Case Cameron Auto Parts PDF

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Solutions for Case Cameron Auto Parts Case Study...

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Case: Cameron Auto Parts - Early internationalisation 1. Should Cameron have licensed McTaggart or continued to export?  

No: Tariffs, agility and responsiveness, growing market opportunity, smaller commitment, no high initial costs and less risk Yes: Own know-how and strength, risks regarding know-how and reputation, solves the tariffs problems, more control and learning opportunity for future expansion, swift penetration of the market

2. Was McTagart a good choice for licensee?      

Not only licensing of products/blueprints but also know-how  Important for competitive advantage but shouldn’t be given out so easily Small development team which doesn’t have the capacity to train them? Negative reputation and danger of IPR violation and future competition Sales went down Sales is focused on English market Old and known company but maybe too slow?

3. What about the alternatives to licensing?   

Franchising Greenfield-investment Etc..

Exporting Profit Sales Growth

Risk Product Technology

Profits would be 16.7% of sales (cf. Note of Ex1) Sales unlikely to grow unless some marketing effort is put in by Cameron Risk, investment (in working capital), and management is Cameron`s responsibility Product technology is contra

Licensing Profit would be limited to 3% and 2% of sales Sales growth is a function of McTaggarts ability contacts and resources All risk, investment and management is taken by McTaggart...