Nordstrom Alliance Essay
It was now February of 1999. In the past four months, the NC design had developed sustainability. The Bostrom alliance agreement for the truck market had been concluded. The question about Elio's strategy for the entry into automobile still remained. Should Elio's joint venture with Bostrom? Should it partner with a tier-one or a tier-two automotive supplier?
Was Elio's technology strategy aligned with the requirements for a successful entry into the automotive market? Paul and Hari realized that they needed answers to these questions in the coming days.
This case study discusses the start-up, origins and strategic options facing an innovative set up and start up in automotive market and in the seat design. With the domination of the incumbent large …show more content…
For standard products and incremental innovations, this provided them with a significantly lower cost positions and a shorter time to market. Moreover, their strong ties with the OEMs constituted a positional advantage that was almost impossible to replicate for a new entrant, and also easier to get US federal safety standards which plays a major role in finalizing the product. The disadvantages may be in the case of having less control over the core ABTS technology and low profit margin. It would also limit the ma rket size of
Elio's.
Option 2: Elio's to collaborate with the multiple OEM's( Original equipment manufacturer's). If they have direct dealings with the OEM's they will be having advantages in achieving high
market share, sufficient resources, better strategies and also a secured market with less financial stress. But it has got the disadvantages too, such as having less control over the ABTS technology and also having the limited market exposure with the lower margin levels.
Option 3: Elio's to enter as a tier-two/ tier-three supplier of seat mechanism or seat structures.
In general for a new entrant, it was one option to enter as a tier-two supplier of
Was Elio's technology strategy aligned with the requirements for a successful entry into the automotive market? Paul and Hari realized that they needed answers to these questions in the coming days.
This case study discusses the start-up, origins and strategic options facing an innovative set up and start up in automotive market and in the seat design. With the domination of the incumbent large …show more content…
For standard products and incremental innovations, this provided them with a significantly lower cost positions and a shorter time to market. Moreover, their strong ties with the OEMs constituted a positional advantage that was almost impossible to replicate for a new entrant, and also easier to get US federal safety standards which plays a major role in finalizing the product. The disadvantages may be in the case of having less control over the core ABTS technology and low profit margin. It would also limit the ma rket size of
Elio's.
Option 2: Elio's to collaborate with the multiple OEM's( Original equipment manufacturer's). If they have direct dealings with the OEM's they will be having advantages in achieving high
market share, sufficient resources, better strategies and also a secured market with less financial stress. But it has got the disadvantages too, such as having less control over the ABTS technology and also having the limited market exposure with the lower margin levels.
Option 3: Elio's to enter as a tier-two/ tier-three supplier of seat mechanism or seat structures.
In general for a new entrant, it was one option to enter as a tier-two supplier of