Case analysis for short Answer: Business & Marketing Essay

Case Analysis for Short Answer
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Case Analysis for Short Answer
Question 1
One of the advantages of a company engaging in an original equipment manufacturer (OEM) is reduced costs. OEM partnerships reduced the time and costs involved in the development, which minimizes the expenses involved. With reduced costs, a company can make more profits. Secondly, OEM partnerships ensure products are of high quality. OEMs tend to have a high level of quality requirements, which ensures that all the products produced meet the required standards. The implementation of greater product expertise and strict testing measures ensures the final product meets the required standards.
On the contrary, OEM partnership, just like any other relationship may not work as expected. Instances like changes in business goals could strain the relationship and end the partnership. Further, the expectations of the parties, if not met could strain the relationship. For instance, the expectations of all the parties should be well outlined to minimize future disagreements.
Question 2
Benefits of localization
* Caters to the needs and tastes of the local market. It enables an entity to meet the need of the consumers in the market where it operates. For instance, when Matsushita allowed the overseas sales subsidiaries more choice over the products sold, the company became more successful (Bartklett, 2009).
* It strengthens global presence. Individuals in different parts of the world are in a better position to associate with the product.
* Being culturally sensitive. Cultural sensitivity creates a positive association with a particular brand.
Shortfalls of localization
* Localization of an entity in a particular causes dependency. In case of war or a natural disaster, the supply chain will be disrupted, which has adverse effects on the company