top of page
  • Writer's pictureGreat Companies

Breaking apart the value chain - Case Studies


Real World Case Studies


1. Apple's Entry into the Music Industry (Breaking Apart Existing Offerings)

Situation: The music industry was dominated by physical sales and album purchases, making it inconvenient for users who wanted specific songs.

Strategy: Apple introduced iTunes, allowing users to buy individual songs digitally. This unbundled the traditional album format.

Outcome: Apple revolutionized the music industry, making individual song purchases mainstream. However, this model was later overshadowed by streaming services like Spotify, which offered unlimited access to music for a monthly fee.


2. OTAs: Booking.com and TripAdvisor (Breaking Apart the Distribution Networks)

Situation: Travel and hotel bookings were primarily done through physical travel agencies or direct hotel bookings.

Strategy: Online Travel Agencies (OTAs) like Booking.com and TripAdvisor offered a platform to compare hotel prices, view reviews, and book instantly, making physical agencies less relevant.

Outcome: OTAs became the primary method for many travelers to book accommodations, offering convenience, variety, and competitive prices.


3. Birchbox: Subscription-based Cosmetics (Breaking Apart the Value Chain)

Situation: The cosmetics industry was vast, and consumers often found it overwhelming to choose and try new products.

Strategy: Birchbox offered a subscription service delivering samples of pre-selected high-quality cosmetics to customers, simplifying the selection process.

Outcome: Birchbox provided a unique value proposition, allowing users to try various products without the commitment of a full purchase, making the selection process more straightforward.


4. PayPal's Entry into Online Payments (Niche Entry Strategy)

Situation: Online transactions were gaining traction, but there was no dominant, user-friendly method for online payments.

Strategy: PayPal initially targeted a niche – eBay users. It provided a seamless way for eBay sellers and buyers to transact, riding the platform's popularity.

Outcome: PayPal's integration with eBay gained it massive traction. Its success led to eBay acquiring PayPal, and later, it spun off as its own entity. Today, PayPal is a dominant force in online payments, with a market value surpassing eBay.


5. Dollar Shave Club: Disruption in Men's Grooming (Breaking Apart Existing Offerings)

Situation: The men's razor market was dominated by a few major brands with high-priced products.

Strategy: Dollar Shave Club introduced a subscription model, offering quality razors at a fraction of the price through direct-to-consumer sales.

Outcome: The brand quickly gained traction, challenging traditional razor companies and eventually leading to its acquisition by Unilever for $1 billion.


6. Warby Parker: Direct-to-Consumer Eyewear (Breaking Apart the Distribution Networks)

Situation: Eyewear was primarily sold through optometrists or specialized stores, often with high markups.

Strategy: Warby Parker used a direct-to-consumer model, allowing customers to try on glasses at home and offering stylish frames at competitive prices.

Outcome: Warby Parker disrupted the traditional eyewear market, becoming a major player and setting a precedent for other D2C eyewear brands.


7. Blue Apron: Simplifying Home Cooking (Breaking Apart the Value Chain)

Situation: Many people wanted to cook at home but found it challenging to shop for ingredients or follow complicated recipes.

Strategy: Blue Apron provided pre-portioned ingredients with step-by-step recipes, removing the hassle of grocery shopping and meal planning.

Outcome: Blue Apron tapped into a new market of home cooks looking for convenience, though competition in the meal kit sector intensified over time.


8. Slack: Niche Entry in Team Communication (Niche Entry Strategy)

Situation: Team communication was fragmented across emails, messages, and various tools.

Strategy: Slack focused on providing a unified platform for team communication, initially targeting tech startups and niche industries.

Outcome: Slack's user-friendly interface and integrations made it the go-to platform for team communication, eventually expanding to larger enterprises and various sectors.


9. Zoom: Simplifying Video Communication (Breaking Apart Existing Offerings)

Situation: Video conferencing tools existed but were often complicated or required specific hardware.

Strategy: Zoom offered a user-friendly platform that worked seamlessly across devices, focusing on simplicity and quality.

Outcome: Zoom became a favorite for both corporate meetings and personal calls, especially during the COVID-19 pandemic when remote work and virtual meetings became the norm.


10. Direct-to-Consumer Wineries (Breaking Apart the Distribution Networks)

Situation: Wine distribution was primarily through retailers, with significant markups.

Strategy: Several wineries began selling directly to consumers, offering subscription boxes or memberships, and bypassing traditional distribution channels.

Outcome: D2C wineries provided consumers with unique wines at better prices, while also building a loyal customer base.

2 comments

2件のコメント


Honh Huide
Honh Huide
4月19日

Hi. Trying to find the best Indian lottery site, I came across this resource https://hariomlottery.today/. Here I found a review of the best lottery in India, the information about which was useful for me, What I like is the user-friendly interface that allows you to quickly find games and start playing. Besides, this lottery often provides bonuses that significantly increase the chances of winning.

いいね!

eleanorross0109
2023年11月20日

One notable aspect of Dissertation Writing Services is their commitment to originality and authenticity. The writers are dedicated to producing plagiarism-free content, conducting thorough research, and presenting unique perspectives on the chosen topics. This commitment to academic integrity is crucial for students who rely on these services to enhance their understanding of the subject matter and improve their overall academic performance.

いいね!
bottom of page