Orbital Engine Company

1785 Words Mar 23rd, 2010 8 Pages
CASE STUDY: Orbital Engine Company CONTENT

(1) Executive Summary P.3
(2) Introduction of Business Background P.4
(3) OEC’s objective P.4
(4) Key issues Highlights P.5
4.1 Two Wise Decision P.5
4.2 Large Car Manufactures Appeared not ready to adopt OCP Engines P.5-6
4.3 Marketing Lessons Can be Learned P.6 4.3.1 Marketing Mix and 4P s P.6
4.3.2 OEC’s Porter Five Forces P.6
4.3.3 Licensing and Joint Venture P.7
(5) Conclusion P.7
(6) References P.8

(1) Executive Summary

In this severe economic environment the management of time, in the meaning of the ability to pioneer the market with new products or services, becomes crucial. OEC was
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(3) OEC’s objective

OEC’s key objective was to get the major car manufacturers in the US to adopt their new engine. (3) Key issues Highlights

3.1 Two Wise Decision (261)

OEC had made at two wise decisions to get the major car manufacturers to adopt their new engine in the US. First of all, OEC developed a pricing policy for its intellectual property at the early stage that it built up a series of licence options for car manufacturers, such as General Motors, Ford, Fiat, Jaguar and Volkswagen to evaluate the technology and needs before converting into their final licence agreement. Kotler et al (2007, pp.318, 590) mentioned that, “A method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret or other item of value for a fee or royalty…More and more for-profit and not-for-profit organisations are licensing their names to generate additional revenues and brand recognition.” This brand recognition of licensing became one of the key profit generators for OEC.

Secondly, OEC made another wise decision on joint venture with Brunswick Corporation, the parent of Mercury Marine in January 1995, became METEOR. This joint venture helped to develop, manufacture, market and sell Orbtal’s SEFIS to the global market for low emission two stroke engines, which was threatened by
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