Sourcing Strategy

Consider a company ZestraAncea (ZA) that operates in the LED television (TV) industry in India and has its production facility in Coimbatore.

Following are the three important steps in the making and selling LED TV set:

Sourcing of display

Manufacturing and assembly of individual components, including display, into a finished TV

Transporting the television sets to online and offline retailers and selling them through these channels to the end consumers

ZA performs steps 1, 2 and 3 on its own. It manufactures its own displays and uses them for its own TV sets.

Determine what kind of arrangement ZA follows to source the displays for its TV.

1) Outsourcing

2) Near-sourcing

3) Insourcing

4) Long-term partnership