Concentrated Marketing vs. Decentralized Marketing

An electronics firm is considering how best to supply the world market for microprocessors used in consumer and industrial electronic products. A manufacturing plant costs approximately $500 million to construct and requires a highly skilled workforce. The total value of the world market over the next ten years for this product is estimated to be between $10 billion and $15 billion. The tariffs prevailing in this industry are currently low.

Should the firm favor concentrated manufacturing or decentralized manufacturing?
What kind of location(s) should the firm favor for its plant(s)?

  • Explain why you agree or disagree, and add some examples to support your points.
  • Relate your personal or work experiences to the current topic.
  • Make connections between current topics and the readings.

Sample Solution