Subject category:
Strategy and General Management
Published by:
University of St Gallen
Revision date: 13-Mar-2015
Length: 13 pages
Data source: Field research
Topics:
Business model innovation; Business model patterns; Business model design; Strategic renewal; Disruptive technologies; Cannibalization of core business; Photofinishing business; Photo printing business; Spin-off; Venture creation; Greenfield approach; Rapid prototyping; Digitalization; Kodak; Fujifilm
Abstract
This case study raises the issue of how to engage in business model innovation when disruptive technologies are emerging. Using the example of CEWE COLOR, a leading photofinishing service partner for the premium trademarks in the European photographic market, students will discuss how top management has managed the shift towards digitalisation. The case traces the single steps of CEWE’s process in generating and implementing new business models. Students will first discuss the competitive environment and how the companies Kodak and Fujifilm, two giants who have written history in the photography market, have approached digital photography. Subsequently, the case directs the attention on CEWE and how the company has faced this challenge by developing new business models in a spin-off venture. Students will then discuss how the spin-off was reintegrated once the new business has been scaled up. The key character in the case is Dr. Reiner Fageth. He has led the spin-off CEWE digital GmbH and became CTO of CEWE COLOR after the reintegration of the venture. The case winds up by raising issues on business model innovations the CTO should discuss in the near future.
Location:
Industry:
Size:
Around 4,000 employees, revenue of EUR528,57 million in 2013
Other setting(s):
1961-2010
About
Abstract
This case study raises the issue of how to engage in business model innovation when disruptive technologies are emerging. Using the example of CEWE COLOR, a leading photofinishing service partner for the premium trademarks in the European photographic market, students will discuss how top management has managed the shift towards digitalisation. The case traces the single steps of CEWE’s process in generating and implementing new business models. Students will first discuss the competitive environment and how the companies Kodak and Fujifilm, two giants who have written history in the photography market, have approached digital photography. Subsequently, the case directs the attention on CEWE and how the company has faced this challenge by developing new business models in a spin-off venture. Students will then discuss how the spin-off was reintegrated once the new business has been scaled up. The key character in the case is Dr. Reiner Fageth. He has led the spin-off CEWE digital GmbH and became CTO of CEWE COLOR after the reintegration of the venture. The case winds up by raising issues on business model innovations the CTO should discuss in the near future.
Settings
Location:
Industry:
Size:
Around 4,000 employees, revenue of EUR528,57 million in 2013
Other setting(s):
1961-2010