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Beyond Product Relocation-Evolution in Value Creation

Beyond Product Relocation-Evolution in Value Creation. Disaggregating overseas production individual components are manufactured in different countries/regions countries may specialize in component manufacturing/assembly Redesigning production processes

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Beyond Product Relocation-Evolution in Value Creation

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  1. Beyond Product Relocation-Evolution in Value Creation Disaggregating overseas production • individual components are manufactured in different countries/regions • countries may specialize in component manufacturing/assembly Redesigning production processes • Taking local factors (e.g. low cost labor) into account. Example: Auto plants in China and India utilize labor tasks such as painting and welding. These tasks and others are performed by robot elsewhere. Outcome: Companies can offer new products at lower prices and can penetrate new market segments or regions or both

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