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    Case Study

    Kipling (B): An entrepreneur in stormy weather

    By Benoit F. Leleux, Kurt Verweire and Miguel Meuleman
    20 pages
    March 2010
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    Reference: IMD-3-2154

    SEPTEMBER 1991. Paul Van de Velde and Xavier Kegels were expecting a visit from their main banker, Mr. Meuleman. Paul and Xavier had founded Kipling, a casual bag company, five years earlier, together with a third partner, Vincent Haverbeke, who provided the seed money for the venture. Shortly after lunch, the banker finally arrived. Because he had the habit of visiting Kipling about twice a year to briefly go through the financials, his visit did not seem in any way extraordinary. Unfortunately, this time around the meeting turned out very different. Mr. Meuleman had stopped by to announce that his bank would stop providing short-term lines of credit to Kipling. The Gulf War had made the banks jittery, in particular with respect to fast-growing companies requiring extensive bank loans. Kipling belonged to that not-so-exclusive-anymore club. Although the company was steadily heading towards €11 million in revenues, the bank had decided not to renew its €1.1 million revolving credit line. Kipling had three months to look for new sources of funds. Was this the end of the story or the welcome “kick in the pants” that would force the young firm to professionalize and address the issue of sustainability? Was this the kiss of death or the kiss of life? It was still a bit early to tell, but the wake up call was nasty. Maybe it was time to step back from the mystique and get their feet back on the ground. Kipling as a successful, fast-growing company had needs very different from Kipling, the startup. Maybe it was finally time to wake up to that fact and give the firm the tools it needed to be really successful. Would they be able to make that transition?

    Learning Objective
    • Building a brand
    • Globalizing a startup company
    • Professionalizing a creative startup
    • Modes of internationalization
    • Financing growth
    • Managing growth
    • Startup teams
    • Private equity
    Keywords
    Entrepreneurship, Growth Management, Marketing, Brand Building, Globalization, Professionalization, Financing Growth, Venture Capital, Private Equity, Fashion, General Management, Strategy
    Settings
    World/global, Belgium
    1991 to 1999
    Type
    Field Research
    Copyright
    © 2010
    Available Languages
    English
    Related material
    Teaching note, Video
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    This case study is part of a series
    • Kipling (A): Monkey business - Kipling tries to conquer the world
    • Kipling (B): An entrepreneur in stormy weather
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    Reference IMD-3-2153
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    Available Languages English
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    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
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    Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2619 ©2024
    Summary
    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.
    Reference IMD-7-2619
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
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    Overcoming adversity through innovation – Daikin at 100 (C): China market lessons

    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domest...

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    By Kazuo Ichijo and Yunfei Feng
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    Read more
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    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2620 ©2024
    Summary
    Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domestic brands like Gree and Midea. Despite the initial challenges of breaking through in a fragmented and competitive landscape, Daikin’s innovative inverter technology became a distinguishing feature of its product offerings. The watershed moment in Daikin’s trajectory occurred in 2008 when it formed a strategic partnership with Gree, China’s largest air conditioner manufacturer. This collaboration enabled Daikin to tap into Gree’s expansive distribution network and manufacturing expertise, significantly enhancing its own market reach. The partnership proved mutually beneficial; Gree capitalized on Daikin’s advanced inverter technology while Daikin secured a foothold in a market driven by increasing consumer demand for energy-efficient solutions. By 2012, inverter air conditioners claimed over 60% of the Chinese market share, a figure that surged to over 90% by 2024, illustrating the success of their joint efforts. Furthermore, Daikin’s commitment to sustainability was manifested in its pioneering use of HFC-32 refrigerant, known for its low global warming potential. By openly licensing HFC-32 patents globally, Daikin not only positioned itself as an environmental leader but also fostered industry-wide innovation. This case highlights the critical importance of strategic partnerships and innovation in overcoming competitive challenges and underscores Daikin’s role as a transformative force in the global air conditioning market.
    Reference IMD-7-2620
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
    Busting the myth of flashy innovation
    By Joep de Caluwé
    in I by IMD 9 December 2024
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts. In this final article in a series of three articles, Joep De Caluwé (EMB...
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    Convenience store takeover: does 7-Eleven bid herald an unprecedented wave of M&A in Japan?
    By Patrick Reinmoeller
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    Summary
    Analysts believe Alimentation Couche-Tard's attempted acquisition of an iconic convenience store chain could open the floodgates to takeovers by foreign firms.
    Read more
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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