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| Topic: |
Business
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| Number of pages / Number of words: |
12 / 3114 |
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Segregated locations are not fully able to optimise resources and realise cost savings by learning, and reducing the unit costs by increasing product volume. In addition, high volumes can improve bargaining power with suppliers. Location economies are only fully attained when value creation activities are performed at locations (anywhere in the world) optimal for the activity (Hill, 2007)...
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Location economies are only fully attained when value creation activities are performed at locations (anywhere in the world) optimal for the activity (Hill, 2007). Location strategies limit optimal production to the level of localisation, which is usually on a per country basis.
A global standardisation strategy can realise the full benefits of learning effects, economies of scale and location economies...
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