Dupont Case Harvard Business Paper
Case. DuPont Kevlar Aramid Fiber Industrial.
The DuPont’s major core has been the creation and innovation of fibers for several uses, such as Lycra spandex fiber, diverse polyester forms, Nomex Aramid fiber and Qiana nylon. The invention of Kevlar brought a new market cluster for DuPont to develop, and that one is the tire and aerospace industries.
The important assumptions to have in consideration before making a decision is to first know who your market target is, who your competition is, and the pros and cons to start to develop a niche in this industry, for that I mean, what would be the production cost and what would be the selling cost, knowing those data, you can estimate the profit for a certain …show more content…
The projections of technology that is needed for the Executive Committee be willing to risk $332 million are, first of all, Swank needs the security of the Kevlar technology to accomplish all the promises this product offers, with that I mean that Kevlar needs to prove that it has indeed the properties that makes it better than fiber glass, carbon fiber and boron fibers for the aerospace industry. Maybe not necessarily 100% better than those competitors but it must be quite good in its market. On the other hand, talking about the market, as it was said, DuPont’s technology has a remarkable opportunity in the market pull of fibers because of the properties it has, and because of the applications it would provide to the top-secret military aircraft and missiles, basically the market target, aside to the tire business and the ones mentioned before, it would also be included the aerospace and aircraft market. However, it must be said that no market remains the same. The reasons for this are that the demand of the products might change. Maybe would decrease because of, for certain period time, because of the durability of the fibers, Kevlar and any type of fiber wouldn’t be needed. Or could increase because there would be new applications to fibers, discovered through time. In my opinion, the market