Beyschlag Case Essay

870 WordsFeb 22, 20134 Pages
Question 1: Please describe and assess the environment in which Beyschlag decided to develop the MELF. What innovation strategy did Beyschlag pursue in this competitive environment? Beyschlag’s managers were convinced at an early stage that the reduction in placement costs for resistors on circuit boards will be a major future trend. It was predicted that the placement costs are very much likely to exceed the component’s price. To solve this, the SMT placement technology was introduced, which required new resistors called SMD. These promised to decrease placement costs and simultaneously increase the limited space available on the circuit board. Placement costs and space on the circuit board were both considered to be important for a change in customers demand within the professional electronics industry. In comparison to competitors, who were focusing on the cost reduction of existing leaded resistor products, Beyschlag’s management was sure that resistors for the SMT placement technology will be more important in future. That is why MELF was developed. With MELF Beyschlag aimed at becoming the leading manufacturer of the SMD technology and its applications. Here the corporation made a move against the competition; whereas others do not see advantages of the new technology and stick to old resistor products, Beyschlag redirects its strategic focus from consumer electronics to the professional electronics market. Beyschlag needed stronger partners to push its innovation through. Its top management was excellently building up contact to potential partners’ departments, established trust and maintained personal relationships with them. The information needed was collected through various sources such as the Bosch quality awards ceremony. After revealing Bosch’s resistorspecific manufacturing problem, Beyschlag partnered up with them and established their most vital

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