Riassunto analitico
The present study attempts to examine and explore why, in the globalization era, outsourcing has been essentially added into the core of the business models and economic strategies as one of the irreplaceable competencies to obtain competitive advantage for multinational corporations. Therefore, multi-national apparel corporations have joined the movement in order to achieve competitive advantage over their competitors. Moreover, they concentrate on the intention to maintain increased focus on their core production businesses in the industry. Particularly in an industry such as fashion, it is fundamental to acknowledge the fact that the industry is one of the fast-moving-consumer-goods, so the products are short lived, and the expiry date is short as the industry is constantly ever changing based on the market trends. Thus, another factor that certainly is important as much as owning competitive advantage is to have sustainable competitive advantage. Hindering this, drive them to settle out for outsourcing the value chain or offshore production sourcing their needs by utilizing substantial global value chain. Although outsourcing enables the firms to achieve many benefits plus competitive advantage among their competitive firms in most industrial sectors, but the process can be tricky due to the sensitivity of the implementation which can be affected by global crises. As mentioned earlier, sustainability in the value chain plays a critical role during global crises. Primarily, many planning and screening are needed to study the value chain components in order to optimize the sustainability, efficiency, and relocation of the value chain. Thereafter, outsourcing value chain could be changed in critical troublesome periods. Most importantly, deciding on time to respond a critical situation during global crisis surely redefine the responsibilities for managerial teams in terms of logistics, planning, and supply chain management. However, experience has shown in disaster management not to take any action is the worst response; so, a well-organized corporation absolutely owe in advanced planning for such situation and is not afraid to relocate on as one of the rational strategies to overcome the crises and maintain the sustainability of VC.
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Abstract
The present study attempts to examine and explore why, in the globalization era, outsourcing has been essentially added into the core of the business models and economic strategies as one of the irreplaceable competencies to obtain competitive advantage for multinational corporations. Therefore, multi-national apparel corporations have joined the movement in order to achieve competitive advantage over their competitors. Moreover, they concentrate on the intention to maintain increased focus on their core production businesses in the industry. Particularly in an industry such as fashion, it is fundamental to acknowledge the fact that the industry is one of the fast-moving-consumer-goods, so the products are short lived, and the expiry date is short as the industry is constantly ever changing based on the market trends. Thus, another factor that certainly is important as much as owning competitive advantage is to have sustainable competitive advantage. Hindering this, drive them to settle out for outsourcing the value chain or offshore production sourcing their needs by utilizing substantial global value chain. Although outsourcing enables the firms to achieve many benefits plus competitive advantage among their competitive firms in most industrial sectors, but the process can be tricky due to the sensitivity of the implementation which can be affected by global crises. As mentioned earlier, sustainability in the value chain plays a critical role during global crises. Primarily, many planning and screening are needed to study the value chain components in order to optimize the sustainability, efficiency, and relocation of the value chain. Thereafter, outsourcing value chain could be changed in critical troublesome periods.
Most importantly, deciding on time to respond a critical situation during global crisis surely redefine the responsibilities for managerial teams in terms of logistics, planning, and supply chain management. However, experience has shown in disaster management not to take any action is the worst response; so, a well-organized corporation absolutely owe in advanced planning for such situation and is not afraid to relocate on as one of the rational strategies to overcome the crises and maintain the sustainability of VC.
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