The corporate value of EMI to enters CT scanner business are in two aspects, one would be from external factors (e.g., the market- and the industry-related opportunities), while another set of factors are internal to EMI (e.g., strategic fit and resources).
The EMI and CT scanner, it is an example from high-technology industries to show that appropriability of the returns from innovation is driven by the interplay of factors such as intellectual property protection and imitation, ownership of specialized complementary assets and the exploitation of first mover advantages.
By producing CT scanners would enable EMI to move into an area of electronics it has not occupied, and the limited risk in manufacturing costs, EMI would has a great deal of corporate value by producing the CT scanner. In committing to the CT project, EMI would use a large portion of its R&D budget. However, the profits would be seen immediately and would be long-lasting. Also, it was noted that EMI seemed be devoted to too many projects, but dedicated to few of them. This large project would narrow or focus the companys vision. Even though this is moving the company into a new segment, the medical field, this project could be coupled with needed strategic planning to solidify the companys vision.
When one considers the strong market for CT scanners in America, where healthcare organizations had more resources to purchase state-of-the-art medical equipment, the outlook for CT Scanners looked promising. Neurologists in the U.S. also openly embraced utilizing the latest innovations.
EMI had a strong reputation in