Metro International S.A.

Tarun   Khanna; Felix  Oberholzer-Gee; Vincent Marie Dessain; Ane  Damgaard Jensen; Anders  Sjoman

Case | HBS Case Collection | September 2007

Metro International S.A.

by Tarun Khanna, Felix Oberholzer-Gee, Vincent Marie Dessain, Ane Damgaard Jensen and Anders Sjoman

Abstract

Explores the business model of Metro International, a company publishing 70 editions of its free newspaper in 20 countries. Metro had been a pioneer in the free newspaper market, fighting incumbent publishers distributing traditional paid-for newspapers. Looks at the decision facing top management of Metro International in 2007 regarding the future strategy of the company. The company had become profitable after years of losses, but other problems had surfaced; competition had increased heavily in many markets and advertising--the free newspapers only source of income--was quickly shifting from newspapers to the Internet. Spain was a particular case in point. What had Metro International learned from experiences elsewhere on the globe and would they allow the company to make the Spanish unit profitable? What strategy should the Spanish country manager adopt?

Keywords: Business Model; Business Strategy; Competitive Strategy; Online Advertising; Advertising; Expansion; Globalized Firms and Management; Journalism and News Industry; Spain;

Format: Print

27 pages

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Citation:

Khanna, Tarun, Felix Oberholzer-Gee, Vincent Marie Dessain, Ane Damgaard Jensen, and Anders Sjoman. "Metro International S.A." Harvard Business School Case 708-429, September 2007.

Case | HBS Case Collection | January 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. View Details

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On November 11, 2016, Xi Dan, Senior Vice President of Tencent, and Ma Yongwu, Dean of Tencent Academy, were discussing how Tencent could develop new capabilities to sustain its growth miracle and entry into new technologies, expansion into B2B businesses, and internationalization.

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Metro International S.A.

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