Ostnor$$s Offshoring and Reshoring$1$

Klaus E$.$ Meyer $($China Europe International Business School$)$

Sweden$$s Ostnor searches for the best locations for its

business.

In Mora, Sweden, a small town four hours north of

Stockholm, there was a company named Ostnor mak

ing bathroom armatures and mixers for households

and businesses $($see Exhibit $1).$ Faced with German and

Swiss competitors challenging Ostnor$$s market leader

ship in Sweden, Ostnor decided in $2003$ to follow the

trend of offshoring and outsourced its production to

partners in China. However, business did not develop

well: lead times for new product introduction became

longer, capital employed increased because of the

need to hold more stock in the warehouses, and qua

lity control consumed substantial resources. $.....$ Case Discussion Questions

$1.$ What motivated Ostnor$$s offshoring?

$2.$ What motivated Ostnor$$s reshoring?

$3.$ From a resource$-$based view, what are the lessons

from Ostnor$$s offshoring and reshoring?

$4.$ Which area should the firm focus on in $2015?$

Sources: Based on the CEO$$s presentation and company documents