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Case
-
Reference no. 599-028-1
Subject category: Marketing
Authors: Barra O'Cinneide (Kemmy Business School, University of Limerick)
Published in: 1999

Abstract

This is an abridged version of the case ''582-016-1''. This case describes the collapse of a foreign firm, Epitek Electronics, based in a small Irish village, and its reincarnation under Irish control. Technology transfer and attendant problems are considered, and other difficulties faced by the smaller firm are illustrated. The story of Hitech provides a basis for discussion of domestic versus international marketing, and strategy options for survival and the hopes for development of such a firm. Although electronics is an industry undoubtedly in the course of rapid transition, the particular sector in which Hitech operates - thick film components - is not so susceptible to rapid change as might appear at first glance. The company has adopted a market position of being brought along, almost automatically, with the tide of technological development. In addition, in spite of being a small firm, geographically distanced from the world''s main industrial markets and engaged in what appears to be a highly competitive industry, ie electronics, Hitech has several factors in its favour which are not that readily apparent. Interestingly, Hitech is not as geographically disadvantaged as might be imagined, due to growth in the electronics industry in Ireland which can provide an attractive home base for a component supplier like Hitech. To date, in terms of geographic markets and customers, Hitech has had insufficient spread, and a bad experience with its original major customer, National Semiconductors Inc, showed Hitech''s management the danger of having ''all eggs in one basket''. As a result, Hitech is being forced to revise its market and customer policy to ensure less dependence on one market, the US, to broaden its customer base.
Location:
Industry:
Size:
25 employees
Other setting(s):
1976-1979

About

Abstract

This is an abridged version of the case ''582-016-1''. This case describes the collapse of a foreign firm, Epitek Electronics, based in a small Irish village, and its reincarnation under Irish control. Technology transfer and attendant problems are considered, and other difficulties faced by the smaller firm are illustrated. The story of Hitech provides a basis for discussion of domestic versus international marketing, and strategy options for survival and the hopes for development of such a firm. Although electronics is an industry undoubtedly in the course of rapid transition, the particular sector in which Hitech operates - thick film components - is not so susceptible to rapid change as might appear at first glance. The company has adopted a market position of being brought along, almost automatically, with the tide of technological development. In addition, in spite of being a small firm, geographically distanced from the world''s main industrial markets and engaged in what appears to be a highly competitive industry, ie electronics, Hitech has several factors in its favour which are not that readily apparent. Interestingly, Hitech is not as geographically disadvantaged as might be imagined, due to growth in the electronics industry in Ireland which can provide an attractive home base for a component supplier like Hitech. To date, in terms of geographic markets and customers, Hitech has had insufficient spread, and a bad experience with its original major customer, National Semiconductors Inc, showed Hitech''s management the danger of having ''all eggs in one basket''. As a result, Hitech is being forced to revise its market and customer policy to ensure less dependence on one market, the US, to broaden its customer base.

Settings

Location:
Industry:
Size:
25 employees
Other setting(s):
1976-1979

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