Comments on: Fo-lex-tron-ics: Good, bad or ugly for the industry? http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/ Read what our thought leaders are thinking, in our every-other-Friday TFI blog entries. Sign up with your favorite RSS Feed service and get an automated alert whenever there's a new posting to the TFI Weblog. Tue, 24 Aug 2010 16:09:05 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: John Constantine http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/comment-page-1/#comment-919 John Constantine Fri, 08 Jun 2007 18:54:47 +0000 http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/#comment-919 My impression is that Flextronics has always been Nimble and Solectron the Behemouth. Seems not like a marriage made in heaven. My impression is that Flextronics has always been Nimble and Solectron the Behemouth. Seems not like a marriage made in heaven.

]]> By: Tom Valliere http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/comment-page-1/#comment-917 Tom Valliere Fri, 08 Jun 2007 16:55:38 +0000 http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/#comment-917 I had been surprised that consolidation in this sector had stagnated since the SCI-Sanmina merger. In a business where material margins acount for profitability, Solectron was a weak player. Flextronic's expertise in supply chain managment, now energized by increased spend (leverage), should give the component suppliers pause. I think this is good move for Flextronics assuming they don't stumble on the business integration side - but they have several people on board that struggled with that issue with the DEC/Compaq merger so perhaps they know how to do it this time. I had been surprised that consolidation in this sector had stagnated since the SCI-Sanmina merger. In a business where material margins acount for profitability, Solectron was a weak player. Flextronic’s expertise in supply chain managment, now energized by increased spend (leverage), should give the component suppliers pause. I think this is good move for Flextronics assuming they don’t stumble on the business integration side – but they have several people on board that struggled with that issue with the DEC/Compaq merger so perhaps they know how to do it this time.

]]> By: Eric Miscoll http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/comment-page-1/#comment-916 Eric Miscoll Fri, 08 Jun 2007 16:33:14 +0000 http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/#comment-916 I don't quite get all the hoopla around this. The EMS industcy has always thought itself special and unique, so maybe it thought that consoldation among the top tier players would not occur. But as we all discovered with the 2001 recession (in that case that the EMS industry was not a recesssion proof industry as many people had postulated), the EMS industry is not unique as it is subject to the same issues that plague and benefit all other industries. In the case of Flex-SLR, I'd say it's about time someone took control of that floundering relic of its former self and try to milk the goodness out of it. In order for this acquisition to be successful, Flex will need to cut fast and deep. In business, EMS or other, 2 years is an awfully long time so I don't think they have that long to manage the integration. To paraphrase Freud , "Sometimes an acquisition is just an acquisiiton." This should be basic business 101 at this point. I don’t quite get all the hoopla around this. The EMS industcy has always thought itself special and unique, so maybe it thought that consoldation among the top tier players would not occur. But as we all discovered with the 2001 recession (in that case that the EMS industry was not a recesssion proof industry as many people had postulated), the EMS industry is not unique as it is subject to the same issues that plague and benefit all other industries. In the case of Flex-SLR, I’d say it’s about time someone took control of that floundering relic of its former self and try to milk the goodness out of it. In order for this acquisition to be successful, Flex will need to cut fast and deep. In business, EMS or other, 2 years is an awfully long time so I don’t think they have that long to manage the integration. To paraphrase Freud , “Sometimes an acquisition is just an acquisiiton.” This should be basic business 101 at this point.

]]> By: Diane Krandel http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/comment-page-1/#comment-915 Diane Krandel Fri, 08 Jun 2007 16:19:55 +0000 http://www.techforecasters.com/weblog/archives/fo-lex-tron-ics-good-bad-or-ugly-for-the-industry/#comment-915 Hello Bill, Interesting perspectives...made me think that perhaps Flex would have been smarter to spend their money on vertical integration as FoxConn has done or...build the best, most competitive virtual value (supply) chain possible. Flex may benefit from Solectron's new medical supply chain reach but this may not be enough to make this move a good one. Very interested in observing how this one plays out! Hello Bill,

Interesting perspectives…made me think that perhaps Flex would have been smarter to spend their money on vertical integration as FoxConn has done or…build the best, most competitive virtual value (supply) chain possible. Flex may benefit from Solectron’s new medical supply chain reach but this may not be enough to make this move a good one.
Very interested in observing how this one plays out!

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