Location Analysis : Legoland Malaysia
Location analysis is an important decision and should not be taken lightly. The physical location of business functions is an important part in the supply chain strategy of any company. Many companies such as Hard Rock, Universal Studios, Disneyland and Lego are expanding their business to Asian Countries such as Malaysia, Hong Kong and Singapore. There are a few reasons why these businesses are investing outside of their home countries include: improved market access, reduced operating costs, sources of raw materials, consolidated operations, development of new product lines, improved productivity, develop new technologies, improved labor force access and reducing the risk. This report will discuss about the location decision of Legoland Parks in Johor Bahru, Malaysia.
Legoland Malaysia is set to open by late 2012 in Johor Bahru at Nusajaya, Iskandar Malaysia Economic Region. This will also be the first Legoland Theme Park in Asia and sixth in the world after Denmark, Britain, California, Florida and Germany. The massive 76-acre (31 hectare) project is brought together by IDR Resorts and UK based company, Merlin Entertainment costing a RM750 million joint venture. Merlin Entertainment will design and operate the park which will be the centerpiece of a 145-acre integrated complex with a gross floor area of 5.5 million square feet that will include a lifestyle retail center, offices, hotels, serviced apartments and residential units.
Basically there are five factors of the location decision for Legoland to expand its business in Malaysia namely the transportation factors, the availability of labor, the market situation, Malaysia’s government policy and facility in the local community. The reason Johor been chosen is to complement the Universal Studio Singapore, since Singapore is just next to Johor. Easy access between Johor and Singapore using highways will attract visitors from Singapore. According to the plan,...
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