... by half. Solectron also suffered from the falling demands which were showed obviously in its financial incomes. The company was then forced to cut the cost by laying off employees and closing production lines; however, they made still quite alarming losses until today. Nevertheless, the management is able to see brighter future and growth possibilities, especially in Asia. But the question still remains: how to continue in this challenging business environment? In the following we first will give some answers on the case's study questions and later comment more deeply the situation described in the case. 1. How has Solectron's value to its customers evolved over time? In the beginning, Solectron was offering mainly the contract manufacturing services; it produced PCB's and other components. Thus, the company" provided little more than substitution for capabilities that its customers already possessed." But gradually it started to not only to expand its area of operation but ...

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