Evolution of Leading Consumer Electronics Producers’ Approaches to Configuration of Global Supply Chains
MAGAZINE №5 (82) October 2017
AUTHORS
PARNENKOVA К.V. - Assistant, World Economics Department, National Research University Higher School of Economics (Moscow, Russia)
CATEGORY Analytics and reviews Supply chain management Industrial companies’ corporate logistics
ABSTRACT
Global consumer electronics market experienced considerable changes regarding the list of top-producers and configuration of their global supply chains over the past few decades. The main goal of the research is to analyze the evolution and identify up to date approaches to establishing global supply chains in consumer electronics industry. The research explores the supply chain models implemented by companies from different countries of origin: industrialized, newly industrialized and emerging economies.
Companies of industrialized countries concentrated supply chain stages with the highest added value under own control transferring standardized operations to the emerging countries using ways of outsourcing and offshoring. Aggressive expansion of East-Asian producers did not allow some of them to maintain leadership. The model of South Korean companies consisted, on the one hand, in transferring own research centers to the industrialized countries, which allowed companies to enhance their technological edge, and on the other hand, in shifting standardized processes to countries with cheaper production. Chinese manufacturers chose the model of global supply chains establishing by means of mergers, acquisitions and entering into international strategic alliances.
Nowadays, the leading consumer electronics producers switch to implementation of latest approaches to supply chain formation – reshoring, backshoring and nearshoring. It is recommended that companies pay close attention to the analysis of a possibility of full or partial onshoring strategy implementation, expediency of which is related to the formation of new world centers of consumer electronics consumption.
The research results can form the basis for the development of supply chain management strategic decisions for the market players of the industry and its related market sectors as well as create a basis for elaborating the directions of state policies of concerned countries in order to ensure their most effective participation in global value chains.
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Impact of Regional Integration on Creating Supply Chains in a Globalized World
MAGAZINE №2 (79) April 2017
AUTHORS KLOCHKO O.A.
CATEGORY Analytics and reviews Global logistics projects Logistic integration and coordination Supply chain management
ABSTRACT
Regional economic integration represents one the most significant trends in the contemporary world economy. Research into companies’ approaches to creating global supply chains in the context of regional integration process is of interest both from academic and business points of view. The research goal is to reveal the regional integration impact on companies’ decisions about trade and investment operations during the process of establishing their supply chains. Strategies and supply chains of most transnational corporations in the world are of regional, not global nature. This can be primarily explained with countries’ proximity and moderate level of risks. Trade blocks and regional unions contribute to the development of regional supply chains as well, and in the process of supply chain creation companies tend to pay more attention to such instruments as reshoring and nearshoring. It is connected with the increase in wages in Asian markets, companies’ underestimation of total costs associated with offshoring, need of becoming closer to customers as well as need to protect intellectual property rights. Impact of information-technological revolution that creates opportunities to and optimize operations costs in developed countries should also be taken into consideration. Global and regional supply chains are established as a result of companies’ foreign trade and foreign direct investment decisions. Export and import operations correlate with trade creation and trade diversion effects. Local producers that do not possess competitive advantages will face treats from external and intraregional competitors, which get opportunities to expand sales and export volumes. Trade diversion effect creates opportunities for intraregional producers, stimulates development of regional chains and may lead to isolation from the rest of the world as well as decrease in international competitiveness. Investment decisions of intraregional producers will primarily depend on the market size and level of trade barriers. As a result regional supply chains may start to develop in isolation from global value chains or organically integrate into them. Companies from participating in the agreement countries will get potential to optimize their investment activities. The research findings can be applied in business operations well as be used by governmental bodies for planning and elaborating on regional integration agreements.
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