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Podcast: HBR On Strategy
Episode: Ask These Questions Before Choosing a Manufacturing Location
Description: In today’s global economy, what are the factors that go into choosing a production location?
In this episode, Harvard Business School professor Willy Shih draws on his case study about China-based automotive glass maker Fuyao to discuss this core strategic question. The company must decide between two options to fulfill its upcoming contracts: its new Ohio factory or its factory based out of Tianjin, China. Unlike the Ohio factory, the Chinese factory produces below the cost target, but it also incurs extensive shipping costs and requires a far greater amount of inventory holding.
Shih ex...