In the case study, the focal point is the company USTech which has been outsourcing its manufacturing to a Taiwanese company Taisource. Over the period of time, as the relationship between the two companies has developed,
Taisource has achieved competency in its field pertaining manufacturing products of high quality as required by USTech. However Taisource has also started to expand its operations to China where it is taking advantage of the economies of scale as well as the lower cost based operations provide in the Chinese region. This is giving way to the highlighted problem for USTech, as with the increase\se expertise of the market as well as the access to product information, manufacturing details as well as the string establishment of Taisource, the company has become a viable competitor for USTech in China.
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