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Case Study: Hulk Press Inc. provides contract printing services for newspapers, magazines and other periodicals. The majority of their clients are large publishers who design the print materials and send it to Hulk Press Inc. for mass printing. This industry is extremely mature, and Hulk Press Inc. has been involved in this business for over 100 years. Over the years they have established a methodological approach to business with set policies and guidelines to maximize efficiency. Since the printing industry has largely remained the same, this business approach is still used today. Most of their employees have worked at Hulk Press Inc. for their entire careers. As a result, they are all well versed in their jobs and are very familiar with the company's explicit rules and expectations. Over the past several years, Hulk Press Inc. has been steadily losing contracts as their clients begin to shift from print to digital media. Bruce Banner, the company's CEO, believes that their business approach will have to change, and they must begin offering digital design services to remain relevant. However, while other executives agree that Hulk Press Inc.'s business model is no longer relevant, not everyone agreed that the company has the ability to offer design services. Jennifer Walters was concerned that design is only tangentially related to their current business; noting that: "Our employees are well trained for printing services, not design." She felt they were better equipped to branch out into label, signage, or large print services instead, allowing the company to draw on their current knowledge. Amadeus Cho also agreed with Bruce's assessment of the problems facing the company but questioned whether had the capabilities to branch out into the printing services suggested by Jennifer, noting that such materials is significantly different than publications.
Questions:
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