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The Plant Location Puzzle

1. Should EDC proceed with the Asian market opportunity?
I believe that EDC should proceed with the Asian market opportunity because the saturation point has been almost been reached in the U.S. which means that there is not much room for EDC to expand and grow as a company if they only stay within the U.S. If they move to Asia, there is a growing middle class able to purchase the bikes because they have a more disposable income.
2. If they are going to proceed with the Asian opportunity, where should they locate and why?
I think that they should relocate to Taiwan if they proceed with the Asian opportunity, because of Taiwan’s many different resources and better infrastructure. This would ensure that power outages would not be as common as in China. The roads and waterways would be less contaminated if at all, which would allow a potential facility to run more efficiently and at a more eco-friendly level. Taiwan also has a decent-sized population, resulting in a large available workforce.
3. Which part of their business (marketing, production, design/engineering) should be located at their new location?
I believe that the new location should focus on production. With all of the resources available at a moment’s notice because of a larger market, production is not slowed when waiting for materials. Also, if the production is done there, money can be saved by not having to ship the materials back and forth between facilities. Each bike can be produced at a lower cost while still maintaining the quality that EDC prides itself on. These bikes can then be sold world-wide, not just within the U.S. and Europe. The business goes national and the business has the ability to expand both in locations and in profits.

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