BUSINESS CASE A Luxury caravans

An familiar company, located at the center of Canada, has been designing and manufacturing for 20 years luxury customizable caravans and recreational vehicles for the local market. However, after several expansions in Canada and promotions in the U.S.A., the market of the North American country starts to demand more presence of the company.

There are three main differentiation factors that the company offers to the market:

1- Considerable range of versions. The products are produced under 4 common vehicle bodies, 10 external looks, and 20 combinations of interiors depending on the direct customer order. That combination created a considerable catalogue with up to 200 versions.

2- Quality of the products. Only the best materials and high technology are incorporated to the vehicles, being the parts and materials used are more expensive and exclusives than its competitors.

3- Lead times: everything is prepared at the supply chain to give the best response to their customers, at any cost.

Although the company success, the high customization has generated historically some drawbacks at the company, as:

- Excess of obsolete or old-fashion inventory.

- High variability in the production, generating steadily changes in the production planning.

- No win-win relationship with the main suppliers

Even with theses disadvantages, the company keeps the margins in positive. The question set by the C.E.O. is how long the company will be able to keep this level against the evolution of the market and its competitors. The key question is if they must keep in the same path.

The board of directors of the company have decided to create a new line of caravans with similar look, variability, and quality, but with lower costs. The expected result would be a luxury customizable caravans, but with balanced between profitability, cost, and lead times. The handicap would be a potential reduction in the quality, and brand expectations.

The company has received an allegation for $50 millions from a close competitor, demanding an Intellectual Property Infringement on the product that you are developing. Your company commands your team to work close to legal department in order to demonstrate the authenticity of your product. With this purpose, you must answer some specific questions of your legal department:

1- What do you think that makes unique your product in the market?

2- List and explain what kind of IPs protection you recommend.

3- Knowing the product, what IP risks do you identify in the product? What do you suggest for mitigating them? Give extended explanation

4- What measures will we take to monitor IP infringement in the future? What protocols can be used?

5- After passing this problem, what strategy do you recommend for IP Protection in the future?