Flextronics Competition
Now Viewing Flextronics's competition in: Warehousing and Storage
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company have long-term or short-term agreements with customers? - Warehouses often have three- to five-year contracts with customers.
How does the company distinguish itself from competitors? - Small companies can compete effectively with larger ones in local markets.
How does the company find new business? - Many warehouse operators advertise in trade journals.
Competitive Landscape
Demand is driven by the flow of goods through the US economy. The profitability of individual companies depends on efficiency of operations. Large companies can win business from major customers by operating in multiple locations and by offering wider ranges of services. Small companies can compete effectively by specializing in particular industries or local markets. The industry is labor-intensive: average annual revenue per employee is about $30,000.
Business Challenges
CRITICAL ISSUES
Demand Depends Highly on Flow of Goods - Economic slowdowns greatly impact the industry, as many business customers use public and contract warehousing mainly to handle peak demand. Industrial production, import volume, and office vacancy rates are indicators of demand for warehousing.
Energy Costs - Cold storage and temperature-controlled facilities have high energy requirements, contributing significantly to operating costs. In times of rising costs, facility managers investigate new, more affordable technologies to reduce consumption. Electricity costs can make up more than 25 percent of a cold storage building's ongoing operating costs.
Industries Where Flextronics Competes
- Electronics
- Contract Electronics Manufacturing(primary)
- Transportation Services
- Logistics Services
- Supply Chain Management Services
- Warehousing & Distribution Services
- Logistics Services
