Read the article below and answer the questions that follow. The relationship between product innovation and global supply chain strategy has vital implications for the mobile handset industry. A few interesting developments in recent times, such as innovations being carried out in the sphere of how components and operating systems for smartphones are determined by various players and how quickly devices can be brought to the market, are reflections of this importance. The stakes involved are increasingly becoming higher, to the point where company fortunes and long-term presence is dependent on them. LG had to replace its CEO Nam Yong in September 2010 and Koo Bon-joon, the brother of the Chairman of LG Group, took over. Coincidentally, the Chief Executive of Nokia, Olli-Pekka Kallasvuo, was also replaced, in this case by Stephen Elop, the Business Manager of Microsoft at the same time. The CEOs of both Nokia and LG had to step down due to their respective company’s perceived shortfall in its capability to aggressively compete in the smartphone market, especially concerning their main rival Apple. Why this happened to two previously immensely successful companies is the big question. Two things seem to have created this situation: the speed of product and market innovation, and the creation of an efficient supply network. From what was happening in the mobile phone market at the time, it is clear that Apple was the only company who understood the situation the best. For some time, the mobile handset market has been in flux, moving from a basic mobile device offering just Web surfing or music player capabilities to a full-fledged personal productivity device that brings together email, Web and media capabilities, as shown by Apple’s current iPhone series designed to satisfy the consumer demand fuelled by social networking sites such as Facebook, Twitter and Weibo. China had 564 million Internet users by the end of December 2012, 50.9 million more than the year before, and roughly representing 40 per cent of the total Chinese population (http://synthesio.com). The results of this is the shortening of a product’s life cycle to an unbelievable few months for some of the world’s most technologically complex products. Apple’s superior integrated global chain capabilities that fuse product design, new product introduction, vertical supply chain sourcing and rapid time-to-market is seen as the culprit, and it seems that competitors were either remaining static or trying to catch-up. QUESTION 3 With reference to the article, examine and analyse at least 5 reasons why organisations would want to globalise their operations. A detailed response will be highly appreciated-this is for Honours
Read the article below and answer the questions that follow.
The relationship between product innovation and global supply chain strategy has vital implications for the mobile handset industry. A few interesting developments in recent times, such as innovations being carried out in the sphere of how components and operating systems for smartphones are determined by various players and how quickly devices can be brought to the market, are reflections of this importance. The stakes involved are increasingly becoming higher, to the point where company fortunes and long-term presence is dependent on them.
LG had to replace its CEO Nam Yong in September 2010 and Koo Bon-joon, the brother of the Chairman of LG Group, took over. Coincidentally, the Chief Executive of Nokia, Olli-Pekka Kallasvuo, was also replaced, in this case by Stephen Elop, the Business Manager of Microsoft at the same time. The CEOs of both Nokia and LG had to step down due to their respective company’s perceived shortfall in its capability to aggressively compete in the smartphone market, especially concerning their main rival Apple. Why this happened to two previously immensely successful companies is the big question. Two things seem to have created this situation: the speed of product and market innovation, and the creation of an efficient supply network. From what was happening in the mobile phone market at the time, it is clear that Apple was the only company who understood the situation the best.
For some time, the mobile handset market has been in flux, moving from a basic mobile device offering just Web surfing or music player capabilities to a full-fledged personal productivity device that brings together email, Web and media capabilities, as shown by Apple’s current iPhone series designed to satisfy the consumer demand fuelled by social networking sites such as Facebook, Twitter and Weibo. China had 564 million Internet users by the end of December 2012, 50.9 million more than the year before, and roughly representing 40 per cent of the total Chinese population (http://synthesio.com). The results of this is the shortening of a product’s life cycle to an unbelievable few months for some of the world’s most technologically complex products. Apple’s superior integrated global chain capabilities that fuse product design, new product introduction, vertical supply chain sourcing and rapid time-to-market is seen as the culprit, and it seems that competitors were either remaining static or trying to catch-up.
QUESTION 3
With reference to the article, examine and analyse at least 5 reasons why organisations would want to globalise their operations.
A detailed response will be highly appreciated-this is for Honours
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