Giant Inc.: Formation of the A-Team Case Solution
1. Executive Summary
The case describes the bicycle industry of Taiwan, which is one of the world’s leading exporters of bicycles with high demand all over the world. Taiwan has the mass market which supplies the best bicycle to the US, UK and other countries. The bicycle industry has almost 300 firms,mainly: small and medium enterprises and others are parts supplier. Taiwanese industry was falling apart and losing its competitive advantage in the global market because of not having innovation and the unit price was high. On the contrary, China was leading and exporting to the major countries and competing in the international market.
In 2002, Taiwan bicycle industry dropped down with 4.2 million units which lead the stakeholders concerned about the industry. The several steps were initiated to increase the export like; government involvement, external trade development council and the promotional activities to make the brand image, innovation and new designs of product.
However, there are 2 major firms, Giant and Merida, with high market capitalization started making the export of bicycle again high with their collaboration and significant international contacts. This made the bicycle industry of Taiwan again high and the country again became high in exports of bicycles. The initiatives of both the companies increased the value of product and in 2006; the country again set its position in the international market.
2. The Birth of A-Team
The A-team which was made collusively to enhance the productivity of bicycling and make the industry successful with the moto of “Power of Partnership”. This was initiated by two major companies Giant and Merida. Different suppliers joint the team and started supplying different parts of the bicycle with the companies. The formation of the team helped the Taiwanese bicycles to be promoted worldwide and to make significant profits in long terms. The A-team has 3 main stages which were done by every member of it.
- Early stage.
- Conflict stage.
- Coordinating stage.
2.1 Early stage
The early stage comprised where the companies invited their rivals and shared the know-how of their operations. Like one member used to invite its competitor and share the company’s strategies, business operations and make them visit its plants. This process involved learning from each other.
2.2 Conflict Stage
In this stage, the suppliers started to protect their know-how of business with each other mainly to get the fear of losing their competitive advantage by showing their internal strategies or production competency by visiting them the plants………………….
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