Flextronics International is rocking

I don't know, if you are aware of Flextronics, but the company is rocking. Flextronics is the biggest contract manufacturers with sales of US$13 billion in 200 and it appears that an earlier bet to increase R&D spending during the economic crisis falling the dot.com bust is paying off.

Flextronics as a contract manufacturer makes everything, from mobile phones to building the XBox. This allows the provider to concentrate on marketing, and improving the experience of consumers by developing innovative ideas (okay, this is a very very short definition).

The company focuses a lot on slashing costs and improving operational efficiency in the supply chain. Its Vice President states that "they are constantly looking for fractions of a penny". And this helps in increasing their profit margins in an industry, where big profit margins are an exception rather than the rule. Ultimately, the company is hiring and heavily expanding.

Why do we like the company? Well, because it does a lot of things right:

It increased its revenues, even when the market wasn't good
It increased R&D even so the market slowed down - a strategy that appears to frequently pay off - see Intel, as another example
It doesn't necessarily retrench people to save costs, but focus its attention elsewhere.

(By Asia Business Consulting)