Public and Private Sector Collaborations Essay

Open research organizations and private squares work under very divers(prenominal) situations and with poles a-part aims and objectives, which event in fairly different outcomes in the two types of organizations. commonplace researchers are mainly ambitious due to their go awayingness to expand knowledge and bring on them in journals and magazines to help for the cause of bringing it to knowledge of the masses. On the different hand, private firms and ventures aim to achieve higher profits finished commercially valid information that the firm builds up or obtain to be kept in the boundaries of the participation and far away from opponents in the trade or the industry. This usually results in the conflicts among the two forms of organizations and it is difficult to work in collaboration between the public and private organizations.But it has in any case been discernable from the past that, private companies and firms which gestate worked in public collaborations, although not many a(prenominal) succeeded, but those who did, have been able to achieve goals and have set trends for early(a) organizations to work for the cause of social development and enhancement of public arrangings for statuesque cause.Current Situation (LoJack) and StrategyLoJack Corporation trades and authorizes the LoJack System, a unique, patented system used entirely by honor enforcement workforce to track, turn over, and pick up stolen motor vehicles.The problem of vehicle theft has escalated to an epidemic level an estimated to result in an yearly loss of approximately $8 billion.The LoJack System has an launch track evidence of falling damages, striking public protection, and solving obese crimes related to motor vehicle thievery, all accomplished within the vivid restrictions of overburdened law enforcement structure. Currently, LoJack has unique system designed to assist law enforcement in locating and bring in stole vehicles. Competition is fierce if viewed wit h Telemetric and GPS tracking devices. However, if we look at vehicle recovery systems, LoJack is the global leader with a law enforcement earnings that cannot be easily duplicated. This law enforcement network is challenge politically and requires a high degree of local political assistance. Financially, sales are climbing, but year over year growth is declining. The distribution system through auto retailers seems stuck to radical automobile sales.The LoJack strategy at the present time consists of several discrete variables. LoJack has elected to expand into refreshful geographic areas and commercialises which is a logical growth strategy for the firm which has open up an enviable reputation in terms of plus recovery systems. This company has developed a new tracking unit that permits it to move into new segments such(prenominal) as trailers while simultaneously reducing costs for such units, therefore, establishing itself as a cost leader in the sector. This combined with a weapons-grade differentiation of product through law enforcement networks gives LoJack a strong competitive advantage. These are strengths that cannot be quickly or easily duplicated and because of the copyrighted technical aspect of this product. Competitors would have to try and find substitute products to fight directly with LoJack.Competitive EnvironmentNew EntrantsTeletrec and other(a) competitors were on the merchandise prior to LoJacks entrance and other competitors are entering the food market through GPS based systems such as OnStar. These systems are not a onetime purchase but incur monthly fees to maintain work and whitethorn require the use of a cell phone.SubstitutesJust as with GPS, there is a panic of substitute products coming on-line through new technology, but this threat should be mitigated by LoJacks network with local law enforcement agencies.SuppliersSuppliers are also a threat as the auto industry is developing its own telematics technology. The automakers have started relying on standards to speed up the plan cycle. Their incapability to bring state-of-the-art activity, communication, routing, and other telematics (navigation, driver-warning, and communication systems) evidently emphasize the manufacturers un leave behindingness to relying on these standards. The automakers came into view to have understood their errors and restrictions and are participating in the development of new network standards for both critical mission and convenience or entertainment systems. LoJack mustinessiness continue to market its law enforcement advantage to thwart off this threat.BuyersAt this stage, buyers have relatively limited buying power due to the escape of alternative technology. However, the threat is the heavy reliance on car dealers to wander the product. If there is no incentive to do so, then the buyer may lack the knowledge that would drive the purchase.Intensity of RivalryAlthough the product is in its growing stages, a nd there is no clear competition, the increased activity in this sector could be conducive of a threat to achieve a large enough market share to make the implementation worthwhile. prospect on network level strategyboth LoJack and micro logic embrace the embedded organizational structure. While they both have proprietary technology, they rely on other organizations to leverage these technologies. LoJacks technology would not have been possible without the federation with local law enforcement agencies, Motorola, and little logical system. little logical systems existence had been to partner with organizations to influence its technological imaging to additionally expand the companies that it works for. It would perplex an evenhandedness stand in these companies and take a long term approach. In order for little Logic to be successful in this venture, it would pick up to rely on LoJacks distribution and marketing systems. Not only to sell its products but also to ensure its own financial stability.If LoJack is to review its long term strategy, it must understand that research and development are not at the force of its operation. Motorola is a key component to both LoJack and Micro Logic and has been a strong partner providing spanking assistance. They cannot be relied on to only tender this technology to LoJack. They are a much larger company and will look to broaden their reach. In the fall of 1999 Motorola was already working to pay congest a driving force in the telematics industry and moved to range itself with the major car companies.RecommendationsShort TermLoJack should look to form a free shackle with Micro Logic. This would allow for LoJack to expand into the new market of bend equipment where ingest exist and no clear provider exist. An alliance between these two organizations has a turn out track record and a proven product that can be marketed globally.The alliance should tackle the bodily structure equipment market. This is a m arket that has a strong need for a localization and plus management technology there is no clear market leader and creativity and innovation in products play a vital role to become a leader.The combination of LoJacks proven etymon for tracking and the ability of Micro Logic to develop strong asset management software would allow for strong penetration in this market. Both organizations should look to work in their core areas of expertise. LoJack recognizes how to market and allocate the products and Micro Logic should right away assume the Research &Development purpose. This will allow both companies to continue to drive down cost. LoJack presently has capable cash on hand to assist the need for cash with Micro Logic. At this point, the cash infusion should be done as a low or no interest loan to Micro Logic. The confederation works well over time, Micro Logic can establish if this is their core business. If not, they will be able to sell this product back to LoJack just as it did the first time and move in a different direction or become a secondary firm to LoJack. Motorola is currently working on the 3rd generation LoJack and Micro Logic should work directly with Motorola on this function.Medium TermOnce a clear hold on the social organization market is protected, then the alliance will have the opportunity to move into the trailer market. A proven track record in auto recovery and construction equipment asset management will allow strong credibility and should allow LoJack and Micro Logic to become the market leaders. During this stage both firms will need to determine the structure of the company and if they are able to grow construction equipment sales to the same rate as existing auto sales then LoJack would be in a position to either disembowel Metrologic into the existing organization or turn Micro Logic into a subsidiary.Long TermEmerging markets will be critical to the long term success of LoJack. With a strong foothold on the construction mar ket this area would be a logical first gait into emerging markets as contraction equipment would usually surpass new car sales. Immerging markets will provide the strongest revenue growths for the company and is possible this may need to be moved into the mid-term focus depending on the success for the technology.