• Competence Positioning and Competence Marketing: Pacific Cycles Inc.

Abstract

Pacific Cycles Inc. was established in 1980. It started by following the mass-production business model, but then gradually transformed into a low production of many types of specialty bike and folding bike. This case represents a company facing a growing number of international research and development cooperation projects, and demonstrates how to construct marketing methods based on technological competence positioning, and how, through proper selection of cooperative partners, to strengthen its technological capacity again. This case is reported for the two following teaching objectives: (1) How to make potential customers aware of their technological competence and how to communicate their technical value. This topic can help students understand the approach of competence positioning and marketing. (2) Bounded by production capacity limitations and technological competence refinement, how to select potential customers, abandon existing customers, and encourage potential customers to cooperate. This topic can encourage students to think about the importance of long-term partner selection in technological competence positioning and enhancement. Inter-partner learning can upgrade firm’s capabilities depends on their absorptive capacity.

Keywords: Competence Positioning, Competence Marketing, Partner Selection, AbsorptiveCapacity