Schilling-03

Schilling-03 - StrategicManagementof...

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Chapter 3 TYPES AND PATTERNS OF  INNOVATION Strategic Management of  Technological Innovation   Melissa Schilling
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2 Honda had an established record of developing  environmentally-friendly cars and manufacturing  processes. Introduced its first hybrid electric vehicle (HEV) in Japan in  1997. HEVs have increased fuel efficiency and decreased  emissions HEVs do not have to be plugged into an electrical outlet Honda chose a different hybrid engine design than  Toyota. Honda chose not to collaborate or license its technology to  others – wanted to maintain its independence. Toyota, which engaged in both collaboration and  licensing, sold almost three times as many HEVs. Honda was also developing fuel-cell vehicles at the same  time, though they would take much longer to  commercialize. Honda and Hybrid Electric Vehicles
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3 Discussion Questions: 1 .   Are hybrid electrical vehicles a radical innovation or an  incremental innovation? Are they competence enhancing or  competence destroying, and from whose perspective? How  would you answer these questions for fuel-cell vehicles?  2. What factors do you think will influence the rate at which  hybrid electric vehicles are adopted by consumers?  3. What would be the advantages or disadvantages of Honda  and Toyota using the same engine standard?   4. Is Honda’s strategy of producing a different engine standard  than Toyota and not collaborating or licensing to other  automakers a good one? What would you recommend? 5. Why do you think Honda simultaneously developed both hybrid vehicles and fuel-cell vehicles?   Honda and Hybrid Electric Vehicles
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4 Ericsson’s Gamble on 3G Wireless Ericsson, founded as a telegraph repair shop in  1876; by end of 2002 was the largest supplier of  mobile telecommunications systems in the world. First generation of cell phones had been analog.  Second generation (2G) was digital. By end of  1990s, sales of 2G phones were beginning to  decline.  Telecom leaders began to set their sights on 3G  phones that would utilize broadband channels,  enabling videoconferencing and high-speed web  surfing.  In late 1990s, Ericsson began focusing  on 3G  systems, and put less effort on developing and  promoting its 2G systems. 
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5 Ericsson’s Gamble on 3G Wireless Ericsson experienced a significant erosion in  profits  In 2001, lost more than $2 billion; ROA went from  8.4%  to -8.5% Transition to 3G turned out to be more complex  than expected Pace of rollout slowed by lack of affordable 3G 
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Schilling-03 - StrategicManagementof...

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