Corning Inc. Strategic Environment and Impact on Supply Chain

Executive Summary

The document entails the company; Corning Inc. The background description on the company, the strategic environment and its impact on the supply chain. Third, the customer-company relationship followed by the supplier-company relationships; followed by the challenges faced by each and the solutions provided. Corning Inc. is a big manufacturing company; the process of understanding the process involved in the innovation of ideas is tiresome. The company should therefore adopt this approach which allows clarity on their new projects, hence driving their business forward at a quick rate compared to when it was to get stuck on its technical manufacturing operations/tasks. Corning Inc. teaming up with companies that specialize in the task that they would love helps achieve high productivity, competent service and quality products. This approach also increases the efficiency of the company.

Corning has two distribution channels that are major and related to its decision criteria. They include: direct, indirect, or both. They are very important in: Involving customers’ value prepositions, convenience points for current customers, corning’s length, breadth, depth, distribution systems, and competitors. Direct distribution system distribution is put to reach its customers directly through online selling of all its products or opening its stores. Indirect distribution system involves channel partners like retailers, wholesalers, distribution agents, logistics companies, and Hybrid distribution systems. The Corning role manages only the critical system distribution aspect and delegates secondary functions like store management, warehousing, and logistics to other channel partners.

Background Description

Corning incorporated has been known to lead in innovation globally in the department of material science. With many years of proven inventions that changed people’s ways of livelihood. The company has shown its exceptional competence in the department of glass science, optical physics, and optical physics, alongside its ability to engineer and manufacture, to create uniquely defined products that have changed the face of the industries and people’s livelihoods improved at various capacities. The Coning Inc. has been successful and managed to maintain successful investments in the research, development and extension to create substantial profits and through maintaining the base of customer network and relationships with the stakeholders, increased process innovation globally. It had long-term EPS growth expectation of 9.7%. and currently has a Zacks Rank of #3 (Hold).

The capabilities of Corning Inc. have known to be flexible and interdependent, this has enabled the organization the competitive advantage to meet the needs of the market despite the market trends and also the potential consumers get to seize the new opportunities in the aggressive and fast changing industries. The organizations market currently include the automotive industry dealing with gasoline and diesel engines and heavy duty vehicles, life sciences i.e. in the field of laboratory technology and biotechnology, electronics for mobiles customers, Today, Corning’s markets include optical communications, mobile electronics consumers, displays and the products leading would include cover resistant glasses for mobile devices and automobile windshields, optical fiber, phone booths, prison windows, wireless devices technologies, and communicational networks used for  connectivity solutions ; and clean-air technologies for vehicles, computer glasses, advanced optical glasses, monitor desktops, ceramics substrates.

In the recent past the researchers came up with ways to strengthen glass in order to improve its quality and strength something that showed remarkable significance. This idea involved dipping of glass in hot potassium salt bath and adding aluminum oxide and the idea producing a durable substance that would later be embraced by the manufactures of such products dealing with glasses. Corning’s main competitors are Nippon electric glass co ltd and Thamo fisher scientific Inc. Other competitions in the broader industry include: Knowles Corporation KN, Turtle Beach Corporation HEAR and Motorola Solutions.

Strategic Environment and impact on supply chain

Corning Inc. ensures that the activities of the company are running by first ensuring that the inputs are of the highest quality there can be. These goods are procured into the company so as to produce the final product. The company also reduces damage so as to maintain profits. The products are of a wide range and have a flexible manufacturing system. This improves the general appearance of the finished products and prevents premature failure of products. The supply of products increases when their performances are improved and the specific interests of specific customer concerning specific goods are reached.

It is the responsibility of the company to ensure that products are handle safely while shipping so as to avoid any damages. They also ensure that the goods arrive on time and the processes of delivery are as smooth and effective as possible. The company has created brands, awareness and advertisements that ensure effective sales and marketing. These adverts communicate directly to customers and help build the relationship between the company and its customers. It also enhances the relationship between the company and the suppliers. For perfect sales and profits, Corning Inc.  ensured perfect coordination between research, product and marketing departments. Therefore, offering a wide coverage of sales force. Corning Inc. improved the infrastructure through advanced information systems and developing extensive database. It improved the human resource sector by training workers to interact better with clients; rewarding a job well done to encourage creativity amongst personnel and maximize productivity. Use of technology led to the development of new products, promoted innovation and product designing.

As much as value chain is advantageous to the company, it has several challenges: there are high chances of a company losing its strategy and vision due to dividing operations into different departments. The method of division is time consuming and complex; and structuring the business information system is difficult. Some of the professional recommendations on corning as a company will help it achieve the following; Control manufacturing labor costs, maintenance of consistent workforce, Increase flexibility and scalability, reduce manufacturing timelines and tight Schedule, Quality production, Strengthen technical insight and talent pool.

Customer relationship issues

Corning Inc. held meetings with investors and industry analysts to strategize and draw a framework for growth. The doubling of the automotive market led to growth of this glass company since it got more value per device and wins in new device categories. Corning Inc. has ensured gradual growth leading to additional value for shareholders, leading to benefits from several investments (Equity 2019). The use of technology led to increased sales in the industry; approximately 7% compound annual sales growth. Corning Inc. invested in Life Sciences Vessels that is responsible for cell and gene therapy, pharmaceutical packaging using glass. The glass company there by realized a profit of 12-15% annual earnings through sales growth, a higher operating margin and finally, continual share purchases. Corning Inc. has invested in RD&E for long term growth opportunities and organic growth. Corning decided to partner with four strategic partners to handle digitalization initiatives better. Each partner was to perform different roles in handling digital initiatives. Elementa; which is an online company which unites tenders. The company was tasked to improve the supply chain visibility of a corning company. The digitally connected and anti-fragile supply chains of Bristlecone, a premier supply chain advisory firm, helps manage data and analysis.

The major challenge that Corning faced in the past 2 years is that: There was a small reduction of the workforce at the company’s optical fiber plant in Wilmington. The plant is part of the company’s Optical Communications division. They took this action to address the macro-economic headwinds such as: adjusting the costs and capacity while maintaining focus on key growth initiatives. Several major carriers were reportedly further reducing capital spending on cable deployments and fiber-to-the-home projects (O’Neal 2020). Some enterprise customers also reduced their spending below anticipated levels. Another challenge is, some projects require skills that employees in an institution may lack. Outsourcing contractors to operate within the business premise may advantage an instruction since it workers will be working along talented contractors hence acquiring new set of skills. Corning Inc. will be able to lower its labor cost through outsourcing contractors who are asked tasked with specific functions oriented jobs. The company should pay the contractors, offer benefit packages and training of the employees.

Shortage of skilled labor is a threat to corning and steady growth. This challenge can be sought by thorough outsourcing of its manufacturing activities to contract manufacturers. This will enable them recruit employees all over the globe that have the talent and skills required.

New manufacturing technologies developed in the market by the company’s competitors and can pose future threats to the company’s productivity and profit revenue. The company should ensure its up to date with the current and new market trends and technologies so as to ensure it stays competitive in the business. Introduction of counterfeit products and low-quality products is a risk for both corning products and the company’s future, especially in the emerging markets and low-income markets. The company can overcome this challenge from within through thorough supervision.

Supplier relationship issues

Corning Incorporated has alongside Chain Collaboration and associations that gets to understand the value of procurement during operations of the firm. The organization has alongside key suppliers in the supply chain that have collaborated including chain IQ              being a renowned supplier in service provision, OMNIA partners being the biggest in the United States hence the two have worked together with Corning Incorporated for years as they seek more chances the global market. The suppliers get to appreciate importance of technological growth in the digital era an d the need to grow steadily with the first changing trends that’s been a challenge that more suppliers have found difficult to cope up with the advanced technology may be an uphill task to manage coming along with mistakes and errors that suppliers get to learn from considering the costs savings that has been brought about by technology and the effectiveness and efficiency in tasks performance.

The material science technology effect on Corning Incorporated has it that the consumers procure products and services based on the strengths of the supply chain and the levels of performance and due diligence of the professionals. Consumers believe in suppliers that are reliable, and quick to task and who offer at competitive value.  Even though it’s been a challenge to lower costs as there is also the need to offer goods of high quality to the consumers hence the challenge of whether to maximize profit at expense of value or to minimize cost of production and maintain quality of the products in order to benefit the consumer. Hence implementing all the potentiality gives chance for Corning Incorporated to enhance its swiftness across the supply chain and intensify the universal consumer experience.

The Corning Incorporated has so far taken important steps to change the chain of supply. A serious step has been taken to transform the global supply chain in different selected targets i.e. the low cost scale chain of supply, management category, enhancement of quality, trade, strategic management of project, logistics. The organization is keen on enhancing processes and tools that would be of merit to the business community and consumers. While choosing suppliers, Corning must choose companies that can offer price that is competitive. The company motivates and organization of customers by providing enough finance, the contracts containing compliance of the conditions. Corning’s relationship with its suppliers are essential to its success because Corning relies on them for a quality product and on consumers who use their Corning product on their own; An example is Apple. The suppliers are important to Corning Inc. since they ensure steady supply of quality materials, therefore preventing imperfect products with no customers to buy. Corning Inc. has also been supplying LG Electronic vehicle company with home information, dashboards, entertainment system and mobile devices.

The company enabling its value and supply chain management to recognize chances and supply additional worth in its supply chain. Through transformative creativities, the company enables optimization of its supply chain so as to remain competitive. They are also beginning to bring significant value to its customers. The positioning of supply chain perceptibility result significantly decreases the risk for its customers. For example, one of the company’s supplier was affected by a flood; Corning Inc. reacted fast to ensure continued product supply to the company hence achieving customer commitments without compromise. Corning sleeked suppliers that are able to strengthen its supply chain strategies through partnership; partners who will help the company find solutions that would reduce the negative effects and add new values to the supply chain.

The company should ensure that it checks the quality of the raw materials supplied by their suppliers so as to ensure they produce goods of high quality and stay competitive. Suppliers should also comply with all laws and regulations of corning’s suppliers code. There is a code of conduct that governs the behavior of employees in relation to internal accountability, through this conduct, employees promote honesty and adhere to the laws and regulations of the company. This helps prevent corruption in the company. Incompetence can be avoided by ensuring the management personnel take annual test and training on the rudiments on the code of conducts. Similarly, suppliers under go Global supply training so as to ensure they understand the standard set for quality supply. All suppliers must be audited regarding the source of their materials, conflict minerals and the transactions. Failure of compliance to the code leads to disciplinary actions or even termination of one’s contract with the company.


The company’s management believed that consumers’ choices to obtain products are frequently inclined by the ability of a company’s supply chain. Hence, the company’s global supply management and supply chain organizations are working hard to improve its procedures and apparatuses to adopt fresh value proposals to its commercial associates and clients. Corning has continued to remain competent in the midst of the global economic turmoil by dominating its market segments through resilience hence maintaining positive cash flows and strong portfolio since 1851 when it was founded by Amory Houghton who contributed immensely to the success much years later based on the foundation of research and development. The Corning Company is still extending remarkable performance under its new strategy and growth framework focusing more on its strength of finance to have more returns for its shareholders. Hence there is need for increasingly diverse its industries and its market niche to increase more opportunities to increase its market value and shareholders’ equity and share values in the global market.

Most competitive opportunities should enhance the company’s fiber optic solutions business over some years to come. Essentially the ever increasing use of devices like the mobile phones need enough transfer of data and proper networking. This would lead to increased storage and computation on virtual plane if the trend is supported. Corning company has a range of products and there is the need to focus on the market niche and segments. Corning Incorporated needs customer help in order to develop new versions of Gorilla glass. As new designs require ever- more stringent specifications. According to report, the trend can be observed since the new iPhone hit the market to date, glasses still break and get scratched; this calls for the need to get the customers as partners in the cutting edge of innovation as more durable substance is sought to satisfy customer needs. Due to a bigger customer base, consumption of the Corning products is higher and there is need to partner with more competitive suppliers. This helps meet customer demands especially in the fast changing world where the consumers being the market dictators, they appreciate to purchase the most trending devices like the automobiles. In order to maintain the right kinds of chemical substances and other raw materials flowing, price and quality are the baseline criteria


Finally, Corning Inc. is one of the best performing companies in the United States and has been improving on its strategies as well as value chain activities throughout the years. This is through the critical steps that the management came up with to help transform its global supply chain strategies, and it was to develop 12 target services: category management, contract manufacturing, logistics control tower, trading, cost effective supply chain solutions, collaboration and partnership, quality assurance, project management, and strategy. The procurement sector ensures that raw materials are of high quality and reliable transportation for fast delivery. Value chain has been of huge importance to Corning Inc. since the company would be able to access quality raw materials, improve customer loyalty, enhance delivery of products to customers, improved human resource practices, reduce supplier costs, expansion of the business to dispersed areas, backward integration, maximize on operations by reducing waste production, management of risks and finally expansion to various marketing opportunities.

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