Oxo Case Write-Up
Abstract: OXO International represents an example of a great company built upon a creative product concept. Instead of doing everything by itself, the company chooses to outsource both the design and manufacture process. By setting up partnership strategically, the company has grew fast and gained reorganization by both customers and professionals. However, as OXO wants to develop products targeting high-end markets with higher price points than standard kitchen gadgets, which requires more complicated product development process, the company is facing the choice of either keeping outsourcing designs or establishing its own design department. Also, if it stays on outsourcing designs, OXO has to choose which partner and in what way it should go for.
Summary of Key Issues * OXO has been outsourcing product manufacture and design to other companies and achieved growth through successfully managing the partnerships using strategic agreements that benefitting the company. * However, Smart Design, the only design company that takes charge of all the product development process, may create some risk for OXO. * OXO’s new line of product is now in the needs of large capacity of 3D-CAD modeling and engineering, which Smart Design can’t meet with the current royalty-based fee. * Option 1: Establishing its own in-house design department at OXO. * Option 2: Continuing to work only with Smart Design, while pay a non-royalty based design fee. * Option 3: Outsourcing design to firms with strong engineering capability in Chicago. * Option 4: Outsourcing design to small and new New York based Firms, while contract with outside engineering firms.
Analysis
OXO is a successful example of the how company could become successful through identifying opportunities, organizing the resources and building up partnerships strategically. One of the key of OXO successes depends on the concept the company is built upon: to develop everyday tools with
Summary of Key Issues * OXO has been outsourcing product manufacture and design to other companies and achieved growth through successfully managing the partnerships using strategic agreements that benefitting the company. * However, Smart Design, the only design company that takes charge of all the product development process, may create some risk for OXO. * OXO’s new line of product is now in the needs of large capacity of 3D-CAD modeling and engineering, which Smart Design can’t meet with the current royalty-based fee. * Option 1: Establishing its own in-house design department at OXO. * Option 2: Continuing to work only with Smart Design, while pay a non-royalty based design fee. * Option 3: Outsourcing design to firms with strong engineering capability in Chicago. * Option 4: Outsourcing design to small and new New York based Firms, while contract with outside engineering firms.
Analysis
OXO is a successful example of the how company could become successful through identifying opportunities, organizing the resources and building up partnerships strategically. One of the key of OXO successes depends on the concept the company is built upon: to develop everyday tools with