3 new business cases published by ESSEC professors

01/12/2020

ESSEC professors Ashok Som and Sofia Ramos, have published new business cases, which you can find on the Case Centre :

Giambattista Valli x H&M: The Logic of Collaboration by Ashok Som and Benedetta Mennini

Collaboration between fast fashion and celebrity designers are an increasingly common practice. The collaboration results in famous designers of luxury brands creating capsule collections and special products for fast fashion brands. Successful H&M's collaborations with designers such as Karl Lagerfeld, Versace, Balmain and Moschino among others have kept pushing the boundaries of fast fashion for the last fifteen years. In this light, the case discusses Giambattista Valli and H&M's collaboration. Specifically, the case goes on to analyze the H&M designer collaborations, with a particular focus on Giambattista Valli's positioning of #ProjectLove. It explores the topics of: (a) democratization of the luxury business - the masstige phenomenon from both a managerial and psychological/behavioral perspective; (b) collaboration as a strategic lever for both the brands; (c) imminent risk and challenges of such a strategy; (d) the dilemma of creating consumers' confusion with the associations of distant brands; (e) the pre-conditions such as advertisement and marketing campaigns needed for such collaborations to be successful; and (f) future of collab as a strategy in the fashion business in the post-COVID world.

Air France-KLM: The Post-COVID Scenario by Ashok Som 

Airlines that were flag carriers of European countries have always been a symbol of pride for the individual countries. Air France and KLM, flag carriers of France and Netherlands, had merged together to fly higher than others in the European airspace. At the same time, other flag carriers such as Alitalia, Italy's flag carrier, was treading in troubled waters, with high debt to equity ratios. New airspaces had opened up for Air France-KLM in the growing markets of Africa, Asia and South America. Wishing to reach higher altitudes with competing European airlines, Air France-KLM decided to merge with Alitalia, giving it a helping hand in the process of its turnaround. However, the political and social forces were not open to this idea of letting go Alitalia, the pride and competitive advantage of Italy, though it was loss making for years together. Meanwhile, Gulf carriers, with their brand new fleet, positioned themselves as the hub-of-the-world, were searching for an opportunity to enter Europe and gain a share in the busy mature and lucrative airspace. Competition from low cost carriers such as Ryanair and EasyJet also increased. At the same time, Air France was in trouble because of its own increasing debts. In the mean-time the alliance with AF-KLM and Alitalia failed and Etihad got ownership of Alitalia with 49% stake. This also failed. The case discusses the challenges of AF-KLM in post-COVID situation. Will they be able to restructure, have a successful bail-out and compete effectively with Gulf airlines such as Emirates and Etihad?

The Renminbi's Long March by Sofia Ramos

China's exchange rate policy has been a source of international political tensions. Chinese authorities have been accused by their trading partners of currency manipulation causing large imbalances in the global economy. This case study outlines the history of China's economic transformation after the late 70s and its relationship with the exchange rate policy. It provides an overview of the important milestones of the history of the renminbi like changes in the exchange rate policy and its entry in the International Monetary Fund's Special Drawing Rights. The case study allows students to learn about the characteristics of different exchange rate regimes, how central banks intervene in foreign exchange markets and the process of accumulation of foreign exchange reserves. The case study emphasises the importance of real exchange rate in trade competitiveness. The case study is designed for business school students following an international finance or international economics course.

The K-lab can assist professors in the creation and production of pedagogical contents as well as in their use. Contact Mathilde Cocherel (+33 1 34 43 32 78, Cergy - B120) for more information.

01/12/1985