location economies

8/11/2019 Location Economies

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LOCATION ECONOMIES

SREEKUMAR MENON-14


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Why Are Location

Economies Important? Location economies are economies that arise

from performing a value creation activity in the

optimal location for that activity, wherever in the

world that might beBy achieving location economies, firms can

Lower the costs of value creation and achieve a low

cost position

Differentiate their product offering


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Why Are Location

Economies Important?Firms that take advantage of location

economies in different parts of the world,

create a global web of value creation

activities

Different stages of the value chain are

dispersed to locations where perceived value

is maximized or where the costs of valuecreation are minimized


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APPLE

Designed in California

Made in China


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SAMSUNG

Manufactures in India in Noida

Uttar Pradesh and in Chennai

Manufactures 3D, LED and LCtelevision sets


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SONY

Sony LCD panels made by a

Taiwanese manufacturer


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HARLEY DAVIDSON

Original plant is in Milwaukee

Wisconsin, United States

It has setup plant in Bawal,

Haryana, its only manufacturing

Plant outside the United States


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SHELL

Operates in more than seventy

countries

92000 employees

1.96 million tones of LNG

sold during the year

3.2 million barrels of oil

equivalents we produce

everyday


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NIKE

Nike has 24 factories in India

More than 25000 workers


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ADIDAS

China: 337 factories

India: 99 factories

Indonesia: 79 factories

Vietnam: 76 factories


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MERCEDES BENZ

Its largest research and

development center outside

Germany with the launch of its

Bangalore R&D center in 1996

It currently employs over 1200

people and plans to increase

the number to 1700 by 2017


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HYUNDAI

Hyundai entered Indian market

in 1996

Hyundai has become the

second largest automobile

manufacturer in India

Manufacturing unit in Chennai,

output of 300000 cars per year


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HONDA

Honda is the largest

producer of two

wheelers in the world

Plant in Manesar, Gurgaon,

Haryana has a production of

1.65 million units

Second plant in Tapukara,

Alwar, Rajasthan has a

production of 2.8 million

units


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YAMAHA

Manufacturing facilities in

India are at Faridabad,

Haryana and at Surajpur

Uttar pradesh

Yamaha made its foray into

Indian markets in 1985, the

Surajpur plant has a capacity

of producing 1 million

motorcycles a year


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BMW

BMW India Pvt Ltd has its

headquarters at Gurgaon

Haryana

It has a manufacturing facility in

Chennai

It produces 11000 units per year


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THANK YOU

location economies

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