- Bad Acquisitions
- Lack of Innovation
Quatery Revenue Growth
Quaterly Earning Growth
- It can bring great amount of global talent in order to grow the company’s and also bring the cost structure down by innovative talent and ideas. HP, which lacks innovation could take advantage of this by outsourcing the R&D and develop new products or services.
- It can build partnerships that both capture value and reduce risk. An example would be Hasbro toy manufacturers kept their relationship at arms length and also monitors their overseas operations constantly to ensure quality management. HP should also need to make an effort to keep up with the relationships and monitor their operations, which are outsourced to reduce inefficiency.
- It can seize new local market opportunities and makes its presence before the competitors such as AstraZeneca, which made huge investments in Chinese pharmaceutical markets by outsourcing from manufacturing to sales. HP should always be keen to look to market opportunities and makes its presence over worldwide by outsourcing their products manufacturing or services which ever is best for their successful operational and business plans.
- To get to market faster and boost innovation, companies such as P&G outsourced their R&D, which increased productivity by 60% and generated $10 billion in revenues. As mentioned above, HP’s big failure is lack of innovation. If HP also try to outsource R&D, It may benefit from external sources and talents.
- To disrupt traditional models, companies such as Acer outsourced product design, manufacturing except branding and marketing. It knew its strengths and capabilities well enough to take advantage. This made this company world’s second largest PC manufacturer. It increased its sales and revenue. It has lean and flexible operation. HP can also learn which operations it can outsource, which are difficult and cost more to produce in-house so that it can leverage other strengths and focus its attention in those areas.
- What are the definitive variables of interest or factors that a company should evaluate before deciding on outsourcing its production or services?
- What are the internal and external strengths of any company in term of outsourcing that can leverage them against the competitors in the market place?
- How outsourcing strategies needs to be designed in accordance with the organizational and business planning?
- How effectively a company can outsource while maintain its competitive advantage in the market?
- What are the major factors to be considered before a company begin to plan on outsourcing the product or services in order to improve operational efficiencies and reduce defect rates?