Delta Electronics, the world's largest manufacturer of switching power supplies, hoping to enter the market for gasoline-electric hybrid powertrain for vehicles, being one of the major components and sub suppliers. Although the majority of public awareness of hybrid cars dropped at one integrated vehicle manufacturer, Delta felt it was an opportunity to enter the market through the new car market participants in China, which have been relatively less able and ready to acquire the basic subsystems. However, the company was faced with a dilemma - a major customer wanted Delta to transfer ownership of key intellectual property as a condition of doing business. The case allows students to consider technological shift will allow what seems traditionally a highly integrated product design to go to a modular architecture, and consider the implications for the profitability of appropriability. "Hide
by Willy Shih, Jyun-Cheng Wang Source: Harvard Business School 18 pages. Publication Date: May 12, 2010. Prod. #: 610098-PDF-ENG
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