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Outsource or insource R&D
Case Study: Feed R&D - or Farm it out? Each student is to submit an extended analysis of this case by Nitin Nohria et al. HBR JulAug 2005.
• Review the strategic issues presented in the case.
• Discuss the key issues management needs to consider in deciding whether to support an in-house R&D function or outsource all Research & Development.
• Discuss the implications of outsourcing R&D for middle managers.
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RLK Media began in 1985 with spotlight on elite sound and video gadgets. The organization is famous for its brand reputation, they innovative product ideas, delivering high quality products with best prices. Audiophiles were attracted to RLK’s innovative products.
Be that as it may, the industry has changed after the home theatre idea was presented and RLK couldn't go up against Japanese contenders' items with proportional quality at focused costs. RLK is confronting moderate deals with disintegrated edges, fundamentally because of diminished interest for top of the line buyer gadgets and expanded R&D costs.
RLK is confronting another test because of the development of the new customer electronic items being composed intensely in light of inserted programming, where RLK holds no perfection and mastery perception. RLK is wagering over its freshest creative item – a feature headset with levelled features; but R&D is priced for outsourced software engineers presents extraordinary dangers on the organization in its current monetary circumstance. President Lars needs to choose whether to outsource the R&D or to invest expanding their workforce in- house.