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Whales, Inc. is in the process of determining the best way to enter a new business segment. In particular, they are interested in the wearable fitness industry. They have spent years designing and manufacturing sensors and have developed quite a competency in manufacturing and innovation. However, they have traditionally supplied companies with components as opposed to selling directly to the customer. The industry is growing rapidly, and the time to enter is now. The key question on the table: What vehicle should Whales use to enter the wearable fitness industry?
Organic growth given they have the resources they need
Acquisition because it is the most failsafe way to create a sustainable competitive advantage.
Strategic Alliance in order to quickly and cheaply access complimentary resources.
Outsourcing because the needed resources are not critical to the new businesses success.
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