1. Beyond Product Relocation-Evolution in Value Creation
Disaggregating overseas production
individual components are manufactured in different countries/regions
countries may specialize in component manufacturing/assembly
Redesigning production processes
Taking local factors (e.g. low cost labor) into account.
Example: Auto plants in China and India utilize labor tasks such as painting and welding. These tasks and others are performed by robot elsewhere.
Outcome: Companies can offer new products at lower prices and can penetrate new market segments or regions or both