Develop an argument as to why Romulac Inc. (RI) should try to be a first-mover with this new technology.


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Develop an argument as to why Romulac Inc. (RI) should try to be a first-mover with this new technology.


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1.  Identify which one of the Five Business Level Strategies (Cost Leadership, Differentiation, Focused Cost Leadership, Focused Differentiation, or Integrated Cost Leadership/Differentiation) the company you analyzed for your company tends to pursue.  Defend your position.  What core competencies has the firm developed in order to pursue its strategy?

2.  Using the concepts derived in Corporate-Level Strategy, describe the diversification and growth strategies of the company you analyzed for your company project. Note: the material from Merger and Acquisition Strategies and International Strategy might also be helpful here.  Concepts to consider: vertical/horizontal, multi-domestic/global, related/unrelated, etc.

3.  Review and answer the Mini-Case (Strategic Acquisitions and Accelerated Integration of Those Acquisitions are a Vital Capability of Cisco Systems) and answer the four Case Discussion Questions. (The details of case is in the attachement).

4.  Romulac Inc. (RI), a subsidiary of a large successful manufacturing conglomerate, supplies a key component in the assembly of residential cooling systems (air conditioning units, etc.). There has been tremendous consolidation in RI’s industry, to the point where only five suppliers of this particular component account for nearly 90 percent of U.S. industry sales. Paralleling this trend, its customers—composed of makers of branded residential air conditioning units like Carrier and Trane—have seen similar levels of consolidation in their own industry. Half of these firms produce all their components in-house, while the balance purchases them from specialized component manufacturers like RI. RI’s business is extremely capital intensive, and their 40 percent share of the market allows them to also be the most profitable domestic player. Strong competitors exist in Europe and Asia. Although like RI, these foreign players’ strongholds are their home regions, with negligible presence outside of the region. Some of the larger Asian manufacturers have signaled an interest in more aggressively pursuing the lucrative U.S. market. RI is presently considering a $500 million dollar investment in a new plant, which will create a component that is much quieter, more efficient, and is likely to satisfy future regulatory standards. While the core technology for the new component is very old, RI’s engineering and design skills have allowed them to retain their low-cost advantage, even though the component will represent a significant improvement over products currently provided by its competition.

a.   Develop an argument as to why RI should try to be a first-mover with this new technology.

b.   Develop an argument as to why RI should try to be a second-mover with this new technology

5. What are the advantages and disadvantages of an internal (build it yourself) versus an acquisition strategy?