Assume you have the role of top management at a major global electronics company that is developing a wireless device capable of on-demand music and video downloads from anywhere on the globe. What criteria should the company use to determine where to manufacture the device and whether or not to enter into a collaborative arrangement to manufacture the product or control it internally?
The company will need to evaluate various factors and criteria before finalizing the decision related to the location of the manufacturing plant as well as to decide whether the product has to be made by entering into a collaborative agreement with a third party manufacturer or produce it internally.
First of all, in terms of location, the company will need to select a location that not only provides comparative advantage in terms of cost of production, but also in terms of quality of products. In other words, the company will need to finalize a location that not only ensures availability of ...
Discusses the criteria that a company should use to determine where to manufacture the device.