Company leaks critical assets – creates key competitor
Supplier grabbed majority market share. Direct cost $150M.
The Situation
- Company developed world-leading new product category.
- Unable to keep up with demand it outsourced software development to an external supplier.
- Provided full details of code and key confidential information.
The Client
Hardware Company
Outcome
- Supplier delivered code on time and on budget then shut down.
- Reappeared 6 months later as a competitor using intangible assets to springboard ahead of former client.
Result
Supplier grabbed majority market share. Direct cost $150M.