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Teradyne: hitting the great wall

Laurie L. Levesque (Department of Management and Entrepreneurship, Sawyer Business School, Suffolk University, Boston, Massachusetts, USA)
Kuo-Ting Hung (Department of Information Systems and Operations Management, Sawyer Business School, Suffolk University, Boston, Massachusetts, USA.)
Hasan Arslan (Department of Information Systems and Operations Management, Sawyer Business School, Suffolk University, Boston, Massachusetts, USA.)

The CASE Journal

ISSN: 1544-9106

Publication date: 3 July 2017

Abstract

Synopsis

This case presents a problem with competing in the Chinese market faced by Jeff Hotchkiss in early 2000s, then President of the Assembly Test Division (ATD) at Teradyne. Teradyne is the world’s largest producer of automatic test equipment for electronic assembly on production lines. Hotchkiss needed to find a solution to prevent ATD from continued loss of market share in equipment sales and loss of service revenue in China. Various factors to be considered include customer differentiation and service supply chain configuration.

Research methodology

This case is a field researched case. The research team met with Teradyne’s division president and top management team, and was given access to the documents including customer feedback.

Relevant courses and levels

Graduate or undergraduate: operations management, supply chain management.

Keywords

Acknowledgements

The authors gratefully recognize Gina Vega, Christian DeLaunay and Neil Hunt for their involvement in research interviews, and offer deep appreciation to Jeff Hotchkiss, Rod Willis, Walter Vahey the current President of Teradyne, ATD, and the editor and anonymous reviewers for their assistance at various stages of this case.

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The authors may have disguised names; financial, and other recognizable information to protect confidentiality.

Citation

Levesque, L.L., Hung, K.-T. and Arslan, H. (2017), "Teradyne: hitting the great wall", The CASE Journal, Vol. 13 No. 4, pp. 546-560. https://doi.org/10.1108/TCJ-02-2016-0017

Publisher

:

Emerald Publishing Limited

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