Solectron Case Study

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...Cisco etc. Initially, Solectron manufactured a wide range of products for its customers in many business segments like Networking, Telecommunications, Computers, Computer peripherals, avionics, consumer electronics, GPS etc. As Solectron grew, it expanded its services so much so that by the end of 90s it had three strategic business units: * Technology Solutions, which provided technology building blocks which helped customers minimise time-to-market for new products * Global Manufacturing, which provided design, new product introduction, and manufacturing and distribution services * Global Services, which provided repair, upgrade, maintenance etc The company, with Mr. Chen concentrated on offering high quality, responsiveness, communication, service and technical support. The main objective was to achieve customer satisfaction by providing high quality. When Solectron offered contract manufacturing services to OEMs, its aim was to offer them services at reduced prices due to greater volume purchasing. Rather than outsourcing as a way to access relatively inexpensive skilled labour, it became a source of tactical advantage which they provided. Tactical turnkey assembly meant that OEMs specified what was needed, and Solectron bought the materials, built the product, and shipped it to customers. In 1992, Solectron introduced a new business model when it purchased manufacturing sites from IBM. As a part of the asset acquisitions, Solectron received long term......

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