Case Study Inventec
Q1.
The essential reason regarding Inventec’s profitability was lower than expectation is due to the high competition between the many ODMS. Therefore, though the field of ODM was once high profitable, with the intensive new entrants entered in this industry, supply for quality goods are rapidly increasing, the profit margin that each competitor could share is simultaneously shrinking. In other words, despite the fact that Inventec has done quite well in expansion and decision making, strategic direction as well as determination of sustainability in the past, the unavoidable occurrence of competitive environment for it ultimately led it to the result of a shrinking profitability figure.
On the other hand, with the more competitive environment
The essential reason regarding Inventec’s profitability was lower than expectation is due to the high competition between the many ODMS. Therefore, though the field of ODM was once high profitable, with the intensive new entrants entered in this industry, supply for quality goods are rapidly increasing, the profit margin that each competitor could share is simultaneously shrinking. In other words, despite the fact that Inventec has done quite well in expansion and decision making, strategic direction as well as determination of sustainability in the past, the unavoidable occurrence of competitive environment for it ultimately led it to the result of a shrinking profitability figure.
On the other hand, with the more competitive environment