Question

see if you can identify the value chain relationships that make the businesses of the following companies (Bloomin’ Brands, L’Oréal, and Johnson & Johnson) related in competitively relevant ways. In particular, you should consider whether there are cross-business opportunities for (1) transferring skills and technology, (2) combining related value chain activities to achieve economies of scope, and/or (3) leveraging the use of a well-respected brand name or other resources that enhance differentiation.

Bloomin’ Brands
• Outback Steakhouse
• Carrabba’s Italian Grill
• Roy’s Restaurant (Hawaiian fusion cuisine)
• Bonefish Grill (market-fresh fine seafood)
• Fleming’s Prime Steakhouse & Wine Bar

L’Oréal
• Maybelline, Lancôme, Helena Rubinstein cosmetics
• L’Oréal, Garnier, and SoftSheen-Carson hair care products
• Redken, Matrix, L’Oréal Professional, Kiehl’s, and Kérastase professional hair care and skin care products
• Ralph Lauren, Yves Saint Laurent, and Giorgio Armani fragrances
• La Roche-Posay, Vichy Laboratories, Dermablend, and SkinCeuticals dermocosmetics

Johnson & Johnson
• Baby products (powder, shampoo, oil, lotion)
• Band-Aids and other first-aid products
• Women’s health and personal care products
• Neutrogena, Lubriderm, and Aveeno skin care products
• Nonprescription drugs (Tylenol, Motrin, Pepcid AC, Mylanta, Benadryl)
• Prescription drugs
• Oral health care (Listerine, Rembrandt)
• Nutritionals (Splenda, Lactaid)
• Prosthetic and other medical devices
• Surgical and hospital products
• Vision care (Acuvue contact lenses, Visine)

Answer 1

In the case the student has to identify the Value chain relations that makes the business of related companies more competitive.

In the first part “Bloomin Brands“ we need to analyze the strategy of the company to differentiate its restaurant chain business by serving quality foods with cheap or in affordable prices at the normal places. This has happened with the transferring competitively valuable resources, expertise, technological know-how and other capabilities and the cost sharing where value chain activities can be combined at the lower prices. It is done by the help of administration or management of the company.

In the second part “L'Oréal”, we need to identify the company’s overall strategy in differentiating the high-quality products of beauty and care by the cosmetics delivery through retail distribution channels. This is done by the help of transferring competitively valuable resources, expertise, technological know-how and other capabilities and the cost sharing where value chain activities can be combined at the lower prices.

In the third part “Johnson & Johnson”, we need to identify the company’s overall strategy in differentiating the products of personal and hygiene care product to different range of customers. This is done by the leveraging use of a well-respected brand name and it is combined with the cost sharing where value chain activities can be combined.