: Customer Satisfaction; Price; Product Launch; Partners and Partnerships; Segmentation; Hardware; Technology Adoption; Information Technology Industry;

    Citation:

    Ofek, Elie, and Mamoon Hamid. "Brocade: Launching the Multiprotocol Router." Harvard Business School Case 505-064, March 2005. (Revised August 2007.) View Details
  46. RKS Guitars

    Elie Ofek, Thomas J. Steenburgh, Michael I. Norton and Kerry Herman

    RKS has designed a revolutionary electric guitar and needs to decide how to best market their innovation. The iconic status of existing electric guitars, and the lack of any recent radical innovations in the category, pose challenges in securing consumer adoption. If the company goes it alone, it needs to determine the type of consumer most likely to adopt the new product, taking into account the novel aspects of the RKS guitar. Alternatively, the company could find a marketing partner or license its novel design to a bigger player. Rich in descriptions of consumer behavior that enable a discussion of the process that would lead consumers to purchase a new product. Also, outlines the company's design philosophy, which was developed to help its designers get into the mind of the consumer.

    Keywords: Innovation and Invention; Marketing Strategy; Product Launch; Consumer Behavior; Product Design; Adoption;

    Citation:

    Ofek, Elie, Thomas J. Steenburgh, Michael I. Norton, and Kerry Herman. "RKS Guitars." Harvard Business School Case 507-003, October 2006. (Revised August 2007.) View Details
  47. PSI India—Will Balbir Pasha Help Fight AIDS? (A)

    Elie Ofek and Peter Wickersham

    In 2002, Population Services International (PSI) was committed to curbing the growing HIV/AIDS epidemic in India. Sanjay Chaganti, program director of HIV/AIDS at PSI India, has to decide on the best communication strategy to achieve this goal. Up to this date most efforts consisted of on-the-ground efforts by PSI personnel, but Chaganti was considering shifting a significant portion of funds to a provocative mass media advertising campaign. The campaign would feature a fictional character—Balbir Pasha. At one extreme the campaign would impact that target population and lift barriers to safe sex practices. At the other extreme the campaign could be controversial, ineffective, and squander precious resources.

    Keywords: Advertising Campaigns; Communication Strategy; Health Disorders; Marketing Communications; Social Marketing; Social Enterprise; India;

    Citation:

    Ofek, Elie, and Peter Wickersham. "PSI India—Will Balbir Pasha Help Fight AIDS? (A)." Harvard Business School Case 507-032, September 2006. (Revised July 2012.) View Details
  48. AMD: A Customer-Centric Approach to Innovation

    Elie Ofek and Lauren Barley

    AMD's launch of the Opteron microprocessor in 2003 has allowed the company to make inroads into the lucrative server segment. A long-time follower to Intel, AMD management felt it was in a position to lead the microprocessor industry in new directions. However, in 2006 it was not clear whether Opteron's success in the server segment would translate into success in other microprocessor segments, notably corporate desktop and laptop, and whether the initial success in servers could be sustained in the future. Intel's imminent new product and pricing plans, as well as its existing brand power, could greatly hamper AMD's growth and thwart its new initiatives--which included opening up its architecture for end users to customize and recast its brand identity. Also examines how a company tries to gain competitive advantage through an approach to innovation that emphasizes customer centricity.

    Keywords: Customer Focus and Relationships; Price; Leadership; Brands and Branding; Product Launch; Product Development; Competitive Strategy; Customization and Personalization; Semiconductor Industry;

    Citation:

    Ofek, Elie, and Lauren Barley. "AMD: A Customer-Centric Approach to Innovation." Harvard Business School Case 507-037, January 2007. View Details
  49. Eyeblaster: Enabling the Next Generation of Online Advertising

    Elie Ofek

    Eyeblaster management has to decide on the best course of action to sustain its momentum from enabling online rich media advertising. Pressure from competitors is forcing the company to re-evaluate its previous marketing strategy that focused primarily on getting advertising agencies to advocate use of Eyeblaster's rich media ad management product. Alternatively, more Eyeblaster sales effort, product improvements, and pricing incentives could be diverted to Web site publishers or even to advertisers. CEO Gal Trifon has to decide whether to give the green light to entering two new markets. Such a move would require the company to position itself somewhat differently in the marketplace and offer different pricing schemes. Includes color exhibits.

    Keywords: Business Model; Marketing Strategy; Market Entry and Exit; Performance Evaluation; Online Advertising; Growth and Development Strategy;

    Citation:

    Ofek, Elie. "Eyeblaster: Enabling the Next Generation of Online Advertising." Harvard Business School Case 504-005, September 2003. (Revised May 2006.) View Details
  50. Hasbro Games -- POX (A)

    David B. Godes and Elie Ofek

    Hasbro's newest toy is so unique it requires a unique launch strategy. Comparing traditional media (TV, print) with a non-traditional viral campaign, Matt Collins must weigh the risks and benefits of doing things the way they've always been done or blazing a new path in the marketing of toys.

    Keywords: Risk and Uncertainty; Cost vs Benefits; Marketing Strategy; Advertising Campaigns; Product Launch; Innovation and Invention; Entertainment and Recreation Industry;

    Citation:

    Godes, David B., and Elie Ofek. "Hasbro Games -- POX (A)." Harvard Business School Case 505-046, December 2004. (Revised October 2005.) View Details
  51. Forecasting the Adoption of E-books

    Elie Ofek

    Gives students an opportunity to understand the challenges inherent in forecasting the diffusions of innovations. Provides data for forecasting the adoption of electronic books. Students are encouraged to use the Bass Model framework, while being cognizant of its limitations.

    Keywords: Forecasting and Prediction; Framework; Books; Data and Data Sets; Product Launch; Online Technology; Technology Adoption;

    Citation:

    Ofek, Elie. "Forecasting the Adoption of E-books." Harvard Business School Exercise 505-063, May 2005. View Details
  52. Home Video Games: Generation Seven

    Elie Ofek

    Discusses the issues facing firms in the seventh generation of home video game platforms. In particular, Sony and Microsoft plan to launch new game consoles in the 2005 to 2006 time frame. Each firm seems to be following a different strategy. Microsoft wants to launch before Sony. Sony for its part is trying to develop a superior processor for its Playstation 3. Forces students to grapple with the issue of digital convergence in content and in hardware functionality.

    Keywords: Marketing Strategy; Competitive Strategy; Technological Innovation; Hardware; Software; Entertainment and Recreation Industry; Information Technology Industry;

    Citation:

    Ofek, Elie. "Home Video Games: Generation Seven." Harvard Business School Background Note 505-072, March 2005. View Details
  53. XM Satellite Radio (A)

    David B. Godes and Elie Ofek

    XM Satellite Radio is a radically new way to listen to radio. Management must develop a marketing strategy to launch the firm and the category. A crucial aspect of the strategy is to determine which of two business models the company will pursue. Should it focus predominantly on charging customers a monthly subscription fee or on selling advertising time to advertisers? This decision is closely related to target market selection and to the choice of optimal price points for subscription fees and radio receivers. Market research commissioned by XM provides rich insights into these issues. In addition, XM management needs to figure out how to establish partnerships with the leading electronics manufacturers. A consideration of its market share and channel presence are essential to XM's ultimate success in integrating satellite radio into home and car audio systems. As it formulates its plan, XM needs to take into account the competitive landscape, primarily comprised of broadcast radio (AM and FM) that has been in existence for many years and is offered for free, as well as a second satellite radio provider (Sirius). Includes color exhibits.

    Keywords: Advertising; Business Model; Decision Choices and Conditions; Cost Management; Marketing Channels; Marketing Strategy; Problems and Challenges; Partners and Partnerships; Sales; Competitive Strategy; Communications Industry;

    Citation:

    Godes, David B., and Elie Ofek. "XM Satellite Radio (A)." Harvard Business School Case 504-009, July 2003. (Revised March 2004.) View Details
  54. Customer Profitability and Lifetime Value

    Elie Ofek

    Introduces the central concepts involved in determining customer lifetime value, with detailed analysis and examples from the realm of direct marketing. Implications for marketing strategy and customer relationship management are briefly discussed.

    Keywords: Customer Value and Value Chain; Customer Relationship Management; Customization and Personalization; Product Marketing; Sales; Marketing Strategy; Management Analysis, Tools, and Techniques; Consumer Products Industry;

    Citation:

    Ofek, Elie. "Customer Profitability and Lifetime Value." Harvard Business School Background Note 503-019, August 2002. (Revised September 2014.) View Details

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