Page 43 - rise 2017

Analysis
For analysis, all the criteria are defined clearly. The five major criteria with sub-criteria are as
follows:

(a) Innovation
In this study, innovation refers to a new product innovation which can be divided into as a new three
sub-criteria;

New Technology
This study refers new technology as a new development in automotive industry through applied
science which is interrelated with life, society and the environment. By introducing a new technology
in terms of car engine, car body, safety, reduction of fuel consumption and environmental-friendly,
the business will be able to be a leader in innovation and move forward to compete with their
competitors.

New product introduction
A new product is refers to the innovation of new model of car released by automotive manufacturing
company. Thus, the new model has been considered as part of the innovation.

Design improvement
In this context, design improvement has been referred as the company reproduces the same type of car
models, but with new additional features.

(b) Strategic Alliance

Merging
Merging happens when two or more companies unite to become one new organization in running their
business and this entails the creation of new corporation. The data was collected based on this
situation.

Partnership
Partnership involves two or more companies that agree to cooperate and going into business together
in order to make profit. The data was collected based on the collaboration between two or more
organizations.

Joint Venture
The purpose of joint venture is to share the cost and risk which contribute money, property and effort
together. It is usually setup for a specific timeframe as compared to partnership that is typical for a
long-term purpose.

(c) Market Expansion
Market expansion occurs when a company offers a product or their services to a wider section of an
existing market. In this study, it has been counted every time the company does a market expansion.

(d) Product Diversion
Product diversion is defined as producing another product other than existing products. In context of
automotive manufacturing company, product diversion includes involvement in making other types of
product such as motorcycle, trucks, bus, jet and motorboat. Thus, the data were collected based on
long the period of every new filed which the company involves its establishment.