you are right. I think that if people can feel "secure" about their car becaus of the ease of it being fixed, they are more likely to buy the products without worrying. I think Korean cars have made such a big comeback because of their high quality and the warranty they are offering. It used to be that Korean cars are crappy and they break down all the time. Now is really the time to buy time. A few years from now their quality will drop because they no longer need to win the market share.
I believe not many companies see the warranty cycle as a strategic opprotunity. Some have figured this out, like Kia Motors who believe they could drive business by offering the "best warranty in the business" with their 7 year offering. Their task is now to juggle the cost of claims with the extra revenue from sales. Other companies (I will not mention specific names) have made a complete shambles of it. Case in point was a premium $300 golf club returned with a broken graphite shaft after only 1 month. Customer was told that the shaft is only covered for the length 4 inches abover the head and 4 inches below the grip but not in the middle which is the part that broke. I wonder what "word of mouth advertising" will now do for this particular company. Bottom line is "the warranty business" should be treated as a strategic opportunity for growth and not as an afterthought.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.