Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 08.12.2003
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https://casecent.re/p/11971
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Abstract
Du Pont de Nemours, the European subsidiary of Du Pont, manufactures specialised polymers. Proprietary process technology and volume in an industry that requires large economies of scale, give Du Pont de Nemours a competitive advantage. From 1988 to the time the case was written in 1996, Du Pont de Nemours has used more and more subcontractors for functions that it used to perform in house: product, process and even process design and plant construction. The case presents a framework for the discussion of outsourcing strategies and their importance in the long term viability of companies. ''What are the essential and the differentiating core competencies of the company?'', ''How can outsourcing threaten these competencies?'', ''What new capabilities does the company need to develop in consequence?''. The wide array of outsourcing and subcontracting practices by Du Pont exemplified in the case, allow for the segmentation of different types of outsourcing and the implications of each.
About
Abstract
Du Pont de Nemours, the European subsidiary of Du Pont, manufactures specialised polymers. Proprietary process technology and volume in an industry that requires large economies of scale, give Du Pont de Nemours a competitive advantage. From 1988 to the time the case was written in 1996, Du Pont de Nemours has used more and more subcontractors for functions that it used to perform in house: product, process and even process design and plant construction. The case presents a framework for the discussion of outsourcing strategies and their importance in the long term viability of companies. ''What are the essential and the differentiating core competencies of the company?'', ''How can outsourcing threaten these competencies?'', ''What new capabilities does the company need to develop in consequence?''. The wide array of outsourcing and subcontracting practices by Du Pont exemplified in the case, allow for the segmentation of different types of outsourcing and the implications of each.