Spin Master Toys (A): Finding A Manufacturer for E-Chargers
1.) Executive Summary: • Spin Master Toys core competencies are marketing and bringing creative toys to market. • Alex Perez should choose Wah Shing and utilize their core competencies of manufacturing electronic toys. • Electronic components can be difficult to acquire therefore Wah Shing’s relationships with suppliers will be beneficial. • Speed to market is key, therefore Wah Shing has the best capabilities to meet Spin Master delivery commits • Building long-term supplier relationship with Wah Shing is imperative if Spin Masters decides to stay in the electronic toy industry.
2.) My assessment of the process Spin Masters has used to get …show more content…
Another determining factor that I had noticed is Wai Lung is only at 40% capacity whereas Wah Shing is at 80% capacity. If E-Chargers really take off as planned, I need to engage in a longer-term supplier relationship. This is especially true since Spin Master is aligned with introducing a full line of E-Chargers. While Harary was visiting Wai Lung, he mentioned that they had “lost a significant portion” of their business due to a “disagreement with a large toy company”. I realized that Wai Lung may not be our best option as they don’t have a proven track record especially with a large toy company. This could possibly be the result of so much capacity becoming available. Harary also advised that Wai Lung may not be in a position to take on new projects in the short term. Spin Master’s E-Charger does not appear to be a good fit for Wai Lung as they need as much attention as possible to expedite their products through the manufacturing process.
4.) In implementing my decision to have Wah Shing be the supplier of choice for E-Chargers, I would first have to close the loop of management communication. My main focus is to be the first to market with E-Chargers and in doing so I need to communicate with senior leadership at Wah Shing. I believe messages and priorities are best delivered from the top down, so I need to