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Difficult for communication

Oct 14th 2015 at 11:20 AM

Many technologies and company’s knowledge is going to supply to the oversea outsourcing suppliers in the future, in order to help them to finish the products which the company asked, like the product design drawings, this is a risk of company. “When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals” (http://www.quickmba.com/strategy/competitive-advantage/), Michael Porter identified two basic types of competitive advantage, cost and differentiation advantage, the best way to achieve the differentiation advantage is to keep better technologies in the company, so the technologies is a significant competitive advantage for company to survive in the competition, the unique technologies is the crucial information for all aspects of company and it would a risk if company send the information to another company, even the receiver is the supplier, so once the suppliers received the unique technologies and company’s knowledge, they might use these technologies in their own products or sell them to one of company’s competitors, if the supplier also work for the company’s competitor, they might use these technologies and information to against the company, so loss of unique technologies and company’s knowledge would influence the future plan and profit making in a long period of time of company. Detailed by assignment代写 !

Difficult for communication

 

The long distance and higher cost for communication with supplier might cause misunderstanding in many aspects of cooperation, especially when the two companies’ have completely different cultures and languages, for instance the misunderstanding in the work and the communication between 2 companies’ workers. Some company decide to establish a new set of management techniques to manage this, even so the situation still can not be solved completely, the new set of management techniques need large amount of assets, times and technicians to work out, it is still a burden for small and medium sized furniture company

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