Analyze the Opportunity at Elite Electronics Vignette in Chapter 5. Discuss whether Elite should grab the new ADC and run for the pot of gold or play it safe and wait for more proven technology and competitive sources. Consider the advantages of being first to market compared with waiting for someone else to sustain the costs of working out the issues. (Hint: Develop an expected value analysis of the two alternatives).
Elite Electronics Vignette (Burt, Petcavage, Pinkerton & Burt, 2010) is a great case study in which there is an opportunity for a company to do something out of the box and get the well-deserved place in the market as a result or wait for other competitors to try the new technology and then give it a go in which case the results may not be that promising. Both options have their own merits and demerits. For example trying a new equipment may require the use of valuable capital that may not pay off. On the other hand letting the competitors take the lead could leave Elite Electronics behind forever and they might not be able to have a powerful go as the market might have already been saturated. Also when one company takes the lead, the product is then identified with it and others companies may not be able to break the share of the market in their favor.
After reading the case study, I have come to the conclusion that Elite should not hesitate and have a go at it. The ADC by Gamma should be acquired by Elite as there is less than 50 % chance that the new product would go wrong. Also Elite can strike out a deal with Gamma that could provide them with a creating amount of capital for the production of the new electronic equipment and share profits and loses accordingly to let them experience less heat things go the way they were not expected.
Risk taking is a great challenge for any business but the businesses who are capable of taking risk would benefit greatly as innovation is hidden in taking risks and thinking out of the box. This is what would definitely work for Elite in my opinion.