Orbital Engine Corporation Ltd: Case Study
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
2. ANALYSIS
1. Two marketing activities which were wise given OEC’s main objective
1. addressing credibility and performance issues, which is one of the primary concerns of car manufacturers
2. improved OCP engines to be readily applicable to current manufacturing practice
2. Reasons OEC failed to have engine adopted by any major car manufacturer
1. failed to understand the real wants of major car manufacturers
2. failed to formulate strategic market segmentation
3. poor competitive strategy execution
4. lack of branding activities
3. Marketing lessons from adoption of OEC’s technology by US marine outboard motors maker
3. CONCLUSION
1.0 EXECUTIVE SUMMARY
In this report we will be evaluating the recital of Orbital Engine Corporation Ltd. pertaining to car manufacture and outboard marines.
Detail analysis has been carried out on marketing decision or activities in relation to OEC’s objective, identify the unsuccessful reasons behind the idea of engine adoption by OEC and explore the successful marketing lessons how OEC’s technology has been adopted by the marine makers outboard motor in the US.
Following the above studies we conclude by providing our recommendations to grow OEC in terms of revenue and market based assets.
Introduction
Orbital Engine Corporation Ltd (OEC) is an Australian engine technology company for automobiles, boats and motorcycles. The technology used is known as Orbital Combustion Process (OCP) whereby it reduce fuel consumption and emission output. Contribution from license and test engine sales generates the most revenue of OEC. In 1992 it contributed $40million to sales revenue but in same year dropped to $11million. By next four years the pre-tax profits drop to an operating loss of $21million.
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1. EXECUTIVE SUMMARY
2. ANALYSIS
1. Two marketing activities which were wise given OEC’s main objective
1. addressing credibility and performance issues, which is one of the primary concerns of car manufacturers
2. improved OCP engines to be readily applicable to current manufacturing practice
2. Reasons OEC failed to have engine adopted by any major car manufacturer
1. failed to understand the real wants of major car manufacturers
2. failed to formulate strategic market segmentation
3. poor competitive strategy execution
4. lack of branding activities
3. Marketing lessons from adoption of OEC’s technology by US marine outboard motors maker
3. CONCLUSION
1.0 EXECUTIVE SUMMARY
In this report we will be evaluating the recital of Orbital Engine Corporation Ltd. pertaining to car manufacture and outboard marines.
Detail analysis has been carried out on marketing decision or activities in relation to OEC’s objective, identify the unsuccessful reasons behind the idea of engine adoption by OEC and explore the successful marketing lessons how OEC’s technology has been adopted by the marine makers outboard motor in the US.
Following the above studies we conclude by providing our recommendations to grow OEC in terms of revenue and market based assets.
Introduction
Orbital Engine Corporation Ltd (OEC) is an Australian engine technology company for automobiles, boats and motorcycles. The technology used is known as Orbital Combustion Process (OCP) whereby it reduce fuel consumption and emission output. Contribution from license and test engine sales generates the most revenue of OEC. In 1992 it contributed $40million to sales revenue but in same year dropped to $11million. By next four years the pre-tax profits drop to an operating loss of $21million.
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