Elio Engineering. Inc Essay

Question 1 Describe Elio plan? How would you characterise its position in the Industry?Elio engine room is a private company, founded by Paul Elio and Hari Sankara, categorized under engineering services and manufactured self-propelled vehicle bodies car asss. It designs the saucily technology of the cigarets for the automobile industries c in alled No Compromise hindquarterss.Question 2 What is Elio applied science Vision?Elio engine rooms vision per the case study is to design and manufacture new advanced, low-cost, high technology and safe ABTS called No Compromise sit down for the entire automotive constancy and potentially saving millions of lives around the world.Question 3 Describe the strategic options as of February 1999?What issues should the company consider in evaluating its strategic options? Elio Engineering had achieved a great distinction by February 1999 because their prototype test had been proven truly promising and OEM customers response had also b een favor sufficient. Based on the prototype performance, Bostrom made a licensing deal with Elio Engineering in mid-February. At this point, Elio Engineering had to consider if Bostrom was the right mate for their vision. Also how much royal line fees should they charge for their services?Question 4 What is the structure of the automotive seat patience in 1998? How personable was the industry?The Structure of the automotive seat industry in 1998 looked like the following Two Tier-one companies JCI and Lear Corp with around equally split about 60% of the merchandise and dominant dole out worldwide. The number-three player, Magna, has about a 10% share in the U.S. Many of the competitors already had an ABTS seat in their mathematical product portfolio or were currently working on the technology. So it was already amature industry with stagnant technology. The industry was not attractive because competition would be fierce with the 70% of the foodstuff controlled by three co mpanies. Only way Company could stand a chance is if new company had new technology and cost lessen product.Question 5 What are the potential sources of warring advantage that Elio Engineering has? How Sustainable ae they? Why/ Why not?Elio Engineering has many competitive advantages. First of all, Elio Engineering has their ideas sound patented. Along with it, they moderate insider knowledge of the seating area industry. Secondly, they hurt the product that can penetrate whole automotive market and not just one supplier tied to the one automotive company. Finally, Elio Engineering is highly motivated and has ability to find to find new resources to expand. As far as sustainability goes, Elio Engineering will certainly rifle if they enter the market alone because they dont have plenty resources to compete with other competitors knowledge their own at the moment. As they deprivation the capital requirement, lose of competence in manufacturing, distribution, lack of access to OEMs and able to implement of JIT delivery. They can be at risk of takeover by the bigger company or the competitor.Question 6 What are Elio Engineerings strategic options in entering the automotive market? interest evaluate these options and reach a conclusion on the well-nigh attractive one. The Challenge for the Elio Engineering is to enter all segments of the automotive seat market within next 12 months, protecting its intellectual property which is utilize in the special class of ABTS technology seat design achieving at least 5% of the U.S automotive market within next 5 years. But it is very hard for Elio Engineering to achieve by its own due to lack of resources. They can also consider the following alternatives election 1Elio Engineering could fall in with tier-one seat supplier Company. This will stomach the following advantages Founder members have previous experience dealing with tier-one seat Company. The tier-one suppliers haveHigh volume manufacturing and distri butionExperience in product design & development and manufacturing power, Easier to get us federal safety standards fuddled relationship with OEMsDisadvantages are Have less control over the core group ABTS technology with lower profit margin.Alternative 2Elio Engineering could collaborate with multiple OEMs. Advantages for doing it will be High market share adapted resources, matured strategiesSecured market, less financial stress.Disadvantages Less control over ABTS technology and limited market exposure and lower margins.Alternative 3Elio Engineering can establish as a tier-two supplier.Advantages Supply product to all tier supplier and more control over ABTS technology.DisadvantagesProduct go over due to large capital requirement, lack of competence in manufacturing, distribution, lack of access to OEMs and able to implement of JIT delivery. Low product value added. subsequently considering all the above presented alternatives, I think Alternative 1 would the best(p) suit for Elio Engineering. Also Elio Engineering started up by partnering up with Bostrom Seating, which supplied seats for heavy trucks and bus industry in 1999.Question 7 How well is Elio Engineerings Tech strategy line up with the requirements for a self-made entry into the automotive seat market? What if anything, should they change?According to the article, Elio Engineering has taken all the right steps to ensure they are aligned with the requirements for the successful entry into the automotive seat market so far. They have obtained and registered a strong patent which would prevent other companies from copying their designs. They have the product that meets all the safety standards, low-cost and is durable. In order to successfully enter the automotive seat market, they need to have a system of rules integration approach to ensure automotive market for their designs. Moreover, they need to partner up with the company with strong market influence otherwise they would most likely fa il on their own.