Technology Management Assignment 1

TECHNOLOGY MANAGEMENT ASSIGNMENT 1
TECHNOLOGY LEADERSHIP AT MEMBRASEP
Submitted by Abhiroop Sen
A. STRENGTH/CORE COMPETENCY AT MEMBRASEP As per the facts of the case study and from the aggregate customer satisfaction level table, it can be concluded that Membrasep is strong in: Technological knowledge Ability to meet delivery commitments Purification efficiency Ability to solve problems in acceptable time
It rates satisfactorily in other parameters and neutral in certain parameters. The parameters in which they feature as neutral are: Ability to communicate efficiently Product improvement/ Development Initiatives On site teams ability to anticipate a problem Usefulness of training provided
It may be safely assumed that in the neutral parameters the company may be considered not so strong.
B. PEST ANALYSIS AND PORTERS 5 FORCES MODEL In the case study, the above is explicitly mentioned for each of the three industries Membrasep Technologies is trying to enter. We consider the above in the light of the strong and the not so strong points of Membrasep and mention whether the feature is a positive or negative point for Membrasep with reasons. Then we analyze entering which industry has the maximum number of positives and then suggest a strategy.
1. SUGAR INDUSTRY S/N 1 2 3 4 5 6 7 8 9 10 ENVIRONMENT Policies regulated by Government Price control by 15 km radial distance between 2 sugar mills Government Statutory Minimum Price High raw material cost because of SMP (70%) Cyclical nature of industry Growth rate of industry contradictory by different rating agencies Consumption of sugar to increase 5% over next 3 years Growing Economy Co-operatives account for 43% of total sugar production and no individual producer has more than 3% market share Primary objective is to improve yield POSITIVE/NEGATIVE Negative Negative Positive Negative Negative Negative Negative Neutral Positive Negative REASON Tight control Margin Squeeze Opportunity to increase yield High cost price Margin squeeze Translates to high R&D cost Uncertainty Positive growth but low growth rate A growing economy helps all industries Membrasep can only enter private owned companies Strong technological competency at Membrasep Incentive for R&D First Mover Advantage and strong technical competency could increase probabilities of success The cost effective process would get preference and may be developed by competitors Strong bargaining power Sustained competitive advantage
11
Positive
12 13
Deregulation attempts to encourage private sector Membrane technology not used in sugar industry and strong optimistic views of seniors in the industry
Positive Positive
14
No Competitors in Non water Application but influential competitors water based application
Negative
15 16
No other suppliers in case Membrasep can prove membrane technology No threat of substitutes
Positive Positive
We see that out of 16 significant points needed to formulate strategy, Membrasep has: 1 neutral, 8 negative and 7 positive circumstances working but the negatives seem to be more significant we also know that in the past Membrasep has been unable to capitalize on first mover advantage.
2. DAIRY INDUSTRY S/N 1 ENVIRONMENT Government support to increase contribution from agricultural produce in Indian GDP Restriction on foreign players to enter dairy industry POSITIVE/NEGATIVE Positive REASON Growth prospect of the Dairy industry Decrease in foreign competition helps by eliminating competition from arguably stronger technological competence Can translate to stronger investment in R&D Sustainability Technology is used in processed dairy products and private players have higher margins Sustainability Increased margins Uncertainty Low costs Competency of Membrasep Competency of Membrasep Competency of Membrasep Translation to commercial use is slow Competency of Membrasep
Positive
Financial support for both private and cooperative dairy plants Strong growth potential Cooperatives market 80% of liquid milk and private plants market 30% of liquid milk
Positive
4 5
Positive Positive
6 7 8 9 10 11 12 13
Strong growth potential of branded products Export subsidy Fluctuating Demand overseas Small holder dairying system Increased awareness about hygiene Demand shifting towards value added dairy products Demand of technology in manufacturing process Many new applications tested but not used commercially Limited Competition due to niche market, namely Westfalia and Permionics. Competition is in terms of cost advantage and range of equipment Major substitute technologies existing except in case of bacteria removal Buyers are powerful and competition is existing among suppliers, namely Westfalia Existing cost advantage
Positive Positive Negative Positive Positive Positive Positive Negative
14
Positive
15
Negative
16
Negative
Reduced competitive advantage and sustainability Reduced bargaining power
17
Increased power of Membrasep We see that there are more positive than negatives but the threat of substitutes is a concern.
Positive
3. AUTOMOBILE INDUSTRY S/N 1 ENVIRONMENT The Government has drafted the Automotive mission plan to double the contribution of Automotive sector to Indian GDP Incremental investment expected in the sector for the next 10 years Growing Indian economy High Demand POSITIVE/NEGATIVE Positive REASON High growth prospects
Positive
3 4
Positive Positive
5 6 7
9 10
Growth of Automobile industry at 15% CAGR Huge potential for growth for India High disposable income of Individuals leading to a shift of preference of 4wheelers from 2-wheelers High demand for new technologies and rampant joint ventures and collaborations Stress on Green technologies High Entry Barrier. Established players and sourcing of new international technologies Competition is strong from foreign players
Positive Positive Positive
High growth prospects which will translate into R&D investments A growing economy helps all industries High growth prospects which will translate into R&D investments High growth prospects High growth prospects High growth prospects
Positive
High growth prospects
Positive Negative
Competency of Membrasep Weakness at Membrasep Strong competition is a negative sign also product improvement is weak in Membrasep This could also be an opportunity for Membrasep to provide a lasting solution
11
Negative
12
Koch Membrane Systems provide low Neutral performance technology which drastically reduces cost and the compromise is balanced by use of replacement parts produced by other companies 13 No threat of substitutes as membrane Positive Competency of separation systems are superior in Membrasep terms of performance and cost 14 Power of Buyers is high but preference Positive Competency of is given to competency and cost Membrasep effectiveness 15 Suppliers have differentiation in terms Positive Competency of technological effectiveness Membrasep We see that there are more positive than negatives but a high entry barrier and foreign competition are concerns. Membraseps strategy should be to target the Automobile industry as there are strong growth projections which could create opportunities. Also concentration in the marketing efforts and a personal initiative by Mr Hitesh could break the entry barrier problem.

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Technology Management Assignment 1

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TECHNOLOGY MANAGEMENT ASSIGNMENT 1

TECHNOLOGY LEADERSHIP AT MEMBRASEP

Submitted by Abhiroop Sen

Positive Positive Negative Positive Positive Positive Positive Negative

Reduced competitive advantage and sustainability Reduced bargaining power

Positive Positive Positive

High growth prospects

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