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Background: Our client, a privately–held high technology electronics manufacturer, was selling into the domestic market. Their high-end technology products display the highest levels of complexity and are known industry-wide for their quality and reliability. The client’s business strategy was to identify a low-cost Asian supplier of medium and low-end electronics products in order to increase the product range for their U.S. customers with a technology migration plan into higher levels of technology. They eventually wanted to establish an Asian facility to satisfy both their export demand as well as the growing local demand in Asia. EWA was hired to provide a Readiness Assessment of the client’s "low cost geo" strategy. The deliverable was a series of specific recommendations including a schedule on actions necessary to implement the strategy in a manner that met all planning requirements and positioned the client for optimal global results.
Challenge: A major challenge in the Readiness Assessment was to balance the desire for a low cost solution with the other planning considerations such as Intellectual Property protection, project confidentiality and maintenance of the client’s reputation for the highest levels of quality and reliability. The client’s proprietary technology required an understanding on the part of the EWA consultant of the product, manufacturing processes and applications.
Solution: EWA performed a full Readiness Assessment of the client’s strategy. The assessment included an in-depth 2-week analysis by 2 EWA consultants designed to
- Identify the strengths and weaknesses of the client’s business strategy, and
- Recommend clear steps to strengthen the strategy and provide a defined timetable in which to implement this strategy
Result: The Readiness Assessment identified areas for improvement in their “low cost geo" strategy and provided a clear path to correcting the situation. The client has subsequently embarked on their ‘low cost geo’ strategy.
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