Pacific Systems - Case Study Example

Pacific System Corporation aims at diversifying its scoop of operation by venturing into a new business line, DVD business. However, the business has troubles determining the most ideal supplier for it products. Pacific System Corporation’s management has managed to come up with four suppliers that it find ideal for this new business line. However, one of the four suppliers is to be selected and the process of selection should be quantitatively supported. However, as much as the business wishes to venture into the DVD industry, it is bound to experience hostile reception into the industry due to the stiff competition.

Moreover, the industry is prone to counterfeiting by various website operators. The DVD industry group has however filed a case against these operators so as to counter this illegal activity. Pacific System Corporation is a medium sized high technology company. PSC is located in San Francisco. During the company’s early years of operation, it specialized in production of subsystems for personal computers and engineering firms. However, in the year 2000, the company diversified its scoop of operation by adding an engineering workstation to its product offering.

Over the years, the company has undergone a transition from being a single product manufacturer to a multi-product manufacturer. Moreover, the company’s growth did not stop at that. The company expanded its business in the computer industry since it forecasted a steady growth in the consumer industry since due to the steady but slow economic growth. The company indulged in outsourcing of DVD drives for that matter. Decision to outsource DVD Drives was arrived at based on the market study that the manufacturing cost of these products in-house was highly prohibitive.

Pacific System Corporation need to critically analyze and quantify its purchase needs. Local sourcing is the most ideal sourcing strategy for pacific System