ABSTRACT

Imagine a company that sells some of the hottest products on the planet with just a few products representing a disproportionate share of revenues. Imagine further that this company has relied on a single Chinese supplier and location to build these products. And imagine even further that this Chinese supplier is secretive, o§en showing an unwillingness to share information publicly, particularly about labor problems. If this scenario sounds operationally risky (and strategically risky as well), you just gured out why Apple has made a decision to diversify its supplier base by expanding its outsourcing to a second supplier located in Taiwan.