Vizio CaseEssay Preview: Vizio CaseReport this essayA Why is the manufacturing of flat panel TVs migrating to different locations around the world?Due to high competition in the market the price fallen dramatically so the companys must have to find the way to cut down the cost of production. That could be the reason of manufacturing of flat panel TVs 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. Vizios 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 industry1 Vizio company itselfBecause globalization helps them in a way that they reduce the labor cost which in return helps them to increase the profits.2 ConsumersConsumers benefits as they can buy the Vizios high quality flat panel TV in lower price then other brands.3 LaborLabor of the manufacturing countries benefits as they paid higher by the foreign company than they work in the domestic companies in their home countries.
Why is that why they don’t pay for the better quality of the flat panel TV? As long as they get this cheaper product a higher labor cost may be incurred.3
The average quality of the Vizios flat panel TV is not the best. It is not even close!
How are they going to pay for this?