Subject category:
Production and Operations Management
Published by:
Stanford Business School
Version: 10 January 2005
Length: 25 pages
Data source: Field research
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Abstract
Flextronics, the world''s largest contract manufacturing firm, made a strategic decision to expand its business to include original design and manufacturing (ODM) services. As an ODM supplier, Flextronics designed and built products that original equipment manufacturers (OEM''s) purchased and sold under their brand names. Purchasing from an ODM allowed OEM''s to bring new products to market quickly and efficiently. ODM''s could sell the same basic product to many OEM''s, providing substantial design and manufacturing efficiencies. Flextronics'' first ODM products were cellular phone handsets. The company had substantial hardware capabilities, which grew out of its contract manufacturing experience. In 2004, Flextronics considered adding software design expertise and considered a number of approaches to accomplish this. Having learned of the outstanding reputation of Indian software companies, the company''s CEO and the president of its Design and OEM Services operation visited India. The case describes the contract manufacturing and design landscape in 2004, with a focus on software.
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Abstract
Flextronics, the world''s largest contract manufacturing firm, made a strategic decision to expand its business to include original design and manufacturing (ODM) services. As an ODM supplier, Flextronics designed and built products that original equipment manufacturers (OEM''s) purchased and sold under their brand names. Purchasing from an ODM allowed OEM''s to bring new products to market quickly and efficiently. ODM''s could sell the same basic product to many OEM''s, providing substantial design and manufacturing efficiencies. Flextronics'' first ODM products were cellular phone handsets. The company had substantial hardware capabilities, which grew out of its contract manufacturing experience. In 2004, Flextronics considered adding software design expertise and considered a number of approaches to accomplish this. Having learned of the outstanding reputation of Indian software companies, the company''s CEO and the president of its Design and OEM Services operation visited India. The case describes the contract manufacturing and design landscape in 2004, with a focus on software.