1. Should Elio joint venture with Bostrom?
-anwser Malaysia 1-Yes, Elio Engineering should joint venture with Bostrom, which would give them market penetration into the US truck market , due to Bostrom already on a contract as a seat supplier for the heavy truck and bus industry. Bostrom also has 50% market share. As the 1999 market share projections are 500,000 units, and Elio Engineering would also get 2 to 5 percent in this joint venture. Without a partner like Bostrom Elio Engineering would most likely fail. The approach to the market indicates they are looking for a strong partner. If Elio Engineering entered the market alone they would fail due to the lack of resources.The core value of this company is wrapped around one patent. They do not have the means to fully protect and produce the product by themselves which could lead to a larger company buying them out
-anwser thailand 2-No, Elio should not joint venture with Bostrom, because it will be a disadvantage. The market and competition is difficult because its original potential and market it doesn’t have the resources and capital will cause more financial risk and resulted in high costs may have to raise capital from various sources . If Elio as a new company enter the market may not have been popular because of credibility and reputation is known to take a product to market in the first period.
-anwser thailand 3-No, Elio should not joint venture with Bostrom, because market access will be more difficult because of the potential competitors and market it takes a lot of resources and funding that cost Financial risk. Resulting in high costs. May be mobilized from various sources companies newly entering the market may not have been reliable and popular. The reputation is not yet known by taking the product to market in the first period.
-anwser Spanish 4- -No, Elio should not joint venture with Bostrom If, as under the term "joint venture", both parties are at 50% risk, especially for the specific element in technological and capital , both run the risk of introducing a new product to market. According to Chulia Vicent (2005) in this type of alliance it is appropriate for both parties can continue doing business independently, respecting only the commitment between the two that can be governed by a contract between shareholders. Under this scheme could exploit Elio independently to make some improvements to the system and being able to convert in subsequent independent form, for example in the European launch independently to make some improvement in their
2. Should it partner with a tier-one or tier two automotive suppliers?
-anwser tier 2- Elio should partner with tier two automotive supplier because Elio can supply its technology to all tier suppliers and could keep greater control over its core ABTS technology.
-anwser tier 1-
Elio should partner with tier one automotive supplier
-as it will enable the new company to enter the market unlimited market size
-will receive a relatively big piece of the final product’s total value-added by partnering with tier-one supplier who in-sourced ABTS technology .
-Advantage of manufacturing and marketing experts will decreased the technological and market risk
3. Was Elio’s technology strategy aligned with the requirements for a successful entry into the automotive market?
-anwser 1-
Harrington & Tjan (2008) ‘for the introduction of a new product in the market, propose to cover three areas: know the market, understand customer objectives and develop products that provide more value to customers’. In Elio case, we can see that it has innovatively create a new product but the product does not known to customers and the automotive market. His technology strategy based on research and innovation, It represents a barrier to entry based on strong automotive manufactured businesses.
-anwser 2- Elio Engineering has taken the right steps to ensure they are aligned to the regulatory requirements. It had obtained a strong patent which would deter companies from copying their design
anwser 3-
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