BUS-101 Lecture Notes - Lecture 43: Offshoring
2 May 2016
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Document Summary
Location strategy know what is important manufacturing vs. service. Technological advances, availability of skilled workers, foreign government policy also influence offshoring. As long as the quality of the product is not compromised, where the product is produced generally has no consequence to the customer. Consider the presence of customers // easily accessible // target audience and where they are located. Consider where their sources of supply are located // close to distribution centers. Online services don"t need to think about location other than for copyright laws. Competitors bring in customer // the mall, lots of competition. Clustering = locating close to competition // attract common customers, skilled workers, suppliers // stronger growth and survival rate // learn from each other // leads to innovation benefiting the customer as well. Production vs. ops know the difference. Make to order vs. make to stock.
