Cummins Essay

308 Words2 Pages
There were a few primary issues. The licensing and joint venture issue, service issue and the management issue dealing with the replacement of Chapman. Cummins strategy was a cash limited strategy. They’re approach created a revenue stream by licensing. As far as investment aspect is concerned, they were a company that did not throw a way a lot of money. They balanced their investments by taking a conservative approach. They were able to be first inside which is another reason why they were so cash limited. They evolved from the licensing to a joint venture concept, which in actuality cost ore cause they were giving away technology. There was a cultural clash between the Chinese and Koreans, Chinese just didn’t like taking orders from Koreans. What business is Cummins in? Cummins, Inc. was an American company that specialized in diesel engines originally and then integrated power generators and filtration systems. Cummins gained a commanding position supplying diesel engines for the truck market. What are the characteristics and the trends in the diesel engine industry? Cummins emerged as a global power leader, with a blend of complementary business units serving thee broad market segments. Cummins market share of 62% dropped to 23% after the deregulation of the U.S. trucking industry in 1980 triggered consolidation as engine producers and truck-makers merged. . What are the motivations for market expansion to China? Chapman’s goal was to hit the 1 billion dollar mark. The first in long term relationship has served them very well with China. Best practices, they did well and found another market for the same project. The market was an emerging industrial giant. From a China standpoint, it served them well. China’s a great example how tides can change in just ten years. Like their start of going from licensing into joint

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