13. N.I.H (Not Invented here) Syndrome
Another element of related engineering matters, any devices or chipset the products people required, the internal Semi-conductor team is to develop it, if a third party cannot carry out its development work. The often these development are somehow 1-3years late to market and much more expensive than its competitors.
This will then generate a lack of competitiveness of a product, difficult to sell, sell it at a loss. This is a vicious spiral circle of getting deeper and deeper to the hole.
My experiences with dealing Company S in 2008 was that a US company has developed a chipset but they wished to sell its technology as well as business to a third party company.
They were about to finalize the deal with a US company but they wanted to deal with Company S, so, I took them to Company S HQ and had discussion with semi-conductor team, Corporate R/D team as well as TV group.
This is a kind of standard that so many people from Company S are joining the meeting but No one takes positive decisions.
After various discussions and demos gone through, Company S informed us later that they do not want to acquire this technology nor business.
The reasons behind this decision were;
*They are developing almost same chipset and will be on TV
in a 1-2 years time.
*Price may not be acceptable
*Reassigning engineers may be difficult after they acquire this.
So, we told them that competitors of your TV business can launch their product at much earlier than you launch it and it will be a same spec and quality or better spec and quality products at much lower cost like 1/2 or 1/3 of prices.
This was a very unfortunate that this Company S could not make buying decision, as a result their TV business has been making a lot of continuous losses which were huge losses!