Ramon Casadesus-Masanell

Herman C. Krannert Professor of Business Administration

Ramon Casadesus-Masanell's fields of specialization are management strategy and managerial economics. He is interested in understanding interaction between organizations that compete with different business models.

Ramon Casadesus-Masanell is the Herman C. Krannert Professor of Business Administration at the Harvard Buisness School. He joined HBS in 2000 where he has taught the required MBA Strategy course, an elective course on Competing Business Models, and Ph.D. courses on Strategy and Game Theory. He also teaches in Executive Education programs. Casadesus-Masanell received his Ph.D. in Managerial Economics and Strategy from the Kellogg Graduate School of Management, Northwestern University. He received his BA in Economics from Universitat Autonoma de Barcelona, Spain.

Casadesus-Masanell’s fields of specialization are management strategy, managerial economics, and industrial organization. Casadesus-Masanell studies strategic interaction between organizations that operate different business models. He is also interested in the limits to contracting and the role of trust for management strategy. He has published in Management Science, the Journal of Economics & Management Strategy, the Strategic Management Journal, the Academy of Management Review, Long Range Planning, the Journal of Law & Economics, the Journal of Economic Theory, the USC Interdisciplinary Law JournalABANTE Studies in Business Management, and the Harvard Business Review, among others.

Journal Articles

  1. Business Model Evaluation: Quantifying Walmart's Sources of Advantage

    We develop an analytical framework on the basis of the economics of business performance to provide quantitative insight into the link between a firm's business model choices and its profit consequences. The method is applied to Walmart by building a qualitative representation of its business model and mapping that representation on an analytical model that quantifies the company's sources of advantage over time. The analysis suggests that the effectiveness of a particular business model depends not only on its design (its levers and how they relate to one another) but also, most importantly, on its implementation (how the levers are pulled).

    Keywords: business models; competitive advantage; Quantitative analysis; walmart; production theory; Business Model; Competitive Advantage; Profit;

    Citation:

    Brea-Solis, Humberto, Ramon Casadesus-Masanell, and Emili Grifell-Tatje. "Business Model Evaluation: Quantifying Walmart's Sources of Advantage." Strategic Entrepreneurship Journal (forthcoming). View Details
  2. Competing with Privacy

    We analyze the implications of consumer privacy for competition in the marketplace. We consider a market where firms set prices and disclosure levels for consumer information, and consumers observe both before deciding which firm to patronize and how much information to provide. The provision and disclosure of information presents tradeoffs for all market participants. Consumers benefit from providing information to the firm, as this increases the utility they derive from the service, but they incur disutility from information disclosure. This, in turn, benefits the firm providing an additional source of revenue, but reduces consumer demand for the service. We characterize equilibrium information provision, disclosure levels, and prices and show that competition with privacy has several effects on the marketplace. First, competition drives the provision of services with a low level of disclosure. Second, competition ensures that services with a high level of disclosure subsidize consumers. Third, firms maximize profits at the extensive rather than the intensive margin, outperforming competitors by attracting a larger customer base. And fourth, higher competition intensity need not improve consumer privacy when consumers exhibit low willingness to pay. Our findings are particularly relevant to the business models of Internet firms and contribute to inform the regulatory debate on consumer privacy.

    Keywords: Information Acquisition; information disclosure; Online Privacy; Privacy Regulation; Information; Rights; Competition;

    Citation:

    Casadesus-Masanell, Ramon, and Andres Hervas-Drane. "Competing with Privacy." Management Science (forthcoming). View Details
  3. Investment Incentives in Open-Source and Proprietary Two-Sided Platforms

    We study incentives to invest in platform quality in open-source and proprietary two-sided platforms. Open platforms have open access, and developers invest to improve the platform. Proprietary platforms have closed access, and investment is done by the platform owner. We present five main results. First, open platforms may benefit from limited developer access. Second, an open platform may lead to higher investment than a proprietary platform. Third, opening one side of a proprietary platform may lower incentives to invest in platform quality. Fourth, the structure of access prices of the proprietary platform depends on (i) how changes in the number of developers affect the incentives to invest in the open platform, and (ii) how investment in the open platform affects the revenues of the proprietary platform. Finally, a proprietary platform may benefit from higher investment in the open platform. This result helps explain why the owner of a proprietary platform such as Microsoft has chosen to contribute to the development of Linux.

    Keywords: Motivation and Incentives; Technology Platform; Open Source Distribution; Investment;

    Citation:

    Casadesus-Masanell, Ramon, and Gaston Llanes. "Investment Incentives in Open-Source and Proprietary Two-Sided Platforms." Journal of Economics & Management Strategy (forthcoming). View Details
  4. When Does a Platform Create Value by Limiting Choice?

    We present a theory for why it might be rational for a platform to limit the number of applications available on it. Our model is based on the observation that even if users prefer application variety, applications often also exhibit direct network effects. When there are direct network effects, users prefer to consume the same applications to benefit from consumption complementarities. We show that the combination of preference for variety and consumption complementarities gives rise to (i) a commons problem (to better satisfy their individual preference for variety, users have an incentive to consume more applications than the number that maximizes joint utility); (ii) an equilibrium selection problem (consumption complementarities often lead to multiple equilibria, which result in different utility levels for the users); and (iii) a coordination problem (lacking perfect foresight, it is unlikely that users will end up buying the same set of applications). The analysis shows that the platform can resolve these problems and create value by limiting the number of applications available. By limiting choice, the platform may create new equilibria (including the allocation that maximizes users' utility); eliminate equilibria that give lower utility to the users; and reduce the severity of the coordination problem faced by users.

    Keywords: platform governance; direct network effects; indirect network effects; complements; tragedy of the commons; equilibrium selection; coordination; foresight; consumer behavior; Network Effects; strategy; value creation; Strategy; Value Creation; Technology Platform; Balance and Stability; Decision Choices and Conditions; Consumer Behavior; Software; Network Effects;

    Citation:

    Casadesus-Masanell, Ramon, and Hanna Halaburda. "When Does a Platform Create Value by Limiting Choice?" Journal of Economics & Management Strategy 23, no. 2 (Summer 2014): 259–293. View Details
  5. Business Model Innovation and Competitive Imitation: The Case of Sponsor-Based Business Models

    This paper provides the first formal model of business model innovation. Our analysis focuses on sponsor-based business model innovations where a firm monetizes its product through sponsors rather than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant's business model innovation once it is revealed. The results suggest that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model or conceal it by adopting a traditional business model. We also show that the value of business model innovation may be so substantial that an incumbent may prefer to compete in a duopoly rather than to remain a monopolist.

    Keywords: business model innovation; imitation; sponsor-based business model; strategic revelation; strategic concealment; Business Model; Innovation and Invention; Price; Competitive Strategy; Adoption; Value; Duopoly and Oligopoly; Product; Customers; Market Entry and Exit; Monopoly;

    Citation:

    Casadesus-Masanell, Ramon, and Feng Zhu. "Business Model Innovation and Competitive Imitation: The Case of Sponsor-Based Business Models." Strategic Management Journal 34, no. 4 (April 2013): 464–482. View Details
  6. When One Business Model Isn't Enough

    Trying to operate two business models at once often causes strategic failure. Yet LAN Airlines, a Chilean carrier, runs three models successfully. Casadesus-Masanell, of Harvard Business School, and Tarziján, of the Pontificia Universidad Católica de Chile, explore how LAN has integrated a full-service international passenger model with a premium air-cargo business model while separately operating a no-frills passenger model for domestic flights. LAN's multi-model success comes from recognizing the complementarity of its two high-end services and the distinct, or substitute, nature of its no-frills offering. LAN came to that insight by analyzing the major assets that the models share and the compatibility of the models' operational resources and capabilities. It recognized that the more the models have in common, the more likely they are to generate greater value together than apart; the less they share, the more likely they are to be best executed separately. Nevertheless, managing multiple models is a tall order. LAN has had to face greater complexity, broaden its organizational skills, increase the flexibility of its workforce, and make other investments. But by mastering three models, the company has built formidable advantages that are difficult for competitors to overcome. Its example has shown how, properly applied, the implementation of multiple business models is not a risk but rather a new tool for strategists.

    Keywords: Integration; Failure; Business Model; Service Operations; Asset Management; Value; Complexity; Competency and Skills; Business Strategy; Management Analysis, Tools, and Techniques; Risk and Uncertainty; Customer Relationship Management; Air Transportation Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Jorge Tarzijan. "When One Business Model Isn't Enough." Harvard Business Review 90, nos. 1-2 (January–February 2012). View Details
  7. Mixed Source

    We study competitive interaction between a profit-maximizing firm that sells software and complementary services and a free open source competitor. We examine the firm's choice of business model between the proprietary model (where all software modules are proprietary), the open source model (where all modules are open source), and the mixed source model (where some-but not all-modules are open). When a module is opened, users can access and improve the code, which increases quality and value creation. Opened modules, however, are available for others to use free of charge. We derive the set of possibly optimal business models when the modules of the firm and the open source competitor are compatible (and thus can be combined) and incompatible and show the following: 1) when the firm's modules are of high (low) quality, the firm is more open under incompatibility (compatibility) than under compatibility (incompatibility); 2) firms are more likely to open substitute, rather than complementary, modules to existing open source projects; and 3) there may be no trade-off between value creation and value capture when comparing business models with different degrees of openness.

    Keywords: Competition; Open Source Distribution; Profit; Sales; Software; Service Operations; Business Model; Decision Choices and Conditions; Quality; Value Creation;

    Citation:

    Casadesus-Masanell, Ramon, and Gaston Llanes. "Mixed Source." Management Science 57, no. 7 (July 2011): 1212–1230. View Details
  8. How to Design a Winning Business Model

    Most executives believe that competing through business models is critical for success, but few have come to grips with how best to do so. One common mistake is enterprises' unwavering focus on creating innovative models and evaluating their efficacy in standalone fashion—just as engineers test new technologies or products. However, the success or failure of a company's business model depends largely on how it interacts with those of the other players in the industry. (Almost any business model will perform brilliantly if a company is lucky enough to be the only one in a market.) Because companies build them without thinking about the competition, they routinely deploy doomed business models. Moreover, many companies ignore the dynamic elements of business models and fail to realize that they can design business models to generate winner-take-all effects similar to the network externalities that high-tech companies such as Microsoft, eBay, and Facebook often create. A good business model creates virtuous cycles that, over time, result in competitive advantage. Smart companies know how to strengthen their virtuous cycles, undermine those of rivals, and even use them to turn competitors' strengths into weaknesses.

    Keywords: Business Model; Design; Strength and Weakness; Competitive Strategy; Competitive Advantage;

    Citation:

    Casadesus-Masanell, Ramon, and Joan E. Ricart. "How to Design a Winning Business Model." Harvard Business Review 89, nos. 1-2 (January–February 2011): 100–107. View Details
  9. Strategies to Fight Ad-sponsored Rivals

    We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In addition to competing through adjustments of tactical variables such as price or the number of ads a product carries, we allow the incumbent to consider changes in its business model. We consider four alternative business models, a subscription-based model, an ad-sponsored model, a mixed model in which the incumbent offers a product that is both subscription-based and ad-sponsored, and a dual model in which the incumbent offers two products, one based on the ad-sponsored model and the other based on the mixed-business model. We show that the optimal response to an ad-sponsored rival often entails business model reconfigurations. We also find that when there is an ad-sponsored entrant, the incumbent is more likely to prefer to compete through the subscription-based or the ad-sponsored model, rather than the mixed or the dual model, because of cannibalization and endogenous vertical differentiation concerns. We discuss how our study helps improve our understanding of notions of strategy, business model, and tactics in the field of strategy.

    Keywords: strategy; business models; tactics; advertising; pricing; Business Model; Advertising; Competition; Quality; Price; Product Marketing;

    Citation:

    Casadesus-Masanell, Ramon, and Feng Zhu. "Strategies to Fight Ad-sponsored Rivals." Management Science 56, no. 9 (September 2010): 1484–1499. View Details
  10. Peer-to-Peer File Sharing and the Market for Digital Information Goods

    We study competitive interaction between two alternative models of digital content distribution over the Internet: peer-to-peer (p2p) file sharing and centralized client-server distribution. We present microfoundations for a stylized model of p2p file sharing where all peers are endowed with standard preferences and show that the endogenous structure of the network is conducive to sharing by a significant number of peers, even if sharing is costlier than freeriding. We build on this model of p2p to analyze the optimal strategy of a profit-maximizing firm, such as Apple, that offers content available at positive prices. We characterize the size of the p2p network as a function of the firm's pricing strategy and show that the firm may be better off setting high prices, allowing the network to survive, and acknowledging that the p2p network may work more efficiently in the presence of the firm than in its absence.

    Keywords: Competition; Distribution; Internet; Technology Networks; Management Analysis, Tools, and Techniques; Strategy; Profit; Price; Performance Efficiency;

    Citation:

    Casadesus-Masanell, Ramon, and Andres Hervas-Drane. "Peer-to-Peer File Sharing and the Market for Digital Information Goods." Journal of Economics & Management Strategy 19, no. 2 (summer 2010): 333–373. View Details
  11. From Strategy to Business Models and onto Tactics

    The notion of business model has been used by strategy scholars to refer to "the logic of the firm, the way it operates and how it creates value for its stakeholders." On the surface, this notion appears to be similar to that of strategy. We present a conceptual framework to separate and relate business model and strategy. Business model, we argue, is a reflection of the firm's realized strategy. We find that in simple competitive situations there is a one-to-one mapping between strategy and business model, which makes it difficult to separate the two notions. We show that the concepts of strategy and business model differ when there are important contingencies upon which a well-designed strategy must be based. Our framework also delivers a clear separation between tactics and strategy. This distinction is possible because strategy and business model are different constructs.

    Keywords: Business Model; Competitive Strategy; Value Creation; Business and Stakeholder Relations; Framework; Negotiation Tactics; Competition;

    Citation:

    Casadesus-Masanell, Ramon, and Joan Enric Ricart. "From Strategy to Business Models and onto Tactics." Special Issue on Business Models Long Range Planning 43, no. 2 (April 2010): 195–215. View Details
  12. Open vs. Closed Innovation: A Model of Discovery and Divergence

    When is open innovation superior to closed innovation? Through a formal simulation model, we show that an open approach to innovation allows the firm to discover combinations of product features that would be hard to envision under integration. However, when partners have divergent goals, open innovation restricts the firm's ability to establish the product's technological trajectory. The resolution of the trade-off between the benefits of discovery and the costs of divergence determines the best approach to innovation.

    Keywords: Innovation and Invention; Partners and Partnerships; Goals and Objectives; Cost vs Benefits; Integration; Product;

    Citation:

    Almirall, Esteve, and Ramon Casadesus-Masanell. "Open vs. Closed Innovation: A Model of Discovery and Divergence." Academy of Management Review 35, no. 1 (January 2010): 27–47. View Details
  13. Competing against Online Sharing

    This paper aims to explore online sharing of copyrighted content over peer-to-peer (p2p) file sharing networks and its impact on the music industry and to assess the viable business models for the industry in the future.

    Keywords: Music industry; consumers; computer networks; resource sharing; online operations; Online Technology; Copyright; Networks; Business Model; Music Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Andres Hervas-Drane. "Competing against Online Sharing." Management Decision 48, no. 8 (2010): 1247–1260. View Details
  14. Competitiveness: Business Model Reconfiguration for Innovation and Internationalization

    The purpose of this paper is to reflect on competitiveness by using the business model concept and to understand the need to adapt business models to changes in the environment.

    Keywords: Modeling innovation; business improvement; Spain; competitive strategy; Business Model; Change; Globalization; Innovation and Invention; Situation or Environment; Competition;

    Citation:

    Casadesus-Masanell, Ramon, and Joan E. Ricart. "Competitiveness: Business Model Reconfiguration for Innovation and Internationalization." Management Research 8, no. 2 (2010): 123–149. View Details
  15. Households' Willingness to Pay for 'Green' Goods: Evidence from Patagonia's Introduction of Organic Cotton Sportswear

    To shed light on individuals' willingness to pay for "green" goods (i.e., goods that are supposed to have lower adverse environmental impacts either in production or in use), we study data from the introduction by Patagonia, Inc., of organic cotton sportswear in the mid 1990s. Patagonia, a maker of high-end outdoor wear, substituted organic cotton for conventionally grown cotton in all of its sportswear (i.e., casual clothing for travel and leisure) in 1996. We find that customers were willing to pay significant premiums for organic cotton garments although the organic cotton provided no demonstrable private incremental benefits to the customer.

    Keywords: Spending; Consumer Behavior; Environmental Sustainability; Consumer Products Industry;

    Citation:

    Casadesus-Masanell, Ramon, Michael Crooke, Forest L. Reinhardt, and Vishal Vasishth. "Households' Willingness to Pay for 'Green' Goods: Evidence from Patagonia's Introduction of Organic Cotton Sportswear." Journal of Economics & Management Strategy 18, no. 1 (spring 2009): 203–233. View Details
  16. Bandwidth Allocation in Peer-to-Peer File Sharing Networks

    We present a model of bandwidth allocation in a stylized peer-to-peer file sharing network. Given an arbitrary population of peers composed of sharers and freeriders, where all peers interconnect to maximize their allocated bandwidth, we derive the expected bandwidth obtained by sharers and freeriders. We show that sharers are always better off than freeriders and that the difference decreases as the size of the network grows. This paper constitutes a first step towards providing a general analytical foundation for resource allocation in peer-to-peer networks.

    Keywords: Technology Networks; Resource Allocation;

    Citation:

    Creus Mir, Albert, Ramon Casadesus-Masanell, and Andres Hervas-Drane. "Bandwidth Allocation in Peer-to-Peer File Sharing Networks." Computer Communications 31, no. 2 (February 2008): 257–265. View Details
  17. Wintel: Cooperation and Conflict

    We study competitive interactions between Intel and Microsoft, two producers of complementary products. In a system of complements, like the PC, the value of the final product depends on how well the different components work together. This, in turn, depends on the firms' investment in complementary R&D. We ask whether Intel and Microsoft will want to cooperate and make the final product as valuable as possible. Contrary to the popular view that two tight complements will generally have well aligned incentives, we demonstrate that natural conflicts emerge over pricing, the timing of new product releases, and who captures the greatest value at different phases of product generations.

    Keywords: Conflict and Resolution; Competition; Cooperation; Value; Performance Effectiveness; Research and Development; Motivation and Incentives; Investment; Price; Product Launch; Product;

    Citation:

    Casadesus-Masanell, Ramon, and David B. Yoffie. "Wintel: Cooperation and Conflict." Management Science 53, no. 4 (April 2007): pp. 584–598. View Details
  18. Dynamic Mixed Duopoly: A Model Motivated by Linux vs. Windows

    This paper analyzes a dynamic mixed duopoly in which a profit-maximizing competitor interacts with a competitor that prices at zero (or marginal cost), with the cumulation of output affecting their relative positions over time. The modeling effort is motivated by interactions between Linux, an open-source operating system, and Microsoft's Windows, and consequently emphasizes demand-side learning effects that generate dynamic scale economies (or network externalities). Analytical characterizations of the equilibrium under such conditions are offered, and some comparative static and welfare effects are examined.

    Keywords: open source software; demand-side learning; Network Effects; Linux; mixed duopoly; competitive dynamics; business models; Duopoly and Oligopoly; Information Technology; Software; Business Model; Mathematical Methods; Technology Platform; Profit; Balance and Stability; Management Analysis, Tools, and Techniques; SWOT Analysis; Competition; Price; Information Technology Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Pankaj Ghemawat. "Dynamic Mixed Duopoly: A Model Motivated by Linux vs. Windows." Management Science 52, no. 7 (July 2006): 1072–1084. View Details
  19. Trust and Incentives in Agency

    Contracts between a principal and an agent are not formed in a vacuum. Although formal contracts between a principal and an agent contain explicit incentives for performance, the relationship between a principal and an agent also involves implicit incentives. Three types of forces provide implicit incentives: social norms, legal remedies, and market relationships. These forces create a system of trust that motivates agents to behave in a trustworthy fashion and principals to place their trust in agents. Thus, a complete description of the principal-agent relationship cannot be based on the formal contract alone. The implicit incentives that derive from the social, legal and market context reduce the need to rely on explicit incentives, allowing the principal and agent to reduce transaction costs by writing incomplete contracts.

    Keywords: Trust; Motivation and Incentives; Agency Theory; Contracts; Market Transactions; Performance; Relationships; Societal Protocols; Legal Liability; Cost;

    Citation:

    Casadesus-Masanell, Ramon, and Daniel F Spulber. "Trust and Incentives in Agency." Southern California Interdisciplinary Law Journal 15, no. 1 (fall 2005): 45–104. View Details
  20. Trust in Agency

    Existing models of the principal-agent relationship assume the agent works only under extrinsic incentives. However, many observed agency contracts take the form of a fixed payment. For such contracts to succeed, the principal must trust the agent to work in the absence of incentives. I show that agency fosters the advent of intrinsic motivation and trustworthy behavior. Three distinct motivational schemes are analyzed: norms, ethical standards, and altruism. I identify the conditions under which these mechanisms arise, and show how they promote trust. The analysis alters several important predictions of conventional models: total surplus is shared between principal and agent, the first best outcome ensues in highly uncertain environments, the principal is better off the more the agent is risk averse, and larger equilibrium extrinsic incentives need not be associated with larger effort or larger total surplus.

    Keywords: Trust; Agency Theory; Relationships; Behavior; Motivation and Incentives; Contracts; Business Model; Emotions; Forecasting and Prediction; Ethics; Standards; Risk and Uncertainty;

    Citation:

    Casadesus-Masanell, Ramon. "Trust in Agency." Journal of Economics & Management Strategy 13, no. 3 (September 2004): 375–404. View Details
  21. Probabilistic Representation of Complexity

    We study individuals' behavior in an environment that is deterministic, but too complex to permit tractable deterministic representation. Under mild conditions, behavior is represented by a unique probabilistic model in which the agent's inability to think through all contingencies of the problem translates into uncertainty about random states. We interpret this probabilistic model as embodying all patterns the agent perceives in his environment, yet allowing for the possibility that there may be important details he had missed. The implied behavior is rational in the traditional sense, yet consistent with an agent who believes his environment is too complex to warrant precise planing, foregoes finely detailed contingent rules in favor of vaguer plans, and expresses a preference for flexibility.

    Keywords: Complexity; Behavior; Problems and Challenges; Risk and Uncertainty; Planning;

    Citation:

    Al-Najjar, Nabil I., Ramon Casadesus-Masanell, and Emre Ozdenoren. "Probabilistic Representation of Complexity." Journal of Economic Theory 111, no. 1 (July 2003): 49–87. View Details
  22. Maxmin Expected Utility over Savage Acts with a Set of Priors

    This paper provides an axiomatic foundation for a maxmin expected utility over a set of priors (MMEU) decision rule in an environment where the elements of choice are Savage acts. This characterization complements the original axiomatizations of MMEU developed in a lottery-acts (or Anscombe-Aumann) framework by Gilboa and Schmeidler (1989). MMEU preferences are of interest primarily because they provide a natural and tractable way of modeling decision makers who display an aversion to uncertainty or ambiguity. The novel axioms are formulated using standard sequence techniques, which allow cardinal properties of utility be expressed directly through preferences.

    Keywords: uncertainty aversion; ambiguity; expected utility; set of priors; Knightian uncertainty; Decision Making; Game Theory; Risk and Uncertainty; Mathematical Methods;

    Citation:

    Casadesus-Masanell, Ramon, Peter Klibanoff, and Emre Ozdenoren. "Maxmin Expected Utility over Savage Acts with a Set of Priors." Journal of Economic Theory 92, no. 1 (May 2000): 35–65. View Details
  23. The Fable of Fisher Body

    General Motors' (GM) acquisition of Fisher Body is the classic example of market failure in the literature on contracts and the theory of the firm. According to the standard account, GM merged vertically with Fisher Body in 1926, a maker of auto bodies, because of concerns over transaction-specific investment and contractual hold up. That account exhibits errors of historical fact and interpretation. GM acquired a 60 percent interest in Fisher Body in 1919. Moreover, the contractual arrangements and working relationship prior to the 1926 merger exhibited trust rather than opportunism. Fisher Body's production technology did not exhibit asset specificity. The merger reflected economic considerations specific to that time not some immutable market failure. We demonstrate that vertical integration was directed at improving coordination of production and inventories, assuring GM adequate supplies of auto bodies, and providing GM with access to the executive talents of the Fisher brothers.

    Keywords: Mergers and Acquisitions; Failure; Contracts; Vertical Integration; Market Transactions; Investment; Trust; Production; Assets; Supply Chain; Opportunities; Technology; Auto Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Daniel F. Spulber. "The Fable of Fisher Body." Journal of Law & Economics 43, no. 1 (April 2000): 67–104. View Details
  24. Maxmin Expected Utility through Statewise Combinations

    This paper provides an axiomatic foundation for a maxmin expected utility over a set of priors (MMEU) decision rule in an environment where the elements of choice are Savage acts. The key axioms are stated using statewise combinations as in Gul (1992).

    Keywords: Decision Choices and Conditions; Mathematical Methods;

    Citation:

    Casadesus-Masanell, Ramon, Peter Klibanoff, and Emre Ozdenoren. "Maxmin Expected Utility through Statewise Combinations." Economics Letters 66, no. 1 (January 2000): 49–54. View Details
  25. Ford's Model-T: Pricing over the Product Life Cycle

    The pricing decisions monopolistic firms make over time are determined to a large extent by the complex interplay of two distinct sets of elements: demand- and supply-based considerations. Demand factors include the possibilities of (a) exercising dynamic price discrimination, and (b) enhancing information diffusion about the product's characteristics. The main cost (i.e., supply) element influencing pricing over the Product Life Cycle is the possibility to exploit learning economies. Although these two sets of factors — demand and supply — are inter-linked in complex ways, I will propose a methodology to separate them. I will apply this procedure to the case of Ford's Model-T. We will be able to disentangle by how much demand issues (as opposed to cost based factors) affected the level and slope of the observed price sequence. I will also point out some issues regarding experience curve estimation and will outline a technique that allows for endogenous generation of sales and unit cost predictions.

    Keywords: Experience and Expertise; Decisions; Forecasting and Prediction; Cost; Price; Information; Demand and Consumers; Monopoly; Product; Sales; Complexity; Auto Industry;

    Citation:

    Casadesus-Masanell, Ramon. "Ford's Model-T: Pricing over the Product Life Cycle." Abante: Estudios en dirección de empresas 1, no. 2 (1998): 143–65. View Details

Book Chapters

  1. Company Strategy: Business Model Reconfiguration for Innovation and Internationalization

    Keywords: Business Strategy; Business Model; Competitive Advantage; Innovation and Management; Organizational Change and Adaptation; Globalized Firms and Management;

    Citation:

    Casadesus-Masanell, Ramon, and Joan E. Ricart. "Company Strategy: Business Model Reconfiguration for Innovation and Internationalization." In Competitiveness in Catalonia: Looking Ahead—A Report of the Center SP-SP at IESE Business School. Universidad de Navarra, 2009. View Details

Working Papers

  1. Competing Complements

    In Cournot's model of complements, the producers of A and B are both monopolists. This paper extends Cournot's model to allow for competition between complements on one side of the market. Consider two complements, A and B, where the A + B bundle is valuable only when purchased together. Good A is supplied by a monopolist (e.g., Microsoft) and there is competition in the B goods from vertically differentiated suppliers (e.g., Intel and AMD). In this simple game, there may not be a pure-strategy equilibrium. With constant marginal costs, there is never a pure-strategy solution where the lower-quality B firm obtains positive market share. We also consider the case where A obtains revenue from follow-on sales, as might arise when A expects to make upgrade sales to an installed base. If profits from the installed base are sufficiently large, a pure-strategy equilibrium exists where both B firms are active in the market. Although there is competition in the complement market, the monopoly Firm A may earn lower profits in this environment. Consequently, A may prefer to accept lower future profits in order to interact with a monopolist complement in B.

    Keywords: Profit; Revenue; Monopoly; Game Theory; Competition;

    Citation:

    Casadesus-Masanell, Ramon, Barry Nalebuff, and David B. Yoffie. "Competing Complements." Harvard Business School Working Paper, No. 09-009, July 2008. (Revised March 2010.) View Details
  2. Platform Competition, Compatibility, and Social Efficiency

    Katz and Shapiro (1985) study systems compatibility in settings with one-sided plat- forms and direct network effects. We consider systems compatibility in settings with two-sided platforms and indirect network effects to develop an explanation why markets with two-sided platforms are often characterized by incompatibility with one dominant player who may subsidize access to one side of the market. We find that incompatibility gives rise to asymmetric equilibria with a dominant platform that earns more than under compatibility. We also find that incompatibility generates larger total welfare than compatibility when horizontal differences between platforms are small.

    Keywords: Network Effects; One-Sided Platforms; Two-Sided Platforms; Competition;

    Citation:

    Casadesus-Masanell, Ramon, and Francisco Ruiz-Aliseda. "Platform Competition, Compatibility, and Social Efficiency." Harvard Business School Working Paper, No. 09-058, October 2008. (Revised November 2009.) View Details
  3. Agency Revisited

    The article presents a comprehensive overview of the principal-agent model that emphasizes the role of trust in the agency relationship. The analysis demonstrates that the legal remedy for breach of duty can result in a full-information efficient outcome eliminating both moral hazard and adverse selection problems in agency. The legal remedy motivates agents to behave in a trustworthy fashion and principals to place their trust in agents. In contrast to the standard agency model, a complete description of the principal-agent relationship cannot be based on explicit incentives alone but must recognize implicit and exogenous incentives for trust behavior that derive from the legal, social, and market context. These incentives reduce the need to rely on explicit incentives, allowing the principal and agent to reduce transaction costs by using incomplete contracts.

    Keywords: Ethics; Contracts; Agency Theory; Mathematical Methods; Behavior; Trust;

    Citation:

    Casadesus-Masanell, Ramon, and Daniel F. Spulber. "Agency Revisited." Harvard Business School Working Paper, No. 10-082, March 2010. View Details

Cases and Teaching Materials

  1. Patagonia (B)

    Patagonia produces high-quality environmentally friendly garments that command significant price premiums. In Spring 2010, Patagonia rolled out a new, radical environmental initiative called "Product Lifecycle Initiative" (PLI), which was committed to lengthening the lifecycle of each product and reducing landfill waste. This case provides an update on Patagonia's PLI as well as on other company environmental and social commitments.

    Keywords: corporate strategy; environmental management; business models; beliefs; product differentiation; Product lines; Yvon Chouinard; Rose Marcario; retailing; corporate social responsibility; apparel manufacturing; Strategy; Apparel and Accessories Industry; United States;

    Citation:

    Reinhardt, Forest, Ramon Casadesus-Masanell, and Lauren Barley. "Patagonia (B)." Harvard Business School Supplement 714-465, February 2014. View Details
  2. The PGA Tour

    In 1994, the PGA Tour (the "Tour"), the dominant incumbent professional golf circuit, had created tremendous value for its players. In the 1974 season, players competed for $8 million in prize money; by the 1994 season, the total prize purse had increased to $56 million. This case series will explore the Tour's business model through the lens of business strategy. In addition to allowing students to apply the tools of strategy analysis to a novel situation, study of the Tour allows the application of business strategy concepts to a non-traditional setting given the non-profit structure of the Tour. The (A) case, the main case, allows students to parse the factors that allowed the PGA Tour to succeed in increasing the value creation for players seven-fold over a twenty-year period. Enabling this value creation was a careful aligning of the interests of TV networks, corporate sponsors, charitable beneficiaries, volunteers, and most importantly, the players.

    Having identified the crucial aspects of the Tour's business model, the case series presents numerous challenges the Tour's business model has faced. In 1994, at the end of the (A) case, the Tour was at a crossroads when professional golfer Greg Norman began publicly discussing the potential creation of a World Tour, a professional golf tour in which the best players would compete for very large purses at venues around the world. Norman's World Tour concept threatened to upend the Tour's system, siphoning away the top players. Could the PGA Tour and Norman's World Tour coexist? How serious a threat was the World Tour? What could the PGA Tour do to prevent the World Tour from gaining traction? At the same time, the Tour faced a governmental anti-trust challenge that could limit its control over players. How could the Tour respond to this challenge? How damaging would successful anti-trust action be to the Tour's model? The (B) case resolves the anti-trust and World Tour challenges. The (C) case allows an examination of the resilience of the Tour's business model in a severe financial crisis and recession in 2007/2008. After resolving this challenge in the (D) case, the (E) case examines the impact of a scandal involving Tiger Woods, one of the Tour's most prominent players. The (F) case resolves this scandal, and invites a forward-thinking analysis of future opportunities and challenges.

    Keywords: PGA Tour; Tim Finchem; Deane Beman; golf; professional golf; Sports Industry; United States;

    Citation:

    Casadesus-Masanell, Ramon, and Cole Magrath. "The PGA Tour." Harvard Business School Teaching Note 714-448, January 2014. View Details
  3. The PGA Tour (F)

    In 1994, the PGA Tour (the "Tour"), the dominant incumbent professional golf circuit, had created tremendous value for its players. In the 1974 season, players competed for $8 million in prize money; by the 1994 season, the total prize purse had increased to $56 million. This case series will explore the Tour's business model through the lens of business strategy. In addition to allowing students to apply the tools of strategy analysis to a novel situation, study of the Tour allows the application of business strategy concepts to a non-traditional setting given the non-profit structure of the Tour. The (A) case, the main case, allows students to parse the factors that allowed the PGA Tour to succeed in increasing the value creation for players seven-fold over a twenty-year period. Enabling this value creation was a careful aligning of the interests of TV networks, corporate sponsors, charitable beneficiaries, volunteers, and most importantly, the players.

    Having identified the crucial aspects of the Tour's business model, the case series presents numerous challenges the Tour's business model has faced. In 1994, at the end of the (A) case, the Tour was at a crossroads when professional golfer Greg Norman began publicly discussing the potential creation of a World Tour, a professional golf tour in which the best players would compete for very large purses at venues around the world. Norman's World Tour concept threatened to upend the Tour's system, siphoning away the top players. Could the PGA Tour and Norman's World Tour coexist? How serious a threat was the World Tour? What could the PGA Tour do to prevent the World Tour from gaining traction? At the same time, the Tour faced a governmental anti-trust challenge that could limit its control over players. How could the Tour respond to this challenge? How damaging would successful anti-trust action be to the Tour's model? The (B) case resolves the anti-trust and World Tour challenges. The (C) case allows an examination of the resilience of the Tour's business model in a severe financial crisis and recession in 2007/2008. After resolving this challenge in the (D) case, the (E) case examines the impact of a scandal involving Tiger Woods, one of the Tour's most prominent players. The (F) case resolves this scandal, and invites a forward-thinking analysis of future opportunities and challenges.

    Keywords: PGA Tour; Tim Finchem; Deane Beman; golf; professional golf; Sports Industry; United States;

    Citation:

    Casadesus-Masanell, Ramon, and Cole Magrath. "The PGA Tour (F)." Harvard Business School Supplement 714-447, January 2014. View Details
  4. The PGA Tour (E)

    In 1994, the PGA Tour (the "Tour"), the dominant incumbent professional golf circuit, had created tremendous value for its players. In the 1974 season, players competed for $8 million in prize money; by the 1994 season, the total prize purse had increased to $56 million. This case series will explore the Tour's business model through the lens of business strategy. In addition to allowing students to apply the tools of strategy analysis to a novel situation, study of the Tour allows the application of business strategy concepts to a non-traditional setting given the non-profit structure of the Tour. The (A) case, the main case, allows students to parse the factors that allowed the PGA Tour to succeed in increasing the value creation for players seven-fold over a twenty-year period. Enabling this value creation was a careful aligning of the interests of TV networks, corporate sponsors, charitable beneficiaries, volunteers, and most importantly, the players.

    Having identified the crucial aspects of the Tour's business model, the case series presents numerous challenges the Tour's business model has faced. In 1994, at the end of the (A) case, the Tour was at a crossroads when professional golfer Greg Norman began publicly discussing the potential creation of a World Tour, a professional golf tour in which the best players would compete for very large purses at venues around the world. Norman's World Tour concept threatened to upend the Tour's system, siphoning away the top players. Could the PGA Tour and Norman's World Tour coexist? How serious a threat was the World Tour? What could the PGA Tour do to prevent the World Tour from gaining traction? At the same time, the Tour faced a governmental anti-trust challenge that could limit its control over players. How could the Tour respond to this challenge? How damaging would successful anti-trust action be to the Tour's model? The (B) case resolves the anti-trust and World Tour challenges. The (C) case allows an examination of the resilience of the Tour's business model in a severe financial crisis and recession in 2007/2008. After resolving this challenge in the (D) case, the (E) case examines the impact of a scandal involving Tiger Woods, one of the Tour's most prominent players. The (F) case resolves this scandal, and invites a forward-thinking analysis of future opportunities and challenges.

    Keywords: PGA Tour; Tim Finchem; Deane Beman; golf; professional golf; Sports Industry; United States;

    Citation:

    Casadesus-Masanell, Ramon, and Cole Magrath. "The PGA Tour (E)." Harvard Business School Supplement 714-446, January 2014. View Details
  5. The PGA Tour (D)

    In 1994, the PGA Tour (the "Tour"), the dominant incumbent professional golf circuit, had created tremendous value for its players. In the 1974 season, players competed for $8 million in prize money; by the 1994 season, the total prize purse had increased to $56 million. This case series will explore the Tour's business model through the lens of business strategy. In addition to allowing students to apply the tools of strategy analysis to a novel situation, study of the Tour allows the application of business strategy concepts to a non-traditional setting given the non-profit structure of the Tour. The (A) case, the main case, allows students to parse the factors that allowed the PGA Tour to succeed in increasing the value creation for players seven-fold over a twenty-year period. Enabling this value creation was a careful aligning of the interests of TV networks, corporate sponsors, charitable beneficiaries, volunteers, and most importantly, the players.

    Having identified the crucial aspects of the Tour's business model, the case series presents numerous challenges the Tour's business model has faced. In 1994, at the end of the (A) case, the Tour was at a crossroads when professional golfer Greg Norman began publicly discussing the potential creation of a World Tour, a professional golf tour in which the best players would compete for very large purses at venues around the world. Norman's World Tour concept threatened to upend the Tour's system, siphoning away the top players. Could the PGA Tour and Norman's World Tour coexist? How serious a threat was the World Tour? What could the PGA Tour do to prevent the World Tour from gaining traction? At the same time, the Tour faced a governmental anti-trust challenge that could limit its control over players. How could the Tour respond to this challenge? How damaging would successful anti-trust action be to the Tour's model? The (B) case resolves the anti-trust and World Tour challenges. The (C) case allows an examination of the resilience of the Tour's business model in a severe financial crisis and recession in 2007/2008. After resolving this challenge in the (D) case, the (E) case examines the impact of a scandal involving Tiger Woods, one of the Tour's most prominent players. The (F) case resolves this scandal, and invites a forward-thinking analysis of future opportunities and challenges.

    Keywords: PGA Tour; Tim Finchem; Deane Beman; golf; professional golf; Sports Industry; United States;

    Citation:

    Casadesus-Masanell, Ramon, and Cole Magrath. "The PGA Tour (D)." Harvard Business School Supplement 714-445, January 2014. View Details
  6. The PGA Tour (C)

    In 1994, the PGA Tour (the "Tour"), the dominant incumbent professional golf circuit, had created tremendous value for its players. In the 1974 season, players competed for $8 million in prize money; by the 1994 season, the total prize purse had increased to $56 million. This case series will explore the Tour's business model through the lens of business strategy. In addition to allowing students to apply the tools of strategy analysis to a novel situation, study of the Tour allows the application of business strategy concepts to a non-traditional setting given the non-profit structure of the Tour. The (A) case, the main case, allows students to parse the factors that allowed the PGA Tour to succeed in increasing the value creation for players seven-fold over a twenty-year period. Enabling this value creation was a careful aligning of the interests of TV networks, corporate sponsors, charitable beneficiaries, volunteers, and most importantly, the players.

    Having identified the crucial aspects of the Tour's business model, the case series presents numerous challenges the Tour's business model has faced. In 1994, at the end of the (A) case, the Tour was at a crossroads when professional golfer Greg Norman began publicly discussing the potential creation of a World Tour, a professional golf tour in which the best players would compete for very large purses at venues around the world. Norman's World Tour concept threatened to upend the Tour's system, siphoning away the top players. Could the PGA Tour and Norman's World Tour coexist? How serious a threat was the World Tour? What could the PGA Tour do to prevent the World Tour from gaining traction? At the same time, the Tour faced a governmental anti-trust challenge that could limit its control over players. How could the Tour respond to this challenge? How damaging would successful anti-trust action be to the Tour's model? The (B) case resolves the anti-trust and World Tour challenges. The (C) case allows an examination of the resilience of the Tour's business model in a severe financial crisis and recession in 2007/2008. After resolving this challenge in the (D) case, the (E) case examines the impact of a scandal involving Tiger Woods, one of the Tour's most prominent players. The (F) case resolves this scandal, and invites a forward-thinking analysis of future opportunities and challenges.

    Keywords: PGA Tour; Tim Finchem; Deane Beman; golf; professional golf; Sports Industry; United States;

    Citation:

    Casadesus-Masanell, Ramon, and Cole Magrath. "The PGA Tour (C)." Harvard Business School Supplement 714-444, January 2014. View Details
  7. The PGA Tour (B)

    In 1994, the PGA Tour (the "Tour"), the dominant incumbent professional golf circuit, had created tremendous value for its players. In the 1974 season, players competed for $8 million in prize money; by the 1994 season, the total prize purse had increased to $56 million. This case series will explore the Tour's business model through the lens of business strategy. In addition to allowing students to apply the tools of strategy analysis to a novel situation, study of the Tour allows the application of business strategy concepts to a non-traditional setting given the non-profit structure of the Tour. The (A) case, the main case, allows students to parse the factors that allowed the PGA Tour to succeed in increasing the value creation for players seven-fold over a twenty-year period. Enabling this value creation was a careful aligning of the interests of TV networks, corporate sponsors, charitable beneficiaries, volunteers, and most importantly, the players.

    Having identified the crucial aspects of the Tour's business model, the case series presents numerous challenges the Tour's business model has faced. In 1994, at the end of the (A) case, the Tour was at a crossroads when professional golfer Greg Norman began publicly discussing the potential creation of a World Tour, a professional golf tour in which the best players would compete for very large purses at venues around the world. Norman's World Tour concept threatened to upend the Tour's system, siphoning away the top players. Could the PGA Tour and Norman's World Tour coexist? How serious a threat was the World Tour? What could the PGA Tour do to prevent the World Tour from gaining traction? At the same time, the Tour faced a governmental anti-trust challenge that could limit its control over players. How could the Tour respond to this challenge? How damaging would successful anti-trust action be to the Tour's model? The (B) case resolves the anti-trust and World Tour challenges. The (C) case allows an examination of the resilience of the Tour's business model in a severe financial crisis and recession in 2007/2008. After resolving this challenge in the (D) case, the (E) case examines the impact of a scandal involving Tiger Woods, one of the Tour's most prominent players. The (F) case resolves this scandal, and invites a forward-thinking analysis of future opportunities and challenges.

    Keywords: PGA Tour; Tim Finchem; Deane Beman; golf; professional golf; Sports Industry; United States;

    Citation:

    Casadesus-Masanell, Ramon, and Cole Magrath. "The PGA Tour (B)." Harvard Business School Supplement 714-443, January 2014. View Details
  8. The PGA Tour (A)

    In 1994, the PGA Tour (the "Tour"), the dominant incumbent professional golf circuit, had created tremendous value for its players. In the 1974 season, players competed for $8 million in prize money; by the 1994 season, the total prize purse had increased to $56 million. This case series will explore the Tour's business model through the lens of business strategy. In addition to allowing students to apply the tools of strategy analysis to a novel situation, study of the Tour allows the application of business strategy concepts to a non-traditional setting given the non-profit structure of the Tour. The (A) case, the main case, allows students to parse the factors that allowed the PGA Tour to succeed in increasing the value creation for players seven-fold over a twenty-year period. Enabling this value creation was a careful aligning of the interests of TV networks, corporate sponsors, charitable beneficiaries, volunteers, and most importantly, the players.

    Having identified the crucial aspects of the Tour's business model, the case series presents numerous challenges the Tour's business model has faced. In 1994, at the end of the (A) case, the Tour was at a crossroads when professional golfer Greg Norman began publicly discussing the potential creation of a World Tour, a professional golf tour in which the best players would compete for very large purses at venues around the world. Norman's World Tour concept threatened to upend the Tour's system, siphoning away the top players. Could the PGA Tour and Norman's World Tour coexist? How serious a threat was the World Tour? What could the PGA Tour do to prevent the World Tour from gaining traction? At the same time, the Tour faced a governmental anti-trust challenge that could limit its control over players. How could the Tour respond to this challenge? How damaging would successful anti-trust action be to the Tour's model? The (B) case resolves the anti-trust and World Tour challenges. The (C) case allows an examination of the resilience of the Tour's business model in a severe financial crisis and recession in 2007/2008. After resolving this challenge in the (D) case, the (E) case examines the impact of a scandal involving Tiger Woods, one of the Tour's most prominent players. The (F) case resolves this scandal, and invites a forward-thinking analysis of future opportunities and challenges.

    Keywords: PGA Tour; Tim Finchem; Deane Beman; golf; professional golf; Sports Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Cole Magrath. "The PGA Tour (A)." Harvard Business School Case 714-442, December 2013. View Details
  9. Modern Family Planning: The Business of Circle Surrogacy

    The business of surrogacy, a boutique practice with client costs upwards of $100,000, allowed couples and individuals from a variety of backgrounds, ages, and sexual orientations to build families. This case examines Circle Surrogacy (CS), one of the premier surrogacy agencies in the world, as its president and founder, John Weltman, was about to share an executive presentation with his core management team where he would recommend an option to outsource its surrogacy services. While the changing cultural and regulatory environment had made surrogacy possible for more people, it remained cost-prohibitive for the majority of its eligible audience. Weltman's proposal, if enacted, would create a new opportunity for CS, increasingly faced with competition from other agencies, to offer lower cost surrogacies to intended parents. However, the launch of an outsourced surrogacy service would threaten the company's core value proposition and challenge its prevailing high-touch, premium strategy. How should Weltman and CS best proceed?

    Keywords: family planning; platform; competitive advantage; law; globalization; Competitive Strategy; United States; Ukraine;

    Citation:

    Casadesus-Masanell, Ramon, and Blake Landro. "Modern Family Planning: The Business of Circle Surrogacy." Harvard Business School Case 714-418, August 2013. (Revised October 2013.) View Details
  10. Coursera

    By providing free and open-access online courses at a large scale, Massive Open Online Course (MOOC) platforms seek to innovate the business models of the traditional higher education industry. In a little over a year, Coursera had grown at a rapid rate to emerge as a leader of the MOOCs in terms of the number of student enrollments, courses, and partners. The case examines two aspects of these developments in the industry: (1) What choices did Coursera make that enabled it to grow so quickly? (2) In what ways did Coursera's success impact the success of its competitors, Udacity and edX? Would one player naturally come to dominate the industry, and if so, what choices should Coursera make to retain its market positioning?

    Keywords: business models; strategy; competition; competitive advantage; Education Industry; Technology Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Hyunjin Kim. "Coursera." Harvard Business School Case 714-412, August 2013. View Details
  11. Maersk Line and the Future of Container Shipping

    Keywords: corporate social responsibility; supply and demand; environment; competitive advantage; commodity; Natural Environment; Corporate Social Responsibility and Impact; Competitive Advantage; Shipping Industry;

    Citation:

    Reinhardt, Forest, Ramon Casadesus-Masanell, and Frederik Nellemann. "Maersk Line and the Future of Container Shipping." Harvard Business School Case 712-449, May 2012. (Revised June 2012.) View Details
  12. eBay, Inc. and Amazon.com (A)

    This case has been designed to explore strategic interactions among organizations with different business models. The case considers how a competitor successfully challenged the incumbent in a platform market defined by strong network effects and high switching costs. The case allows students to assess the advantages and disadvantages of eBay's platform business model in comparison to Amazon's retail business model; to evaluate business model performance when value loops of two industry players interact; to analyze how Amazon expanded its business model and overcame barriers to entry in a platform market that generates winner-take-all effects for first movers; discuss how eBay can respond to the new competitive dynamic, exploring both tactical and strategic interactions; and assess the strategic implications of eBay's 2011 acquisition of GSI Commerce.

    Citation:

    Casadesus-Masanell, Ramon, and Anant Thaker. "eBay, Inc. and Amazon.com (A)." Harvard Business School Case 712-405, April 2012. (Revised October 2013.) View Details
  13. eBay, Inc. and Amazon.com (B)

    A decade after BusinessWeek declared the competitive battle between eBay, Inc., and Amazon.com "a defining moment for e-commerce," Amazon established itself as the leader. eBay must decide what strategy to use in order to regain the upper hand: maintain its current platform business model or make a radical change by transforming itself into a services provider.

    Citation:

    Casadesus-Masanell, Ramon, and Anant Thaker. "eBay, Inc. and Amazon.com (B)." Harvard Business School Supplement 712-406, April 2012. (Revised October 2013.) View Details
  14. Competing through Business Models: Introductory Note for Students (Half-Course Version)

    Keywords: Business Model; Competitive Strategy;

    Citation:

    Halaburda, Hanna, and Ramon Casadesus-Masanell. "Competing through Business Models: Introductory Note for Students (Half-Course Version)." Harvard Business School Course Overview Note 711-489, February 2011. (Revised March 2012.) View Details
  15. The Offshore Drilling Industry in 2011

    After booming in 2007 and early 2008, the offshore drilling industry slumps in 2009. Lower oil prices lead oil companies to reduce drilling budgets, and rig utilization falls from essentially 100% to 70% in some markets. Day rates--the prices paid for a rig's services--fall by as much as 68%. The case illustrates how supply and demand work together to determine prices and utilization in the short run, as well as how long-run supply is determined in an industry where capacity additions take several years. Also describes how advances in deep-water drilling technology are changing industry structure.

    Keywords: Technological Innovation; Metals and Minerals; Demand and Consumers; Price; Industry Structures; Supply and Industry; Mining; Mining Industry; Energy Industry;

    Citation:

    Casadesus-Masanell, Ramon, Kenneth Corts, and Joseph McElroy. "The Offshore Drilling Industry in 2011." Harvard Business School Case 711-543, May 2011. (Revised August 2011.) View Details
  16. La Fageda

    La Fageda is a manufacturer of high-quality, naturally-made yogurts in northern Catalonia, Spain. La Fageda is substantially different from its main competitors such as multinational Danone in that it is a 270-person workers' cooperative with 60 percent of its membership made up of mentally disabled individuals. Since its establishment in 1982, the organization has aimed to integrate the mentally disabled by providing meaningful jobs and dignified salaries. As of March 2010, La Fageda has opened up a new production facility to make ice cream in an urban area outside of its well-known agricultural farm. Students are faced with understanding La Fageda's business model and how it competes against multinationals.

    Keywords: Agribusiness; Business Model; Production; Cooperative Ownership; Quality; Competition; Agriculture and Agribusiness Industry; Spain;

    Citation:

    Casadesus-Masanell, Ramon, Joan Enric Ricart, and Jordan Mitchell. "La Fageda." Harvard Business School Case 711-452, November 2010. (Revised June 2011.) View Details
  17. Samsung and Google TV

    This case describes Samsung's decision on how to pursue the growing market opportunity for internet-connected televisions, which enable consumers to access a range of web-based content including basic information (e.g. stock quotes, weather, news headlines, RSS feeds, etc.) and video media (e.g. YouTube videos, television episodes, movies) that is available on the internet. By late 2010, this market had exploded with a number of different players; while Samsung was the market leader with its Internet@TV solution, Google had also entered the space with Google TV, a software platform that would enable internet access from the TV, which could be licensed by TV and device manufacturers to include in their products. Key industry players, such as Sony, had thrown their support behind Google TV and had already begun releasing Google TV devices. Samsung needed to decide whether they would double down on their existing Internet@TV efforts, abandon Internet@TV and instead focus on Google TV, or try to pursue both in parallel.

    Keywords: Competitive Strategy; Technology Platform; Internet; Decision Choices and Conditions; Electronics Industry;

    Citation:

    Casadesus-Masanell, Ramon, Prithvi Raj, and Crystal Jean Marrie. "Samsung and Google TV." Harvard Business School Case 711-505, April 2011. View Details
  18. LAN Airlines in 2008: Connecting the World to Latin America (B)

    Provides updated facts on Lan Airlines as of 2010. It is meant to be used as a supplement to "Lan Airlines in 2008: Connecting the World to Latin America" (Harvard Business School Case 709-410).

    Keywords: Business Model; Competitive Advantage; Air Transportation Industry; Latin America;

    Citation:

    Casadesus-Masanell, Ramon, and Jorge Tarzijan. "LAN Airlines in 2008: Connecting the World to Latin America (B)." Harvard Business School Supplement 711-461, November 2010. View Details
  19. Patagonia

    Patagonia was deeply committed to the environment. This commitment, at times, conflicted with the company's goal to create the most innovative products in its industry. Patagonia's founder and executives welcomed imitation of both its environmental commitment and its culture. The question remained whether Patagonia's model would work well for a wide range of companies. In 2003, Patagonia executives were considering which products and markets would fit best into their portfolio of product lines, which included alpine, skiing, snowboarding, fishing, paddling, rock climbing, surfing, kayaking, and mountain biking. There was a tradeoff between alienating its core customers and achieving growth via entry into new product markets.

    Keywords: Business History; Environmental Sustainability; Business Model; Business Strategy; Expansion; Consumer Products Industry;

    Citation:

    Reinhardt, Forest L., Ramon Casadesus-Masanell, and Hyun Jin Kim. "Patagonia." Harvard Business School Case 711-020, August 2010. (Revised October 2010.) View Details
  20. Competing through Business Models

    This note was prepared to aid instructors in the EC course “Competing through Business Models” (CTBM). Describes the course objectives; the conceptual framework used in the course; some central principles that emerge from this framework; and the modular structure of the course, together with the topics and cases each module covers.

    Keywords: Curriculum and Courses; Business Model;

    Citation:

    Casadesus-Masanell, Ramon. "Competing through Business Models." Harvard Business School Course Overview Note 710-470, April 2010. View Details
  21. BP and the Consolidation of the Oil Industry, 1998-2002; and Supplement (TN)

    Keywords: Energy Industry;

    Citation:

    Reinhardt, Forest L., Ramon Casadesus-Masanell, and David J Hanson. "BP and the Consolidation of the Oil Industry, 1998-2002; and Supplement (TN)." Harvard Business School Teaching Note 706-048, April 2006. (Revised March 2010.) View Details
  22. Peer-to-Peer File Sharing and the Market for Digital Information Goods

    We study competitive interaction between two alternative models of digital content distribution over the Internet: peer-to-peer (p2p) file sharing and centralized client-server distribution. We present microfoundations for a stylized model of p2p file sharing where all peers are endowed with standard preferences and show that the endogenous structure of the network is conducive to sharing by a significant number of peers, even if sharing is costlier than freeriding. We build on this model of p2p to analyze the optimal strategy of a profit-maximizing firm, such as Apple, that offers content available at positive prices. We characterize the size of the p2p network as a function of the firm's pricing strategy, and show that the firm may be better off setting high prices, allowing the network to survive, and that the p2p network may work more efficiently in the presence of the firm than in its absence.

    Keywords: Price; Profit; Distribution; Competition; Internet; Technology Networks;

    Citation:

    Casadesus-Masanell, Ramon, Andres Hervas, and Jordan Mitchell. "Peer-to-Peer File Sharing and the Market for Digital Information Goods." Harvard Business School Case 706-479, January 2006. (Revised March 2010.) View Details
  23. Peer-to-Peer File Sharing and the Market for Digital Information Goods (TN)

    Keywords: Information Technology;

    Citation:

    Casadesus-Masanell, Ramon, Andres Hervas-Drane, and Jordan Mitchell. "Peer-to-Peer File Sharing and the Market for Digital Information Goods (TN)." Harvard Business School Teaching Note 706-487, March 2006. (Revised March 2010.) View Details
  24. Finland's S Group: Competing with a Cooperative Approach to Retail (TN)

    Teaching Note for [709409].

    Keywords: Groups and Teams; Competition; Cooperation; Retail Industry;

    Citation:

    Casadesus-Masanell, Ramon, Jordan Mitchell, and Samuli Skurnik. "Finland's S Group: Competing with a Cooperative Approach to Retail (TN)." Harvard Business School Teaching Note 709-507, June 2009. (Revised March 2010.) View Details
  25. Osho®: From Spirituality to Business? (TN)

    Teaching Note for [709408].

    Keywords: India;

    Citation:

    Casadesus-Masanell, Ramon, Joan Jové Balasch, Claudia Pániker Rumeu, and Jordan Mitchell. "Osho®: From Spirituality to Business? (TN)." Harvard Business School Teaching Note 710-404, July 2009. (Revised March 2010.) View Details
  26. Airbus vs. Boeing: Parts (TN) (A) to (F)

    Teaching Note for [707447], [707448], [707449]. [707450], [707451], and [707452].

    Keywords: Lawsuits and Litigation;

    Citation:

    Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell. "Airbus vs. Boeing: Parts (TN) (A) to (F)." Harvard Business School Teaching Note 710-405, July 2009. (Revised March 2010.) View Details
  27. Two Ways to Fly South: Lan Airlines and Southwest Airlines (TN)

    Teaching Note for 707414.

    Keywords: Air Transportation; Air Transportation Industry;

    Citation:

    Casadesus-Masanell, Ramon, Jorge Tarzijan, and Jordan Mitchell. "Two Ways to Fly South: Lan Airlines and Southwest Airlines (TN)." Harvard Business School Teaching Note 710-422, August 2009. (Revised March 2010.) View Details
  28. Intel Corporation: 1968-2003; Intel Corporation: 2005 (TN)

    Teaching Note to (9-703-427).

    Keywords: Computer Industry;

    Citation:

    Casadesus-Masanell, Ramon, David B. Yoffie, and Sasha Mattu. "Intel Corporation: 1968-2003; Intel Corporation: 2005 (TN)." Harvard Business School Teaching Note 704-465, January 2004. (Revised March 2010.) View Details
  29. The Newsprint Industry

    Describes the 1990s consolidation on the newsprint industry. Questions whether consolidation will ever deliver on its promise. Whereas some industry observers maintain that the effects of consolidation are already visible, others argue that further consolidation is necessary. Others, however, claim that because newsprint is a commodity and firms compete on the basis of price, consolidation will not restore industry profitability. Data to build individual firm and industry supply curves for 2001 is available upon further request. Illustrates the transition from a perfectly competitive industry (demand and supply) to oligopolistic competition (Porter's five forces).

    Keywords: Five Forces Framework; Duopoly and Oligopoly; Monopoly; Mathematical Methods; Competition; Consolidation; Pulp and Paper Industry;

    Citation:

    Casadesus-Masanell, Ramon, Nabil I. Al-Najjar, and James Pyke. "The Newsprint Industry." Harvard Business School Case 703-404, November 2002. (Revised March 2010.) View Details
  30. Symantec vs. McAfee: Competing in the Consumer Anti-virus Industry

    Symantec and McAfee hold 53.6% and 18.8% respectively, of the anti-virus software market as of 2006. While the market is concentrated with five firms controlling over 90%, Microsoft is on the eve of releasing a consumer security subscription packed called OneCare Live. Other changes in the industry are also afoot--McAfee has switched its focus to distribute antivirus subscriptions through Internet Service Providers.

    Keywords: Business Model; Market Entry and Exit; Competitive Strategy; Software; Information Technology Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Jordan Mitchell. "Symantec vs. McAfee: Competing in the Consumer Anti-virus Industry." Harvard Business School Case 707-413, July 2006. (Revised March 2010.) View Details
  31. Two Ways to Fly South: Lan Airlines and Southwest Airlines

    To maximize their effectiveness, color cases should be printed in color. Looks at the different business models of two highly successful and profitable airlines: Chilean-based Lan Airlines and U.S.-based Southwest Airlines. Lan Airlines pursues a hub-to-spoke international full-service model where passenger and cargo operations are highly integrated. Southwest, on the other hand, is set up for a point-to-point, low-fare, "no frill's" service with a homogenous fleet. Designed for a course on the design of business models. Includes color exhibits.

    Keywords: Business Model; Service Operations; Competitive Advantage; Air Transportation Industry; United States; Chile;

    Citation:

    Casadesus-Masanell, Ramon, Tarun Khanna, Jorge Tarzijan, and Jordan Mitchell. "Two Ways to Fly South: Lan Airlines and Southwest Airlines." Harvard Business School Case 707-414, November 2006. (Revised March 2010.) View Details
  32. Note on the Bus Industry

    Supplements the "Irizar in 2005" case. Briefly documents key points in the motor coach industry such as market size, categories of buses, reasons for purchasing, and the basis for competition amongst motor coach manufacturers.

    Keywords: Markets; Production; Strategy; Competition; Transportation Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Jordan Mitchell. "Note on the Bus Industry." Harvard Business School Case 708-435, July 2007. (Revised March 2010.) View Details
  33. McDonald's Plan to Win (A)

    As of 2007, McDonald's had made significant progress on its “Plan to Win,” and the company was rewarded by reaching an all-time high share price. However, McDonald's competitors had expanded beyond the typical fast food giants, such as Wendy's and Burger King, as restaurants such as Dunkin Donuts and Starbucks, as well as new entrants such as Panera Bread and Quiznos began offering meals and snacks throughout the day.

    Keywords: Business Model; Competitive Strategy; Complexity; Supply and Industry; Retail Industry; Food and Beverage Industry;

    Citation:

    Casadesus-Masanell, Ramon, Karla Ingrid Gravis, and Annette Kristine Rodriguez. "McDonald's Plan to Win (A)." Harvard Business School Case 709-419, July 2008. (Revised March 2010.) View Details
  34. Sotheby's & Christie's Inc.

    The fine art auction business has remained a duopoly over its 250 year history. The industry is dominated by Sotheby's and Christie's Inc. Curiously, neither competitor has been able to overtake the other by a notable margin despite the clear network effects of this platform business. As we enter unprecedented economic times, as technology pushes forward infiltrating almost all areas of business, and as new competitors fight to enter the fine art sales space, these two auction houses explore modifications to their business model. Some efforts by the two organizations have already begun but are in the infantile stage and thus the success of these initiatives is entirely unproven. Sotheby's and Christie's must decide how to respond to this economic and cultural turning point and whether to keep investing in these ancillary aspects of their operations.

    Keywords: Arts; Business Model; Restructuring; Economics; Auctions; Market Entry and Exit; Two-Sided Platforms; Duopoly and Oligopoly; Operations; Competition;

    Citation:

    Casadesus-Masanell, Ramon, and Catherine Jane Wise. "Sotheby's & Christie's Inc." Harvard Business School Case 710-412, July 2009. (Revised March 2010.) View Details
  35. Mondragon Corporacion Cooperativa (MCC)

    Mondragon Corp. Cooperativa (MCC) is a conglomerate of more than 100 cooperatives in Basque Country, Spain. From 1996, MCC has pursued an internationalization strategy. As the company goes global, MCC's business model, based on trust and social involvement, seems to be threatened. Can MCC effectively become a global player while being truthful to the principles on which its past successes have been built?

    Keywords: Business Conglomerates; Business Model; Global Strategy; Cooperative Ownership; Trust; Spain; Basque Provinces;

    Citation:

    Casadesus-Masanell, Ramon, and Tarun Khanna. "Mondragon Corporacion Cooperativa (MCC)." Harvard Business School Case 702-457, February 2002. (Revised March 2010.) View Details
  36. Palm (A): The Debate on Licensing Palm's OS (1997)

    This case series looks at three important inflection points in Palm's history that relate to decisions about its platform: when the company was debating whether to open its operating system (OS) for licensing to third-party hardware manufacturers; 2001, when the company was deciding whether to split into two separate companies; and, 2005, when the company was migrating from its own OS into Linux. (The last part, set in 2008, is an epilogue). By looking at Palm's decision concerning its platform over time, students are asked to consider how Palm's decisions affect innovation, competitiveness, value creation and value capture.

    Keywords: Business Model; Debates; Decisions; Innovation and Invention; Product Launch; Production; Competition; Value Creation; Information Technology Industry;

    Citation:

    Casadesus-Masanell, Ramon, Kevin Boudreau, and Jordan Mitchell. "Palm (A): The Debate on Licensing Palm's OS (1997)." Harvard Business School Case 708-514, May 2008. (Revised March 2010.) View Details
  37. Palm (B): 2001

    This case series looks at three important inflection points in Palm's history that relate to decisions about its platform: when the company was debating whether to open its operating system (OS) for licensing to third-party hardware manufacturers; 2001, when the company was deciding whether to split into two separate companies; and, 2005, when the company was migrating from its own OS into Linux. (The last part, set in 2008, is an epilogue). By looking at Palm's decision concerning its platform over time, students are asked to consider how Palm's decisions affect innovation, competitiveness, value creation and value capture.

    Keywords: History; Decisions; Business Model; Technological Innovation; Strategy; Value Creation; Technology Platform; Rights; Competition; Computer Industry;

    Citation:

    Casadesus-Masanell, Ramon, Kevin Boudreau, and Jordan Mitchell. "Palm (B): 2001." Harvard Business School Supplement 708-515, May 2008. (Revised March 2010.) View Details
  38. Palm (C): 2005

    This case series looks at three important inflection points in Palm's history that relate to decisions about its platform: when the company was debating whether to open its operating system (OS) for licensing to third-party hardware manufacturers; 2001, when the company was deciding whether to split into two separate companies; and, 2005, when the company was migrating from its own OS into Linux. (The last part, set in 2008, is an epilogue). By looking at Palm's decision concerning its platform over time, students are asked to consider how Palm's decisions affect innovation, competitiveness, value creation and value capture.

    Keywords: History; Decisions; Business Model; Technological Innovation; Value Creation; Technology Platform; Rights; Competition;

    Citation:

    Casadesus-Masanell, Ramon, Kevin Boudreau, and Jordan Mitchell. "Palm (C): 2005." Harvard Business School Supplement 708-516, May 2008. (Revised March 2010.) View Details
  39. Palm (D): Epilogue as of 2008

    This case series looks at three important inflection points in Palm's history that relate to decisions about its platform: when the company was debating whether to open its operating system (OS) for licensing to third-party hardware manufacturers; 2001, when the company was deciding whether to split into two separate companies; and, 2005, when the company was migrating from its own OS into Linux. (The last part, set in 2008, is an epilogue). By looking at Palm's decision concerning its platform over time, students are asked to consider how Palm's decisions affect innovation, competitiveness, value creation and value capture.

    Keywords: History; Decisions; Business Model; Technological Innovation; Value Creation; Technology Platform; Rights; Competition;

    Citation:

    Casadesus-Masanell, Ramon, Kevin Boudreau, and Jordan Mitchell. "Palm (D): Epilogue as of 2008." Harvard Business School Supplement 708-517, May 2008. (Revised March 2010.) View Details
  40. Finland's S Group: Competing with a Cooperative Approach to Retail

    The case looks at the two dominant Finnish retailers: S Group and Kesko. S Group is a customer-owned cooperative, which has a unique holding structure whereby 1.7 million residents (or 70 percent of Finnish households) own 22 regional cooperatives. In turn, the regional cooperatives own SOK, a centralized company that provides services to the regional cooperatives. Throughout the 1980s and 1990s, S Group lagged far behind the market leader, Kesko. However, since 2005, S Group has held the leadership position; in 2007, it had captured 41 percent market while Kesko's was 33.9 percent. Kesko Plc is publicly traded and pursues a model whereby retailer entrepreneurs use their personal funds to invest in stores and operate them completely. The case requires that students consider sources of competitive advantage that arise from the companies' markedly different business models.

    Keywords: Business Model; Cooperative Ownership; Public Ownership; Competitive Advantage; Retail Industry; Finland;

    Citation:

    Casadesus-Masanell, Ramon, Tarun Khanna, Samuli Skurnik, and Jordan Mitchell. "Finland's S Group: Competing with a Cooperative Approach to Retail." Harvard Business School Case 709-409, August 2008. (Revised March 2010.) View Details
  41. Competing Through Business Models (D)

    This note was prepared to aid students in the EC course "Competing through Business Models."

    Keywords: Business Model; Competitive Strategy;

    Citation:

    Casadesus-Masanell, Ramon, and Taylor Philip Larson. "Competing Through Business Models (D)." Harvard Business School Module Note 710-410, September 2009. (Revised March 2010.) View Details
  42. Airbus vs. Boeing (C): Developments from 1996 to 1999

    Keywords: Business Model; Air Transportation Industry;

    Citation:

    Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell. "Airbus vs. Boeing (C): Developments from 1996 to 1999." Harvard Business School Supplement 707-449, September 2006. (Revised February 2010.) View Details
  43. Cirque du Soleil -- The High-Wire Act of Building Sustainable Partnerships

    The case describes the history and business model of Cirque du Soleil (CdS). The case allows for a rich discussion and analysis of Cirque du Soleil's business model with an emphasis on how it interacts with that of MGM Mirage. Le Cirque and MGM's business models complement one another: MGM makes important capital investments in theaters tailored to CdS's shows that are located in the middle of MGM casinos; CdS acts as a magnet for traffic for an exclusive clientele that spends large amounts of money at the casino. CdS's partnership with MGM has been tremendously profitable. This raises the question of why hold up and opportunism have not destroyed competitive advantage for both entities: What features in CdS and MGM Mirage's business models have resulted in such a successful partnership? The case is set at a juncture where Daniel Lamarre (CdS's CEO) is looking for new opportunities for growth. Lamarre is pondering the likelihood of success of Cirque's first resident show in Asia at Tokyo Disney Resort, its entry in the Macao market, and a new partnership with two subsidiaries of Dubai World, the sovereign wealth fund of the Emirate. The question is: Can Le Cirque find a new model of complementary relationships that will be as profitable as its relationship with MGM Mirage?

    Keywords: Business Model; Investment; Profit; Globalized Markets and Industries; Growth and Development Strategy; Market Entry and Exit; Partners and Partnerships; Trust; Entertainment and Recreation Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Maxime Aucoin. "Cirque du Soleil -- The High-Wire Act of Building Sustainable Partnerships." Harvard Business School Case 709-411, June 2009. (Revised February 2010.) View Details
  44. Linux vs. Windows

    As of 2006, Microsoft is finding that its dominant position in client and server operating systems is under attack from Linux. While Linux has only 3% of the worldwide installed base of PC operating systems, it had captured 20% of the server market by the end of 2005 and was quickly becoming a formidable alternative for productivity programs with OpenOffice. Linux's "business model" to compete against Microsoft is significantly different than those of traditional for-profit software companies. Linux is open source (all code is made available for redistribution by anyone) and harnesses the collective power of thousands of programmers—both independent and employees of major software firms such as IBM, HP, Intel, Sun, and Dell—which allows it to work out bugs quickly and release new operating systems several times per year. Students are faced with the analysis of competitive interaction between the Windows and Linux business models and value loops and are asked to reason whether a clear winner will emerge.

    Keywords: Business Model; For-Profit Firms; Open Source Distribution; Competitive Strategy; Software; Value; Technology Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Jordan Mitchell. "Linux vs. Windows." Harvard Business School Case 707-465, October 2006. (Revised February 2010.) View Details
  45. Competing Through Business Models: Introductory Note for Students

    To aid students in the EC course, “Competing Through Business Models.”

    Keywords: Business Model; Competitive Strategy;

    Citation:

    Casadesus-Masanell, Ramon. "Competing Through Business Models: Introductory Note for Students." Harvard Business School Course Overview Note 710-409, July 2009. (Revised February 2010.) View Details
  46. Intel Corporation: 1997-2000

    Describes Intel's diversification strategy initiated in 1998 by CEO Craig Barrett. Initially, Barrett's strategy worked well, as market value reached $510 billion in September 2000. Just three months later, however, investor pessimism over a slowing economy and recent problems at Intel resulted in market valuation plummeting by more than 55%.

    Keywords: Economic Slowdown and Stagnation; Investment; Corporate Strategy; Diversification; Valuation; Technology Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Michael G. Rukstad. "Intel Corporation: 1997-2000." Harvard Business School Case 702-420, November 2001. (Revised February 2010.) View Details
  47. Intel Corporation: 1968-2003

    Describes three stages in Intel's history: the initial success and then collapse in DRAMs and EPROMs, its transition to and dominance in microprocessors, and its move to become the main supplier of the building blocks for the Internet economy. Allows a rich discussion of industry structure and transformation in DRAMs and microprocessors, creation of competitive advantage and value capture, and sustainability.

    Keywords: History; Organizational Change and Adaptation; Internet; Information Technology; Competitive Strategy; Corporate Strategy; Industry Structures; Information Technology Industry; Technology Industry;

    Citation:

    Casadesus-Masanell, Ramon, David B. Yoffie, and Sasha Mattu. "Intel Corporation: 1968-2003." Harvard Business School Case 703-427, November 2002. (Revised February 2010.) View Details
  48. Launching Telmore (A)

    When the Danish mobile phone service provider Telmore entered the market in October 2000, few people took notice. Its business model was not perceived as particularly aggressive or threatening to the industry. Less than three years later, Telmore's creative adaptation of the well-known, no-frills model of the airline industry had taken the Danish market by storm. With a combination of rock-bottom prices, simplicity, and a focus on customer satisfaction backed by a unique low-cost infrastructure, Telmore's business model, with its powerful virtuous cycles, proved to be the most successful innovation the industry had seen in many years.

    Keywords: Business Model; Disruptive Innovation; Market Entry and Exit; Creativity; Adaptation; Competitive Advantage; Telecommunications Industry; Denmark;

    Citation:

    Casadesus-Masanell, Ramon, Celso Fernandez, and Moritz Jobke. "Launching Telmore (A)." Harvard Business School Case 708-414, July 2007. (Revised February 2010.) View Details
  49. BP and the Consolidation of the Oil Industry, 1998-2002

    Examines the economics of the oil and gas industry with a focus on 1998 through 2001. Discusses the rationale behind using a growth in scale as a means to increase profitability and to gain competitive advantage. Also examines the classic strategic implications of vertical integration and questions the necessity of remaining vertically integrated in today's markets. During 1998-2001, the industry structure changed dramatically with the occurrence of a wave of merger activity. Set at the end of 2001, as BP's chief executive, Lord John Browne, ponders the company's future. BP set off the merger activity in 1998 with its combination with Amoco. Other major oil concerns quickly followed suit. Several large and dominant firms, termed "supermajors," separated themselves from the rest of the competitors. Although a large number of independent specialty firms also exist, the supermajor firms no longer believe them to be direct competitors. After the case discussion, students should be able to: 1) understand the basic economics of the oil and gas industry, 2) analyze the rationale behind vertical integration strategies, 3) analyze why the industry restructuring occurred, and 4) understand the economies of scale of the supermajor firms as well as the potential problems their immense size could create.

    Keywords: Non-Renewable Energy; Growth and Development Strategy; Industry Structures; Competitive Advantage; Consolidation; Horizontal Integration; Vertical Integration; Energy Industry;

    Citation:

    Reinhardt, Forest L., Ramon Casadesus-Masanell, and David J Hanson. "BP and the Consolidation of the Oil Industry, 1998-2002." Harvard Business School Case 702-012, March 2002. (Revised January 2010.) View Details
  50. Greenpeace

    Nearly all environmental organizations have a similar aim: to stop the degradation of the natural environment. However, the strategies which environmental organizations choose to employ are sometimes starkly different. Compares the models of two dissimilar environmental powerhouses: Greenpeace and World Wildlife Fund for Nature (WWF). Active in 100 countries, WWF works with governments, businesses, other NGOs, and communities to set up conservation programs to preserve natural habitat. In contrast, Greenpeace works to campaign for environmental change against governments and corporations and accepts funding only through individuals and foundation grants. Explores the detailed history and business models of both organizations.

    Keywords: Business Model; Business and Community Relations; Business and Government Relations; Environmental Sustainability; Non-Governmental Organizations; Business Strategy;

    Citation:

    Casadesus-Masanell, Ramon, and Jordan Mitchell. "Greenpeace." Harvard Business School Case 708-418, July 2007. (Revised November 2009.) View Details
  51. World Wildlife Fund for Nature (WWF)

    Nearly all environmental organizations have a similar aim: to stop the degradation of the natural environment. However, the strategies which environmental organizations choose to employ are sometimes starkly different. Compares the models of two dissimilar environmental powerhouses: Greenpeace and World Wildlife Fund for Nature (WWF). Active in 100 countries, WWF works with governments, businesses, other NGOs, and communities to set up conservation programs to preserve natural habitat. In contrast, Greenpeace works to campaign for environmental change against governments and corporations and accepts funding only through individuals and foundation grants. Explores the detailed history and business models of both organizations .

    Keywords: Business Model; Business and Community Relations; Business and Government Relations; Environmental Sustainability; Non-Governmental Organizations; Business Strategy;

    Citation:

    Casadesus-Masanell, Ramon, and Jordan Mitchell. "World Wildlife Fund for Nature (WWF)." Harvard Business School Case 708-417, July 2007. (Revised November 2009.) View Details
  52. Strategy Simulation: Competitive Dynamics and Wintel

    In this online simulation students study the dynamics of cooperation and competition between two markedly different businesses that both rely on the flow of PC sales. Playing the role of Microsoft or Intel, students determine product release schedules and pricing, as well as consider whether or not to coordinate schedules and frequency of releases. Asymmetries in profit potential expose students to the multi-faceted problems of cooperating and competing simultaneously. Ideal for courses in Strategy and Negotiation.

    Keywords: Competitive Strategy; Cooperation; Motivation and Incentives; Negotiation; Software; Computer Industry;

    Citation:

    Casadesus-Masanell, Ramon. "Strategy Simulation: Competitive Dynamics and Wintel." Harvard Business School Simulation 710-802, October 2009. View Details
  53. Arauco (B): "Papel" in Brazil

    This is Part B to the "Arauco: Forward Integration or Horizontal Expansion?" case. This short case looks at the company in late 2007 after it has decided to invest in a Brazilian joint venture involving forests, saw mills, and a paper mill. The case acts as an epilogue and allows students to revisit the concept of forward integration into paper in the Brazilian context.

    Keywords: Joint Ventures; Investment; Vertical Integration; Forest Products Industry; Pulp and Paper Industry; Brazil; Chile;

    Citation:

    Casadesus-Masanell, Ramon, Jorge Tarzijan, and Jordan Mitchell. Arauco (B): "Papel" in Brazil. Harvard Business School Supplement 709-416, July 2008. (Revised September 2009.) View Details
  54. Betfair vs. UK Bookmakers

    Betting exchanges provide an electronic platform that allows ordinary consumers to not only back teams to win, but also to lay odds for other punters to back. This business model allows punters to cut out the middleman of the bookmaker and leads to a much more efficient two-sided market. Betfair.com's domination of the betting exchange has threatened to undermine the core of the traditional bookmakers' business model. The case examines two aspects of the industry: (1) What specific choices did Betfair make to become the dominant betting exchange, winning the competitive battle over Flutter.com? (2) At what stages do Betfair.com's business model and those of the bookmakers interact? Will Betfair.com naturally come to dominate the industry, and if so how should the bookmakers react?

    Keywords: Business Model; Decision Choices and Conditions; Two-Sided Platforms; Market Transactions; Competition; Entertainment and Recreation Industry;

    Citation:

    Casadesus-Masanell, Ramon, and Neil Campbell. "Betfair vs. UK Bookmakers." Harvard Business School Case 709-417, July 2008. (Revised September 2009.) View Details
  55. Competing through Business Models (A)

    This note defines the concepts of business model and the value loop. It also introduces business model representations and proposes four tests for evaluating business models in isolation. This is the first note in a series of three written for the HBS elective course "Competing through Business Models."

    Keywords: Business Model; Competitive Strategy; Value;

    Citation:

    Casadesus-Masanell, Ramon, and Joan E. Ricart. "Competing through Business Models (A)." Harvard Business School Module Note 708-452, January 2008. (Revised August 2009.) View Details
  56. Competing through Business Models (B): Competitive Strategy vs. Business Models

    Keywords: Business Model; Business Strategy; Competitive Strategy;

    Citation:

    Casadesus-Masanell, Ramon, and Joan E. Ricart. "Competing through Business Models (B): Competitive Strategy vs. Business Models." Harvard Business School Module Note 708-475, January 2008. (Revised August 2009.) View Details
  57. Lan Airlines in 2008: Connecting the World to Latin America

    Lan Airlines operates three distinct models: low-cost for domestic short-haul flights, full-service for international routes; and an international cargo business, the latter of which makes up 33% of Lan's overall revenues (markedly different from many U.S. legacy carriers that derive 3% to 4% of revenues from cargo). Since a change of ownership in 1994, Lan has grown steadily and quickly at a compound annual growth rate (CAGR) of 19% from $318 million in revenues to $3.5 billion at the end of 2007. Lan is at an interesting point in history as the low-cost model was recently implemented. While early results have been strong, observers wonder if the airline can successfully manage three disparate business models.

    Keywords: Business Model; Growth and Development Strategy; Competitive Advantage; Air Transportation Industry; Latin America;

    Citation:

    Casadesus-Masanell, Ramon, Jorge Tarzijan, and Mitchel Jordan. "Lan Airlines in 2008: Connecting the World to Latin America." Harvard Business School Case 709-410, August 2008. (Revised August 2009.) View Details
  58. Arauco (A): Forward Integration or Horizontal Expansion?

    Celulosa Arauco is a major Chilean producer of market pulp and wood products. Owning over 1.2 million hectares of forest in Chile, Argentina, and Uruguay, the company's key advantage is the ideal growing conditions in which the company's forests are located. As of early 2004, Arauco is the third largest producer of market pulp (pulp sold on the open market) and is considering increasing its capacity, tying it with Brazilian competitor Aracruz as the world's largest producer. The first phase of the project has been approved by the board of directors and includes a sawmill, plywood mill, and energy complex valued at $120 million. Now, Alejandro Perez, Arauco's president and CEO, is seeking approval for the second phase of the project, which would include the company's sixth market pulp plant at a cost of $1.2 billion. Perez's concerns about the volatility of market prices for the past three years led the company to diversify into wood products like panels, medium-density fiberboard, and other remanufactured wood products. These divisions are highly successful and currently account for approximately 50% of Arauco's revenues. Perez is debating whether the company and its shareholders would be better served by a forward integration into the paper business instead of increasing the company's capacity in market pulp.

    Keywords: Decision Choices and Conditions; Competitive Advantage; Diversification; Expansion; Vertical Integration; Forest Products Industry; Chile;

    Citation:

    Casadesus-Masanell, Ramon, Jorge Tarzijan, and Jordan Mitchell. "Arauco (A): Forward Integration or Horizontal Expansion?" Harvard Business School Case 705-474, February 2005. (Revised March 2009.) View Details
  59. Airbus vs. Boeing (A)

    Looks at the development of the competitive actions between Airbus and Boeing from 1992 to 2006. Begins with the question of whether Airbus and Boeing should collaborate on the development of a VLCT (Very Large Commercial Transport) or whether Airbus should develop their own. The case series moves through to the events thereafter of Airbus' decision to pursue the A380 and Boeing's decision relating to developing a stretch 747.

    Keywords: Business Model; Decision Choices and Conditions; Competition; Cooperation; Air Transportation Industry;

    Citation:

    Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell. "Airbus vs. Boeing (A)." Harvard Business School Case 707-447, September 2006. (Revised November 2013.) View Details
  60. Airbus vs. Boeing (B): Should Airbus Build the VLCT Alone?

    Keywords: Competition; Cooperation; Decisions; Air Transportation Industry;

    Citation:

    Casadesus-Masanell, Ramon, Erich Alexander Voigt, and Jordan Mitchell. "Airbus vs. Boeing (B): Should Airbus Build the VLCT Alone?" Harvard Business School Supplement 707-448, September 2006. (Revised September 2007.) View Details
  61. Irizar in 2005

    In June 2005, Koldo Saratxaga, the leader of Basque-based luxury coach manufacturer Irizar, decided to leave after 14 years at the helm of the worker-owned cooperative. Under Saratxaga's stewardship, Irizar was saved from near bankruptcy in 1991 and has become a highly profitable industry leader with a 23.9% compound annual growth rate since 1991. The company opened a number of manufacturing sites as far-reaching as Mexico, Morocco, India, Brazil, China, and South Africa. Irizar calls itself "a project based on people" and has realized its success through a business model characterized by a narrow product focus, strict quality adherence, an empowered workforce, and a truly customer-centric organization. Irizar's model is completely different from that of most other coach manufacturing firms given the absence of unions, departments, and hierarchy. All activities are carried out by self-managed teams (teams, for example, are responsible for setting their own work schedules and objectives). Although Irizar's model has worked fantastically well for over 14 years (since Sarataga's arrival), the question now is: Will the company continue to thrive without Saratxaga? Or is Irizar's success due to Saratxaga's leadership?

    Keywords: Business Model; Business Startups; Customer Focus and Relationships; Resignation and Termination; Leadership Style; Production; Quality; Luxury; Competitive Advantage; Construction Industry; Real Estate Industry; South Africa; China; India; Mexico; Brazil;

    Citation:

    Casadesus-Masanell, Ramon, and Jordan Mitchell. "Irizar in 2005." Harvard Business School Case 706-424, March 2006. (Revised September 2006.) View Details
  62. Wintel (A): Cooperation or Conflict

    Examines the dynamic relationship between two complementors: Intel and Microsoft. Set in 1995, the case asks how Intel and Microsoft should solve a serious division between the two companies that threatens the health of the PC industry.

    Keywords: Conflict Management; Competition; Cooperation; Information Technology Industry; Computer Industry; Semiconductor Industry;

    Citation:

    Yoffie, David B., Ramon Casadesus-Masanell, and Sasha Mattu. "Wintel (A): Cooperation or Conflict." Harvard Business School Case 704-419, August 2003. (Revised March 2004.) View Details