Bridgeton Industries experiencing a decline in sales. To become more competitive, it established a procedure for the classification of products based on their performance and other factors. Products are divided into three groups: a world-class, potentially world-class and world class. Outsourcing of non-firm world class products.
bridgeton industries case solution
This leads to the outsourcing of the remaining costs of products to increase, because some of the costs associated with the outsourcing of production does not go away. These residual costs caused more products are not world class, and, therefore, candidates for outsourcing. The company has entered into a deadly spiral. "Hide
by Robin Cooper, Patricia J. Bost Source: HBS Premier Case Collection 7 pages. Publication Date: April 23, 1990. Prod. #: 190085-PDF-ENG
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