B2B Case 3

Topics: Incandescent light bulb, Automotive industry, General Motors Pages: 2 (947 words) Published: May 2, 2015
Tim Thomas
MKT-3610
Case #3
1. GEP, the plastics division of GE, wanted to grow and get out of the shadow of the other GE divisions. They started supplying plastics to the automotive manufacturers and started growing rapidly. They wanted to do more and they had the idea to replace the standard glass sealed-beam headlamps with plastic ones. The plastic headlamps would have to replace the standard bulb with a halogen bulb to make it work. After failing their marketing plan with GM due to them having their own glass headlamp manufacturing, they knew Ford would accept the innovation and would be their best target. After Ford agreed, they teamed up with GEP and GEL, the lighting division of GE, and created a working plastic headlamp to put in one of Ford’s vehicle models. After it was deemed a success, Ford wanted to work with both GEP and GEL to start manufacturing the plastic headlamps for future vehicles. Ford wanted to partner with both GEP and GEL but GEL backed out. Ford said they want to work with them or find another light and plastic manufacturer that were willing to work together. 2. The plastic headlamps have several benefits to several companies and ultimately the consumer. If the switch to plastic headlamps is made, GEP will grow even more and gain even more profit. For the vehicle manufacturer, they can use a lighter weight headlamp and design it with the vehicle to not only make a more appealing look, but make a more aerodynamic vehicle. This will result in better gas mileage for the consumer as well. Ford gains a competitive advantage that, if it becomes standard, other manufacturers will have to adapt too. This will then create more business for GEP. The plastic headlamps will also provide a safety benefit in that in a rear end collision, there is a much lower risk of fire due to the bulb not being exposed as they are in a glass headlamp. 3. I would do just as GEP did and show them the obvious advantages of moving to a plastic...
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