Solectron: From Contract Manufacturer to Global Supply Chain Integrator

Case Solution

Hau Lee, David W. Hoyt
Stanford Graduate School of Business ()

Solectron Corp. grew rapidly from a small contract manufacturer in the early 1980s to the dominant company in the electronics manufacturing services industry in the late 1990s. In doing so, it has gone from providing maximum capacity its clients to services that clients could not provide themselves (inexpensive materials and access to expensive capital goods). The next phase was to offer clients new ways of doing business, such as outsourcing all operations except research, product design, marketing, and sales, so that clients could outsource activities that were not part of their business. basic skills. Describe this development and the rapid growth of the company. In 2001, the company’s customers suffered severe business downturns, which in turn led to the first decline in Solectron’s history. He describes the initial response of the company and asks how the company should proceed.

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