Many products in the marketplace today are built from components designed and manufactured by sub-contractors. While the extent of this practice is not well known to consumers, manufacture and sale of multi-component units that use parts from many different companies continues to grow.
Required:
If the assembling company is using value-chain analysis in its strategic planning, comment on the following:
(a) The cost justification for subcontracting.
(b) The willingness of consumers to buy products they know contain subcontracted parts.
(c) The problems of quality control facing the assembling company.

Question

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The Answer of Many products in the marketplace today are built from components designed and manufactured by sub-contractors. While the extent of this practice is not well known to consumers, manufacture and sale of multi-component units that use parts from many different companies continues to grow.
Required:
If the assembling company is using value-chain analysis in its strategic planning, comment on the following:
(a) The cost justification for subcontracting.
(b) The willingness of consumers to buy products they know contain subcontracted parts.
(c) The problems of quality control facing the assembling company.

Many Products in the Marketplace Today Are Built from Components