The Very Specialized Bike Company

Should a boutique bike company outsource the production of its headlights?
Sudhakar Balachandran, Tim Baldenius, Gil Sadka  | Winter 2008
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A high-end bicycle manufacturer, which currently produces all of its own headlights, expects to sell 5,000 units this year. The company receives an offer from an outside vendor to supply headlights at what might be a lower cost. In this case, students determine whether outsourcing the manufacture of headlights will increase profits for the company.

Case ID: 080101

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