Harvard Business Review on Succeeding as an Entrepreneur by Harvard Business Review

Author:Harvard Business Review
Language: eng
Format: epub
Publisher: Harvard Business Press
Published: 2011-07-11T14:00:00+00:00

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Customers expect start-ups to possess the skills and deliver the levels of quality that larger companies do. That’s a tall order for resource-stretched new ventures. Still, they have no option but to do whatever it takes to retain customers. In 1987, Jim Sharpe acquired a small business, XTech, now a manufacturer of faceplates for telecommunications equipment. Initially, the company made its products in the United States and sold them overseas through sales representatives and distributors. However, by 2006, Cisco, Lucent, Intel, IBM, and other XTech customers had shifted mostof their manufacturing to China. They became reluctant to do business with suppliers that didn’t make products or have customer service operations in China. So Sharpe had no choice but to set up a subsidiary in China at that stage.

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