Counterfeiting Activities By Steffon Ford Prof M Nakamura
Counterfeiting Activities By: Steffon Ford Prof. M. Nakamura Advanced Manufacturing Processes Fall 2013 Background: Findings: • Today counterfeiting is a major issue and has grown substantially over the past years in such diverse product categories, from automotive parts, computer software and electronic devices. This has become the greatest threat to today’s global market. • There are many types of counterfeits such as knockoffs, simply a copy that sells for less than the original, reverse engineering, in which involves disassembling a mechanical device, electronic component or computer program etc, and analyzing its components and workings to support creation of a new device or program, which does the same thing. • Some counterfeits quality is so good that major retailers purchased these counterfeits unknowingly. • In reducing counterfeiting activities, it is important to make sure that the targeted firm is aware of counterfeiting activities as soon as possible and need to pay attention to products in which are considered high risk for counterfeiting activities. • Microsoft uses a tool to enable customers to determine whether they have a genuine Microsoft product. This software will detect and warn you if the version of Windows is counterfeit. • Fortune 500 companies have spent an average of $2 -4 million per year to fight counterfeiting. Others spent as much as $10 million to setback counterfeit products • Demand budget actions, reduces demand by making counterfeit merchandise easier to identify and make consumers aware of the risks of counterfeit purchases. • Supply budget actions reduces the supply of merchandise through better controlling of monitoring websites to search counterfeits and using track and trace technologies. Overview: • Counterfeiting activities can be detected and reduced • Early warning signs of counterfeiting can be developed. The existence of counterfeiting merchandise usually goes undetected for a certain time period. • To monitor, prevent, remove and or reduce counterfeits can be budgeting. The cost of such to eliminate counterfeit merchandise from the marketplace are high. • There are demand side strategies to prevent counterfeiting. Consumer education programs make resellers and final consumers aware of counterfeiting. • As well as there’s demand side strategies there are supply side strategies, which seek to limit the supply of counterfeits by legal actions to reduce counterfeits. Conclusion: • Counterfeiting is a global circumstance affecting a wide range of products that is increasingly common. There are effective strategies to detect and reduce counterfeiting activities. • Early detection reduces the lost in sales to the owner and also the lost in image. • A firm needs to budget to prevent and remove counterfeit merchandise from the market place. • An anti counterfeiting strategy needs to focus on demand side and take charge by consumer education or track and trace technologies • A firm needs to put into an effect of the supply side, such as controlling outsource suppliers and legal actions • Using multiple outsource suppliers can reduce third shift goods Discussion: . Counterfeit electronics cannot be spotted as easily as a knockoff Rolex or a designer apparel. • There are plans to reduce counterfeiting. The most obvious way to avoid counterfeits is to only buy parts from authorized original equipment manufacturers (OEM) or their authorized distributors • Safety concerns can be a major issue due to the large amount of counterfeit products eg: automotive technology with high safety risk such as break parts. • RFID technology is used worldwide as a counterfeiting preventer. References: • http: //www. sciencedirect. com/science/article/pii/S 00076813 08000037 • http: //www. sciencedirect. com/science/article/pii/S 01663615 10000175 •
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