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However, it would mean that it will be far from its customers. Thus, organizations have tobalance the costs faced and the number of customers that they are able to sell to.Proximity to CompetitorsUsually, when major resources are found, organizations will tend to locate to thatarea, even if they are close to the competitors, which is referred to as clustering. The pro3
6.3 – ASSIGNMENT: LOCATION DECISIONS (PLG1)about being in that area is that the amount of resources is high and easily obtain, however, theorganization faces a risk of being overthrown by surrounding competitors or lack of resourcesdue to other competitors taking it up.RecommendationDyson’s market is mainly around the Asia region with its manufacturing plant mainlyin Malaysia. Thus, it would be beneficial for Dyson to the Asia region, more specificallySingapore. With incentives and benefits provided by the government and access to resourceshere, Dyson will be able to get hold of innovators and engineers in the Asia region, especiallywith their new electric car project coming up. In this case, Dyson considers the proximity tomarket, suppliers, and competitors. By setting up a headquarter in Singapore, it is close to themarket region, which is Asia. It is close to the suppliers as well, since Broadcom, a UnitedStates semiconductor company, has its global headquarters in Singapore. In terms of tangible cost, it depends on the government’s incentive and benefits,potentially the rates offered to them is reasonable that allows Dyson to decide to relocate toSingapore. However, in term of intangible cost, the quality of education and the people’sattitude towards Dyson is positive, thus, it would beneficial for Dyson to relocate toSingapore.In conclusion, relocating Dyson’s headquarters to Singapore is a good choice since itis close to its manufacturing plant and quality resources are available. In addition, it is closeto its market to allow better facilitation in terms of products inquiries, sales, and marketing.4