Question
QuantumPenrose is a United States-based company involved in the research and development of alternative energy/renewable energy. The company was created in 1984 in Chicago, Illinois,
QuantumPenrose is a United States-based company involved in the research and development of alternative energy/renewable energy. The company was created in 1984 in Chicago, Illinois, in the United States. In the late 1990s, QuantumPenrose opened its first international manufacturing plant in Europe in Bristol in the United Kingdom. Since then, the company has opened manufacturing plants in Germany (in 2005), in the Asia-Pacific region in Australia (in 2010), and in Japan (in 2016). For QuantumPenrose, the preferred option is to form joint ventures with local partners in the international markets. The company designs solar panels and wind turbines. The company's strategy is to allow the international managers to decide what changes they want to make to the manufacturing of the physical product to suit the local climate and environment. However, the underlying research and development is kept at home. The regional managers are encouraged to assess opportunities to expand and find new markets in their regions. Historically, due to the emphasis on quality and the use of the highest-quality parts, the cost of their production has been high. For this reason, the company has only manufactured and sold its products in developed economies. However, the latest report by the Intergovernmental Panel on Climate Change (IPCC) has highlighted increasing challenges with climate change that requires urgent attention. Many developing countries have been highlighted as contributing to this issue. As a result, the regional manager for Asia-Pacific, Sandra Pavel, has contacted the head office to recommend the company consider entering the Indian market. There are huge market opportunities in India, where power blackouts frequently due to poor supply and constant sunshine means that the take-up for renewable solar energy is already high, and businesses are looking at converting their offices to use only high-quality and reliable products that provide renewable energy. However, the head office is concerned about the risk of losing their intellectual property in India, where reverse engineering is used to create competitor products and the slowness of the legal system in finalizing legal cases involving intellectual property theft.
Q1. Which market entry strategy would best suit QuantumPenrose's entry into the Indian market? Provide reasons for your answer and discuss the benefits and limitations of your chosen strategy over other options.
Q2. Based on the information provided in the case and using the integration-responsiveness (IR) framework, identify and explain your reasons for which organizational strategy and structure you believe QuantumPenrose follows?
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