. . . and the sourcing ‘web’
The result: the handset vendors get the product they need in the place they need it, faster than they could get it there themselves. And they are freed up to focus on their core differentiated capabilities of design innovation, marketing, brand building and relationship management. True, they will pay a premium for a premium manufacturing service. But they have not had to make the massive up-front investment needed to build and own the whole chain themselves – an investment that would have left them weighed down with a barrel-load of gradually depreciating and increasingly obsolescent fixed assets. So they have mitigated their exposure if demand never materializes or evaporates overnight. The ROI business case is ...
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