American Quote by Joe Kaeser
“It used to be that American and European companies built their products in low-wage countries, separated by great distances from the innovators who developed the products and the markets where they were sold. But companies increasingly find that is an outmoded way of doing business.”
About This Quote
Source Speech: Business Strategy, 2018
Geographic separation between innovators and production is outdated; closer integration improves efficiency.
In simple terms: Close innovators and production.
Integrate supply chain.
Themes
Mood
Type
When to use this quote
- manufacturing
- product development
- logistics
Key Concepts
Questions to Reflect On
- How can firms restructure?
- What benefits arise from proximity?
Transition costs can be high.