Flat Panel Tv and the Global Economy
Q2. “ Flat Panel Televisions and the Global Economy” Vizio is a U.S. company founded in 2002 by William Wang, Vizio CEO, with the idea that everyone deserves to own the latest technology. It is a producer of consumer electronics, primarily produces television sets. It grows fast despite a limited number of staff. Now, there are over 160 employees and it remains the first American brand in over a decade to lead in U.S. LCD HDTV sales.
This passage has mentioned two main issues, which are related to what I have learnt in the lecture. They are globalization of production and the reasons for businesses to become international.
1) Globalization of production Vizio has achieved globalization of production. Globalization of production means sourcing of goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production, for example, land, labor, capital, and energy. Vizio sources the components of televisions around the world. It source panel, electronic components, and processors from South Korea, China, and United States respectively. Assembly of TV is in Mexico, while final product design, sales, and customer service are in California. The final products are sold in retailers, such as Circuit City or Wal-Mart. Globalization of production makes companies more competitive by improving their quality or volume, and lowering their costs. According to William Wang, Vizio CEO, he can undercut his competition because his overhead is low. The company has about 85 employees and they are mainly responsible for technical support or engineering. It outsources manufacturing to Asia because there are low-cost, for-hire factories. [1] Because of reduced cost and high quality TV, it allows Vizio to compete with it rivals, e.g. Sony, Samsung, and Panasonic more effectively.
2) Reason to become international – proactive & reactive There are some initiatives for Vizio to become
This passage has mentioned two main issues, which are related to what I have learnt in the lecture. They are globalization of production and the reasons for businesses to become international.
1) Globalization of production Vizio has achieved globalization of production. Globalization of production means sourcing of goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production, for example, land, labor, capital, and energy. Vizio sources the components of televisions around the world. It source panel, electronic components, and processors from South Korea, China, and United States respectively. Assembly of TV is in Mexico, while final product design, sales, and customer service are in California. The final products are sold in retailers, such as Circuit City or Wal-Mart. Globalization of production makes companies more competitive by improving their quality or volume, and lowering their costs. According to William Wang, Vizio CEO, he can undercut his competition because his overhead is low. The company has about 85 employees and they are mainly responsible for technical support or engineering. It outsources manufacturing to Asia because there are low-cost, for-hire factories. [1] Because of reduced cost and high quality TV, it allows Vizio to compete with it rivals, e.g. Sony, Samsung, and Panasonic more effectively.
2) Reason to become international – proactive & reactive There are some initiatives for Vizio to become