Bendix Case Study
Introduction The Bendix Corporation is a parts supplier for five separate business units: automotive, the Fram Corporation (filters), aerospace, industrial and energy, and international. In 1951, the Bendix Corporation is credited with the invention of electronic fuel injection (EFI) and was in sole possession of the accompanying patent until 1978. The company had not utilized this innovation to its fullest potential due to the lack of interest in automotive manufacturers in the United States. In 1976, Douglas Crane, president of Bendix Corporation 's automotive division, was mulling over the idea of embarking on the construction of a $10 million injector manufacturing plant, the main component involved EFI.
Major Problems and Issues There are many problems facing Bendix 's customers in 1976, the first and most predominant being government regulations. The government has been tightening and tightening the control over pollution levels in automotive emissions as well as minimum gas mileage requirements for each manufacturers ' fleets. The major car manufacturers were unable to meet these requirements with their current fuel delivery system technology. These demands put added pressure on Bendix to provide a solution in order to provide future success and to create a competitive advantage. Another major problem facing Bendix was competition from a Bosch, a company that Bendix earlier had made an agreement with to use Bendix 's EFI technology to manufacture for the European market. Bosch was planning on creating a manufacturing plant in the United States, threatening to take away some of the market share away from Bendix. Another issue facing the implementation of EFI into the American automotive market is the phenomena that affect innovation in a large corporation. The phenomenon is that with larger economies of scale, the less the company is willing implementing a radically different solution to an old and well-known problem. The company is more willing
Major Problems and Issues There are many problems facing Bendix 's customers in 1976, the first and most predominant being government regulations. The government has been tightening and tightening the control over pollution levels in automotive emissions as well as minimum gas mileage requirements for each manufacturers ' fleets. The major car manufacturers were unable to meet these requirements with their current fuel delivery system technology. These demands put added pressure on Bendix to provide a solution in order to provide future success and to create a competitive advantage. Another major problem facing Bendix was competition from a Bosch, a company that Bendix earlier had made an agreement with to use Bendix 's EFI technology to manufacture for the European market. Bosch was planning on creating a manufacturing plant in the United States, threatening to take away some of the market share away from Bendix. Another issue facing the implementation of EFI into the American automotive market is the phenomena that affect innovation in a large corporation. The phenomenon is that with larger economies of scale, the less the company is willing implementing a radically different solution to an old and well-known problem. The company is more willing
Bibliography: [1] Abernathy, W., & Utterback, J. (2014). Pattern of Industrial Innovation. Innovation Management (1-9). Ronkonkoma, NY: Linus Learning. [2] Schumacher, T. (2014, May 22). Gunfire at Sea. YouTube. Retrieved June 16, 2014, from https://www.youtube.com/watch?v=Ux_0UVaJoXE&feature=em-share_video_user