Strategic Management
3rd Edition
ISBN: 9781259420474
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Chapter 3.5, Problem 5CC
Summary Introduction
Case summary:
Company G, Company F, and Company C are the big three companies which ruled the car market in the 20th century. Half of Company U’s market was occupied by Country G. In the 1960s and 1970s, the foreign car makers entered Country U’s market and threatened the market share of the big three companies. Person EM created the new venture T to address the social and environmental challenges along with economic challenges.
Company T has entered Country U using innovative technology. Industry and film factors of Company T helped them to have continued success. The case further deals with the factors that influenced the success of the firm in Country U.
To determine: Why Person X thinks that the market capitalization of Company T is fifty percent of Company G.
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