Supply Chain Management

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FITTskills: Global Supply Chain Management

Case Study #1: Global Supply Chain Management and Strategic Sourcing

Case Study #1: Global Supply Chain Management and Strategic
Sourcing

Sounds like a supply chain problem
Metrovox is a German electronics manufacturer that designs, develops and manufactures a range of products for the entertainment and home electronics sector. Management has recently focused on two related products, Bugabyte and Bugabyte Lite. The Bugabyte is a video and audio player with a flash drive. The company has invested heavily in the research and development of this product, which is a small hand-held unit about the size of a credit card, and is about 50 percent thinner than their competitor’s offerings. The Bugabyte Lite is a flash drive and mp3 player. Metrovox sells this product to a distributor in North America and to a major European retailer. The market for these two products is highly competitive, and Metrovox relies on product differentiation as a source of competitive advantage in both Europe and North America. The retail price is the same as, or slightly higher than, their competitors. Product uniqueness is based on the size of the Bugabyte and the storage capacity of the Bugabyte Lite. The Bugabyte is a relatively new product on the market and was designed to meet predicted future growth in popularity of handheld video devices. Demand is anticipated to be low to moderate for the first few years of sales, and expected to grow thereafter. The Bugabyte Lite has been on the market for over six years, under a different product name. The casing design was recently changed to compliment the Bugabyte, and marketing efforts within the last few months have strived to address the fact that this is the same quality product with a new look. This product experienced healthy growth for its first four years, and has stabilized over the past two. The Bugabyte Lite is not a product that will contribute to significant revenue growth for...
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