Bit technologic Inc. being a new firm should consider setting up in metropolitan areas to facilitate innovations. This paper aims at showing the various factors that should be put to consideration when setting up bit technologic Inc. given that it is a high-tech manufacturing firm and how its identity may influence its structure.
If bit technology is a small firm it would be best suited in a cluster in order to attain minimum efficient scale of advertising or marketing, in this setup it would be easier for bit Inc. to access capital markets and could use previous information to assess profitability of the initiative.
Resources should be easily available, actors involved offer labor resources. Efficient sources of raw materials and costs of shipment. The company requires devising strategies for the resources to meet the location requirements. The availability of resources serves to cut down the cost in transportation whereas the availability of human labor determines the amount spent in wages reflecting the marginal returns.
Another benefit of agglomeration is the minimization of costs of obtaining information and at the same time allowing maximization of opportunities of acquiring it and exchanging it. The firm should also focus on localization of both demand and supply, best location of sites could be near a research center with good proximity facilitated by efficient transport.
Legal factor govern how firms carry out their business. Some of the legal factors that bit technology Inc. should consider are the court litigation systems in the country, common law and statutory law. The firm should as well consider intellectual property protection. The firm should also aim at understanding the local law of the foreign country to prevent instances of legal disputes, laws vary from country to country.
Works cited
Amnon Frenkel(2014).Why High-technology Firms Choose to Locate in or near Metropolitan Areas. Retrived from
http://usj.sagepub.com/content/38/7/1083.short
Czinkota and Ronkainen(2010).International marketing challenges. Retrieved from
https://Toolkit.smallbiz.nsw.gov.au/part21/104/481
