Case Study

Read Case Study 2-1, “Lear Won’t Take a Backseat”, on pages 73-75 at the end of Chapter 2. Complete the discussion questions at the end of the case in a 2-3 page paper using APA format.

1. What is the strategic advantage afforded to Lear from virtual reality? How does this technology help it compete?

2. How long is Lear’s window of opportunity for the strategic advantage given by the virtual reality system? That is, do you think that competitors will follow suit and implement a similar system. If yes, when?

3. Do you think the CAD system offers Lear strategic advantage? Explain.

4. Apply the value chain to demonstrate how the virtual reality system adds value for Lear and for General Motors.

5. What other types of competitive advantages might Lear executives seek from IS in

general?

Abstract

In our textbook we study a company, Lear who in the past made solely car seats. The case study explains that Lear rose to victory and in 2000, thanks to acquisitions and expansion into new product areas, their sales climbed to $14.1 billion. Prior to gaining much success they teamed up with GM to envision the interior of the Chevrolet Express LT, a new luxury van which Lear helped design and build. Soon after that Lear decided to invest in an animated virtual reality package from Alias Wavefront, a software subsidiary of Silicon Graphics. By using technology Lear built their prototypes from the new Reality Center which was complete with a triple projection screen and three digitized boards. Lear went a step further a made it possible for designers to send their work back and forth over the Net—thereby creating a virtual workplace. This paper looks into Lear’s strategic advantages afforded from the virtual reality.

Our textbook teaches that managers or leaders confront elements that influence the competitive environment and they must take multiple views of the strategic landscape. Lear...