The case study of Solectron Corporation demonstrates how effective
             and efficient network (or virtual) organizations can be. Network (or
             virtual) organizations, in their most simplistic terms, are outsource
             vendors. These companies perform a bulk of a product's life cycle under
             contract for another corporation, which is named as its manufacturer.
             Companies like this allow the other organizations to focus on the parts of
             the product life cycle that they are best at.
             This is different from traditional organizations in that much, if not
             all, of the product development, production, distribution, marketing, and
             servicing are handled by a company other than the purported manufacturer.
             Not so long ago, if a product said it was made by the ABC Company, then
             chances were that company primarily manufactured it. Perhaps a supplier
             made a part or two, but for the most part they had control of the majority
             of the product's life cycle. If there were servicing or warranty issues,
             then again, the consumer could deal with the manufacturer. With network
             (or virtual) organizations, they operate as a third party that handles much
             more of the product then previously experienced in manufacturing history.
             Network (or virtual) organizations have come into existence as
             companies try to become evermore efficient and effective in their
             operations. Companies, such as Solectron, can develop, produce,
             distribute, and service a product more cost efficiently than other
             manufacturers, due to the economies of scale. This not only allows for
             decreased costs for the organization, but it allows them to focus on their
             core competencies, the areas where they excel, as well as invest more
             Solectron has contributed to the rise of these types of companies
             because they are so effective at it. Not only does Solectron provide a
             more cost efficient product, but their commitment to quality
             ...