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In the News

Offshoring and Branding - Toblerone removes mountain peak from packaging

Graham Watson

8th March 2023

An interesting story about offshoring and the implications of this for the Toblerone brand, as they are no longer able to use the Matterhorn image on its packaging. Mondelez are going to start producing the iconic chocolate in Slovakia, but in doing so they are unable to advertise its "Swissness". Will it affect the popularity of the brand though?

In other news....

Offshoring refers to the practice of moving business operations, manufacturing processes, or services to another country where labor costs are lower or where the company can benefit from other favorable economic conditions.

Offshoring is a form of outsourcing, which involves the contracting of business functions or services to a third-party provider. However, unlike outsourcing, offshoring involves relocating these functions or services to a different country, often to take advantage of lower labor costs, tax incentives, or regulatory environments.

Typically, offshoring is done in industries where labor costs make up a significant portion of the total production or service delivery costs, such as manufacturing, software development, customer service, and back-office operations.

While offshoring can result in cost savings for companies, it can also lead to job losses in the home country, as jobs are shifted to offshore locations. Additionally, offshoring can have cultural and language barriers, logistical challenges, and political risks, which companies need to consider when implementing an offshoring strategy.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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