Hon Hai Foxconn Case Study
Hon Hai/Foxconn is the world's leading contract manufacturer, assembles consumer electronics products for well-known brand-names. It is also a supplier of parts and components and has strategic associations with many other such suppliers. Despite its size (over a million employees; ranked 32 in the Fortune Global 500) and client base . For example (Apple, HP, Sony, Nokia), remarkably little information is publicly available on the company. The company does not pursue the limelight, a trait that it shares with many others operating in this industry. After a near hundredfold upsurge in sales in the first period of this century Hon Hai/Foxconn's sales growth slowed down drastically. The company is facing numerous challenges: slowing demand growth in its core (electronics) business; a weakening link with Apple, its main …show more content…
By comparison, Flextronics has about forty percent and Solectron of about twenty seven percent of their capacities in Asia. How much of a cost advantage does this give Hon Hai? Report from the U.N. Conference at 2002, concluded that China's wages are as low as two percent of those of the U.S. Hon Hai's control of costs is as dedicated as its control of information, something Lehman analyst Emily Chang realized on a visit to EMS facilities in China last year. The "nice housing and offices" of Flextronics' expats contrasted suddenly with the accommodations of Hon Hai's managers. "Even the local chairman's offices had bare concrete floors," she says. "This company is really thrifty." On top of that, Hon Hai can rely on the thirty percent and higher margins of it is component business to balance the low margins of it is meeting work.Hon Hai industry have several ways to kept its costs low and more competitors by other companies .first, Sources of growth Quality, second, height customer orientation, and its integration with component suppliers are generally seen as
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