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Outsourcing Decision of a Taiwan-based ODM-A Case Study of E Company
Motherboards ODM environment was getting more and more competitive in the past two decades. To survive in this aggressive environment, ODM need to decide which strategy they should use. In order to get rid of all the gap between the suppliers, so build a completely supply chain? Or, outsourcing to third party to make their business more efficiency? Several studied had focus on the big computer company such as Dell or HP to analyze their outsourcing decision, but it is hard to find one study focus on the Taiwan local ODM companies like E COMPANY. So, in this study, we understood how an ODM company making the decision of outsourcing through studying the case of a Taiwan local ODM E COMPANY. We analyzed E COMPANY’s outsourcing business through three concepts: cost, resource dependency and core competence. In the end, writer suggested that ODM need to understand what is their core competence and value to make their outsourcing decision and need to avoid outsourcing the business which might cause high dependency to their third party vender. In the short time, there is no choice but outsourcing some of their important business to their vender due to the cost concern. But considering the long term business, ODM should decrease the high dependency degree to their vender and should develop this high dependency business to be their core competence.
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