Hakkai Creates China (A)

Abstract

Hakkai Creates, a successful SME in Japan, is a producer of tiny precision plastic parts as well as molds used for making these miniature parts. It is a supplier to some of the leading manufacturers of electronics and telecom products like Sony, National Panasonic, Casio, Sanyo etc. It has developed distinctive capabilities and capacities over the years. One of its largest customers has moved production of its key innovative product from Japan to China. Hakkai is being asked to move its operations to China in order to continue as a supplier to this customer. Hakkai has to decide whether it should move its operations to China and how to compete in the new outsourced environment.