Online from: 2011
Information: About this Collection
|Title:||Zwack, Hungary: a tradition of innovation amidst challenges|
|Author(s):||Ilona Beatrice Polyak (Research Assistant, CEU Business School, Central European University, Budapest, Hungary), Yusaf Akbar (Associate Professor of Management, CEU Business School, Central European University, Budapest, Hungary)|
|Citation:||Ilona Beatrice Polyak, Yusaf Akbar, "Zwack, Hungary: a tradition of innovation amidst challenges", Emerald Emerging Markets Case Studies Collection, (2011)|
|Keywords:||Demographics, Diversification, Hungary, Innovation, Marketing, Marketing strategy|
|Article type:||Case study|
|DOI:||10.1108/20450621111114821 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.|
Subject area – Innovation, marketing, strategic decision making.
Study level/applicability – Advanced undergraduate, MBA/executive education.
Case overview – Zwack Unicum is an enduring icon of Hungarian business and culture having survived many generations of change. The case describes historical development of Zwack Unicum focusing on the years after 1989 through EU Accession of Hungary in 2004, while the company shifted away from a family business to become a publicly traded company. Elements hint at how corporate governance changes incentivize and constrain decisions of top management. The marketing strategy called “Innovate on tradition” is examined and it demonstrates how product and marketing innovation can be led by leveraging tradition, and how companies in emerging markets faced with competition from established developed-country brands can use local culture to outmaneuver attempts at market-share capture. Threats explored include the impact of a global economic crisis on sales domestically and internationally, and the changing demographics in their primary places of commercial activity (an overall aging and decreasing population in tandem with a growing minority population). Management must find a balance between short-term and long-term strategic decisions and revisit the sustainability of a marketing strategy associated with messages that are not necessarily preferred by a growing number of their consumers.
Expected learning outcomes – To understand the need for wide-perspective, flexibility, and foresight in emerging markets and companies therein.
Supplementary materials – Teaching note.
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