Temsa Global Essay

308 Words2 Pages
What was the product strategy of Temsa Global in 2009? How was it different from product strategy in 1984? What organizational changes were required to support this shift? The product strategy of Temsa Global in 2009 is low cost customer driven strategy; characterized by modular design and green design. This is because Temsa is focusing on customers in different markets that have specific requirements and also moving toward hybrid power technologies. Modular design is a design in which parts or components of a product are subdivided into modules that are easily interchanged or replaced. In terms of Temsa Global, the modular design helps in offering customized products to different customer segment in different countries. Other than that, Temsa’s green design is aimed to reduce the weight of the locomotive and introducing hybrid technologies that helps to reduce the energy consumption which is fuel. Through these product designs, Temsa is able to compete competitively with its competitors and become a global brand in less than a decade. In contrast, the strategy used in 1984 was a licensor of Mitsubishi products, where Temsa only manufactured the licensed products. In order to support the shift in its product strategy; from simple strategy in 1984 to the innovative strategies in 2009, Temsa Global has made several necessities organizational changes. First, they make a higher investment in research and development (R&D), where they cooperate with universities and research institutes on advanced technologies and break-through applications. These will help Temsa to cope with the changes in market and also customers. Second, Temsa has make collaboration with European partners which is Arriva since its first city bus model which is Avenue is primarily designed for theEuropean markets. Third, Temsa also make more investments in mass customization
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