Friday, November 5, 2010
Outsourcing Musing
Nike, the largest distributor of athletic shoes in the world, outsources 100 percent of it's function of manufacturing shoes. Initially, this struck me as odd and counterintuitive since it seems like that is what Nike is all about: making shoes. As I looked deeper, however, I realized that what Nike is really all about is research and development in athletic apparel technology and post-production marketing. The actual shoe production ancillary to what Nike's true core competency. This example shows the importance of fully understanding what your company is, what it does, and which functions are core and which are auxiliary.
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Yes, when I check my new clothes and shoses, I always find that they are marked "made in China". But I also know that, in china, outsoucing especially the laber intensive are meeting the most difficult time since reform and opening up. Laber expensive and operation fee are becoming higher. The overseas buyers cannot affort that and find another new market. So I am thinking in the near future this trend will transfer the outsourcing market from china to other contries.
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