Solved Case Analysis: POSCO, FINEX, and Technology Sharing By Jenny Mead, Rajendra Sisodia, R. Edward Freeman, Dean Krehmeyer

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Description

POSCO was a South Korean company that manufactured and sold products such as hot-rolled and cold-rolled steel, stainless steel plates, wire rods, and silicon steel sheets. Determined to find a greener and more cost-efficient alternative technology for steelmaking, POSCO decided to develop a new technology. Called FINEX, this technology significantly lowered operating costs, cut emissions, and, by eliminating the need for sinter and coking plants, significantly reduced overall construction costs. Once FINEX proved to be a successful technology, POSCO faced the question of whether and how to share FINEX with its competitors. Company leadership knew that POSCO had only succeeded?indeed, had only come into existence?with the help of other steelmaking companies that had shared their technology, knowledge, and expertise. This would be the first time in POSCO’s existence that it would share such a strategic technology with others. The question was, should it share?

Publishing Authority:

Darden Business Publishing – University of Virginia

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