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Medium Market Entry Profitability Manufacturing Strategy

ElectroCorp

#Electronics Manufacturing #Consumer Electronics
ProHub Comment

This is a well-structured market entry and operational strategy case requiring candidates to evaluate a product launch decision and compare two manufacturing approaches (China outsourcing vs. 3D printing domestically). The case combines market sizing, competitive analysis, and financial modeling to reach a data-driven recommendation on both whether to launch and how to operationalize it.

Estimated Time 15 minutes
Difficulty Medium
Source IESE
50 / 100
Your client is ElectroCorp, a US manufacturer of electronics such as computers, TVs, mobile phones… in the mid-tier segment. In order to grow to diversify the product line and keep growing the top line, the company is thinking about launching a new product in the US market: headphones. The CEO of the company hires you to know your opinion about the launch (i.e. whether to launch or not) and in case of launching what would be the best operational strategy: manufacture in one of their factories in China or use 3D printing technology.

Clarifying Information

  1. ElectroCorp has revenues of 6bn and sells its products globally however for this opportunity the only consider the US
  2. 3D printing enables to manufacture a three-dimensional object from digital 3D model.
  3. The objective of the investment is to have payback in less than 3 years