Research On The Selection Strategy For Company A Vertical R&D Alliance

It is necessary for company A to do R&D for high resilience PU product in furniture industry, high fire-resistant PU product to meet Fire Department Spec in construction industry, clean PU product in transportation industry. So far there is no product can meet each three division’s requirement, so the first company who can go in two these three market must have pioneer advantage. But, the property of PU product depends on its raw material’s property. That’s the reason that company A need the vertical R&D alliance. Although R&D alliance can improve the R&D efficiency, shorten R&D period as well.In this essay, we discuss which kind of vertical R&D alliance mode should company A choose to maximize the profit. Firstly, company A should choose Joint R&D to in furniture industry. Secondly company A should choose R&D Outsourcing in construction industry. Thirdly, company A should choose R&D JV in transportation. Training R&D Alliancer will also deepen mutual alliance. In order to make sure the R&D alliance works, profit allocation is very important. In this essay we recommend allocate the profit due to the investment ratio. In order to enhance the R&D efficiency and shorten R&D period, company A can set regular meeting, two-ways communication mechanism, employee incentive mechanism and monitoring mechanism as well. Company A can increase product competitiveness and R&D efficiency by choose different research R&D strategy by the limitation of limited resource. Other company can choose appropriate R&D strategy according to its resource to increase product competitiveness as well.