Answer the question?

Dear Students, 

(A) The mode of entry into International Business used by the company is Contract Manufacturing 
(Because , the company is outsourcing the different companies for manufacturing the parts of its phone.)

(B) Contract Manufacturing:
  contract Manufacturing means a process of outsourcing by the company to manufacture its part by other companies at lower cost. The main companies either assembled the manufactured part or directly put their label on the manufactured product.

Advantages : 

• Large scale of economies : Contract Manufacturing outsoure the production activities. This will helps them to reduce their production cost because the company to which they outsoure for manufacture the parts are specialise in a particular activity and produce the product in large quantities. So, this large scale of economies helps the main company who outsourced the activity.
• Better quality Products : Through this mode of entry , The companies can be able to produce better quality product as they outsourced the production activities and assigned to those who are expert in their activities. In this way , they helped themselves to produce better quality products.

Disadvantages :  

• Delay in Delivery : Contract manufactures might delay in making the products . Because they are not manufacturing the product for the single producers but for many producers. They are expert in their activities but can delay in delivering the products which lead the company delay in making the final products.
• Lack of control or flexibility : Due to the outsourcing , the company loses ot control over the production process. It also lacks the flexibility as the market can be fluctuate any time due to which company may have to respond. But , the company cannot change its requirement to the contract manufacturers once the order is placed with them

regards.