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From Silicon Valley to Singapore - Location and Competitive Advantage in the Hard Disk Drive Industry (Paperback, Twenty-Third)
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From Silicon Valley to Singapore - Location and Competitive Advantage in the Hard Disk Drive Industry (Paperback, Twenty-Third)
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Momentous developments in the global economy over the last two
decades have dramatically increased the availability of industrial
investment sites and lowered the cost of relocating core activities
to new countries. But how should these developments be exploited
for competitive advantage? Firms face competing pressures: scale
economies and the advantages of proximity push them to concentrate
activities in one or only a few locations, while low wages and new
markets invite dispersal across several countries.
This book examines how location decisions have contributed to the
global dominance of U.S. firms in the hard disk drive industry. In
analyzing the industry since its beginnings some forty years ago,
the book explains how American leadership in disk drives has rested
on the formation of two complementary industrial clusters.
Fundamental research and product development has been located
almost entirely in the United States, principally California.
Manufacturing has been concentrated in Southeast Asia (initially in
Singapore and later in Thailand and Malaysia as well). This duality
has proven key to the successful competitive position of the U.S.
disk drive industry.
Beyond the particulars of the disk drive industry, the authors
present new perspectives on the sources of industrial leadership,
the strategic behavior of multinational corporations, the
geographic evolution of industry, and the creation and endurance of
industrial clusters. Managers will gain insight into how location
decisions can contribute to organizational effectiveness, and will
learn that globalizing production, while keeping innovative
activities at home, can contribute to their firms' competitive
advantage. Policy makers will find that first mover advantages may
be as important for countries as for companies, since early and
systematic efforts to attract a specific industry can generate a
critical mass of investments that, over time, will make a location
resistant to inducements offered by other countries.
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