Download - An Example of Outsourcing: CIPSA
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AN EXAMPLE OF AN EXAMPLE OF
OUTSOURCINGOUTSOURCINGOUTSOURCINGOUTSOURCING
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CIPSACIPSA
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SITUATIONSITUATION
�� The head office of CIPSA is The head office of CIPSA is located in located in RubíRubí (Barcelona). (Barcelona). (15 000 m²).(15 000 m²).
�� They started producing in They started producing in India (55 000 m²) and China India (55 000 m²) and China India (55 000 m²) and China India (55 000 m²) and China (8 000 m²) about six years (8 000 m²) about six years ago. ago.
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RUBÍRUBÍ
CHINACHINA INDIAINDIA
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OUTSOURCING FACTORSOUTSOURCING FACTORS
�� TheyThey couldn’tcouldn’t competecompete withwith otherother companiescompanies..
�� TheirTheir productsproducts werewere tootoo expensiveexpensive..
�� DifficultiesDifficulties sellingselling thethe productsproducts..
�� SO...SO...
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SOLUTIONSSOLUTIONS: India: India
�� TheyThey boughtbought a company in India.a company in India.
�� TheyThey produceproduce a lot of a lot of productsproducts at at lowlow pricespricestherethere..therethere..
�� ThisThis allowsallows themthem to to exportexport all all theirtheir productsproductsaroundaround Europe.Europe.
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SOLUTIONSSOLUTIONS: China: China
�� In 2006 In 2006 theythey wantedwanted to to exportexport theirtheir productsproductsaroundaround thethe worldworld and and alsoalso to to otherother bigbig and and important important companiescompanies. . ButBut......
HOW? HOW? WHATWHAT? ? WHEREWHERE??HOW? HOW? WHATWHAT? ? WHEREWHERE??
outsourcingoutsourcing
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�� TheyThey mademade a a jointjoint ventureventure ((associationassociation withwith a a manufacturer manufacturer throughthrough technologytechnology) in China.) in China.
�� workwork know howknow how
�� In China, In China, theythey createdcreated anotheranother company company tootoo. . NowadaysNowadays, 44 , 44 otherother companiescompanies produceproduce for for themthem..
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WHY DID THEY CHOOSE WHY DID THEY CHOOSE
CHINA AND INDIA?CHINA AND INDIA?
CHINA•• RawRaw materialsmaterials•• Any Any typetype of of productsproducts..•• HighHigh
INDIA•• Any Any typetype of of productsproducts..•• A lot of A lot of supplierssuppliers..•• LowLow pricesprices..•• HighHigh
•• qualityquality of of thetheproductsproducts. .
•• A lot of A lot of supplierssuppliers..•• GoodGood infrastructuresinfrastructures..•• LowLow pricesprices..•• DisciplinedDisciplined workersworkers..
•• LowLow pricesprices..•• LowLow wageswages..•• QualifiedQualified workersworkers•• EnglishEnglish
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CONCLUSIONSCONCLUSIONS
�� TheyThey do do outsoucingoutsoucing in in orderorder to be to be moremorecompetitivecompetitive in front of in front of thethe otherother companiescompanies..
�� TheyThey keepkeep thethe I+D in I+D in CataloniaCatalonia, so , so theythey areare stillstilla Catalan company. a Catalan company.
TheirTheir productsproducts cancan be be sofisticatedsofisticated butbut withwith�� TheirTheir productsproducts cancan be be sofisticatedsofisticated butbut withwitheconomicaleconomical pricesprices..
�� TheyThey cancan exportexport aroundaround thethe worldworld. .