Which of the following methods of acquiring technology does Matthew support?

Question

Scenario: Total Vital Life Inc. develops foods and beverages aimed at boosting the energy levels of athletic and active individuals. In a product development meeting, Justin suggests that Total Vital Life acquire a newly developed technology for infusing vitamin and mineral blends into food, created by Sound Nutrition Co. Justin believes that it would be easiest and fastest to acquire the technology straight from Sound Nutrition. Matthew, although supportive of the infusing idea, feels that the methodology behind the next generation of Total Vital bars should be kept exclusive. Matthew knows it may take longer to produce the technology and the bars, but he feels that the competitive advantage and exclusivity are worth the wait. Finally, Marci likes Justin's idea of incorporating the Sound Nutrition technology but feels that Total Vital does not possess sufficient financial resources to buy the technology outright. She suggests that they should opt for something more economical.

A) internal development
B) licensing
C) contracted development
D) purchase
E) research partnership

Answer 1

A) internal development
Developing a new technology within a company can keep the technology proprietary, which means exclusive to the organization. However, internal development usually requires additional staff and funding for long periods. Matthew's suggestion is in line with internal development because of his emphasis on exclusivity. He disagrees with the idea of purchase because of the lack of competitive advantage that it provides.