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1. What was the product strategy of Temsa Global in 2009? How was it different from the product strategy in 1984? What organizational changes are required to support this shift? In 2009, Temsa Global executed a low-cost, customer-driven product strategy. Through product design, the company was able to bring down production costs of the Avenue city bus, which they were able to price competitively. Temsa Global also responded rapidly to the market needs ahead of its competition. It invested in hybrid power technologies and green design to produce lighter buses that consumed less fuel. This is vastly different from their business model in 1984, which was simply to manufacture the license products of Mitsubishi. Back then, Temsa Global relied on Mitsubishi in assessing market needs and strategizing for new products. The shift in strategy requires headcount for Product Management and Research and Development (R&D). 2. What are the possible advantages of investing in the R&D center for advanced technologies? Discuss the implications, considering the changing perceptions and demands of consumers. The possible advantages of investing in the R&D center for advanced technologies are: improving profitability, differentiating from competitors, improving the quality of products, getting products to market more quickly, anticipating changes in the market (e.g. obsolescence of a product) and strengthening the brand. Through R&D, production costs can be significantly reduced to offer competitive pricing and/or increase profitability. By providing newer, better and unique products, companies are able to differentiate and stay ahead of the competition. Companies that invest heavily in R&D are able to release commercial products more quickly and anticipate changing consumer demands more rapidly. They can better assess how long a product
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