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- W2187331322 abstract "In today's highly competitive marketandrapidly changing economy, businesses mustcontinually makechoices if theyaretosurvive, choices thatsetthemselves apartfromthe pack.Consequently, someofthemostimportant choices a companymustmakearestrategic, andaretheresponsibility of Management. Forthisreason, takingintoconsideration the current business environment wherethecreation ofvalueinthe eyesofthecustomer andtheshareholder isparamount, itis nearly impossible tosurvive without outsourcing somepartof thebusiness. Infact, manufacturing outsourcing isoneareain particular, duetothecompetitive pressures, whereveryfew companies canafford toignore. However, outsourcing isnota risk-free adventure. Two ofthemostsubstantial risks that companies face whenoutsourcing toamanufacturing contractor iscreating acompetitor andcounterfeiting. Thus,theobjective ofthisresearch istodetermine theriskscompanies have encountered whenoutsourcing their manufacturing specifically focusing on currentacademic literature, casestudies, and empirical data, thenpropose a framework forevaluating and mitigating those risks. Fordecades, companies havebeenfacing thechallenge offinding theright balance ofoutsourcing andin- housedevelopment/manufacturing. Itiscommonlybelieved that thecompanyshould keepitscoreexpertise inhouse, outsource the restto remaincompetitive and watchitsbottom line. However, whenlooking attheissue ingreater depth, it becomesclearthatthisisan oversimplification ofthe outsourcing dynamics. Togivea fewexamples, whatwasnot corecompetency yesterday, maybecomecorecompetency ayear ortwodowntheroad, soavision androadmapisanecessary partof corecompetencydefinition. The marketsshift, companies launchnewproduct lines, anddecide toleaveone business andenteranother. Toexemplify, outsourcing strategy needsto accountforthesedynamicsastoday's contract manufacturer may becomethecompetitor veryeasily ifthe company decidesto pursue verticalintegration strategy. Moreover, itiseasytooutsource acomponent thatwas developed inhouse, butwithout aneffective feedback loop, the companymay startloosing touchwithwhatisfeasible when developing thenextoverall design. Inaddition, therelationship, whichstarted outas an exclusive agreementbetweenthe companyand contractmanufacturer (CM),dynamically changes ifthecontract manufacturer accepts anewclient whois acompetitor ofthecompany. Asaresult, isthecompanybetter offoutsourcing asmuchaspossible tothemosttrustful contract manufacturer, orshould ithedgeitsbetsandoutsource tomany different CMs despitequalitydifferentiation? Equally important, how willthecompanycopewhenthecontract manufacturer decides toexit thebusiness, orissubjected toan acquisition ormerger? Theseandotherquestions present a formidable challenge toanyenterprise this dayandage." @default.
- W2187331322 created "2016-06-24" @default.
- W2187331322 creator A5060944446 @default.
- W2187331322 date "2007-01-01" @default.
- W2187331322 modified "2023-09-24" @default.
- W2187331322 title "ManagingRisksandMaintaining a Competitive Edgein Today's Outsourcing Environment" @default.
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