Outsourcing Everyone's Favorite Toys

Everyone's Favorite Toys

Everyone wants to have the newest technology and the nicest clothes. The newest Xbox and PlayStation can be found in almost any house in America, and almost everyone has a piece of Nike clothing. The companies that make these products use a technique called outsourcing to make these products more affordable. Outsourcing is when companies receive finished or semi finished products from an outside company instead of making the product in house (Dolgui and Proth). 

A company like Microsoft, (the producer of Xbox), uses companies from China to produce parts and operating systems for their products. These parts and pieces are then sent back to American to be put together and shipped to stores. Large tech companies also use other smaller companies to produce and develop games to use on their consoles. An example of this is Epic Games, the producer of the incredibly popular game Fortnite. Fortnite was developed by Epic then brought to larger companies like Microsoft and Sony to use on their devices. Companies use outsourcing for more than just toys too. Nike and Under Armour design the coolest new clothes in the United States then send the designs to countries like China and Taiwan to be made. When these companies use outsourcing techniques it saves the company money which means when you go to the store to get the newest games or clothing it is at a more affordable price.


When companies outsource they then have the money to make their products more advanced. Microsoft is always looking for ways to make their devices faster and better for the user. Technology experts are brought in from outside companies to help make advancements on their products. Clothing companies do the same general thing. Nike is constantly trying to make their shoes and clothing lighter and more durable. This can be achieved by using materials and expertise from outside companies. This process makes a better overall product for the consumer.

References:
Dolgui, A. & Proth, J.M. (2013)Outsourcing: Definitions and analysis. International Journal of Production Research,51(23), 6769-6777. DO1: 10.1080/00207543.2013.855338