ASUSTeK Computer Incorporated (ASUS) is a multinational corporation based in Taiwan that manufactures electronic items such as motherboards, laptops, servers, mobile phones, and other computer products.
In the 2000s, ASUS was a small contractor in charge of very simple components on Dell labeled computers. At this time, Dell products were born from this genuine design, the assembly stages, and many key components such as motherboards, RAM and monitors are all taken care of by Dell ... Other, less important components such as the case, heat sink ... outsourced to Asian contractors, and one of them is ASUS.
After a few years of handling the details for Dell, ASUS representatives made a very good proposal: ASUS will completely take care of the motherboard manufacturing of Dell computers at a price lower than 20% of the factory price of Dell itself. Not to mention that the 20% difference would go straight to Dell's profits, just considering that Dell was relieved of the burden of managing factories with tens of thousands of workers and hundreds of complex problems gave Dell an immediate nod.
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After a few years, ASUS representatives constantly visited Dell's headquarters and brought more and more attractive offers. ASUS can do what Dell does, even better with 1 cheaper price. Dell does not lose anything but becomes more and more "leisurely" in bringing 1 product to the market. Dell only has to find out what customers want, write those requirements on paper and transfer them to ASUS and then shake their thighs to wait for the product to come out, put the Dell label on the box and then launch it on the market. From being a computer manufacturing company, Dell has gradually become an equipment retail company. However, the last time ASUS representatives flew to the US, he did not go to Dell's headquarters, but visited retailers such as Best Buy and Walmart to promote the ASUS branded laptop brand with quality "like Dell's" but priced 20% lower. The long years of working as a "loris" for Dell finally paid off, with its experience ASUS became one of the largest laptop manufacturers and a direct competitor of Dell. Meanwhile, Dell is dependent on ASUS because after so many years of "eating without sitting", Dell is no longer capable of creating 1 of its own products.
The story is an expensive lesson for Dell. Because he was too subjective to Asus' moves, and attracted by the bargains in front of him, Dell lost himself all the time. Dell dug itself a hole when outsourcing Asus too many important stages in the production process, leading to an excessive dependence, so that when Asus became a direct competitor, growing, proficient in manufacturing, assembly and management processes, dominating market share, Dell did not turn back in time. Therefore, it can be seen that choosing outsourced service providers and controlling suppliers is very important, helping businesses to always be proactive in the moves of these partners
Resouce: Translate by ĐHP
