Beyond Product Relocation-Evolution in Value Creation

1
Beyond Product Relocation-Evolution in Value
Creation

• Disaggregating overseas production
• individual components are manufactured in
  different countries/regions
• countries may specialize in component
  manufacturing/assembly
• Redesigning production processes
• Taking local factors (e.g. low cost labor) into
  account.
• Example Auto plants in China and India utilize
  labor tasks such as painting and welding. These
  tasks and others are performed by robot
  elsewhere.
• Outcome Companies can offer new products at
  lower prices and can penetrate new market
  segments or regions or both