Reigncom Essay

1308 Words6 Pages
ReignCom's Global Outsourcing Case Analysis Brian C. Hills Argosy University Supply Chain Optimization and Outsourcing Dr. Blando ReignCom The Korean company ReignCom, an MP3 player seller, faces a crossroads in 2003. CEO Deok-Joon Yang is highly concerned about the future of ReignCom and called a meeting with his management team to make some important decisions. The company has enjoyed great success in the past, and has become one of the leading MP3 Player sellers in the world with 52% of the Korean market and 25% of the world market- resulting in $200 million in sales and $50 million in operating profits (Kim, Bowon. Supply Chain Management in the Mastering Business in Asia series. John Wiley & Sons (P&T), 10/21/05. p. 40, 46). However, competition in the Korean market and world market is becoming fierce. The number of Korean MP3 Player manufacturers has dropped from 100 in 1998 to only 60 in 2003 (Kim, Bowon. Supply Chain Management in the Mastering Business in Asia series. John Wiley & Sons (P&T), 10/21/05. p. 44). Customers also continue to demand more innovative designs and features. Nevertheless, there is great potential for MP3 Player sales in the world market following the increase of internet usage leading up to 2003. ReignCom’s Primary Dilemma: Above all, the situation that most concerns Yang and ReignCom is the huge potential for MP3 Player sales in China following the drastically increasing internet usage there. Additionally, China is the fastest growing market in the world overall. It was forecasted that in 2003 about 60 million Chinese people would be using the internet for work or entertainment- including five million DSL line users (Kim, Bowon. Supply Chain Management in the Mastering Business in Asia series. John Wiley & Sons (P&T), 10/21/05. pp. 56 - 57). One market survey company predicted that the Chinese MP3
Open Document