Outsourcing

Nowadays, the challenges and risks in new product introduction that technology companies grammatical case are higher than ever. This is the result of fast-moving markets where consumer needs are acquire more specific and challenging to satisfy, and where market players respond swift to competitors movements. Factors such as offering innovative products that exceed consumer expectation, take down costs, higher quality, improved productivity, and higher customer satisfaction, among others, are in all priorities and fundamental for a connection to remain competitive in this market.
Cisco is considered one of the companies that have been constantly working to light upon this ambitious goal. By holding the outsourcing model, Cisco was able to focus the companys efforts on their core areas, product design and development, epoch obtaining expertise in dealing with its manufacturing phonationners, which would lead to a semipermanent competitive advantage. Moreover, Cisco believed that the use of contract manufacturers would offer a unique value, and position the company as a leader in reducing manufacturing costs and creating an adaptive supply grasp (their core competency).




Cisco´s outsourcing model makes sense in light of the companys main goal to overturn costs and achieve cost efficiency, considering the effort and time part of these costs as well. However, it is not as simple to implement taking into account the risk factors associated with it, such as geographical location, cultural differences, work ethics, quality standards, and communication barriers.
Selecting Foxconn and expanding its role for land imply potential risks to Cisco, as the Viking supply chain leave behind be tightly focused on a single(a) company. Cisco runs the risk of being overly dependent on a single supplier and limited by whatsoever financial and operational constraints it could have. By outsourcing, Cisco is essentially openhanded the full responsibility of the project to Foxconn and the risks exposed if Foxconn (or its...If you want to get a full essay, order it on our website: Orderessay



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