Corning Memo Case Studies Example
Type of paper: Case Study
Topic: Company, Market, Strategy, Business, Internet, Fiber, Network, Television
Re: Corning Incorporated Memo
While some companies were focused on acquiring other companies and growing in vertical integration, Corning focused on networks in which individual company had freedom from parent companies. This is a troublesome strategy for cohesive strategies, but it does allow for a variety of strategies and thinking bodies of management to weigh in on different decisions. With moving markets and different ways to look at where resources should be allocated, this memo weighs in on the decisions of what Corning should do with proposals for Laboratory Sciences, Fiber Optics and TV Glass Divisions.
The Laboratories Science Sector is a field that has led to a lot of success for Corning and it has a variety of applications in a lot of major fields that Corning could form strategic partnerships with (Harvard Business, 1992). The current business market in this industry has evolved and likely will continue to evolve in ways in which here will be new niches that Corning can seize upon. Such an opportunity came along when Ciba-Geigy, a Swiss pharmaceutical company looked for an opportunity to move into diagnostics (Harvard Business, 1992). This allowed Corning to move into laboratory testing. This fits into Cornings strategy of being an innovative company able to engineer solutions to problems.
In the communication sector, looking back has made clear that fiber optics is a viable industry that will continue to grow as consumers demand faster ways to communicate along the established networks currently in place. Fiber optics is one way to do this. By entering into a partnership with a European company just at the time when this market “began to blossom” stationed the company as an important player as the market continued to evolve. AT&T was it’s biggest competitor at the time, but eventually led to a disintegration leaving a gap in the market for Coning to fill (Hetch, 2003). This also is a way to keep the cutting edge of an emerging market, which will continue to grow and develop.
In manufacturing color television glass, it seems that Corning is at a disadvantaged from Japanese manufacturers. As globalization continued to move markets to Asia, one of the most strategic moves that Corning could make is to begin to develop a manufacturing division of television glass in Asia, likely in China, in order to capitalize on the cost savings that come from that market. This is a good move for Corning in it’s overall strategy since televisions are household items that are replaced with some regularly as bigger and better versions come along, so Corning could carve itself a niche that will keep it’s profitability.
Corning’s network strategy is one that has helped it remain a strong competitive company with a number of holdings in various business. It is “strong momentum across multiple business” that “Drives Corning’s growth” (Collins, 2015). By being involved in a network of companies rather than having a top down integrated approach, Corning is able to find many businesses in which its services, products and research will be of value. In a market place that continues to evolve, being flexible and having one’s fingers in multiple pies is one way to ensure that if business sags in one area, it has the potential to pick up in another, keeping the business strong and diversified.
Corning Incorporated: A Network of Alliances. Harvard Bussiness School. (1992). Corning News Releases. (n.d.). Retrieved February 21, 2015, from http://www.corning.com/news_center/news_releases/2015/2015020601.aspx
Hecht, J. (n.d.). A Fiber-Optic Chronology. Retrieved February 21, 2015, from http://www.jeffhecht.com/chron.html