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In this scenario I believe the best course of action for this company is to go with concentrated manufacturing. 1st reason is because the cost of building the manufacturing plants are very high and highly skilled workers are needed so, some countries may not have access to those highly skilled workers. The company would want to limit the amount of building they have to produce and staff. 2nd the tariffs are currently low for the industry. The 3rd reason is the microprocessors are a very high profit to low weight ratio making it cheaper to ship, and finally is considered to serve universal needs. All of these are reasons why concentrated is better than decentralized for a manufacturing strategy. They type of factory that would work best for a company using a concentrated manufacturing would be a server factory, these types of factories are linked to the global supply chain for a global firm to supply specific country or regional markets around the globe (Hill, C. & Hult, G. 2017). As for what country the company should set up shop for depends on a few things such as it should locate a country that has the skills that are capable to perform the tasks needed to make the processors. This type of working skills will limit the company and its locations to developed nations as opposed to developing or 3rd world countries. The point of going with concentrated is to limit the amount of cost with building so locating it near large populations should be considered as well i.e. Hong Kong, Mumbai or Shanghai. Areas like the 3 cities mentioned would have the population to find the skilled workers needed to manufacture the building as well as making the microprocessors. Having the production facility next to large shipping port will also cut down shipping prices as well. Hill, C. W., & Hult, G. T. (2017). International business: Competing in the global marketplace. New York, NY: McGraw-Hill Education.
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