X Case Study 3: Flextronics and its Excellent Operational Services Behind every well-known brand name in consumer electronics, much of the high-tech manufacturing which forms the heart of the product is probably done by companies few of us have heard of. Companies such as Ericsson and IBM are increasingly using electronic manufacturing services (EMS) companies which specialize in providing the outsourced design, engineering, manufacturing and logistics operations for big brand names. Flextronics is one of the leading EMS providers of 'operational services' to technology companies. With over 70,000 employees spread throughout its facilities in 28 countries, it has a global presence which allows it the flexibility to serve customers in all the key markets throughout the world. From a market requirements perspective, Flextronics No lesults From a market requirements perspective, Flextronics manufacturing locations have to balance their customers' need for low costs (electronic goods are often sold in a fiercely competitive market) with their need for responsive and flexible service (electronics markets can also be volatile). From an operations resource perspective, Flextronics could have set up manufacturing plants close to its main customers in North America and Western Europe. This would certainly facilitate fast response and great service to customers; unfortunately these markets also tend to have high manufacturing costs. Flextronics' One way Flextronics achieves this through its operations strategy is by adopting what it calls its 'industrial park strategy'. This involves finding locations which have relatively low manufacturing costs but are close to its major markets. It has established industrial parks in places such as Hungary, Poland, Brazil and Mexico. Flextronics' own suppliers also are encouraged to locate within the park to provide stability and further reduce response times. Discussion Questions 1 How does Flextronics' operations strategy help the company to satisfy itscustomers? 2 What specific operations competences must Flextronics' have in order to make a success of its strategy? 3.Compare the operations strategies of Flextronics and a full-service airline such as Ethiopian Airlines