Vizio Case

Management Focus on Vizio Quest no 7: Reread the Management Focus on Vizio and answer the following questions: a. Why is the manufacturing of flat panel TV’s migrating to different locations around the world? Vizio’ TV get their panel from South Korea, electronic components from China, and processors from the United States, and it is come together in Mexico. Vizio’s managers search for the cheapest manufacturers of flat panel displays and these electronic components.
Vizio’ TV move to the developing countries to making their products because the workers salaries are lower than the United States, so they can reduce the cost of the products. Another reason of migrating to different locations is the decreasing trade and investment barriers between countries. b. Who benefits from the globalization of the flat panel display industry? Who are the losers? Vizio Company takes benefits from globalization of the flat panel display industry because they reduce the labor costs and then also increase their profit.
The labors in foreign countries also benefit because they are hired with a higher salary by the company. Consumers also benefit from it because they can purchase the TV in a lower price as compare with other brands prices. Some people could not get any benefits because when the company moves to another country, they have to lose jobs. The manufacturing products environment in the foreign country may be effected or harmful due to the pollutant release to the environment and it affects the people who live around. d. What does the example of Vizio tell you about the future of production in an increasingly integrated global economy?

What does it tell you about the strategies that enterprises must adopt to thrive in highly competitive global markets? In the future, more and more companies will choose the globalization in production which is applied to their business, the manufacturers to reduce the cost and increase the competitive advantages in the market. When every manufacturer follows this strategy, the unfair in competition will remove. For example, Sonyand Hitachi close their plants in U. S but make T. V in Mexico and Asia plants and sell their products in U. S to compete with Vizio Company.