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Individual Case Analysis
September 9, 2014
NELDA MATA Strategic Management
After reading the Cameron Auto Parts (A) case, I decided to analyze
it in order to conclude whether Cameron made a wise decision in licensing
its company’s patented process to McTaggart. I noticed that Cameron had
undergone many ideas to attempt diversifying, financing, marketing,
licensing, and reaching out to foreign markets. All of these came at a cost;
Cameron did report losses in its 2001 income statement.
I agree with the steps that Cameron took in licensing McTaggart. It
was a smart move in Alex’s part because even though they aren’t capturing
foreign markets directly, it is an excellent way to penetrate the United
Kingdom’s market swiftly via McTaggart’s sales force. For Cameron this
means having a form of representation in the UK, Europe, Australia, New
Zealand, and India - without having to loose resources in an attempt of
capturing foreign markets on their own. Alex not only created a market
without having the resources, but also evaded any financial risk involved.
McTaggart has an excellent credit record, good market contacts, and
130 years of acquired experience. I believe that McTaggart was an
extraordinary choice for licensee. On Cameron’s behalf, McTaggart has
