dc.description.abstract | Over the past decade, rapid economic development in China, especially in the coastal provinces, has led to urbanization labor shortages. The government in these early developed regions all implemented the strategies of urban redevelopment, by replacing labor intensive industries with capital intensive ones. This results in a massive corporate migration to inland or western China, which are less developed. Factories in the Pearl River delta and the Yangtze River delta are all facing the pressure of west-bound migration. The computer assembly companies, especially those assembling notebook computers, flock to Sichuan and Chungqing, since the major computer brand owners were all lured by the local governments with huge tax incentives to move there. However, the migrating factories are moving at a high expense, thus selection of a suitable location is very important, and can greatly affect its competitiveness.
Company ABC in this study is the supplier of a key component for notebook computers, supplying to virtually all the major notebook assembly companies. Hence, it is faced with a mounting pressure from its customers to migrate to the Sichuan/Chongqing region. This study engages a site selection process, to scientifically choose the best site, so that the migration can help improve the competitiveness of ABC.
This study first proposed a structure for choosing a destination city for Company ABC, and suggested relevant key factors and weightings for comparing the candidates. Secondly, the three candidate sites strongly proposed by its customers were examined, based on regional economies of the candidate sites, and considering Company ABC’s development strategies and investment scales. Next, it analyzed all factors for the sites, including cost advantages, resourcefulness, geographical advantages, political and environmental advantages and sustainability. Finally, a weighted total of all the evaluations were tallied and arrived at a conclusion, which is proposed to Company ABC. | en_US |