Writing a Case Study

Hickory Farms

Most people of a certain age know of Hickory Farms. There were famous for their holiday gift baskets, and their expensive holiday catalogs. They sold meats, such as sausage and ham, as well as cheese and other food products.

However, as the use of the Internet increased, Hickory Farms started to lose sales. People weren't using catalogs as often, and it was costly Hickory Farms millions to maintain inventories of products that weren't selling. The company was in danger of bankruptcy.

In order to change this around, Hickory Farms slashed the number of products they sold. Originally they sold over 2500 products, but dropped that to just 300 products. They also modernized their visuals and packaging, and completely redid their website, so it would be easier for shoppers to use.

Cutting all the products and streamlining the packaging saved the company money, which they were able to pass onto their customers. Hickory Farms continues to succeed to this day, and has been very helpful to other companies that find themselves in the same situation.

Key Takeaway: It is important to change with the times and stay modern.

Ryanair

Ryanair is a discount airline company located in Ireland. It was started by two brothers, the Ryans, who wanted to take on the large airlines. However, the airline business is extremely competitive with very little profit margin.

Ryanair knew that, in order to compete, they would have to offer cheaper flights than other airlines. To do this, they cut costs wherever they could, and passed that savings on to their customers.

At first, this wasn't popular. They cut all food service on planes, and removed small comforts, such as pillows and blankets. They started to sell advertising and placed ads on seat backs. The airline seats didn't recline, and there were no seat-back pockets. This led to less garbage and the ability to clean the planes quicker.

Eventually, the promise of low fares won over the public. Their prices were so low that they were able to gain customers who normally could only afford to travel by ferry or train. Ryanair is now the largest airline in Europe, and the largest international airliner.

Key Takeaway: Focusing on a single business model and streamlining costs can help a company challenge competitors.



Apple Computer

Everyone knows Apple, Inc. If you don't own an iPhone, you know 20 people who do. But did you know that Apple once was only known as a computer company?

Apple began as Apple Computer, and they were mostly known for their Mac, or Macintosh computers. However, while the Mac was a successful and valuable computer, it could never compete with the personal computer, or PC, for market share.

Therefore, Apple wanted to branch out and start selling new tech products, such as the iPod and the iPhone. They would still make their iconic Macs and MacBooks, but the company believed the future lay in hand held devices.

When Apple Computer changed its name to Apple, Inc., non-computer products already amounted to half of their revenues. The name change allowed it to break away from being a computer company. After all, would you want to buy a phone from a computer company?

Key Takeaway: If you can't beat a competitor head-on, find other routes to increase company revenue.