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Business Case Study: Renault, Renault And Mexicana

Decent Essays

1. Yes, joint venture benefited Renault and DINA and it is the best option for both companies. Renault is a multi-national company that get cooperation of a local non-competing company in Mexico, Diesel Nacional (DINA). These companies created an International expansion joint venture named Renault Mexicana. They originated from two different countries, France and Mexico. Renault has developed a product that it seeks to market in Mexico, and DINA has the privilege to be situated in that country. Renault formed a joint venture with DINA to enter the Mexican market. This type of joint venture enables Renault to establish its marketing or manufacturing presence in Mexico with the assistance of a local foreign partner, DINA. The partner may provide …show more content…

No, the size of the company does not affect its propensity to innovate. As mentioned in the class discussion, size of a company has been argued to be both a cause and result of innovation. Size of the company can be considered as an asset in creating innovation, but also a hindrance. It can be an asset because they have the necessary financial capability and competitive team to pursue innovation. Also, it can spread costs over large volumes. However, when it’s big there can be a tendency to become slow and sluggish, committed to the past, and invest in status quo maintenance. Additionally, R&D efficiency might decrease due to loss of managerial control and strategic commitment to tie firm to current technology. Conventional wisdom once told us big companies are unbeatable, and eat smaller competitors for breakfast. But as Jason Jennings and Laurence Haughton named its book, it's not the big that eat the small, it's the fast that eat the …show more content…

Iridium is a first mover in the satellite mobile phone industry. The advantages of being a first-mover are technological leadership, high switching costs for buyers and access to scarce resources. However, it would incur expensive research and development expenses and face the uncertainty of customer requirements that will be useful in creating products that will be valued by consumers. Moreover, the company is using technology push strategy. It is said that market pull frequently leads to successful innovations than does technology push. Unfortunately, despite the brilliance of the technology and the team behind its design and marketing, expectations had changed since 1987. People expected their phone to be lightweight, usable inside buildings and the calls to be relatively cheap. Iridium phones were heavy as they needed batteries. These phones did not work inside buildings. In parallel, the demand, anticipated by the original Iridium creators, was slowly being met by the advent of portable mobile

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