¶ … Decision to Outsource or Manufacture in-House
Today, a growing companies of all sizes and types are confronted with the decision concerning whether it is in their best interests to manufacture their products in-house or outsource the various functions of the supply chain. One such company is Karmel Games which is headquartered in La Jolla, California. Founded in 2006 by Geoffrey Moran (current CEO) and Kim Treffinger (current sales director), Karmel Games has introduced a line of educational games and toys under the brand Evolving Toys over the years that are all manufactured by the company in the United States that have won numerous awards from educational organizations for their innovative design that makes learning fun and contributed to its success. To gain some new insights into the rationale behind the company's decision to retain the manufacturing of its line of games and toys in-house, this paper reviews the relevant literature concerning these issues to include a strengths, weaknesses, threats and opportunities (SWOT) analysis of the company and an analysis concerning the potential impact that would result from alternative sourcing strategies such as offshoring or outsourcing this function. Finally, a summary of the research and important findings concerning Karmel Games' decision to retain the manufacturing function in-house are presented in the conclusion.
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