Sony outsourcing their brand?
Sony outsourcing their brand?
Out of context: Reply #13
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- monNom0
'identical standards' is a myth. When you outsource you lose a piece of the profit to someone else. If they're doing it cheaper than you did it, you can bet the formula has been altered. Some of that is labour cost differences (i.e. made in china), but you can build a factory in china too.
Todays executives think it's wise to eliminate 'manufactuing risk' from the equation. In the end, they compensate someone else for that risk plus some profit in the deal, and product quality suffers.- Slight simplification, efficiency and focus counts for a lot. However reducing costs further will impact quality.comicsans
- True. But improved efficiency suffers from diminishing returns. Way easier to change the ingredients and sell at the same price.monNom
- ...price. Most of the revenue gains come at the expense of brand equity, not due to operational efficiency. IMOmonNom
- operational efficiency is how the bean counters sell it, but a crappier product is the inevitable outcomecomicsans