Public and Private Sector Collaborations Essay

Open investigate organizations and private firms work under very assorted situations and with poles a-part aims and objectives, which result in fairly different outcomes in the two types of organizations. Public researchers atomic number 18 mainly overambitious due to their willingness to expand knowledge and publish them in journals and magazines to help for the cause of bringing it to knowledge of the masses. On the some other hand, private firms and ventures aim to chance upon gameyer profits through commercially valid entropy that the firm builds up or obtain to be kept in the boundaries of the company and far external from opponents in the market or the sedulousness. This usually results in the conflicts among the two forms of organizations and it is difficult to work in collaborationism between the human beings and private organizations.But it has also been evident from the past that, private companies and firms which chip in worked in public collaborations, althou gh not many succeeded, unless those who did, countenance been adequate to achieve goals and switch set trends for other organizations to work for the cause of social development and enhancement of public systems for noble cause.Current Situation (LoJack) and outlineLoJack Corporation markets and authorizes the LoJack System, a unique, proprietary system used entirely by law enforcement workforce to track, establish, and resolve up stealn motor vehicles.The problem of vehicle theft has escalated to an epidemic level an estimated to result in an per annum loss of approximately $8 billion.The LoJack System has an established track evidence of takeing damages, striking public protection, and solving grave crimes related to motor vehicle thievery, all accomplished within the realistic restrictions of burden law enforcement structure. Currently, LoJack has unique system designed to assist law enforcement in locating and tracking stole vehicles. Competition is fierce if viewed wit h Telemetric and GPS tracking devices. However, if we look at vehicle convalescence systems, LoJack is the global leader with a law enforcement meshing that cannot be easily duplicated. This law enforcement network is challenging politically and requires a high degree of local political assistance. Financially, gross revenue be climbing, but year over year result is declining. The distribution system through auto retailers seems stuck to new car sales.The LoJack system at the present quantify consists of several discrete variables. LoJack has elected to expand into new geographic battlegrounds and markets which is a logical growth strategy for the firm which has established an enviable reputation in terms of plus recovery systems. This company has substantial a new tracking unit that permits it to move into new segments such as trailers while concurrently reducing costs for such units, therefore, establishing itself as a cost leader in the sector. This combined with a st rong differentiation of harvest-home through law enforcement net deeds gives LoJack a strong competitive advantage. These are strengths that cannot be quickly or easily duplicated and because of the proprietary technical aspect of this product. Competitors would have to try and find backup products to compete directly with LoJack.Competitive EnvironmentNew EntrantsTeletrec and other competitors were on the market prior to LoJacks entrance and other competitors are entering the market through GPS based systems such as OnStar. These systems are not a onetime purchase but incur monthly fees to maintain service and whitethorn require the use of a cell phone.SubstitutesJust as with GPS, there is a threat of supplant products coming on-line through new engineering, 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 re lying on standards to speed up the plan cycle. Their incapability to bring progressive activity, communication, routing, and other telematics (navigation, driver-warning, and communication systems) evidently emphasize the manufacturers unwillingness 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 censorious mission and convenience or entertainment systems. LoJack must continue to market its law enforcement advantage to thwart off this threat.BuyersAt this stage, buyers have relatively limited buying power due to the lack of alternative technology. However, the threat is the heavy trust on car dealers to sell 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, and 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.Perspective 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 alliance with local law enforcement agencies, Motorola, and micro Logic. Micro Logics existence had been to henchman with organizations to influence its technological resourcefulness to additionally expand the companies that it works for. It would address an evenhandedness stand in these companies and take a long term approach. In order for Micro Logic to be successful in this venture, it would pauperism 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 core of its operation. Motorola is a key component to both LoJack and Micro Logic and has been a strong partner providing vital assistance. They cannot be relied on to only provide 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 become a driving force in the telematics industry and moved to posture itself with the major car companies.RecommendationsShort TermLoJack should look to form a free alliance with Micro Logic. This would allow for LoJack to expand into the new market of construction equipment where need exist and no clear provider exist. An alliance between these two organizations has a proven track record and a proven product that can be marketed globally.The alliance should tackle the construction equipment market. This is a market that has a strong need for a location and asset management technology there is n o clear market leader and creativity and innovation in products play a vital role to become a leader.The conspiracy of LoJacks proven solution 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 & cultivation purpose. This will allow both companies to continue to drive down cost. LoJack presently has sufficient cash on hand to assist the need for cash with Micro Logic. At this point, the cash infusion should be through with(p) as a low or no interest loan to Micro Logic. The partnership 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 fir m to LoJack. Motorola is currently working on the 3rd generation LoJack and Micro Logic should work directly with Motorola on this function.Medium Term once a clear hold on the construction 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 absorb 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 market this area would be a logical first step into emerging markets as contraction equipment would usually turn over 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.