Many Products in the Marketplace Today Are Built from Components

question 19

Essay

Many products in the marketplace today are built from components designed and manufactured by sub-contractors. While the extent of this practice is not well known to consumers, manufacture and sale of multi-component units that use parts from many different companies continues to grow.
Required:
If the assembling company is using value-chain analysis in its strategic planning, comment on the following:
(a) The cost justification for subcontracting.
(b) The willingness of consumers to buy products they know contain subcontracted parts.
(c) The problems of quality control facing the assembling company.

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Definitions:

Darwin

Charles Darwin, a British naturalist known for his theory of evolution and natural selection.

Competition

The rivalry among businesses or individuals for resources, customers, market share, or achievement, which can drive innovation and efficiency.

Disadvantaged

Individuals or groups that experience a lack of resources, opportunities, or privileges, putting them at a social, economic, or educational disadvantage.

Advantaged

Having favorable conditions or circumstances that provide a superior position or greater opportunities compared to others.