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Strategy and Large Sub Contractors

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Strategy and Large Sub Contractors
What were LEGOs main expectations and learnings from the relationship with Flextronics.
The Legos main expectations were:
A
1. The rapid cost cuttings so as to overcome the largest internal financial crisis in the history of company.
2. The problems of product development and distribution would be sorted out.
3. To reduce the production complexity by attracting large sub contractors.
However, the deal was not successful and Lego learnt that
1. Outsourced facilities are always not effective and satisfactory.
2. The outsourcing only is not the solution to control and coordinate the increasingly global and complex network of production facilities
3. The company is more special than it expected to be

What are the key challenges in maintaining a relationship like the one between LEGO and
Flextronics?
The key challenges are
1. To understand not only the need but also the value of collobration.
2. To realize the importance of documenting work process, communication lines and interface between activities and tasks in production.
3. How to transfer production know how to external partners.
4. To maintain fast pace of transition
5. To maintain brand vulnerability and dependency on partners
6. How to develop new capabilities between the two to maintain the knowledge about production. 7. How to manage new relationships
8. To reduce the increasingly complexity of production footprint.

1. What were LEGOs main expectations and learnings from the relationship with Flextronics?2. What are the key challenges in maintaining a relationship like the one between LEGO and Flextronics? 3. Discuss the key considerations in the choice of outsourcing /offshoring production.

1.What were LEGOs main expectations and learnings from the relationship with Flextronics? 2.What are the key challenges in maintaining a relationship like the one between LEGO and Flextronics? 3.Discuss the key considerations in the choice of outsourcing /offshoring production.

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