Case Study : Temsal Global’s Product Strategy

Topics: Bus, Case study, Market Pages: 3 (668 words) Published: November 24, 2011
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ISL 223E FUNDAMENTALS OF PRODUCTION MANAGEMENT

CASE STUDY3[1]
Due Date: 31. 10. 2011 – until at 17.00 to Room B408[2]

TEMSAL GLOBAL’S PRODUCT STRATEGY

Temsa Global is an automative company with factories in Adana, Adapazarı, Egypt. It produces buses, minibuses, and light trucks in its factories in Turkey. The company started out its business as a licensor of Mitsubishi products in 1984, when it could manufacture only the licensed products. Since 2001, Temsa Global has gradually developed design capabilities to support the shift in its producy strategy. In 2009, Temsa R&D and Technology INC., which was founded in 2003, had more than 200 employees.

In 2009, Temsa Global introduced its first city bus model, Avenue. Temsa Global has designed Avenue primarily for the European markets, in collaboration with its customer Arriva, a UK-based transport services company that has operations in 12 European countries. Temsa R&D center cooperates with universities and research institutes on advanced technologies and break-through applications. Avenue was designed by Temsa Global’s sister company Temsa R&D and Technology Inc., and the new design has decreased the production costs considerably. The cost reduction is expected to allow Temsa Global to price its buses competitively with respect to its competitors’ similar products. Currently the bus industry is moving toward hybrid power technologies, and green design continues to gain importance. Temsa Global has managed to catch this wave early; Avenue is over 1,700 pounds lighter than similar buses, thanks to the composite materials used in the body, and its hybrid version offers 25% savings on fuel consumption.

The next step is to market Avenue in other European countries, as well as in Turkey. Customers in different markets have specific requirements, and Avenue’s modular design will play a pivotal role in offering customized products.

Through product design, Temsa has become a global brand in less...
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