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Flextronics Internal Growth Strategies

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Internal growth strategies tend to rely on actions such as hiring more employees, growing the customer base, opening new company-owned locations or developing new products through internal research and development. External growth strategies tend to focus on meeting growth objectives by establishing relationships with third parties, such as strategic-alliance partners, licensees, franchisees and co-branding allies.

For example, in 1993, Flextronics was a midsize manufacturer with sales of a few hundred million dollars. When many high-tech companies either abandoned or chose to outsource their manufacturing functions, Flextronics filled the void by making itself available as a manufacturing partner. As a result, Flextronics has expanded to 70,000 employees working in 150 factories in 27 countries, with estimated annual sales in 2001 of more than $20 billion. In early 2001, Ericsson turned over its factories and manufacturing operations entirely to Flextronics, a relationship that could be worth as much as $5 billion a year to the growing company. Several other companies, such as Solectron, Celestica and SCI Systems have also experienced dramatic growth over the past several years by offering a full range of research, development and manufacturing services.

Companies can learn from this example, to create complimentary products and services that fulfil market needs.


YouSigma. (2008). “Flextronics Internal Growth Strategies." From

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