Present your original analysis by Thursday of the week, and respond to at least one other student by Sunday of the week.

Read the Chapter 6 Mini-Case: Sany Heavy Industry Co., Ltd

Respond to question 3: Why does a firm SUCH AS Sany (in the heavy equipment industry) spend so much of its revenue on R&D and innovation? Do NOT comment on Sany Heavy Industry Co. specifically or on the heavy equipment industry in particular. It is preferable that you comment on an industry that you know or in which you have worked.

You can use information from your personal (work) experience and/or from research from credible sources (other than the text).

Reply it: Sany caters to an industry that is technology-intensive. Innovation in products can reduce the cost of Sany customers to a great extent. For example, a crane that offers higher flexibility can eliminate an expensive procedure from the process reducing cost and time, two critical aspects of the construction industry. That is why the construction industry is always on the lookout for efficient products that can expedite the process while being efficient. Hence technology-based competitive advantage is important and valued in the construction industry. Further competitors of Sany are also vigilant and upbeat about their technology, patents, and innovations. This is the reason Sany is investing heavily in R&D and Innovation. I never worked in any type of construction company or with heavy machinery, except driving a forklift in the military. Therefore, like any other big organization revenue on R&D, and innovation is a major part of any major industry.