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Manufacturing location strategy

By 2012, India is expected to export half a million vehicles a year. South Korea's Hyundai is leading the charge, exporting over one third of its Indian production. Suzuki and Nissan have both entered the Indian market more recently. Both Hyundai and Nissan made their investments in the southern Indian city, Chennai.

What is the an advantage to be had by investing in the same region as rivals? If Hyundai, Nissan, their suppliers and other automobile companies continue to make investments in the Chennai region of India, how might this region evolve over time? What does this suggest about manufacturing location strategy?

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One of the possible advantages that you might want to look at in answering this question is that investing in the same region as rivals will provide a healthy competition for personnel and material resources within that region which would help to prevent rivals from enjoying unlimited access to the human and material resources in that region. You ...