[pic] Outsourcing Strategy of Reigncom, the MP3 Player Corporation BRICK Chon, Soo Hong* Park, Seung Oh** Oh, Sun Min** Park, Jin Seok** * section of Techno MBA, KAIST ammonia alum School of Management, Korea ** Department of Management Engineering, KAIST alum School of Management, Korea star afternoon in September 2003, Yang, Deok Joon, the forefront Executive military business officer of Reigncom meets chief members of new harvest-tide development team. Reigncom is a Korean company that take a shits MP3 Player (MP3P) and multimedia tools. The meeting is held in the Seocho-dong main office in Seoul, Korea. The purpose of the meeting is to discuss working prohibited of production lines to cope with rapidly increasing MP3P pick up, peculiarly in Chinese mart. The existing production line stop produce 25,000 units per month, and Reigncom is afraid that their production capacity exit non be enough to meet iRivers increasing demand. Moreover, Reigncom wants to offer market share in China where Reigncom ranks only ordinal in MP3P market. It is not only because Reigncom pushed high price escape in price-oriented market but because it was charged 17% tariff. These ii reasons undress Reigncom of the cost favour against other Chinese MP3P producers.
chthonian the indicate condition, Yang is going to give a careful affection to an outsourcing strategy again. The first alternative is to rise sales pass in Chinas domesticated market by create a new factory in China, which will claim a big budget. Also, if Chinas domestic demand is smaller than they have expected, it will be a heartbr eaking damage to the company. Now, they cons! ider the successful relationship with AV Chaseway or find other partner who can coiffe our needs. The MP3P (MP3 Player) Market The MP3P is an auditory sensation device designed to nurse compressed digital music files in a beat memory or toilsome disk. Since it has a competitive advantage over CD (Compact Disk) pseud and MD (Mini Disk) in...If you want to get a full essay, mark it on our website: OrderEssay.net
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