The company was therefore able to apply its two stroke engine technology the non automotive sector as well as the automotive sector. This provided the company with a safer and less risky portfolio as well as helped the company provide verification and evidence of the diverse functionality of the engine to the automotive sector.
“Intra-industry diversification promises three sets of benefits, which, separately and in combination, provide firms with a competitive advantage: synergies arising from economies of scope: premiums from mutual forbearance enabled by multi-market competition: and efficiencies derived from market structuring.” (Stan & Greenwood, 2004) This integrated with the development and the sighing off of the OCP based vehicles in Australia provided a practical demonstration of the adaptability and the innovative nature of the product as well as its dynamicity.
The other lessons that are leant from the case of the Orbital Engine Corporation include that the perceptions of the market as well as the positioning of the company and its origin is very important and crucial for the success of its products and deal proposition. This is supported by the failure of the OEC engines technology in the automotive sector despite the engines having the required benefits and the properties in demand by the automobile industry.
The case of the Orbital Engine Corporation is a very complex one which depicts that even when companies undertake extensive measures to establish themselves and establish credibility in their products, the reputation of the place of origin of the company, their technology and the perception and opinion of their local industry can have profound effect on the company’s success. The Orbital Engine Corporation has been able to establish and successfully market itself in the diverse makes pertaining to combustive engine based vehicles and machines but their entrance into the automotive industry was hindered greatly by their lack of experience in the industry and the perceptions about their local industry.