Running head: BUSI 740 – CASE STUDY 3
BUSI 740 – Managing the Supply Chain
Discussion Board: Case Study 3
November 20, 2022
Submitted to: Dr. Richard Corum
Liberty University
Case Study: 3
Introduction
Solectron Corporation grew rapidly from a small contract manufacturer in the early 1980s to the
dominant company in the electronics manufacturing services (EMS) industry by the late 1990s.
In doing so, it evolved from providing peak capacity for its clients, to providing services that
clients could not provide on their own (low-cost materials, and access to expensive capital
equipment). Its next phase was to providing its clients new ways of operating , such as
outsourcing all operations except research, product conceptualization, marketing and sales,
allowing clients to outsource those activities that were not part of their core competencies. The
case describes this evolution, and the rapid growth of the company. In 2001, the company’s
clients suffered severe business downturns, which in turn caused the first contraction in
Solectron’s history. The case describes the company’s initial response, and raises questions about
how the company should proceed.
Solectron California Corporation ('Solectron') whose principal place of business is located at 847
Gibraltar Drive, Milpitas, California 95035 and Fine Pitch Technology Inc. whose principal
place of business is located at 2450 Autumnvale Drive, San Jose, California 95131 (Solectron
California Corporation and Fine Pitch Technology Inc. collectively referred to as 'Solectron') and
Juniper Networks Inc. ('Customer') whose principal place of business is located at 385 Ravendale
Drive, Mountain View, California 94043 in their desire to formulate a strategic business
relationship and to define their expectations regarding this relationship,
The following case study is a review of Solectron Corporation (Solectron) by Simchi-Levi,
Kaminsky and Simchi-Levi (2008) with responses to six questions related directly to the study.
Solectron is a multi-national company that has been trading publicly sone 1989. Rooted in
quality and quality assurance, the company had experienced significant growth in the years
trailing 2001. The challenges that were at the foot of the organization post 2001 included
