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Online gambling : how has the market evolved since the opening of the market to competition?

On May, 13th 2010 the law was passed to open the market of online gambling to competition. Two years after, how does the market look like? Prior to that date online gambling was forbidden in France and gamblers using Gilbratar- or other exotic countries-based websites were in complete illegality. After May 2010 numerous new actors popped up and everyone was expecting hard times for the old and venerable PMU, which had the monopoly of...

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Renault: the business model is being reshaped
Jun25

Renault: the business model is being reshaped

In a post published in April 2012 we were discussing the evolution of the car production in Europe and how business models needed to be reshaped. We were in particular dealing with the case of Renault, which was producing 75% of its cars outside of France and which was faced with huge challenges. Our conclusion was that Renault had to focus on the low-end segment (which was more profitable than the middle one) and use its French...

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Lytro will fail and go bankrupt, unless …
May02

Lytro will fail and go bankrupt, unless …

Do you know Lytro ? Most probably not. The technology behind this new product is still in its infancy and distribution of the product has remained confidential. Yet it is a disruptive technology. What is Lytro ? There is a very good explanation on the science behind Lytro on their website. Let me nevertheless explain the product with my own words. Until now you were taking 2D pictures; zooming in, zooming out, focusing on one point...

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Drawing some parallels between Volkswagen and Swatch: two very similar strategies

If you are reading economic newspapers those days, chances are high you come across articles on Volkswagen and Swatch. Both groups are profits champions and analysts just love them. On the one hand Volkswagen became the world’s #2 car manufacturer and ambitions to become #1. The current #1, General Motors, which still sells more vehicles than VW but it has undergone a difficult crisis (which led the Detroit-based giant to bankruptcy)...

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Low-cost and high-profits: business models reshaped
Apr10

Low-cost and high-profits: business models reshaped

In times of economic crisis it is well known that price sensitivity increases. One visible consequence is that low-cost business models like Ryanair, Aldi, Colruyt, Ikea and the like are doing very well. They outperform actually older players and you just have to look at European airlines to feel the disruptive power of low-cost players. The airline industry is further consolidating like never before; I dare to say that even the...

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Pay What You Want
Mar19

Pay What You Want

In 2009 a paper was published in the Journal of Marketing on a new concept called “Pay What You Want” (PWYW) which seemed to be interesting for firms. This research showed counterintuitive results, namely that consumers will exploit their control and pay nothing at all or a price below the seller’s costs. The interest for this pricing method was born after the Motorhead proposed customers to pay what they wanted to download their...

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The coffee capsules war will not happen
Mar14

The coffee capsules war will not happen

Sara Lee launched last year its Nespresso-compatible capsules. In Paris only 100000 samples were given for free. In August Sara Lee announced that they had reached the 100m$ revenues with this product. Still, the question remains for me whether this can be considered a success. Last year we already challenged this assumption on our blog and we are confirming our analysis today. What if this result was only the consequence of a...

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A PESTLE analysis may have helped the eco-construction sector

One of the decisions the Belgian government took to reduce the debt was to cancel the 40% tax deduction on works carried out to reduce energy consumption (isolation, double-glass windows, …). The consequence of this decision will be to change dramatically the competition landscape for firms specialized in energy-reduction construction works. We can with certainty expect that the least robust of those firms (which have popped up in the...

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What a face !!
Jun08

What a face !!

An article published in the latest issue of the « Journal of Marketing » (It’s got the look : the effect of friendly and aggressive « facial » expressions on product liking and sales ; Jan R. Landwehr, Ann L. Mc Gill, Andréas Hermann ; vol.75 May 2011, pages 132-146) confirms in a scientific manner what some of us may have discovered themselves: we perceive human faces in products shapes (the case study of the article is based on cars...

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What is the marketing positionning of Blancpain (Swatch group)
May18

What is the marketing positionning of Blancpain (Swatch group)

Blancpain is a famous watch brand owned by the Swatch group which, in my opinion, deserves attention for several reasons. Blancpain is first of all a brand with history; not only an historical tradition of watchmaking that goes back to the 18th century, but also a more recent entrepreneurial history when the brand was revamped by the great Jean-Claude Biver. Blancpain is today the result of a subtle positioning on its 280-year history...

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Food for thought … the Apple strategy analyzed 20 years ago
May11

Food for thought … the Apple strategy analyzed 20 years ago

Back to the 90s … let’s take some distance and read what James Moore was writing about Apple strategy in the May-June 1993 issue (almost 20 years ago !) of the Harvard Business Review : Starting in the late 1970s, Tandy Corporation, Apple, and others introduced early versions of what would eventually become the personal computer. The seed innovation they all chose was the microprocessor, but these first designers also...

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Sara Lee vs. Nespresso : missed target
May02

Sara Lee vs. Nespresso : missed target

When I attended the “stratégie clients” show in Paris two weeks ago, I heard Julien Morel, the COO of Nespresso, explain how Nespresso was able to keep its market share in spite of new players like Maison du Café (Sara Lee) and Casino. While in France I went to a supermarket to test the Sara Lee capsules by myself and I’ve got an explanation. Sara Lee’s coffee is simply not as good as Nespresso’s. From a pure hedonic viewpoint the...

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Wal-Mart business cards: myth or reality
Jan24

Wal-Mart business cards: myth or reality

I had heard many times that Wal-Mart saved costs by reducing the size of its associates’ business cards. I long kept this story for a myth until I met in December with Ben Dolan in New-York. Ben is a senior Director at Sam’s club, a chain belonging to Wal-Mart. He confirmed the story and provided me with a comparison of the two formats. He also told me about this internal project which aimed at saving one single line on...

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Fedex is getting better
Aug02

Fedex is getting better

I was in a meeting with Fedex a few weeks ago at the Cologne Hub and it seems that the business is getting better (at least in the US° for them. Memphis employees have indeed received a bonus this year, the first in 4 years, whoch is a sign that things are not going that bad. Actually when you think about it, the express transport industry might undergo a new consolidation phase.  On the one hand DHL is not doing well,  it left the US...

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Customer experience: a Fedex’ priority
Jun11

Customer experience: a Fedex’ priority

I was in a meeting at Fedex German HQ in Francfort and I was pleased to see a poster on the walls with the company’s goelas for the next 5 years. Among them was an improvement of the customer experience. Well, it doesn’t surprize me really. The marked is pretty much divided between 3 players : Fedex, DHL and UPS. A myriad local players are trying to get into this market and rip off some benefits. The 3 giants pretty much...

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