Luxor technologies was a successful technology manufacturer in the early 1990’s with quality products containing state of the art technology breakthroughs. By mid to late 90’s Luxor was no longer the leader in technology manufacturing but now had several competitors with products equivalent to their own. The company was highly concerned about sharing inside secrets of their licensed applications and propriety technology with outside firms that could be associated with their competitors. The marketing leader believed the risks was found within the need to make advancements, research, and prototype development and testing (Kerzner, 2014). Luxor then hired a risk analysis expert to evaluate possible risks and the likelihood of damage and help create plans to mitigate the companies risks. With these risks the analysis measured ratios with and without state of the art advancements, the expert demonstrated that product performance was not completely as specified causing the highest impact. Whereas the performance degradation of systems showed the lowest effects to occur. Although, each technical risk showed a higher impact rating with state of the art changes. At this point the company had to decide how they wanted to proceed to stay profitable, be a technology leader or follower (Kerzner, 2014). …show more content…
Several concepts where addressed such as layoffs and limited growth to outsourced manufacturing influencing final cost. But the highest impact to the company was the marketing departments realization was that they will need to outsource their state of the art developments, which was one of their largest concerns with sharing confidential information with outside companies (Kerzner,