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    25 views7 pages

    Unitron

    Uploaded by

    Nirwana Puri

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 7
    e Unitron Corporation restanre ra e | This case is set bn 1974 in a Boston-based “hi-tech” firm which was a pioneer in the “sold state” electronic components that were the bass for “third generat computers and vere the early prototypes for modern ttegrated circus. ‘The asle issue is the classic “jolnt cost" lena. Jn 1974, Unitron Corporation vas only 20 years old, but it hd already suoceoded in positioning itslt fas a respected producer of high-quality elecironic components, Included among the finn’s product lines were rectifiers, thyristor, zeners, diodes, and otter highwvoltage assemblies, These products represent fundamental electronic components in such fickis as minicomputes, process controllers, defense systems, and communications equipment. With sales of $30 million, Unitron was clearly much smaller than the component industry's “Big Three” of Texas Instruments, Fairchild, and Motorola. However, by concentrating on high performance in solected high-quality segments of the market, Unitton had developed into the market leader in many specialty components, ‘This gave the firm & competitive advantage that permitted them to maintain a pric-leadership’ position within these segments, Rectifiers were a significant product group for Unitron. A rectifier’ function isto slow lectrical curent to pass in one direction while preventing movement in the reverse direction. Its ‘ction therefore is similar to that of a valve in fuid mechanics. Exhibit 1 shows the steps in producing «8 completed rectifier unit which is about /2 the size of a cigarette. ‘The value ofthis product to the final user is primarily determined by two charactoistics; the rapidity of response in blocking current roversals and the “surge capacity” or thaximun voltage level the rectifier can withstand, ‘Unfortunately, for all manufacturers including Unitron, there is no known method of controlling production procedures to,obtain exact cecal characiorstcs. Each production batch differs from ‘other batches processed under ostensibly the same conditions. Furthermore, within ench batch the individual units do not have precisely the same characteristics. Over many production nano, the

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