The issues that are being faced by the USTech Company relate to the facts that the company has been relying on Taisource for the production of its products.
However the low margins for products in the US market are forcing the company to look at alternative methods of operations aside from outsourcings. The board has suggested the company to also look at expanding operations to China where the manufacturing facility would be having advantages in terms of labor, utility costs etc. This strategy involves ending the long term business relationship with strength and the knowledge gained by Taisource over the period of time presents it as a future rival for the USTech Company in the Chinese market. The report therefore strives to identify the solutions to these problems as depicted in the case and how they are feasible for the USTech Company in terms of costs, future market dynamics and current trends being depicted in the market.
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