Lojack Case Summary
Current Situation (LoJack) and Strategy
“LoJack Corporation markets and licenses the LoJack System, a unique, proprietary system used exclusively by law enforcement personnel to track, locate, and recover stolen motor vehicles.
The problem of vehicle theft has escalated to an epidemic level – estimated to result in an annual loss of almost $8 billion.
The LoJack System has a proven track record of reducing damage, enhancing public safety, and solving serious crimes related to motor vehicle theft, all accomplished within the practical constraints of today's overburdened law enforcement system.” (Daily, 1999) Currently, LoJack has unique patented system …show more content…
While they both have proprietary technology, they rely on other organizations to leverage these technologies. Lojack’s technology would not have been possible without the alliance with local law enforcement agencies, Motorola, and MicroLogic. MicroLogic’s existence, until recently, had been to partner with organizations to leverage its technical creativity to further develop the companies that it works for. It would take an equity stand in these companies and “take a long term approach”. In order for MicroLogic to be successful in this venture, it would need to rely on LoJack’s distribution and marketing systems. Not only to sell its products but also to ensure its own financial stability. And if LoJack is to review its long term strategy, it must understand that research and development are not at the core of its operation. Motorola is a key component to both LoJack and MicroLogic and has been a strong partner providing vital assistance. However, moving forward, they cannot be relied on to only provide this technology to LoJack. They are a much larger company and will look to broaden their reach. In the fall of 1999 Motorola was already working to become a driving force in the telematics industry and moved to position itself with the major car companies. “Who can you count on to bring the promise of telematics to the world? The same people who have been changing the way we communicate …show more content…
With a strong foothold on the construction market this area would be a logical first step into emerging markets as contraction equipment would usually surpass new car sales. Immerging markets will provide the strongest revenue growths for the company and is possible this may need to be moved into the mid-term focus depending on the success for the technology.
Critical Success Factors
Industry critical success factors need to include a standard platform for technology on both the asset management device and vehicle retrieval systems. If too many technologies exist, it will become confusion for consumers, and they may abandon products all together.
The following list the critical success factors for a LoJack MicroLogic alliance in terms on timing each holds the same importance.
1 The two companies must have a willingness and desire to form an alliance
2 MicroLogic must be able to finish the work on asset management software in the short term and it must be fully compatible with the existing LoJack technology it must come in-line with existing cost estimates
3 LoJack will need to develop a strong marketing and distribution plan to enter the construction market and a strong foothold must be established to keep back
“LoJack Corporation markets and licenses the LoJack System, a unique, proprietary system used exclusively by law enforcement personnel to track, locate, and recover stolen motor vehicles.
The problem of vehicle theft has escalated to an epidemic level – estimated to result in an annual loss of almost $8 billion.
The LoJack System has a proven track record of reducing damage, enhancing public safety, and solving serious crimes related to motor vehicle theft, all accomplished within the practical constraints of today's overburdened law enforcement system.” (Daily, 1999) Currently, LoJack has unique patented system …show more content…
While they both have proprietary technology, they rely on other organizations to leverage these technologies. Lojack’s technology would not have been possible without the alliance with local law enforcement agencies, Motorola, and MicroLogic. MicroLogic’s existence, until recently, had been to partner with organizations to leverage its technical creativity to further develop the companies that it works for. It would take an equity stand in these companies and “take a long term approach”. In order for MicroLogic to be successful in this venture, it would need to rely on LoJack’s distribution and marketing systems. Not only to sell its products but also to ensure its own financial stability. And if LoJack is to review its long term strategy, it must understand that research and development are not at the core of its operation. Motorola is a key component to both LoJack and MicroLogic and has been a strong partner providing vital assistance. However, moving forward, they cannot be relied on to only provide this technology to LoJack. They are a much larger company and will look to broaden their reach. In the fall of 1999 Motorola was already working to become a driving force in the telematics industry and moved to position itself with the major car companies. “Who can you count on to bring the promise of telematics to the world? The same people who have been changing the way we communicate …show more content…
With a strong foothold on the construction market this area would be a logical first step into emerging markets as contraction equipment would usually surpass new car sales. Immerging markets will provide the strongest revenue growths for the company and is possible this may need to be moved into the mid-term focus depending on the success for the technology.
Critical Success Factors
Industry critical success factors need to include a standard platform for technology on both the asset management device and vehicle retrieval systems. If too many technologies exist, it will become confusion for consumers, and they may abandon products all together.
The following list the critical success factors for a LoJack MicroLogic alliance in terms on timing each holds the same importance.
1 The two companies must have a willingness and desire to form an alliance
2 MicroLogic must be able to finish the work on asset management software in the short term and it must be fully compatible with the existing LoJack technology it must come in-line with existing cost estimates
3 LoJack will need to develop a strong marketing and distribution plan to enter the construction market and a strong foothold must be established to keep back