Vizio's Winning Formula: Outsourcing 99% Of Its labour


Vizio racked up nearly $3 billion in revenue last year with just 300 in-house employees on its payroll — that’s about $10 million per worker.

How did the company pull that off? Outsourcing.

The flat-screen TV maker has around 50,000 people — mostly based in Taiwan — working for other companies who manufacture Vizio’s products, according to Bloomberg Businessweek.

Though much of its manufacturing is done abroad through subcontractors and partners, there are some tasks it doesn’t ship overseas. The company designs its products at its California headquarters, and keeps its customer service division in-house as well.

And the business model is working. Vizio continues its reign as the leading seller of LCD sets in North America and has maintained its profitability throughout.

It has also boldly expanded into other electronics segments, first with HDTV accessories and Blu-Ray players a few years ago. Vizio recently entered the high efficiency LED lighting industry and now looks to shake up the tablet and smartphone industries with its VIZIO Phone and VIZIO Tablet.

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