ESSAY: Flextronics Case Analysis

1. What factors account for the dramatic growth of electronic manufacturing industries (EMS) during the 1990s? How would you rate Flextronics performance during this period?
2. Does the economic or strategic rationale for outsourcing of electronics manufacturing differ from that for the outsourcing for design? If so, what is different?
3. Do you think moving into the ODM market is good for Flextronics? If yes, explain your rationale and would you give exclusive relationship for Phone 4. If no, what alternative strategy
   would you suggest?
   You have two options for the analysis of the case
   Option 1: Do a regular case analysis but your analysis must address the above issues.
   Option 2: Just address these individual questions.

SAMPLE SOLUTION

1. What factors account for the dramatic growth of the electronics manufacturing industries (EMS) during the 1990s? How would you rate Flextronics’ performance during this period?
   The dramatic growth of the electronics manufacturing services (EMS) industry in the 1990s was influenced by several factors. First, the advancement in computer and telecommunications technologies led to the development of major hardware and software components that catalyzed electronics manufacturing. This rise in the original equipment manufacturing (OEM) in the computer and telecommunication sector drove innovations in the electronics manufacturing services industry. Secondly, due to the increasing competition among OEMs, EMS needed to concentrate on their core competencies in order to remain competitive and create value for the consumers. Thirdly, acquisitions facilitated the purchase of underutilized manufacturing assets from OEMs, using them to scale up the manufacturing capabilities…