Question

In: Economics

where is the best location for a software production company, Animation firm and Snow board Manufacturers....

where is the best location for a software production company, Animation firm and Snow board Manufacturers. Explain why?

Solutions

Expert Solution

The most suitable location for any company will depend upon various factors like the nature of produce, raw material requirement, capital assets needed, human resource, market for the produce etc. For examples raw material dependent industries like sugar, coal, metals, etc should be located near the source of the raw material as transportation of such bulky raw materials will not be cost effective. Similarly products like woolens are generally located in cold areas as the market is near.

Software production companies produce products which do not require physical delivery. So these companies need not require to be located near the designated markets. These companies mostly require apt human resource. So if located in regions where required man power is available at decent costs these companies will run efficiently. Due to this only a lot of KPO's, software companies etc are located in developing counteries like India due to cheap and efficient human resource.

Animation firms shall be located near their market or where there is demand. Snow board manufactures shall be located near hill stations where tourists come in huge nos. Because the demand is greater their. Also supply chain availibility at the location is required.


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