Test

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

1)

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

It allows Lear to complete the development process more quickly than any other competitors, 1½ years as opposed to 3 years. Additionally, the methodology it uses helps reduce the actual costs associated with the development. Lastly, it facilitates a greater level of collaboration across traditional physical boundaries. In short, this technology helps Lear to compete because competitors are currently unable to match these advantages (E.g. speed of development, flexibility), as evidenced by the lucrative contract awarded to them by General Motors (as per the case study). In addition to using the new technology, Lear also acquired smaller auto parts companies, which allowed them to provide GM with a single vendor offering.

2)

2)

How long is

Lear’s window of opportunity for the strategic advantage given

by the virtual reality system? That is, do you think competitors will follow suit and implement a similar system? If yes, when?

If history is any indicator, then competitors will follow suit and attempt to use the same approach, or a revised approach, which they hope will provide them with a competitive advantage over Lear. I expect the process would occur sooner, rather than later.

For example, Lear’s competitors would likely purchase the sa

me virtual reality package from Alias/Wavefront and Silicon Graphics. In spite of this, Lear would hold its advantage until these competitors are able to fully integrate the new technology into their development process, or develop new processes altogether.

3)

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

Yes. CAD offers Lear a strategic advantage primarily because it was the first company to leverage the technology and establish a new, more efficient...