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.

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