Rlk Media
RLK Media
Philip M.
May 13, 2013
Executive Summary
1985, Ray Kelner had launched RLK Media in a converted muffler repair shop in Waltham, ten miles west of Boston. The lab's radical speaker designs quickly attracted affluent audiophiles, who would pony up $20,000 for a pair of RLK's custom-made towers. Taking the helm in 1998 as CEO Lars Inman led the acquisition of Opticon LCD Labs, positioning RLK to compete at the high end of the emerging home theater market but he'd underestimated the ability of the Japanese consumer electronics giants to lure away RLK's core customers with their increasingly high-quality, competitively priced products. Unable to compete in the fast-growing, high-volume home theater business, RLK, Lars knew he had to refocus its energies on its core competence: innovation.
RLK Media
I. CURRENT SITUATION
RLK Media built its reputation on brilliant innovation in high-end consumer electronics. But with customers defecting to mass-market products, RLK has to rethink its approach.
Keith Herrington, RLK's chairman directed Lars Inman CEO of RLK Media to “Find out what the customers want and give it to them.” Furthermore, Herrington threatened Inman, “if you can't stop this slow bleed and turn the company around in a year, we're going to bring in someone who can.” (Nohria, 2005, p. 20).
Ray Ketner, RLK's founder and chief scientist, developed a video headset with directional sound which is a new direction and a new technology that is going to completely change the game. However RLK lacks the software firepower to get out of the starting gate which would approximately cost over $6 million. If RLK outsourced R&D software engineers, which could save them time and money that they don't have. The outsourcing alternative will require fewer upfront investments and has the possibility to provide a greater return. The outsourcing alternative demonstrates the prospective for a long term approach that will generate short
Philip M.
May 13, 2013
Executive Summary
1985, Ray Kelner had launched RLK Media in a converted muffler repair shop in Waltham, ten miles west of Boston. The lab's radical speaker designs quickly attracted affluent audiophiles, who would pony up $20,000 for a pair of RLK's custom-made towers. Taking the helm in 1998 as CEO Lars Inman led the acquisition of Opticon LCD Labs, positioning RLK to compete at the high end of the emerging home theater market but he'd underestimated the ability of the Japanese consumer electronics giants to lure away RLK's core customers with their increasingly high-quality, competitively priced products. Unable to compete in the fast-growing, high-volume home theater business, RLK, Lars knew he had to refocus its energies on its core competence: innovation.
RLK Media
I. CURRENT SITUATION
RLK Media built its reputation on brilliant innovation in high-end consumer electronics. But with customers defecting to mass-market products, RLK has to rethink its approach.
Keith Herrington, RLK's chairman directed Lars Inman CEO of RLK Media to “Find out what the customers want and give it to them.” Furthermore, Herrington threatened Inman, “if you can't stop this slow bleed and turn the company around in a year, we're going to bring in someone who can.” (Nohria, 2005, p. 20).
Ray Ketner, RLK's founder and chief scientist, developed a video headset with directional sound which is a new direction and a new technology that is going to completely change the game. However RLK lacks the software firepower to get out of the starting gate which would approximately cost over $6 million. If RLK outsourced R&D software engineers, which could save them time and money that they don't have. The outsourcing alternative will require fewer upfront investments and has the possibility to provide a greater return. The outsourcing alternative demonstrates the prospective for a long term approach that will generate short
References: Brand Recognition. (2013). Investopedia. US, A Division of ValueClick, Inc. Retrieved on May 11, 2013 from http://www.investopedia.com/terms/b/brand-recognition.asp Huselid, M., Beatty, R., Becker, B. (2005, December). A Players or A Positions? Harvard Business Review, 83(12), 110-117 Values Statements. Authenticity Consulting, LLC. Retrieved February 24, 2006 from http://www.managementhelp.org/plan_dec/str_plan/stmnts.htm Nohria, N., Huston, L., Brown, J., Hagel III, J., Lipman-Blumen, J., & Premji, A. (2005, July). Feed R&D--or Farm It Out? Harvard Business Review, 83(7/8), 17-28. Retrieved August 7, 2009, from Business Source Premier database. Simons, R. (1995, March). Control in an Age of Empowerment. Harvard Business Review,73(2), 80-88