Preview

Flextronics International Ltd

Powerful Essays
Open Document
Open Document
1682 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Flextronics International Ltd
Summary

In contrast to other phones which were manufactured by Flextronics on a contract basis using designs created by its customers, the OEM's (Original Equipment Manufacturers), Phone 4 was designed and manufactured entirely by Flextronics. This new initiative by this EMS (Electronics Manufacturing Services) is not only a product design initiative, but an entirely new business approach that have Intellectual Property (IP), product design and supplier development implications, among others.

Who is Flextronics?

Flextronics is a Singapore-base global corporation with more than USD 13 billion in revenues, around 78,000 employees and offices and facilities in 30 countries on five continents. It was originally founded in Newark, California, USA back in 1969 and nowadays is the second largest company in the Electronics Manufacturing Services business sector.

The EMS industry

During the 1990's the industry experienced a success era than characterized by:

-Purchase of underutilized manufacturing assets from OEMs, such acquisitions increased the scale of their existing manufacturing capabilities and enlarged the scope of the capabilities that could be offered to customers.

-Acquisition of independent companies that possessed capabilities in key areas of manufacturing or product design.

-EMS Industry acquired companies from countries where labour was significantly cheaper.

From all the events that have happened, there are several business segments that appear in the scene, such as:

-Contract Manufacturing (CM): "Build to print" .EMS firms looked to receive a completed product design from the OEM and would focus on manufacturing assembly.

-Contract Design and Manufacturing (CDM). EMS firms looked to provide other services such as product design, supply chain management, logistical support, and contract engineering services. EMS firms took over responsibility for the selection of component suppliers. Intellectual property (IP) for products remained solely with the

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Mgt/521 Week 3

    • 653 Words
    • 3 Pages

    Aside from new product launches, product acquisitions can be a huge boost in revenue for…

    • 653 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Open market relates to the attributes of a first-time relationship between a customer and supplier for a new product assembly.…

    • 284 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    1) Prepare the manufacturing staff’s calculations for the three alternatives (please refer to the attachments):…

    • 1278 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Caltron Inc

    • 371 Words
    • 2 Pages

    Over the past ten years the importance of accounting cannot be overemphasized, as we've seen our share of national scandals. In today's society accounting principles and standards are severely important in driving the formation of financial statements. Without principles and standards, financial reporting would not fairly present the financial position of a company. Accounting has changed and evolved vastly over time and continues to change. Because of this I am going to breakdown the way your financial reporting team has been recognizing revenue for the fourth quarter of the current year and assess the implications it may have on your financial statements. I will also take you through the process of how the accounting standards are created to give you a better understanding of what my conclusion is.…

    • 371 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Inventec Case Study

    • 760 Words
    • 4 Pages

    The fierce competition from both existing competitors in ODM industry and the substitute EMS industry further drives the profitability low. The large manufactory capacity has resulted in ODMs competing with each other for more market shares, which pushed the price down. EMS also provides clients manufacturing, sourcing, procurement, inventory management services. EMS usually doesn’t maintain Intellectual Property and are not likely to compete with OEM clients. This has made them an attractive substitute for those OEM clients who want the design of product to be customized and confidential. In 2004 EMS consumed 61% of contract manufactory revenue. Their willingness to maintain the low profitability put price pressure on ODM industry. To make competition more fierce, new entrants threat arise for ODM industry when EMS such as Flextronics attempted to move to higher margin ODM industry by creating in house design teams and acquiring second and third tier ODMs.…

    • 760 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    OM Ch 11 12 16

    • 1362 Words
    • 8 Pages

    What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor?…

    • 1362 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Global Electronics Inc.

    • 1429 Words
    • 6 Pages

    Global Electronics, Inc. (GEI), headquartered in Sarasota, Florida, designs, manufactures, and markets discrete power semiconductors and analog, digital, mixed-signal, and radiation-hardened integrated circuits for signal processing and power-control applications. The company employs about 2,300 people at its three U.S. fabrication facilities (located in Huntsville, Alabama; Evansville, Indiana; and Reading, Pennsylvania), and has 4,000 employees at its assembly and test facility in Kuala Lumpur, Malaysia. In 1999, GEI 's profitability came down with operating losses reaching $100 million on sales of approximately $650 million, causing management concern about the accuracy of the company 's standard cost system. There was a feeling that the standard cost system could not truly identify which of the company 's products were profitable and which were not. The lack of an understanding of product profitability, a flawed product mix, and poor marketing and pricing decisions could have contributed to GEI 's financial problems. A combination of internal problems and external threats in an industry characterized by increasing global competition, decreasing product life cycles, product proliferation, and exploding technological capability led to a shake-up of the company 's top management in February 2000. As part of the shake-up, GEI installed a new president, Mike Alberts, and a new controller, Steve Shannon, for the express purpose of strengthening the company 's position in the market and improving its financial performance.…

    • 1429 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    expand by building a new manufacturing facility. In the second option, then can merge with…

    • 549 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Performance

    • 693 Words
    • 3 Pages

    Under this new model, the manufacturing operations of the business that were previously done in-house will be outsourced, including: product manufacturing, component parts manufacturing, product assembly, and labeling.…

    • 693 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Flextronics is one of the worlds largest EMS companies, with 12 billion in revenues, had an on usually good vantage point of the inventory surplus. The Singapore – based company makes everything from printed circuit boards to cell phones for a variety of high-tech clients, including Cisco, Lucent, Nortel, and Ericsson.” The telecom guys thought, ‘We can do no wrong,” says Dan Pleshko, vice president of global procurement and strategic supply-chain management at Flextronics In 2000, The Company’s stock list ballooned from $470 million at the beginning of the year to $1.7 billon at the year’s end.…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ramatex Berhad Company

    • 754 Words
    • 4 Pages

    With a turnover of about U$ 200 million a year, the Ramatex group currently operates from three major manufacturing facilities in Malaysia, China and Namibia. The Malaysian facility mainly caters for the export quota markets, whereas products manufactured in China are mainly aimed at the…

    • 754 Words
    • 4 Pages
    Good Essays
  • Good Essays

    * Deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.…

    • 1903 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Analogue

    • 15068 Words
    • 61 Pages

    The specifics we set for the topics related to these themes had to do with…

    • 15068 Words
    • 61 Pages
    Powerful Essays
  • Satisfactory Essays

    Byd Swot Analysis

    • 544 Words
    • 3 Pages

    Increasing its capabilities in component manufacturing, BYD can strengthen its position to integrate further into the process of phone assembly. The addition of assembly services would allow BYD to offer a “one stop” solution to OEM’s for the outsourced manufacturing of their products.…

    • 544 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    growth of local suppliers could also provide benefits for the company. In this way, the…

    • 2047 Words
    • 9 Pages
    Powerful Essays

Related Topics