Apart from this, there are certain areas which need to be considered for the second option, i.e. working in collaboration with another manufacturer(s). For this particular option, it is necessary to take into consideration the quality which can be delivered by the other manufacturer, the regulatory environment, and technological competency, if the manufacturer operates in a different country, and other regional factors (Aswathappa, 2010; Dlabay & Scott, 2011).
The idea of going into a collaborative arrangement needs careful consideration from another point of views also. As for instance, it is also necessary that the management is aware as to whether confidential information will be shared with another manufacturer (s), and what will be the repercussions of such sharing in the long run, while having the competitive advantage of the company in mind (Daniels, Radebaugh, & Sullivan, 2011; Dlabay & Scott, 2011).
After taking into account these factors and areas of concern, a comparative analysis can reveal that which option will suit best to the company. Internal Manufacturing or Collaborative Arrangement.
Aswathappa, K. (2010). International Business. New Delhi: Tata McGraw Hill.
Daniels, J., Radebaugh, L., & Sullivan, D. (2011). International Business, Environment and Operations. Upper Saddle River, NJ: Prentice Hall.
Dlabay, L., & Scott, J. (2011). International Business. Mason: CENGAGE Learning.
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