Case Study: Control Data
A large computer firm, Control Data, trains mainframe computer operators. About thirty years ago, they were encountering the following problem. Control Data provided the best training for computer operators and needed to train them for their own purposes. However, they lost a significant fraction of their trained operators to their competitors and to other firms who were anxious to have Control Data trained specialists.
Obviously, training workers who then move on to other firms, especially rivals, is not a profitable strategy. Suggest some alternative or complementary strategies that Control Data might have used to deal with the problem. How would your strategy work in the short-run versus the long-run? Who would benefit and who would be harmed?