Case Study: From Harvard Business Review Silvio

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Case Study from Harvard Business Review

Silvio Napoli and Schindler India (A)

Executive Summary

The case study chosen for this analysis is Silvio Napoli and Schindler

India (A) published by the Harvard Business School (2003) and extensively

used in many international business, marketing, and operations courses

globally. The synopsis of this case study is as follows: Silvio Napoli, a

brash, highly talented manager with Schindler Corporation of Switzerland is

send to India to establish a subsidiary. Apart from the cultural clashes,

the lessons learned from managing a customization business in a nation

where supply chains and infrastructure is sporadic is an excellent example

of how globalization is difficult at best to achieve.

Strengths

. Chairman Alfred Schindler identifies India as a major growth market

well ahead of the competition, starting in 1995.

. Schindler is one of the worlds' most vertically integrated

manufacturers of elevators, escalators and specialty moving products.

. Silvio Napoli is Harvard-educated, highly talented and aggressive, and

has moved up the ranks of Schindler Corporation quickly. His "swatch"

strategy of product customization for the low-end of the Indian market

is sound if applied to a highly industrialized society.

. Strong internal focus on analytics and measurement of progress towards

objectives. This mentality around highly quantified goals also

applies to their move into India, where the company sets the goal of

selling 50 units the first year, culminating in a 20% market share in

five years.

. Silvio Napoli creates an excellent Indian management team, recruiting

heavily from the largest competitor Schindler faces in the market,

Otis Elevator.

Weaknesses

. Schindler Corporation nor Silvio Napoli have ever had any previous

experiences in setting up a subsidiary in any 3rd world nation, India

included.

. Schindler Corporation relies on outside advice from Boston Consulting

Group on a go-to-market strategy for India, when neither company has

ever been in country before and established operations.

. Silvio Napoli was not a culturally strong fit for how Indian is

accustomed to being managed. Mr. Napoli is brash, very direct and

confrontational in his approach to management. He refuses to let

delays, even from the sporadic performance of India's infrastructure,

get in the way of his plans.

. No previous experience in establishing supply chains throughout

India, especially in the area of mass customized products.

. Napoli's stubbornness to hold onto a "no customization" strategy in a

market that demands high customization forces many conflicts inside

and outside the company.

. Lack of coordination and shared goals with manufacturing centers

Schindler operations throughout other regions of the world makes

transfer pricing problematic; the other factories are not cooperating

with Napoli as they see low cost manufacturing as a threat.

. Schindler's introductory elevator models,… [END OF PREVIEW]

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Cite This Case Study:

APA Format

From Harvard Business Review Silvio.  (2007, January 23).  Retrieved September 18, 2019, from https://www.essaytown.com/subjects/paper/case-study-harvard-business-review/2327107

MLA Format

"From Harvard Business Review Silvio."  23 January 2007.  Web.  18 September 2019. <https://www.essaytown.com/subjects/paper/case-study-harvard-business-review/2327107>.

Chicago Format

"From Harvard Business Review Silvio."  Essaytown.com.  January 23, 2007.  Accessed September 18, 2019.
https://www.essaytown.com/subjects/paper/case-study-harvard-business-review/2327107.