Solecton Case Analysis
Solectron: From Contract Manufacturer to
Global Supply Chain Integrator
Background
Solectron Corporation is but another classic case of a company that benefited immensely from the dot.com boom, only to experience the pains of the bust as the dot.com companies went down in the early 2000s. From its humble beginnings in Milpitas, CA as a solar energy products manufacturer, Solectron grew to be a highly successful global supply chain integrator with revenues of $18.6 billion by 2001. From the time it was founded in 1977 through 2000, the company grew in leaps and bounds mainly through lateral acquisitions.
After struggling as a manufacturer of solar energy products, the company moved to making printed circuit boards (PCBs) for other electronics companies. Solectron was so successful that it is credited with changing the PCB job business into an important contract manufacturing industry. The corporation manufactured many different products for its customers, which covered computers (docking stations, mainframes, PCs, servers etc.); telecommunications (access equipment, base stations, IP telephony equipment, mobile phones); networking (hubs, modems, NICs, switches, routers) and Computer peripherals (disk/tape drives, laser and inkjet printers).
Quality and corporate culture are two characteristics that helped Solectron to succeed and stand out from other manufacturers. Right from when the company was started Dr. Chen, the company president, instilled a culture of superior customer service and respect for the individual to all employees. So strong was the focus on quality that the company aligned its practices with the Baldridge National Quality Award standards; an award Solectron eventually won in 1991 and again in 1997. The Solectron culture comprised of regular quality meetings, self-examination of performances; Quality Improvement Process (QIP); rewarding performance; soliciting feedback from customers, and a focus on customer satisfaction. Quality
Global Supply Chain Integrator
Background
Solectron Corporation is but another classic case of a company that benefited immensely from the dot.com boom, only to experience the pains of the bust as the dot.com companies went down in the early 2000s. From its humble beginnings in Milpitas, CA as a solar energy products manufacturer, Solectron grew to be a highly successful global supply chain integrator with revenues of $18.6 billion by 2001. From the time it was founded in 1977 through 2000, the company grew in leaps and bounds mainly through lateral acquisitions.
After struggling as a manufacturer of solar energy products, the company moved to making printed circuit boards (PCBs) for other electronics companies. Solectron was so successful that it is credited with changing the PCB job business into an important contract manufacturing industry. The corporation manufactured many different products for its customers, which covered computers (docking stations, mainframes, PCs, servers etc.); telecommunications (access equipment, base stations, IP telephony equipment, mobile phones); networking (hubs, modems, NICs, switches, routers) and Computer peripherals (disk/tape drives, laser and inkjet printers).
Quality and corporate culture are two characteristics that helped Solectron to succeed and stand out from other manufacturers. Right from when the company was started Dr. Chen, the company president, instilled a culture of superior customer service and respect for the individual to all employees. So strong was the focus on quality that the company aligned its practices with the Baldridge National Quality Award standards; an award Solectron eventually won in 1991 and again in 1997. The Solectron culture comprised of regular quality meetings, self-examination of performances; Quality Improvement Process (QIP); rewarding performance; soliciting feedback from customers, and a focus on customer satisfaction. Quality