Product details

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Authors: G vd Linden (Nyenrode Business Universiteit); Drazen Kucan (Nyenrode Business Universiteit)
Published in: 1995
Length: 37 pages
Data source: Field research
Notes: To maximise their effectiveness, colour items should be printed in colour.

Abstract

The case describes the dilemma whether or not General Electric Transportation Systems (GETS) should enter the European locomotive and railway market, known as the biggest and most competitive transportation market on a global scale. GETS has long been an established (primarily locomotive) manufacturing company in the USA, and as such a global player in the transportation market. Its most successful products have been diesel technology powered electric locomotives of great horse power and haulage. Europe, including Central and Eastern Europe, has been traditionally outside the focus and scope of the US-based company. For historical reasons, GETS was for a number of years concentrated on North and South American, African and finally Asian markets, as it saw a number of advantages in entering these geographic areas. One of the main incentives for such strategic positioning has been the double digit growth of some national economies and generally big demand for (primarily rail freight) transportation solutions. Europe is a highly complex market where virtually all of GETS'' major global competitors have their domestic strongholds. Issues such as political leverage and subsidies, manufacturing requirements driven by changing market segmentation and demand segmentation and flexible product issues, under a number of different technological standards and requirements, are certainly stressing the complexity of this managerial dilemma. Furthermore, the European rail and locomotive market has been saturated in the electric locomotive segment, while demand for diesel locomotives has been extremely weak. John B. Smith, General Manager, Europe/Africa/Middle East, knew that any decision on possible entry or non-entry would have long-lasting consequences. His decision is far from easy, as the complexities and issues involved are blurring the clean-cut analysis which used to work so well back in the States. This case contains colour exhibits.
Location:
Industry:
Size:
USD1.5 billion turnover
Other setting(s):
1994

About

Abstract

The case describes the dilemma whether or not General Electric Transportation Systems (GETS) should enter the European locomotive and railway market, known as the biggest and most competitive transportation market on a global scale. GETS has long been an established (primarily locomotive) manufacturing company in the USA, and as such a global player in the transportation market. Its most successful products have been diesel technology powered electric locomotives of great horse power and haulage. Europe, including Central and Eastern Europe, has been traditionally outside the focus and scope of the US-based company. For historical reasons, GETS was for a number of years concentrated on North and South American, African and finally Asian markets, as it saw a number of advantages in entering these geographic areas. One of the main incentives for such strategic positioning has been the double digit growth of some national economies and generally big demand for (primarily rail freight) transportation solutions. Europe is a highly complex market where virtually all of GETS'' major global competitors have their domestic strongholds. Issues such as political leverage and subsidies, manufacturing requirements driven by changing market segmentation and demand segmentation and flexible product issues, under a number of different technological standards and requirements, are certainly stressing the complexity of this managerial dilemma. Furthermore, the European rail and locomotive market has been saturated in the electric locomotive segment, while demand for diesel locomotives has been extremely weak. John B. Smith, General Manager, Europe/Africa/Middle East, knew that any decision on possible entry or non-entry would have long-lasting consequences. His decision is far from easy, as the complexities and issues involved are blurring the clean-cut analysis which used to work so well back in the States. This case contains colour exhibits.

Settings

Location:
Industry:
Size:
USD1.5 billion turnover
Other setting(s):
1994

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