Importance Of Manufacturing Competitiveness

2831 Words6 Pages
bulb-icon

Recommended: how technology has impacted businesses

Manufacturing competitiveness in the modern world needs to be discussed in relation to the process of globalization and liberalization of the economy. With the dawn of the era of flexible specialization, manufacturing has acquired a new dimension. Manufacturing has become increasingly space-neutral with both positive and negative consequences. The different processes of manufacturing that take place at different places, offer significant opportunities for tapping locational advantages relating to cost. Therefore, the extent and location of the market and the scale of operation are crucial in shaping the urge for manufacturing competitiveness. The World Economic Forum (WEF) defines competitiveness as ‘the set of institutions, policies and …show more content…

For example, the new ways of bundling goods and services are manufacturers in industries such as clothing and sportswear (e.g. Nike) and electronics (e.g. Dell Computers and IBM). In the heavier industries where fabrication remains an important cause of competitiveness, services are added as a customization tool to differentiate their products in the global market. In a similar manner, other firms like the manufacturers of machinery and equipment, for instance try to reinvent themselves as system providers offering performance monitoring, maintenance and replacement of the machines that they eventually sell or give them in the form of rent. For example, engines of aircrafts, & coffee machines etc.). The services which are used as a part of the system plays a very vital role in distinguishing the firm from its competitors and hence increase in sales in the form of exports. The other notable examples of service providers venturing into manufacturing are Google and Microsoft. Both of them have entered the markets of tablets; Amazon and Barnes & Noble have contracted out the development and production of their own …show more content…

On the other hand, there are arguments too that why services cannot support manufacturing exports? As we know that modern services can now be unbundled and splintered into value chains just like goods and commodities and they can also be electronically transferred through satellite and telecommunication networks3. Services can help the manufacturing firms to overcome the problems associated with asymmetric information in international

Show More
Related

  • The Product Analogy Of A Supply Chain Case Study

    542 Words  | 2 Pages

    The reason why the products analogy of a supply chain is not appropriate for services

    Read More

  • Pros And Cons Of Outsourcing

    999 Words  | 2 Pages

    Outsourcing manufacturing services to a network of suppliers can provide organizations the ability to adjust the production capability upward or downward, at a lower cost, when trying to match the demand conditions. Outsourcing can also decrease the product design cycle time

    Read More

  • Restoring American Competitiveness by Gary P. Pisano and Willy C. Shih

    963 Words  | 2 Pages

    The U.S. industries have been outsourcing manufacturing for several decades now. U.S. companies thought they were reducing costs by outsourcing development, manufacturing, and process-engineering abilities. Consequently, U.S. corporations’ knowledge, skilled workers, and supply chain, which are the necessities to producing advanced products, have vanished. For example, almost all notebook computers, cell phones, and handheld devices, which were once created in the U.S., are now designed in Asia. When a major U.S. company outsource, it pressures their rivals to do the same thing. They also lose the expertise of process engineering, which would interact with manufacturing on a daily basis. Minor companies and skilled workers go to where the jobs and knowledge networks are no matter where they are geographically in the world. This decline of trade in the U.S. has caused a negative chain reaction to their suppliers of sophisticated materials, tools, production equipment, and components. U.S. industries do not have a way of coming up with new ideas for the next generation of high-tech products...

    Read More

  • Nucor External Environment

    2287 Words  | 5 Pages

    The production facilities of the company and its human resources are one of its major core competencies leading to low cost high quality products and helping the company have highest margins within the industry. The company should look at technology to diversify its production in order to decrease reliance on scrap steel.

    Read More

  • Outsourcing

    1348 Words  | 3 Pages

    ...g to service oriented market. The impact would be adverse if no precautions are taken to balance the rate of outsourcing and in-sourcing as well as strengthening the local service industries such as health services, education, transport, communication, technology, entertainment, social and economical services. However, outsourcing will have little impact on the overall labor market as it will ensure there is stability in the employment sector. This is because, it is causing decline of the manufacturing sector and at the same time it is associated with increased labor stability in the service sector. Therefore, outsourcing will affect the individual workers who will have to redirect their skills from manufacturing or technical to serve industries. Consequently, the semi-skilled and non-skilled will have quit the labor market or acquire the skills that are in demand.

    Read More

  • Amazon Creates Value for Customers

    1964 Words  | 4 Pages

    New online manufacturer brand e.g. Dell.com - Entrepreneurs saw opportunities for developing online manufacturers' brands that took advantage of online technologies that enabled innovative new products to be adapted to customer preferences, and by using IT to enable efficient and effective operations such as assembly and logistics.

    Read More

  • Royal Bank of Scotland Case Study

    2080 Words  | 5 Pages

    ...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.

    Read More

  • Mintzberg Strategy As A Pattern Of Decision Essay

    3524 Words  | 8 Pages

    Hayes and Wheelright (1984) and Mintzberg (1987) spoke of strategy as a pattern of decisions. What do they mean by this? (5 Marks)

    Read More

  • Lenovo Essay

    833 Words  | 2 Pages

    In the 21st century, it is more likely that most of globalised companies will be a service industry rather than a manufacturing stated Bian (2005). The new economic pattern is service pattern and it is a competitive advantage for service industry. Therefore, Lenovo’s service department should take Dell and HP as a role model; Lenovo ought to offer more detail information on selling personal computers...

    Read More

  • Importance of Facility Location in Meeting Strategic Goals at the Lowest Possible Costs

    3412 Words  | 7 Pages

    The facility location decision involves several fundamental questions such as “where to locate the organization's production facilities, how large each should be, what goods or services should be produced at each location, and what markets each facility should serve” (Soltani, 2009, p. 657). In addition to these questions, management is tasked with identifying future uncertainties such as work force, social and cultural factors, tariffs and tax incentives, geographic proximity to customers and suppliers, local economies, as well as weather. An important aspect for an organization to understand is the impact that future growth may have on their business model and long term goals. Once a facility location decision is implemented, the decision is hard to reverse. However, the successful implementation of a facility location enables the organization to gain a competitive advantage while providing high le...

    Read More

  • Rivalry In The Competitive Market

    518 Words  | 2 Pages

    factors. The most attractive industry is one in which entry barriers are higher than normal and exit barriers are low. These two things will allow firms to enter a lower-competitive scene with an easy exit, if any is needed. -Supplier Power. The bargaining power of suppliers is also described as the market of inputs. Suppliers may refuse to work with the firm which is why it’s needed to have a good brand reputation along with good customer relationships. There is another option of supplier charging high prices for unique resources, during this geographical coverage and bidding processes together with capabilities of the firm plays an important role. -Competitive Rivalry. Rivalry has always played an important role in the competitive market. For most industries, the possibility of rivalries is the major determinant of the competitiveness of the firm. Each industry has its own number and size of firms. The bigger the amount of firms an industry has, the bigger the differentiation and the amount of strategies available to them. Each firm should be flexible through customization and vari...

    Read More

  • The Manufacturing Industry in India

    1002 Words  | 3 Pages

    India’s manufacturing sector is an important cog in the wheel of economic progress and development; the segment’s contribution to the Gross Domestic Product is 16% ( India Brand Equity Foundation, September 2013). Post economic liberalisation era, India has realised the important role of manufacturing industry in the overall industrial development. In this context even the government has been very proactive. The recent initiative counts back to the announcement of the manufacturing policy in 2010, followed by the systematic manufacturing plan for the country with the intensive industry involvement design. Both the government and the industries are focussing on the implementation of this plan.

    Read More

  • The PEST Analysis for PC market in U.K.

    1958 Words  | 4 Pages

         We need to have a range of supplier who can supply us with a range of different products with the most up to date technology this would attract more consumers.

    Read More

  • Microsoft Outsourcing the XBox

    788 Words  | 2 Pages

    When Microsoft entered the video game console market, they were faced with a dilemma: whether to manufacture the Xbox themselves or outsource it to a third company. Microsoft ultimately chose to outsource the production to Flextronics. Flextronics’ 'industrial park' strategy is what allowed it to manage its supply chain, making the production of Xbox more efficient and cost effective. They also had factories around the world, which were all under the centralized information system, s they could shift the production from one country to another if necessary for optimal profitability.

    Read More

  • Globalization and Technology

    1460 Words  | 3 Pages

    Currently in the global environment, there is a strong sense of competition that must be achieved through better performance, almost all firms are competing in international markets due to the reduction in barriers for capital and tariffs. With the new changes in both communication and technology, the consequences faced are that production processes are no longer within national boundaries but spread across (Debrah & Smith, 2002).

    Read More

More about Importance Of Manufacturing Competitiveness

Open Document