Red Flag Software Co.

Felix  Oberholzer-Gee; Tarun   Khanna; David  Lane; Elizabeth  Raabe

Case | HBS Case Collection | October 2005 (Revised February 2007)

Red Flag Software Co.

by Felix Oberholzer-Gee, Tarun Khanna, David Lane and Elizabeth Raabe

Abstract

In 2005, just five years after its formal launch, Beijing-based Red Flag Software was the world's second-largest distributor of the Linux operating system and was expecting its first annual profit. On a unit basis, Red Flag led the world in desktops (PCs) shipped with Linux and was No. 4 in installed servers. On a revenue basis, Red Flag was fourth overall. Within China, Red Flag held just over half of the Linux market and ran key applications for the postal system, large state-owned enterprises, and more than a million PCs. The Chinese government supported Linux as an alternative to Microsoft's Windows operating system to avoid royalty payments to foreign firms and dependence on foreign technology. Even so, Red Flag President Chris Zhao felt the same pressure many start-ups faced: How could Red Flag compete against a giant like Microsoft? And what competitive advantages could Zhao bring to bear against an experienced Linux veteran like Red Hat, a U.S.-based software company that had just announced its plan to invest to capture market share in China? Zhao worried that government support would evaporate if Red Flag performed poorly.

Keywords: Technology Platform; Competitive Advantage; Software; Business Startups; Globalized Markets and Industries; Information Technology Industry; Distribution Industry; Beijing; United States;

Format: Print

16 pages

Educators Purchase

Citation:

Oberholzer-Gee, Felix, Tarun Khanna, David Lane, and Elizabeth Raabe. "Red Flag Software Co." Harvard Business School Case 706-428, October 2005. (Revised February 2007.)

Zhejiang Geely Holding Company's acquisition of Volvo cars was widely viewed with skepticism because of the poor track record of cross-border auto industry acquisitons. This case looks at the acquisition and post-acquisition integration from the point of view of Chinese managers at Geely. A companion case, 613-042 Volvo Cars: Acquisition by Geely looks at the acquisition from the point of view of Swedish managers at Volvo.

Case | HBS Case Collection | January 2019 (Revised February 2019)

Rural Taobao: Alibaba's Expansion into Rural E-Commerce

Tarun Khanna, Ryan Allen, Adam Frost and Wesley Koo

Alibaba's Rural Taobao initiative had been launched in 2014 as a public service initiative to increase e-commerce adoption in China’s remote rural areas. In the first two iterations of the initiative, dubbed “1.0” and “2.0”, Alibaba had partnered with local businesses and young returnees to operate village stations. Village stations served as logistical and educational hubs to help villagers make online purchases. Despite significant growth in sales through village stations, the business model was operating at a loss, and competitors JD and Pinduoduo were growing quickly, threatening to challenge Alibaba by claiming the rural e-commerce markets. Bill Wang, the head of the initiative, was tasked with designing and implementing the next model for Alibaba’s future expansion into rural areas. The decision centers around whether Alibaba should copy the successes of competitors JD and Pinduoduo, escalate commitment to its original value proposition (hands-on service to villagers), or embrace an entirely new model. The case highlights the competing pressures of financial performance, CSR and corporate mission, government relations, and long-term competitive positioning that are common to major strategic decisions.

Keywords: strategy; Business growth; ecommerce; corporate social responsibility; Business and Government; emerging market; Market Platforms; Online Technology; Emerging Markets; Rural Scope; Growth and Development Strategy; Competitive Strategy; Corporate Social Responsibility and Impact; Business and Government Relations; Decision Making; China;

Citation:

Khanna, Tarun, Ryan Allen, Adam Frost, and Wesley Koo. "Rural Taobao: Alibaba's Expansion into Rural E-Commerce." Harvard Business School Case 719-433, January 2019. (Revised February 2019.) View Details

Cite View Details Educators

In 2000, Procter & Gamble Co. introduced Crest Whitestrips, a new, revolutionary product that allowed consumers to whiten their teeth at home. With Whitestrips, P&G created an entire new category in oral care, worth $460 million in 2002. Whitestrips sent P&G's main competitor in oral care, Colgate Palmolive Co., scrambling because several patents protected the strips, making it difficult for Colgate to copy the invention. But in September 2002, the tables turned. Colgate introduced Simply White, a favorably priced whitening product that consumers could simply paint on their teeth. One month after its introduction, Simply White had captured one half of the market, and Crest Whitestrips lost more than 50% of its share. However, P&G's tests of Simply White indicated that Colgate's new product was largely ineffective. Had Colgate just committed a major strategic blunder by introducing a product that did not work? And, if so, how could P&G best take advantage of the situation?

Faculty & Research

Red Flag Software Co.

Abstract

Citation:

About the Authors

More from these Authors