Schindler Essay

555 Words3 Pages
Silvio Napoli at Schindler Situation: The case is about opening up a subsidiary in India. Silvio Napoli developed a strategy for the Indian market, which was to offer only one standardized product without the possibility to implement or customize it. This is a completely different strategy respect the one that is pursuing in Europe, in which it provides case by case solution. In EU it is more customer oriented and it is famous for the possibility to customize their elevators. Schindler also decided to outsource production and other activities to local suppliers. Schindler chose different local supplier, and it was easier to standardized product in order to coordinate and have lower costs in training. Another advantage is that if you have a standardized product outsourced you make biggest orders and you can easily switch suppliers because the outsourced product is a simple one. Suppliers may produce parts for different companies lowering costs, producing at a cheaper level than the company could do. Silvio Napoli already had experience on standardize products (swatch project: standard elevator). Schindler had already cooperation in India with some local companies, then they went away and came back with the idea of funding a subsidiary to exploit the experience that they already had. India became an important market for Schindler because it is a huge and growing market. Town are growing (more buildings in need for elevators) and the country is in an industrialization process and tourism is rising. Thanks to liberalization investment from foreign companies were allowed. Furthermore because of safety reasons, a lot of elevators had to be replaced. Even if the product is standardized, in order to make sure that the product is valuable and safe it is necessary to have qualified employees in local companies to be able to outsource production → find qualified and

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