Wingtech Acquires Nexperia: Will the New Company Fly?

2020 ◽  
Vol 24 (01) ◽  
pp. 49-69
Author(s):  
Ming-Jer Chen ◽  
Y. P. Chan ◽  
Mary Summers Whittle

This case is about Wingtech, a China-based mobile phone and intelligent devices manufacturer. Early in 2019, Wingtech CEO Xuezheng Zhang faced one of the biggest challenges of his career. Founded only 13 years earlier, Wingtech was one of the world’s top producers of high-tech consumer products. But Wingtech didn’t produce its products’ key component: microchips. Instead, the vast majority of chips were imported from American and European manufacturers. Facing growing hostility from an increasingly anti-China U.S., and the very real possibility of crippling disruptions to the microchip supply chain, Wingtech had just completed the purchase of highly regarded Netherlands-based chip manufacturer Nexperia for USD3.6 billion. Now Zhang faced a daunting set of highly consequential new questions. To what extent should he try to integrate the two geographically and culturally distinct companies? How could he convince Nexperia’s highly competent leader, who had been unenthusiastic about the deal, to stay? Zhang had seen great success as an entrepreneur. How should he lead as the CEO of a global high-tech firm?

2015 ◽  
Vol 5 (1) ◽  
pp. 1-7 ◽  
Author(s):  
Pankaj Kumar Medhi ◽  
Sandeep Mondal

Subject area Supply chain management (SCM). Study level/applicability Graduate students. Case overview In recent times, the world market of mobile phone is in a flux due to many phenomena of importance like strong emergence of smartphones, Nokia losing market share in all segments of market and fast technological and supply chain innovation by players like Apple and Google. Elements of SCM and the way technology is acquired have assumed a place of importance to compete in the global market. A new standard of innovation and SCM is emerging together as the rules of market dominance are re-written all-over again. Expected learning outcomes After completion of the case study, the students will understand: role of technological innovation in high-tech industry and global supply chains in changing the consumer behavior world over; the classic battle for market dominance with a new way of innovation management in technology and processes to create most efficient global supply chains; importance of SCM practices of collaboration like tighter partner integration, use of power asymmetry and contract by dominant players to create efficient supply chains; and how visionaries like late Steve Job are shaping the new era of technology. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email: [email protected] to request teaching notes.


Author(s):  
Chinmay Sane ◽  
Conrad S. Tucker

With continued emphasis on sustainability-driven design, reverse logistics is emerging as a vital competitive supply chain strategy for many of the global high-tech manufacturing firms. Various original equipment manufacturers (OEMs) and multi-product manufacturing firms are enhancing their reverse logistics strategies in order to establish an optimal closed-loop supply chain through which they can introduce refurbished variants of their products back into the market. While a refurbished product strategy helps to mitigate environmental impact challenges as well as provide additional economic benefits, it is limited to an existing product market, possibly a subset of the existing market, and fails to commercialize/target new markets. In addition to refurbishing, the alternatives available for utilizing End-Of-Life (EOL) products are currently restricted to recycling and permanent disposal. In this work, the authors propose employing a new EOL option called “resynthesis” that utilizes existing waste from EOL products in a novel way. This is achieved through the synthesis of assemblies/subassemblies across multiple domains. The “newly” synthesized product can then be incorporated into the dynamics of a closed-loop supply chain. The proposed methodology enables OEMs to not only offer refurbished products as part of their reverse logistics strategy, but also provide them with resynthesized product concepts that can be used to expand to new/emerging markets. The proposed methodology provides a general framework that includes OEMs (manufacturers of the original product), retailers (distributors of the original product and collectors of the EOL products) and third-party firms (managers of the EOL products) as part of a closed-loop supply chain strategy. The proposed methodology is compared with the existing methodologies in the literature wherein a third-party supplies the OEM only with refurbished products and supplies products unsuitable for refurbishing to another firm(s) for recycling/disposal. A case study involving a multi-product electronics manufacturer is presented to demonstrate the feasibility of the proposed methodology.


Author(s):  
Qin Zhang ◽  
Zijian He ◽  
Junhai Ma

Consumers' strategic purchasing behavior has a great influence on the pricing and sales of new products. In order to study the impact of strategic consumers on the sales of 5G mobile phones, we establish a two-period pricing model. The supply chain contains two manufacturers, a communications operator and a mobile phone retailer. Cases where two manufacturers have the same or different pricing rights are researched by using the Stackelberg game and the Nash game model. Our research results are as follows:(1) We obtain the optimal 5G communication fees in two periods and find out how they change with the proportion of consumers changing. (2) We figure out the profits of the supply chain in two periods and analyze them. We find that the communication operator earns more than the others most of the time. (3) We investigate how the proportion of strategic consumer impact on supply chain profits and conclude that the optimal price and demand in a period will decrease as the proportion of consumers who only purchase products in the other period increases.


2010 ◽  
Vol 1 (1) ◽  
pp. 64-76 ◽  
Author(s):  
Rauno Rusko

This study introduces geographical viewpoints for supply chain management (SCM) focusing on the branch of information communication technology (ICT) in the case of city and region of Oulu. The City of Oulu is a remarkable planning and administration centre of ICT branch in Finland. In this study we—instead of using commonly used cluster or resource dependence theories—utilize SCM framework to describe the development and path-dependence of knowledge-intensive geographical area, which is specialized in high tech or actually ICT business. In the context of geographical analysis, or of geographical economics, SCM is less-used viewpoint. This case study shows that SCM, and especially strategic level SC endowment viewpoint (introduced initially in Rusko, Kylänen & Saari, 2009), is valuable and useful tool in analysing the geo-economic development and pathdependence of a high tech centre. As a result, we notice that the development of Oulu is based on the development of SC endowment connected with amounts of talents and also multi-dimensional coopetition. One essential result is the observed erosion in the SC endowment of high tech Oulu, which sets remarkable challenges for city planning.


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