Market Expansion at cms electronics
8,00 $ – 50,00 $
CASE STUDY. How geographic shifts in the centre of gravity of a global industry can affect the global supply chain management and internationalization strategies of a relatively small industry player.
Market Expansion at cms electronics: Abstract
Market Expansion at cms electronics is a case study by Dietmar Sternad.
This real case about cms electronics, a European electronic manufacturing services (EMS) provider, presents a decision situation in which the company’s CEO must determine the best way to expand activities in the Asian market. A “follow the customer” strategy seems to be called for, as the company’s customers, mainly in the automotive sector, are shifting their focus from Europe to Asia. Setting up a local factory, however, would involve a high level of risk and investment for this relatively small company.
The case can be used to discuss how geographic shifts in the centre of gravity of a global industry can affect the global supply chain management and internationalization strategies of a relatively small industry player.
- Explore how smaller players in a global industry can benefit from the advantages of internationalization despite their relative resource disadvantages compared to global market leaders
- Understand the importance of location-based advantages in a global business environment
- Investigate how companies can profit from cross-border cooperation along the value chain (with outsourcing partners) and at the same level of the value chain (in international joint ventures)
- Understand that companies can be set up as efficient, integrated value creation systems across national borders
Main themes covered
- Internationalization of resource-constrained medium-sized companies
- International joint venture
- Optimizing global supply chains
- Building integrated cross-border value creation systems
Concepts and theories related to the case
- Capabilities-based theory of the multinational enterprise
- Risks and benefits of international joint ventures
- Strategic alliances
- Key success factors
Teaching notes are available for professors. Contact the HEC Montreal Case Centre.
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