Vizio and the Market for Flat-Panel TVs
Case Discussion Questions
1) The manufacture of flat-panel TVs migrates around the world for a few diverse reasons. The first aim is that the companies move production to the location with the lowest labor costs. The companies buy and use the cheapest parts possible to keep production costs low. The movement of manufacturing rest on economic conditions in specific areas and countries. 2) Consumers advantage greatly by the globalization of Flat-panel TV manufacturing. Globalization brings high quality displays at low cost to the consumers. The companies also profit because they are able to sell more TVs. People who loose due to the globalization of flat-panel displays include companies who manufacture TVs that use older or outdated technology especially if manufactured in high labor cost locations. 3) The cost of flat-panel displays would increase if all displays sold in the U.S. had to be made in the U.S. which would result in lower sales of flat-panel displays in the U.S. Employment rates would likely be exaggerated in some manner if manufacturing of flat-panel displays moved to the United States. In our opinion this is likely to have a negative impact on the production and sales of flat-panel TVs. 4) By using Vizio as an example, it seems necessary for companies to continually find the most cost effective way to manufacture its products. Companies must develop strategies that make the most out of conducting business and manufacturing on a global scale. Depending on the service or good, a company’s bottom line may be optimized through globalization.
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