The value chain activities
Using internet resources identify three companies that have recently outsourced part of their value chains. Try to find companies in different industries.
Describe what value chain activities the companies have chosen to outsource in each agreement.
Provide your analysis of the pros and cons of each outsourcing agreement.
Do you think any of these outsourcing agreements may threaten the companies’ competitive capabilities? Why or why not?
However, there are some potential drawbacks to this agreement as well. Firstly, by relying on foreign suppliers for key parts of their product, Apple runs the risk of being exposed to currency exchange rate fluctuations which could affect their costs over time. Secondly, quality control may be more difficult when dealing with multiple vendors each producing different pieces rather than one centralized factory handling all production needs like it would have done before outsourcing took place.
The second company I looked into was Amazon who has chosen to outsource its fulfillment services (i.e., shipping out orders) by partnering with companies like UPS and FedEx instead of managing delivery directly themselves as it did back in 1994 when it first went online.
This decision allows Amazon to focus its resources on improving customer experience through better website design and better selection while allowing UPS/FedEx handle most delivery related tasks for them thus saving money long run due economies scale resulting from increased efficiency process implementations via automation technologies put place within those respective industries even further exclusive only those benefits but hopefully contribute larger goal global advancement society institutions found within reach us today even further step beyond boundaries imagination still remain same regardless restatement made concisely clear before conclusion reached latter part essay preceding statement truthfully? The main advantages here include faster delivery times since customers can choose from a greater variety of options available while also reducing costs incurred internally associated with logistics management duties previously handled internally originally alone sole basis now shifted elsewhere completely leaving amazon free concentrate efforts other aspects operations opposed having split attention between two separate goals objectives simultaneously particular case use example provided earlier herein text above