Chapter 5: Temsa Global’s

Product Strategy
Group 8
Castañeda
Mariano
Tinsay
Zurbano
Background
Temsa Global is an automotive company with
factories in Adana, Adapazari, and Egypt. It
produces buses, minibuses, and light trucks in its
factories in Turkey.
The company started as a licensor of Mitsubishi
products in 1984, when it could manufacture
only the licensed products.
In 2009, Temsa R&D and Technology Inc., which
was founded in 2003, had more than 200
employees. The same year, Temsa Global
introduced its first city bus model, Avenue.
Avenue was designed primarily for the European
markets, in collaboration with its customer Arriva,
a transport service based in the UK that operates
in 12 European countries.
Avenue was designed by Temsa Global’s sister
company Temsa R&D and Technology Inc., and the
new design has decreased the production cost
considerably. The cost reduction is expected to allow
Temsa Global to price its buses competitively with
respect to its competitors’ similar products.

Currently the bus industry is moving toward hybrid

power technologies, and green design continues to
gain importance.
Temsa Global has managed to catch this wave
early; Avenue is over 1,700 pounds lighter than
similar buses, thanks to the composite materials
used in the body, and its hybrid version offers a
25% savings on fuel consumption.
1.) What was the product strategy of Temsa Global in
2009? How was it different from the product strategy in
1984? What organizational changes were required to
support this shift?
- Temsa Global executed a low-cost, customer-driven product strategy.
Through product design, the company was able to bring down
production costs while responding rapidly to the market needs ahead
of its competition.
- It is different from their business model in 1984 because they only
relied on Mitsubishi in assessing market needs and strategizing for
new products.
- The headcount for Product Management and Research and
Development (R&D).
2.) What are the possible advantages of investing in the
R&D center for advanced technologies? Discuss the
implications, considering the changing perceptions and
demands of consumers.
- Improve profitability, improve the quality of products, getting
products to markets more quickly, anticipating changes in
the market.
- Through R&D, production costs can be significantly reduced
to offer competitive pricing and indirectly increase
profitability. By providing newer, better and unique products,
companies are able to differentiate and stay ahead of the
competition.
3.) What should be the focus of Temsa Global in
supporting its market-driven product strategy and
customized designs?
- Customer Satisfaction, Temsa Global should
focus on the customer’s needs and wants.
- Innovation, the products should be constantly
upgraded with new features and designs, which
should entice the customers to buy the products.
- Temsa Global should be aware of the market
conditions.