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Bugabyte Case Summary

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Words 518
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ANS 1- Taking into consideration, all risks (quality, ethical, intellectual property protection, political, cultural) I think the best product to be recommended is Bugabyte lite for the assembly outsourcing by Grunwald and Vogel. This product is in the market for over 6 years and has seen healthy growth for its first four years and has stabilized over past two years. There are competitors with similar product offering, but there is no risk of copying of technology as other competitors are aware of this technology. But in case of Bugabyte, there are more chances of stealing the trade secret and produce their own as it is now a new product.

ANS 2- Benefits of outsourcing assembly function:

• Quality: Grunwald and Vogel’s expertise and professionalism …show more content…
• Customer Satisfaction: This will improve the customer service of the company.

Disadvantages of outsourcing assembly function:

• Depending on the supplier: Metrovox
• Risk of exposing: It will increase the chances of exposing trade secret to the third party.
• Language, cultural barrier: Language and cultural gap can result in sever communication problems may also be a barrier.
• Negative impact on customer: Delivering of products not on time will lead to increase in cost and this will have negative impact on customers.

ANS 3- The key contract issues Metrovox will need to consider to supplier are as follows:

• Contract: Breach of terms/ contract agreed between the two parties.
• Specifications and quality of product: The quality and specifications of product be same as specified by Metrovox.
• Cost: The cost of assembling should be clearly mentioned.
• Responsible for compliance: Taking into consideration transportation, packaging, codes, laws and regulation of market which party will be responsible for compliance must be stated properly.
• Timely delivery: The product should be delivered on time so that production process goes

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