This chapter explores companies strengths and weaknesses based on resources, capabilities and activities. Have you ever wondered why some businesses outperform their competition within the same industry? Companies generally differ in their core competencies and what they need to improve on; those differences will and can determine who will have the competitive advantage over the competition. The decisions that upper management make when deciding the activities of their core competencies in regard to outsourcing certain functions within the company.
An industry leader, Delta Airlines took the lead by bringing outsourcing to the travel industry. The company has 2 reservation call centers in India. This move has saved Delta $25 million a year. This strategy is risky.
http://articles.cnn.com/2004-12-23/travel/bt.outsource.airlines_1_united-airlines-outsourcing-reservations?_s=PM:TRAVEL
They also outsourced its European finance and accounting functions as a cost-saving solution so that they can concentrate on the core competencies of improving customer service levels and company visibility in the industry.
http://www.accenture.com/us-en/Pages/success-delta-financial-outsourcing-summary.aspx
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