Archivio tag per: internationalization

Digital platforms: taking over the world

Reading time: 6 minutes

15 Nov
15/11/2017
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

Digital platforms are creating anxiety among “traditional” incumbent businesses. “What if Google enters our business…?” is a common quest emerging from participants at a certain point of the scenario planning exercises we run in our classrooms. Every single business “household” in every single industry and in every single location seems to be threatened by these approaching massive waves of linked and networked clients and suppliers. Not only Airbnb it threatening the hotel business, taxis with Uber or Lyft and retailers with Amazon and Alibaba and the like, also the producers of industrial goods are watching closely Nest, Samsara, Greenwave systems and many others.

The platforms operate via a two/multi-sided market business model, connecting suppliers and buyers or providers of a service and its users, like Alibaba, Uber, or Taskrabbit. The financial sustainability of the business models based on platforms is related mainly to the economies of scale and to network effects. Once the core technology and business processes are in place, the cost of adding any new user to the platform is negligent, therefore contributing to strong economies of scale effect. In particular, once the “chasm” is crossed, the economies of scale continue persistently creating value for the platforms except for the moments when the growing amount of users is requiring the sequential production capacity updates. The network effect is enhanced by every new user (or supplier) that is making the service or the product more valuable to the existing or potential users. The scale economies and the network effect are both pushing the platform-based companies to grow, domestically and internationally.

Leggi tutto →

Coming back home again: the reshoring decision

Reading time: 6 minutes

09 Mar
09/03/2017
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

Offshoring and subsequent “coming back home again” reshoring choices by multinationals are once again raising doubts about the quality of long-term strategic decisions in both larger and smaller firms. A decision to outsource and relocate production in China and then, following the state incentives, to transfer it back to the US or Europe might be interpreted as a sign of excellent organizational flexibility, if we don’t take into account all the implicit and explicit costs related to the implementation of such important alterations to the firm’s operations and, not the least, the impact such decisions have on a firm’s reputation, research and development capabilities, perceived quality of its products and services.

Leggi tutto →

The Notebook that conquered the World. An interview with Arrigo Berni*

Reading Time: 8 minutes

19 Gen
19/01/2016
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

BerniMoleskine notebooks, today famous all over the world, were born for the second time in Milan, Italy in 1997. In the first 9 months of 2015 Moleskine Srl revenues exceeded 86 mln Euro (annual revenues in 2014 were 98 mln Euro). With Mr.Arrigo Berni, CEO of the company, we discuss how Moleskine brand is dealing with opportunities and challenges of adaptation to local cultural settings around the globe.

Leggi tutto →

VIDEO: Rebuilding clients. How to redefine your Strategy

09 Dic
09/12/2015
Foto del profilo di Antonello Garzoni

by Antonello Garzoni

SDA Professor of Strategic and Entrepreneurial Management

In 2010, Pilosio, an Italian SME specialized in the production of formwork and scaffolds, had to cope with a major crisis in the local construction market.

The company redefined its Strategy by moving to more attractive international markets and transforming the business model from a product-oriented dealer company to a total solution-oriented engineering company. Since 2011 the company has grown at a 30% CAGR and has now become a global company, with over 90% of its turnover generated abroad.

In this interview, Dario Roustayan, CEO of Pilosio, and Antonello Garzoni, SDA Professor of Strategic and Entrepreneurial Management, address the most important decisions made in order to obtain these results, focusing on how to build a customer-centric organization and on how to re-position a company at a global level.

Managing International Risk: the Art of Prevoir

Reading time: 6 minutes

18 Feb
18/02/2015
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

International markets expose firms to an ample variety of risks, comprising the currency exchange rate fluctuations. In the past two months many firms had to deal with a number of “surprises” that confirmed the two mantras of the expert scenario planners: one cannot “cheat” forever the laws of economics and the unsustainable trends will reverse, at a certain point.

It is certainly easy to discuss and interpret the past events and fish out the “early warnings” that could have indicated to us the Russian Rouble’s plunge against most of the world currencies, the Swiss franc’s appreciation and the Euro’s decline against the US Dollar. But the ability to read between the lines and to imagine the key possible scenarios of the macroeconomic, social and political context evolution is the starting point for any manager or entrepreneur.

Leggi tutto →