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Global Value Creation Through Disaggregated Production

Learn about the evolution in value creation by relocating product components globally, embracing local factors to redesign production processes, and enabling companies to innovate and expand into new markets efficiently.

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Global Value Creation Through Disaggregated Production

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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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