CASE ANALYSIS: OXFORD INSTRUMENTS GROUP plc
The Oxford Instruments Group case is analyzed within the contexts of four issues. These issues are the key characteristics of the company's business environment, the core competencies at Oxford Instruments, explanations of the company's success through 1984, and requirements for the future success of Oxford Instruments.
Key Characteristics of Business Environment and Implications for Strategy
Profitability at Oxford Instruments is dependent on high volume, production efficiency, and product innovation. The three factors are interlined at Oxford Instruments. High volume, however, has also required the company to follow a consolidation and diversification strategy. Another strategic implication of the company's business environmental characteristics is the need to target growth markets.
New product introduction is essential to the maintenance of high volume, and new product introduction is itself dependent upon high levels of technological innovation. The promotion of continuous technological innovation has caused Oxford Instruments to organize around subsidiary operations with responsibilities in specific technological and product areas. To foster high volume, the company pursues a strategy that places a strong emphasis on defensive development, which Oxford Instruments defines as incremental development of existing and well placed product lines.
The development of new technologies and products, however, is also important at Oxford Instruments because such products are required to support future defensive development. The development of new technologies and products requires that the company maintain open, clear, and supportive communications with academic institutions.
Technology is one of the means by which productivity may be increased within an economy, an industry, or an organization. The introduction of new technology into industries tends to lower production c...