Vizio Case

A Why is the manufacturing of flat panel TV's migrating to different locations around the world?

Due to high competition in the market the price fallen dramatically so the company's must have to find the way to cut down the cost of production. That could be the reason of manufacturing of flat panel TV's migrating to different locations around the world.

In the case vizio did the same they manufactured different parts in different countries of the world and assembled in Mexico. Vizio's managers continually search for the cheapest manufacturers of flat panel displays and electronic components around the globe and they found the developing countries good for their company in terms of wages of labor, and they move to the developing countries because the labor wages are lower than the US which helps them to reduce the cost of the products and make more profit and stay alive in the market.

B Who benefits from the globalization of the flat panel display industry? Who are the losers?

As the production of flat panel displays migrates its way around the globe to low cost location, there are clear winners and losers.

Winner or those who benefits from the globalization of the flat panel display industry

1 Vizio company itself

Because globalization helps them in a way that they reduce the labor cost which in return helps them to increase the profits.

2 Consumers

Consumer's benefits as they can buy the Vizio's high quality flat panel TV in lower price then other brands.

3 Labor

Labor of the manufacturing countries benefits as they paid higher by the foreign company than they work in the domestic companies in their home countries.

Losers include the labor of the country from where the company moves, as they lose their job.

D What does the example of Vizio tell you about the future production in an increasingly integrated global economy? What does it tell you about the strategies that enterprise must adopt in order to thrive in highly competitive global market?

Vizio could be considered as a model of how to conduct business in a highly competitive global market as they found the way to cut the cost of production at time when there is intense competition in market. The strategy they use is that Vizio out sources to various suppliers around the globe. Vizio demonstrates all the important qualities like speed and innovativeness which are used by the successful Firms in the highly competitive global market.