BUSINESS UPDATES
Spotify: A Revolution in the Music Industry?
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BUSINESS UPDATES
Nokia Launches
Take-back in India
© 2009 ICMR. All Rights Reserved. No part of this publication may be reproduced, stored in
a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic or mechanical without
permission. To order copies, call +91-40-2343-0462/63 or write to the ICMR,
Plot #49, Nagarjuna Hills, Hyderabad 500 082, India or e-mail: info@icmrindia.org. Website: www.icmrindia.org
CASE IN FOCUS
Hulu.com: A New Business Model
for Online Video?
-- V Namratha Prasad and S S George
The case describes the efforts of two media companies, Fox Broadcasting Company and NBC Universal,
to monetize online video content and compete with YouTube, through their own website, Hulu.com
(Hulu). Hulu was launched in March 2008, with a business model where revenues were generated
through advertisements placed in the videos on the site, like in conventional TV broadcasting. The case describes
the unique features of the website and also compares and contrasts the approaches to video over the
Internet followed by Hulu and YouTube. The case also discusses the reasons why Hulu broke two of its
content distribution partnerships, in February 2009, and briefly touches on its future business outlook and the
challenges it faces.
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to www.ecch.com or www.icmrindia.org
OPERATIONS
Designing Speedo LZR Racer: Speedo's Innovative and Controversial Line
of High-end Swimsuits
Syeda Maseeha Qumer and Debapratim Purkayastha This case discusses in detail the design and development of the Speedo LZR Racer, a new swimsuit
from leading manufacturer and distributor of swimsuits Speedo International. Launched on February 12,
2008, the LZR Racer was considered the world's fastest swimsuit with technically advanced features. Approved
by international swimming governing body FINA, the suit was endorsed by well-known swimming
athletes. Made from a lightweight, low drag, water repellent fabric, the LZR Racer was the first laser bonded
swimsuit with no visible seams. The suit's unique design increased the oxygen intake efficiency of the swimmers
and helped them to swim swiftly for a longer period. It compressed the swimmer's body into a streamlined
shape and enabled him/her to cut through the water with more agility.
The case explains the designing process of the suit. The product was the result of a three-year research
and development project carried out by Speedo's Research & Development team Aqualab. While designing
and developing the LZR Racer, Speedo harnessed the expertise of several agencies including US space
agency NASA, the Australian Institute of Sport (AIS), ANSYS, and international fashion label Comme des
Garçons. The new suit was readily accepted by swimmers and swimmers sporting the LZR Racer broke many
world records. As of 2008, a total of 108 world records were broken by swimmers wearing the LZR Racer.
The case also discusses the criticism faced by Speedo pertaining to the LZR Racer, as some experts felt that
the suit provided an unfair advantage to its wearers. When athletes competing in the LZR Racer suits broke
world records, several rival companies and national teams protested against the use of this
technologically-advanced swimsuit. They called it `technological doping'. The case concludes with a description of the new
amendments and requirements for swimwear approval put forth by FINA.
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to www.ecch.com or www.icmrindia.org
LEADERSHIP AND ENTREPRENEURSHIP
Leadership: The Indra Nooyi Way
-- Ranjani Jagannathan and Vivek Gupta
This case examines the importance of strategy and leadership in the transformation of a company. It
highlights the strategic vision and leadership style of PepsiCo's CEO Indra K Nooyi (Nooyi). Nooyi started her career
at PepsiCo in 1994 as Senior Vice-President (strategic planning). She rose to the post of CFO in 2001 and
later became the CEO in 2006. During her tenure at PepsiCo, she undertook a number of strategic
initiatives. Nooyi recommended spinning off Taco Bell, KFC and Pizza Hut, arguing that PepsiCo couldn't bring
enough value to the fast food industry with restaurant businesses as it required dedicated services industry
management. Nooyi also led the acquisition of Tropicana in 1998 and merger with Quaker Oats Company in 2001.
When Nooyi became the CEO of PepsiCo, the primary goal advocated by her was to achieve
`Performance with Purpose.' She implemented a number of measures to improve the sustainability of the company's
operations and image by focusing on improvements in the health implications of PepsiCo's products. She
expanded PepsiCo's business into developing markets worldwide and focused on increasing the composition of
healthy foods in PepsiCo's product portfolio.
© 2009 ICMR. All Rights Reserved. For accessing and procuring the case study, log on
to www.ecch.com or www.icmrindia.org
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