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Digital transformation isn't just about adopting new technology—it's about fundamentally rethinking how businesses create value, engage customers, and compete in evolving markets. You're being tested on your ability to recognize strategic patterns: why some companies successfully pivot while others fail, how different industries apply similar digital principles, and what distinguishes incremental improvement from true transformation. These case studies illustrate core concepts like platform economics, data-driven personalization, omnichannel integration, and business model innovation.
Don't just memorize which company did what. Instead, focus on understanding the underlying transformation archetype each case represents. When an exam question asks about subscription model transitions or direct-to-consumer strategies, you need to identify which companies exemplify these patterns and why their approaches succeeded. The real test is whether you can apply these lessons to new scenarios.
Some transformations require completely reimagining how a company generates revenue. Business model innovation occurs when organizations shift from one value creation mechanism to another—often moving from product-based to service-based economics.
Compare: Netflix vs. Disney+—both pursued streaming, but Netflix built its library through originals and licensing while Disney leveraged existing IP. Disney's transformation required cannibalizing existing revenue streams (theatrical, licensing), while Netflix was disrupting external competitors. If asked about transformation risk tolerance, Disney's willingness to sacrifice short-term revenue demonstrates strategic commitment.
The most valuable digital companies often evolve beyond their original business into platform models. Platform economics create value by connecting multiple user groups and enabling transactions or interactions at scale.
Compare: Amazon AWS vs. GE Predix—both attempted platform strategies, but with vastly different outcomes. AWS succeeded by serving a broad market with standardized infrastructure; Predix struggled with industrial complexity and GE's organizational challenges. This contrast illustrates that platform strategy success depends on market readiness and execution capability, not just vision.
Many established brands are reclaiming customer relationships by building direct channels. Disintermediation allows companies to capture margin, own customer data, and control brand experience.
Compare: Nike vs. Burberry—both pursued D2C and digital engagement, but for different strategic reasons. Nike sought margin improvement and data ownership; Burberry needed to reach digitally-native luxury consumers. Both demonstrate that channel strategy must align with customer expectations and competitive positioning.
Successful retailers increasingly blur the line between physical and digital. Omnichannel strategy creates seamless customer experiences across all touchpoints, using technology to unify inventory, fulfillment, and engagement.
Compare: Walmart vs. Starbucks—both leverage physical locations as fulfillment assets, but Walmart competes on convenience and price while Starbucks focuses on experience and loyalty. Walmart's transformation is defensive (responding to Amazon), while Starbucks's is offensive (creating new engagement opportunities). FRQ tip: these cases illustrate how transformation strategy varies based on competitive context.
Some transformations focus less on business models and more on operational excellence. Process digitization uses technology to reimagine how products and services reach customers.
Compare: Domino's vs. Starbucks—both transformed customer experience through mobile apps, but Domino's focused on delivery optimization while Starbucks emphasized in-store experience enhancement. Both demonstrate that digital transformation success requires aligning technology investment with core value proposition.
| Concept | Best Examples |
|---|---|
| Business Model Innovation | Netflix, Adobe, Disney+ |
| Platform/Ecosystem Strategy | Amazon AWS, GE Predix |
| Direct-to-Consumer Shift | Nike, Burberry |
| Omnichannel Integration | Walmart, Starbucks |
| Subscription Model Transition | Adobe, Netflix, Walmart+, Disney+ |
| Data-Driven Personalization | Amazon, Netflix, Nike, Starbucks |
| Operational/Delivery Innovation | Domino's, Amazon logistics |
| Legacy Company Transformation | GE, Disney, Adobe, Walmart |
Which two companies transitioned from product-based to subscription-based business models, and what common challenges did they face in managing this shift?
Compare Amazon's platform strategy with GE's Predix initiative—what factors contributed to their different outcomes?
If an FRQ asked you to identify a company that successfully cannibalized its existing business to pursue digital transformation, which case would you choose and why?
Both Nike and Walmart pursued direct-to-consumer strategies. How do their motivations and approaches differ based on their competitive contexts?
Which case study best illustrates the concept of turning internal capabilities into external platform offerings? Explain the strategic logic behind this transformation.