Brick(Reigncom)

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Outsourcing Strategy of Reigncom, the MP3 Player Corporation
BRICK
Chon, Soo Hong* Park, Seung Oh** Oh, Sun Min** Park, Jin Seok**
* Department of Techno MBA, KAIST ammonia alum School of Management, Korea
** Department of Management Engineering, KAIST Graduate School of Management, Korea

star afternoon in September 2003, Yang, Deok Joon, the Chief Executive military officer of Reigncom meets chief members of new product development team. Reigncom is a Korean company that take a shits MP3 Player (MP3P) and multimedia tools. The meeting is held in the Seocho-dong main office in Seoul, Korea.


The purpose of the meeting is to discuss working out of production lines to cope with rapidly increasing MP3P pick up, especially in Chinese mart. The existing production line can produce 25,000 units per month, and Reigncom is afraid that their production capacity will not be enough to meet iRivers increasing demand.


Moreover, Reigncom wants to expand market share in China where Reigncom ranks only fifth in MP3P market. It is not only because Reigncom pushed high price dodge in price-oriented market but because it was charged 17% tariff. These two reasons undress Reigncom of the cost advantage against other Chinese MP3P producers.



Under the indicate condition, Yang is going to give a careful consideration to an outsourcing strategy again.


The first alternative is to get sales license in Chinas domestic market by create a new factory in China, which will claim a big budget. Also, if Chinas domestic demand is smaller than they have expected, it will be a heartbreaking damage to the company. Now, they consider the successful relationship with AV Chaseway or find other partner who can serve our needs.
The MP3P (MP3 Player) Market

The MP3P is an auditory sensation device designed to carry compressed digital music files in a flash memory or toilsome disk. Since it has a competitive advantage over CD (Compact Disk) pseud and MD (Mini Disk) in...If you want to get a full essay, mark it on our website: Ordercustompaper.com



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