1. What value did Solectron provide to its customers? The values Solectron provided to its customers are: •Quality: This was evident in the fact that it was reinforced in all areas of their business. oThey provided high quality products to their customers. oThey were the first repeat winner of the prestigious Malcolm Baldrige National Quality Award. •Technology solutions, which provided technology building blocks that helped customers minimize time to market for new products •Rapid Feedback of required information and the freedom Global manufacturing, which provided design, new product induction, and manufacturing and distribution services •Global services, which provided repair, upgrade, and maintenance, as well as logistics, return management warehousing and many other important post manufacturing support services •A global materials service group which supported the three business units by providing sourcing, procurement, and other common supply based management resources •They provide substitution for capabilities that the customers already posses, so that they can cut cost and get extra short term capacity
How did it evolve over time? •As Solectron’s total volume increased, they were in a stronger position to bargain with suppliers that were there customers and began to take on additional purchasing, parts inventory and kitting responsibility •Solectron was able to perform its core competencies as a result of asset acquisition because Solectron was able to receive long term supply contracts while OEM was able to make strategic decision to make the strategic decision to concentrate on its core competencies also which were product definition, engineering and marketing. Solectron could offer customers capability that they couldn’t get themselves greater prices due to greater volume purchasing •Through acquisition, Solectron had developed a global network of facilities located strategically close to its customers and to emerging markets. This enabled it to introduce products in its new production introduction centers and then rapidly transfer production to the facilities best suited to volume production, either due to low cost or proximity to end user. They were able to integrate the supply chain due to the development of the World Wide Web by giving all parties equal access to certain information for planning and decision analysis and therefore minimizing the bullwhip effect that often occurred when making decisions in uncertain environment. 2. How has the company been able to successfully integrate its acquisitions?
The company has been able to successfully integrate its acquisitions by; •Beginning quick turnaround prototype services •Using Symbolism to unite the workforce. On way this was achieved by ensuring all employees from the CEO to beginner assembler, wore identical white smocks with the company logo •Ensuring that the acquired company was part of the integration plan and offering training of the new employees