Inventec

1. Despite its growth and size, why is Inventec non precise useful? Investec chief(prenominal) difficulty is that its profit is very strongly related to to the manufacturing contracts it makes with its OEM customers. OEM owns the distribution convey and sets the rules. Desktop PCs and laptops became commodities and the competition in this sector grew very rapidly, make the need for lower sale prices. dinero margins on OEM gross sales have been going down during the ultimo couple of old age and they have been squeezing ODMs to survive in the business. A mho problem is that Inventec has a very modified list of customers. HP and Toshiba account for a major set out of the Inventec sales. This succinct list of customers limits the negotiation possibilities of Inventec. It cannot afford to loose a thickening and it has to follow the rules set by them. 2. What are the drivers of the reasonable positivity of the Original De sucker and Manufacturing industry? ODM industry does not have got major distribution channels.

They just follow orders of the main players of the electronic industry. ODMs give the axeuret take to lose customers so they drum involved in contracts that restrict their future development. They dont want to compete with their customers, so they dont empower on proprietary distribution channels for their products. At the end they are attached to their customers in a very parasitic way and this is not a good sign for investors and analysts. When ODM started, number low salary wages were an emolument and make last profits possible. Now, with the increase on wages this advantage has been eliminated.If you want to get a full essay, order it on our website: OrderEssay.net

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