In 2024, Hefei DVL Electron Co. Ltd. (DVL), a pioneer in intelligent medical devices, faced a pivotal strategic dilemma. Despite its strong position in China’s competitive market, rapid technological advancements in artificial intelligence (AI) and fifth generation (5G) technologies as well as increasing pressure from foreign competitors was threatening its leadership. To ensure its growth and leadership in the market, DVL’s management had to decide between three strategic paths: heavily investing in AI and 5G to stay at the forefront of innovation, forming partnerships to share research and development costs and risks, or expanding its market presence both domestically and internationally. With each option carrying significant risks and rewards, the decision was critical for DVL’s future growth and competitive positioning.
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