to an explosion in the total number of unique bricks; each requiring expensive moulding‚ production and inventory. LEGO rightly decided to address this supply chain cost issue‚ and turned to Flextronics‚ a company with considerable experience in outsourcing. Over the next three years‚ with help from Flextronics‚ LEGO transitioned to a low-cost supply chain. However‚ this process did not deliver all the success LEGO had hoped for‚ so in 2007‚ LEGO moved to control its own supply chain again. This report
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other companies already existing in the market. They also focused on quality because it is one of the most important requirements to assure a long-term relationship with foreign manufacturers. The further expansion of business through OEM‚ OBM‚ and ODM enabled Galanz to be flexible in microwave production. Service and innovation are the part that Galanz initially concentrated less on until 1995. The exponential growth of the microwave oven business threatened the major magnetron supplier and reduced
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of well-known computer technology corporations like IBM and ATI technologies. In order to reduce costs‚ both ATI and IBM agreed to let Microsoft own the designs of the chips which allows them to produce the chips anywhere. EMS companies like Flextronics and Wistron were partners ever since the first Xbox. A new relationship between Celestica and Microsoft was formed later in the Xbox 360 to assist production and handle the incremental volume and supply to other untapped markets. All three plants
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Structure is dependent on strategy. If an organisation has vertical integration then they operate a functional structure‚ which gives efficiency through economies of scale. If an organisation uses a diversification structure then there is a business unit structure which gives customer responsiveness. However‚ many firms have a hybrid structure; this type of structure balances efficiency and customer responsiveness. A company also can choose to outsource through a contract with another company for
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the first changes was adding a third EMS supplier‚ Celestica‚ in addition to Flextronics and Wistron. Celestica was added to increase capacity and meet predicted demand which was expected to be much higher for the Xbox 360 than it had been for the original Xbox. Also‚ in addition to Microsoft’s current engineering team‚ they attempted to further integrate their supply chain by working closely with employees from Flextronics and Wistron during the design process to optimize production of the Xbox 360
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founded in Taichung Taiwan in 1992 as a printed circuit board producer for the personal computer industry with specialization in motherboards and graphic cards. By the early 2000s‚ the company had evolved into an Original Design Manufacturer (ODM). As an ODM‚ the company actively strived in innovating and designing each new generation of components. In 2007‚ the company decided to diversify its product portfolio to include consumer electronics with focus on mobile technology. By entering the netbook
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1. What lead to the success of Galanz company? Please analyse the company form the perspectives of competitive strategy and operations strategy? The early success of Galanz can be prescribed to its ability to deploy its resources in an effective manner and establish itself as a recognized brand in its domestic market through a consistent competitive strategy of Cost Leadership (Porter ). Their competitive edge was initially their low land and labour cost‚ while knowledge in production technology
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comes from Acer and its advertising agency is still Leo Burnett‚ Acer’s agency‚ which has produced limited results for Acer over the years. 3. BenQ is paying its brand-building bill through original design manufacturing (ODM). By supporting its OBM business with its ODM sales‚ BenQ may be viewed by its customers as a competitor. Another issue is conflict of interests due to client’s concern that proprietary information on their product designs may be used by BenQ in its brands. 4. BenQ
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1. What were the order winner/order qualifiers for Galanz in the microwave oven business during the early stage of its development? When Galanz started its business‚ the microwave oven business in China was in its infancy and it was less risk to invest in the technology associated with microwave ovens because this technology had been mature and stable for a long time. At the early stage‚ Galanz did not have any competitive edge in production technology but only an abundant supply of cheap labor
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1. The success of Galanz is mainly the result of adopting different competitive strategy and operations strategy under different internal and external situation. From the perspective of competitive strategy‚ first Mr. Liang took the overall cost leadership strategy. As he well understood the competitive edge of his company was offering cheap labor and cheap land‚ he offered a very low price to the customers. By doing that‚ Galanz beat the competitors away as they could not make big profit and
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