Friday, November 7, 2008

SMEs vs. MNCs within automotive industry





Koenigsegg Automotive AB is a Swedish manufacturer of high-performance cars. The company was founded in 1994 by Christian von Koenigsegg who is recognized as a true entrepreneur and innovator. Since 1994 the company has launched three different models. Each model has been updated and reengineered upon the previous one. By this the initial unique concept has never changed and kept its uniqueness. The last model called CCX –Competition Coupe X, has been recently completed and unveiled at Geneva Motor Show. According to the company this new car has been reengineered upon the previous model called CCR to comply with the US regulation. Therefore company will have met the international standards and taken advantage of the market potential in America. Although the car is one of a kind like its ancestors in many ways – holder of the production road car speed record, one of its features makes it even more special and unique; environmental friendliness. The latest model of the Koenigseggs runs on bioethanol. Even though the very low and exclusive production volume of Koenigsegg can hardly be considered to have a measurable impact on the Co2 problem that global society is facing, it is an impressive statement that even a small and extreme company like Koenigsegg can afford to develop environmentally focused solutions.


The concept for these supercars had been set from the very first start, a two-seat mid engine construction with a hardtop; all based on state-of-the-art Formula One technology. However Koeningsegg lacked the resources of the automotive MNCs possess in the automotive industry and therefore had to compete in other ways. A network of competent designers and engineers, with connections to both the Swedish car industry and the universities, was tied together might have been the solution to tackle the aforementioned issue. Over the past years the company has become known by its large network of suppliers and partners which are tied to the company, these are small companies and craftsmen, mostly located in Sweden, that produce low volumes of high quality components. The company has ability and freedom to establish weak ties and turn these weak ties into strong ones by choice with selected suppliers as opposed to large and dependent automotive MNCs which are ruled by policies.


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