Day Electronics, Inc.

Day Electronics has been the undisputed market leader for several years. A year ago, one of its competitors started to mimic Day½s strategy. Instead of buying its products from East Asian companies, Night Electronics, the competitor, has started to develop products internally. The problem facing Day Electronics' management is how to change their strategy to meet this change in competition. The case is intended to facilitate the transition from a traditional decision analysis framework into a game theoretic framework.